Developer's Plans for North Hills Mall Under Wraps

RALEIGH, NC-Local developer John Kane is playing the waiting game but tenants at the 37-year-old North Hills Mall 2000 are anxious to know when Kane’s plans to buy the retail center will be completed. Kane is buying the asset from the O’Connor Group of New York for an undisclosed sum. The deal was tentatively scheduled to close by year end.

A number of the mall’s tenants have received letters informing them of the pending mall’s transaction and defining new lease termsTenants say the letters are routine in retail deals of this category but wonder who the purchaser is since Kane’s name isn’t mentioned in the leasing information. North Hills Mall was founded by Kane, who also owns nearby North Hills Plaza and operates Kane Realty Corp.

Kane has not revealed his financial backers and hasn’t discussed plans for the shopping center. He has confirmed, however, that he will dismiss the current owner’s $70 million plan to renovate the 37-year-old site, and develop his own updating program. Kane is also silent on plans for next-door North Hills Plaza. Previous plans for this site have included a hotel, a parking garage and an apartment tower.

North Hills Mall was the region’s first enclosed shopping center and was once the city’s most active retail destination. But since Crabtree Valley Mall opened nearby, it has been losing sales ground and customer traffic.