The owner of Town Center at Cobb mall in Kennesaw narrowly avoided foreclosure by paying off the loan at the last minute.
New York-based Kohan Retail Investment Group successfully refinanced a $42 million loan, which was originally issued by PSOF LO Kennesaw, an LLC associated with Augusta-based Hull Property Group. Kohan’s founder and CEO, Mike Kohan, confirmed to Bisnow that he settled the loan on August 9, the same day Hull Property Group posted a foreclosure notice in the Marietta Daily Journal.
Upon learning of the foreclosure filing from a Bisnow reporter, Kohan responded, “It was paid on Friday. When was it advertised? Oh my God. It was paid.”
R.E. Hanna, a partner at Hull Barrett Attorneys who represents Hull Property, verified that Kohan had satisfied the loan as of Friday and that the foreclosure proceedings were being halted.
Neither Kohan nor Hanna provided details on how the loan was repaid or whether Hull Property Group continued to hold the loan. According to Cobb County property records, the $42 million loan was due to mature on January 31.
Kohan explained to Bisnow that Hull had placed his firm in “technical default” on the loan, not due to missed payments, but because Hull wanted to acquire the mall itself, as both companies are in the same business. Kohan revealed that Hull had taken over the entire interest in the loan two months ago.
The 1.3 million-square-foot mall was appraised by Cobb County at more than $70 million this year. The mall’s anchor tenants, JCPenney and Macy’s, own portions of the mall real estate, while Kohan retains ownership of the remaining 560,000 square feet.
Kohan, known for his extensive investment in malls across the Northeast, purchased Town Center at Cobb in January 2023 after Deutsche Bank foreclosed on the original $166.7 million loan from Simon Property Group in 2021, as previously reported by the Atlanta Business Chronicle. The bank incurred a $96.5 million loss on that loan.
Kohan’s track record with his mall portfolio has been controversial. His firm owns more than 40 malls across the United States and has faced criticism for neglecting properties or failing to pay local taxes and other bills.
Under Kohan’s ownership, Savannah Mall deteriorated before being sold in 2022. Additionally, the Dauphin County township in Pennsylvania sued Kohan for unpaid property taxes and utility bills. Last month, the city of Marshalltown, Iowa, ordered Kohan to address code violations or face contempt of court over his Marshalltown mall, which had been without power for months.
Despite these challenges, Kohan remains optimistic about the future of Town Center at Cobb. “I’m going to make the mall better than it was by bringing in more tenants and development, and make it the best mall in Kennesaw,” Kohan told Bisnow on Tuesday.
Original article: Bisnow