Receiver to take over Everett Mall

By KATHY DAY

Herald Writer

EVERETT — Management of Everett Mall has been put in the hands of a court-ordered receiver, a move that could lead to new ownership within months.

The ownership group is in default on a $55 million mortgage and $6 million in taxes, interest and other payments.

For the time being, the official word is that it will be business as usual, with General Manager Linda Johannes and the current staff staying on board, receiver Michael Hess of First Western Development Services said Monday.

Mall managers would not comment on the court action other than to hand out a written statement that noted: "There will be no noticeable changes to either our customers or the merchants of the center."

Hess added that the receivership order issued Oct. 19 is a step toward foreclosure and sale to another owner, although "things could still get straightened out."

Attorney Mark Northrup of the Seattle law firm Graham &amp Dunn representing the plaintiff and mortgage holder, Equitable Life Assurance, said a foreclosure sale could occur as soon as four months from now.

The news seemed to take store managers by surprise. Four approached by The Herald said they had not been told of any changes.

"If anything, maybe some big developer would come in and put some money into it," Sears manager John Schmidt said, adding, "The people who manage it are good people and it’s a great area. I hope it’s a good thing."

Charlene Williamson, who was working in the Century 21 All Stars booth, said she’s concerned both as a tenant and as a shopper.

"It’s a little scary. I like shopping here." she said. "Will our kiosk rates go up? What about the store tenants?"

Also caught off guard was Renee Radcliff, outgoing president of the Everett Area Chamber of Commerce. She said she had heard about possible court action in early October but thought it had been resolved.

"The Everett Mall has been a very vital part of this business community for a long time," she said. "It’s hard news."

Northrup said he has already received a call from "an anonymous party" inquiring about the property.

Brennan McClurg of First Western Properties, which is not associated with the firm handling the receivership, is a leasing agent for the property across Everett Mall Way. He said the effect of a foreclosure on area properties "depends on who buys it. If it’s another absentee landlord who doesn’t do much, then it won’t help."

But he added, "If we get an active landlord, it would be beneficial."

Steve Avoyer, a Southern California retail property specialist, said tenants are not likely to see any difference during the time a receiver is managing the property, but a new owner could mean leases would be restructured.

Although unfamiliar with the Everett Mall property, he’s seen several malls go through transitions that changed the face of the tenant mix. In one case, a traditional indoor mall that people avoided because it was dreary was revived by changing the tenants and turning the stores to face the outdoors.

It’s possible that the Everett receivership is good news, he added, because "regional malls are a hard sought-after commodity" so a sale could attract an established developer with deep pockets who would be willing to invest in upgrading the property.

Court records name several New Jersey-based partnerships, including Titanic Associates, Hindenburg Associates and Normandy Associates, as owners and holders of an overdue $55 million mortgage, dated Oct. 31, 1989.

They had challenged appointment of the receivership, contending that they were not properly notified and that the Snohomish County courts did not have proper jurisdiction.

They did not respond to calls seeking details.

The shopping area, converted into an indoor mall in 1974, was enlarged in 1989, when the Titanic partnership took out its loan. It includes 722,000 square feet with about 130 shops, theaters, a food court and Sears, the Bon Marche and Mervyns as its anchor tenants.

As recently as January 1999, Hampshire Management Co., which manages the mall for the owners, was working with the city on plans to add 274,000 square feet and redesign the complex, but nothing ever came of it.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A firefighter stands in silence before a panel bearing the names of L. John Regelbrugge and Kris Regelbrugge during the ten-year remembrance of the Oso landslide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
‘Flood of emotions’ as Oso Landslide Memorial opens on 10th anniversary

Friends, family and first responders held a moment of silence at 10:37 a.m. at the new 2-acre memorial off Highway 530.

Julie Petersen poses for a photo with images of her sister Christina Jefferds and Jefferds’ grand daughter Sanoah Violet Huestis next to a memorial for Sanoah at her home on March 20, 2024 in Arlington, Washington. Peterson wears her sister’s favorite color and one of her bangles. (Annie Barker / The Herald)
‘It just all came down’: An oral history of the Oso mudslide

Ten years later, The Daily Herald spoke with dozens of people — first responders, family, survivors — touched by the deadliest slide in U.S. history.

Victims of the Oso mudslide on March 22, 2014. (Courtesy photos)
Remembering the 43 lives lost in the Oso mudslide

The slide wiped out a neighborhood along Highway 530 in 2014. “Even though you feel like you’re alone in your grief, you’re really not.”

Director Lucia Schmit, right, and Deputy Director Dara Salmon inside the Snohomish County Department of Emergency Management on Friday, March 8, 2024, in Everett, Washington. (Ryan Berry / The Herald)
How Oso slide changed local emergency response ‘on virtually every level’

“In a decade, we have just really, really advanced,” through hard-earned lessons applied to the pandemic, floods and opioids.

Ron and Gail Thompson at their home on Monday, March 4, 2024 in Oso, Washington. (Olivia Vanni / The Herald)
In shadow of scarred Oso hillside, mudslide’s wounds still feel fresh

Locals reflected on living with grief and finding meaning in the wake of a catastrophe “nothing like you can ever imagine” in 2014.

Everett mall renderings from Brixton Capital. (Photo provided by the City of Everett)
Topgolf at the Everett Mall? Mayor’s hint still unconfirmed

After Cassie Franklin’s annual address, rumors circled about what “top” entertainment tenant could be landing at Everett Mall.

Everett
Everett man sentenced to 3 years of probation for mutilating animals

In 2022, neighbors reported Blayne Perez, 35, was shooting and torturing wildlife in north Everett.

Dorothy Crossman rides up on her bike to turn in her ballot  on Tuesday, Aug. 1, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Everett leaders plan to ask voters for property tax increase

City officials will spend weeks hammering out details of a ballot measure, as Everett faces a $12.6 million deficit.

Starbucks employee Zach Gabelein outside of the Mill Creek location where he works on Friday, Feb. 23, 2024 in Mill Creek, Washington. (Olivia Vanni / The Herald)
Mill Creek Starbucks votes 21-1 to form union

“We obviously are kind of on the high of that win,” store bargaining delegate Zach Gabelein said.

Lynnwood police respond to a collision on highway 99 at 176 street SW. (Photo provided by Lynnwood Police)
Police: Teen in stolen car flees cops, causes crash in Lynnwood

The crash blocked traffic for over an hour at 176th Street SW. The boy, 16, was arrested on felony warrants.

The view of Mountain Loop Mine out the window of a second floor classroom at Fairmount Elementary on Wednesday, Jan. 10, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County: Everett mining yard violated order to halt work next to school

At least 10 reports accused OMA Construction of violating a stop-work order next to Fairmount Elementary. A judge will hear the case.

Imagine Children's Museum's incoming CEO, Elizabeth "Elee" Wood. (Photo provided by Imagine Children's Museum)
Imagine Children’s Museum in Everett to welcome new CEO

Nancy Johnson, who has led Imagine Children’s Museum in Everett for 25 years, will retire in June.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.