The vacant and neglected portion of Sandburg Mall will soon go up for auction.
According to a listing by online commercial real estate platform Crexi, Sandburg Mall at 1150 W. Carl Sandburg Drive in Galesburg will be listed for auction at 11 a.m. Monday, Aug. 19. Starting bid for the 250,000 square foot property is $200,000.
Steve Gugliotta, director of Community Development for the City of Galesburg, tells WGIL his office has spoken to Adam Napp, Certified Commercial Investment Member with SVN Chicago Commercial who is working with CREXI on the auction of Sandburg Mall. Gugliotta said there is normally a minimum reserve an owner is willing to accept that is different from the minimum bid, but he said Napp was unable to disclose the reserve amount.
“Mr. Napp stated that both he and CREXI are using all resources available to them to inform potential developers/investors of this opportunity,” Gugliotta said.
“The City would like to see this property end up in the hands of an owner who will take an active approach in determining the future of this property.”
Sandburg Mall opened Oct. 1, 1975, with anchor stores Bergner’s, Sears and JC Penney, and dozens of store in the three wings of the impressive structure. Kmart later added an anchor wing. After 43 years, Sandburg effectively died on Aug. 26, 2018, when Bergner’s closed its doors for good, leaving just GNC in the mall. GNC later moved to Seminary Square and has since closed that location, as well.
The portion of the mall that is listed for auction includes the former Sears store, in addition to all of the interior wings of the mall.
Portions of the mall have been sub-divided, sold, and have been or are in the process of being redeveloped by other businesses. In addition to the Lane Evans VA Clinic locating to Bergner’s sometime this fall, UHaul occupies the former Kmart building and Galesburg Warehouse Bargains is located in the former JC Penney building. Karmark Tire & Automotive has been in the automotive wing of the JC Penney building for 26 years. Karmark owner Mark Heartlein purchased the building four years ago.
Seller: Mall has ‘immense potential’
The online listing for Sandburg Mall on crexi.com says:
Introducing the Sandburg Mall Mixed-Use Redevelopment Site, a prime investment opportunity located at 1150 W Carl Sandburg Dr, Galesburg, IL 61401. Situated on a sprawling 22.95-acre lot, this property offers a vast 275,000 SF of building space, presenting a perfect canvas for a redevelopment project. The auction commences on August 19, with a competitive starting bid of $200,000. Intriguingly, this property boasts a mix of retail and multifamily spaces, ideal for a variety of investment ventures. The tenancy is currently vacant, allowing for flexible usage options. Don’t miss your chance to own this substantial property with immense potential. For more details on the auction registration requirements and regulations, reach out and join us in exploring the countless opportunities that await at the Sandburg Mall Mixed-Use Redevelopment Site!
Heartlein said the vacant portion of the mall is in “incredible disrepair — the inside is a mess.
“I’m not an expert, but I can’t imagine it’s savable.”
City: Owner has not properly secured and maintained the property
Gugliotta said the City has frequently visited the property and has issued citations for tall weeds, volunteer trees, trash and debris, and openings which has resulted in approximately $17,000 in liens on the property since the summer of 2023.
The City, according to Gugliotta, has sent violation letters to mall owner Brett D. Norwich at his multiple business addresses associated with 1150 W. Carl Sandburg Drive, with no response.
“We have spoken to the owner on the phone to express our concern about the property and his lack of effort to properly secure and maintain the property,” Gugliotta said.
The Fiscal Year 2023 property taxes payable FY24 are $10,410.02 and have yet to be paid.
Tom Morris, JCP-B, LLC & SBM, LLC purchased Sandburg Mall in October 2016. He subdivided the mall in 2019.
In an interview with WGIL in March 2023, Morris said he was finalizing plans to build a “Hilton or Marriott type” hotel with an upscale restaurant near the former Sears building. In addition, he envisioned the interior wings of the mall being transformed into apartments or a multi-family, independent living facility. Other restaurants could pop up around the perimeter of the property, according to Morris.
Gugliotta said Norwich approached the City in August 2023 stating Morris “was very ill and in the hospital” and Norwich had attained ownership interest in SBM, LLC and another company owned by Morris called MSM, LLC via another LLC in Norwich’s name called ISAIAH 45:2, LLC.
Morris died Oct. 13, 2023, at the age of 71 in Lewisville, Texas.
In August 2023, document #1087935 was recorded in the Knox County Recorders office and then re-recorded as document #1087953. The document is a mortgage by SBM, LLC to White Whale Investments LLC in the amount of $700,000.
WGIL reached out to Norwich for comment but has yet to receive a response.
Redevelopment ‘requires someone with vision’
Ken Springer, president of Knox County Area Partnership for Economic Development, said he believes “the underlying land at Sandburg Mall has value for future development and is well-located with good traffic counts and nearby amenities.
“With that said, it will be challenging for someone to make a successful re-use of the existing structure of the mall given its size, configuration and condition. Redeveloping existing buildings is challenging and it takes a special kind of entrepreneur to pull off successfully. Redevelopment requires someone with vision, experience and lots of capital.”
