Valley West Mall in West Des Moines has a new potential buyer after a previous developer pulled out in April.
Information about the new buyer, and plans for the mall’s future, have not been released.
Todd Millang, senior vice president of CBRE, the real estate firm marketing the mall, told the Des Moines Register on Tuesday, June 23, “about the only thing I can answer is that, yes, the property is under contract to a new potential buyer on a shorter inspection period and closing before end of year.”
Millang did confirm that the buyer is not Ankeny real estate developer ATI Group, which spent most of the past year trying to buy the 58-acre Valley West Mall property.
ATI Group pulled out of the sale earlier this year after negotiations with JCPenney stalled over the store’s ability to continue business while redevelopment occurred, West Des Moines Mayor Russ Trimble previously told the Register.
The JCPenney store at Valley West Mall is one of the mall’s few remaining tenants and also has a long-term lease that could prevent redevelopment until 2032, Trimble said.
The City of West Des Moines had not yet reached a development agreement with ATI Group’s Valley West Redevelopment LLC for the mall’s future. But the city has been prepared to potentially offer $110 million in financial incentives to the developer over 10 or 12 years to buy and tear down Valley West Mall to redevelop the site.
Previous renderings for the mall’s redevelopment showed plans for a mixed-use area of restaurants, retail, residences, entertainment and green spaces.
The mall has been in receivership since October 2022, after U.S. Bank foreclosed on then-owner Watson Centers of Minneapolis.
The mall has operated while the search for a buyer continued, but the 856,000-square-foot mall has lost most of its tenants beyond JCPenney and a few other small businesses.
Phillip Sitter covers the suburbs for the Des Moines Register. Phillip can be reached via email at PSitter@usatodayco.com. Find out more about him online in the Register’s staff directory.
This article originally appeared on Des Moines Register: New buyer puts Valley West Mall’s troubled future in focus
Reporting by Phillip Sitter, Des Moines Register / Des Moines Register
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By Phillip Sitter, Des Moines Register | USA TODAY Network
