Bankruptcy Court OKs Defunct Galvez Mall Sale; Buyer Plans 300,000-SF Power Center

HOUSTON-Federal bankruptcy Judge Letitia Clark has approved a motion for the sale of the former Galvez Mall, situated on 30 acres, opening the door for a major retail redevelopment on Galveston Island.

The island is located less than an hour’s drive southeast of Downtown Houston. The mall had closed in 1996. The ruling clears the way for Island Realty to tear down the mall along Interstate 45 and 61st Street and develop a 300,000-sf power center with a home improvement store and other big-box retailers. Island Realty is owned by Houstonian Randy Hall and Dallas businessman Tod Ruble.

Ruble is the founder of Cambria Acquisition, which now plans to buy the property from Houston-based Galtex Property Investors Inc. The closing is scheduled for Nov. 28. Galtex had filed for Chapter 11 bankruptcy protection in September.

The Galvez Mall began deteriorating in the early 1990s when Sears relocated to the Mall of the Mainland near Texas City. The mall’s shrinking customer base had caused a number of retailers to seek more profitable locations.