Chapel Hill Mall Avoids Power Shutoff While Facing Foreclosure

Jan 20, 2020

While the owners of Chapel Hill Mall face foreclosure, trouble with utility providers is ongoing.

New York-based Kohan Retail Investment Group was notified last week that Summit County had initiated foreclosure proceedings for the North Akron mall.

Since then, according to Ohio Edison spokesman Chris Eck, the investment group made a payment to the utility provider, avoiding power shutoff for the third time in a year. Chapel Hill stands at about 50 percent occupancy. 

“It was the payment needed to avoid shutoff, which was a partial payment of the full amount," Eck said. "We did file a lawsuit for the full amount. Obviously I can’t discuss the pending litigation there.” 

In early January, the city of Akron was poised to disconnect water service to the mall when  the investment group made a $100,000 payment to keep the water running, allowing the remaining shops to open.  The tenants had received letters from the city warning of the pending disconnection. 

Last week,  the mall's last anchor store, J.C. Penney, announced  it will close its Chapel Hill location.

When reached by phone, Michael Kohan said he could not immediately comment on his company’s plans for the mall, which it purchased in 2016.

It is one of 27 malls the investment group owns around the country. News sites report  several sites  also have delinquent tax and utility bills.

According to a northern Iowa newspaper,  in 2018  the Kohan group spent $46 million on mall properties while owing back taxes on a mall in that state.