Officials hope new buyer will revitalize

Chesapeake Square Mall has fallen into foreclosure and will be sold on April 21, according to a foreclosure report generated by Virginia Beach law firm Samuel I. White P.C.

City Manager Jim Baker confirmed the foreclosure and sale, adding that he sees it as an opportunity for a buyer to reinvigorate the mall in Chesapeake’s Western Branch community.

The mall has been beleaguered by a string of store closures over the past two years, including anchors Macy’s and Sears.

“It’s not a huge shock,” Baker said. “The mall hasn’t been as productive as it could be, and we have been in discussion with the existing ownership group about reinvesting in the mall for several months with little response.

“The irony … is that this may be a blessing in disguise,” he said. “The real fear was that the mall would languish and be allowed to deteriorate without anything being done to it.”

The mall is owned by W.P. Glimcher, which was founded in May 2014 after spinning off from Simon Property Group, the former owner of the mall.

Chesapeake Square is not releasing statements related to the foreclosure or sale, said Lauren Fyke, account manager with Goodman Public Relations and the mall’s spokeswoman.

Both Baker and Kathy Reagan Young, founder of the Facebook group, Western Branch Growing Forward, are hopeful a new buyer will make the necessary investments to take Chesapeake Square into the future. Formed last year, the online group has organized and lobbied to bring new business to the Western Branch community.

“From my perspective, this is a good thing,” said Young. “There was no movement for so long and that mall has been an epicenter of disappointment for so long, at the whim of Simon.

“My hope is that a new holding company will breathe life into the mall. I think something new is going to be better than no change at all.”

Both Young and Baker are hopeful a new investor will turn Chesapeake Square into a town center, similar to Hampton’s Peninsula Town Center and Newport News City Center at Oyster Point.

“Traditional malls are going the way of the dinosaur,” said Young.

Baker said the city will reach out to the mortgage company or new owner to offer assistance, including possible infrastructure incentives.

“We are going to do everything we can to help,” he said.