Mary Milz/Eyewitness News
Marion County - Indianapolis-based Simon Property Group is selling Lafayette Square Mall on the city's west side to a company headquartered in New York.
Ashkenazy Acquisitions Corp. Is expected to sign off on the deal before year's end.
Simon bought the mall in 1996, renovating it and adding new stores. In recent years, Lafayette Square has struggled, leaving some tenants unhappy.
Leroy Saylor owns Tropik Sun with his wife and has been at the mall a year and a half.
"It seems like Simon has abandoned the mall. The maintenance is terrible, security is terrible, the anchor stores are gone," said Saylor.
Saylor said he and several other tenants learned of the sale via a letter sent to them November 12th.
While Saylor isn't renewing his lease, he and others see the sale as good news.
"I talked to the new owners and they're very upbeat. It sounds like they might turn it around," he said.
Mohsin Kahn, who owns a jewelry store, said while his business has done well, "I hope they bring in new a mix of tenants and maybe anchor stores to fill in mall."
"Clearly Simon has struggled to make it work. They've put a lot of money in it. They've worked to bring in new tenants and make improvements and it's just not working," said John Ketzenberger, Indianapolis Star.
Ketzenberger said unloading the mall makes sense for the company but so does buying it if you're a fairly young company in need of tax breaks.
"[Ashkenazy] hasn't detailed a plan or said what they plan to do, but it doesn't hurt the books to bring in a struggling project to offset some of the good projects you have around the country," he said.
The city, which has worked hard to redevelop the area by creating a special tax district, hopes the new owner puts money into the mall.
"It's definitely an anchor. That mall has a huge impact on what happens to the surrounding area," said Stephanie Quick, Department of Metropolitan Development.
With a Wal-Mart going in nearby and other things planned, Cynthia Bowen with the Lafayette Square Area Coalition is optimistic about the mall's future.
"If we're successful in redeveloping parts of the area, they'll be more successful and more likely to put more capital into improving the site," said Bowen.
A Simon spokesman declined comment on the pending sale, saying, "We don't comment on acquisitions." An employee in the acquisitions division of Ashkenazy expected an announcement before Christmas.
