INDIANAPOLIS — Tenants inside Circle Centre Mall say they are frustrated as they watch more businesses pack up and leave the downtown property.
For years, the mall has struggled with shuttered storefronts and slow foot traffic. This became a bigger challenge when big box stores like Nordstrom and Carson’s moved out.
“We have literally stopped hoping that we make money,” said Apollo Bean, the owner of Apollo’s Fine Fashion on the second floor. “This week I’ve done one transaction a day.”
Last December, Hendricks Commercial Properties announced a $600 million redevelopment project that would gut the inside of the mall and replace it with an outdoor concept. The Wisconsin-based company said it would be done in phases over the next decade.
Hendricks then purchased the mall in April and took over management from Chicago-based JLL.
At first, tenants felt hopeful about the new investment. However, many told 13News they now feel “pushed out.”
Since last December, Bean has counted 19 stores leaving the mall.
He and other tenants have also struggled to get in contact with the new management about holiday hours and marketing.
Bean said overall he believes sales are down roughly 70% compared to last year.
“We believe they are literally trying to drive traffic away so we can’t pay rent. If we can’t pay, they can say, ‘Well I know you said to keep small businesses in the loop, but we had to get rid of them because they couldn’t pay,’” Bean said.
Plus, tenants say there are ongoing maintenance problems like escalators being turned off and elevators out of order.
"There are people who want to come and support this store and other stores in here, but it's like they are being detoured,” Bean said.
In November, the Regal Theatre permanently also closed at the mall after opening in the 1990s. Hendricks confirmed with 13News that the theatre decided not to renew its lease.
In the mall food court, Nikki Johnson just learned that her lease is being terminated at the end of December.
"I am going to be pivoting now,” Johnson said. “I think a lot of the people who stayed, were hoping for change. We were thinking we would be a part of the new development but as the months have gone on, we don’t even know what the new development consists of.”
Johnson opened “The Alkaline Electric Goddess” about a year ago. Then last May, a clogged pipe flooded the food court and forced Johnson to close for nearly two weeks.
“The repairs were only supposed to take one day but it took eleven days,” she said.
Since then, Johnson hasn’t been able to financially recover and said she received no help from Hendricks.
“We have Christmas decorations on the outside of the mall and there is a scan code on it but it doesn’t market anything inside the mall. It markets everything outside the mall. That’s very frustrating and disheartening for the owners here,” Johnson said.
As Johnson looks for a new space before the end of the year, other tenants like Bean now fear the gates are also closing on them.
“I already expect it. I am out. Possibly next month or maybe the same timeframe,” Bean said. “It’s almost like they want this mall to turn into Rodeo Drive of Indianapolis.”
STATEMENT FROM HENDRICKS COMMERCIAL PROPERTIES
“As redevelopment plans for the mall progress, Hendricks Commercial Properties remains dedicated to creating a vibrant, community-centered destination for downtown Indianapolis.
This project is complex and involves many moving parts, and while we don’t have specific updates to share just yet, we look forward to providing a comprehensive update on next steps as soon as possible. Communicating with tenants and key stakeholders will continue to be a top priority, and we truly appreciate the community's enthusiasm and patience as we work together to shape an exciting future for this important part of downtown.”