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Sunrise Mall majority owner has long history of neglected properties

The interior of Sunrise Mall // Mike Hazlip
The interior of Sunrise Mall // Mike Hazlip

By Mike Hazlip–
The long list of code violations at Sunrise Mall is nothing new for Namdar Realty Group or its partner company, Mason Asset Management, and neither are lawsuits over such violations.

In-depth research by The Sentinel shows the New York-based realty group, which currently owns roughly 50 acres of Sunrise Mall, has faced major code violations and legal action in other cities in California, and across the country.

In a situation eerily similar to Sunrise Mall, patrons of the West Valley Mall in Tracy have left multiple reviews on Yelp describing an overall lack of maintenance and increasing vacancy rates.

In early August, the Sentinel filed a request for information from the City of Tracy’s code enforcement for any and all code violations dating back two years. The city responded with a list of over 40 documents detailing dozens of citations.

Tracy code enforcement records show the West Valley Mall has had roof leaks in three suites throughout the building. Notes from the code enforcement officer indicate leaks were observed to have been “leaking for a bit and not addressed right away.” The document outlines damage to the ceiling as a result of ongoing leaks, mirroring statements made in the City of Citrus Heights’ inspection report.

Some violations were remedied after repeated inspections over several years, records show. Several cases of graffiti were resolved, one case of an abandoned trailer on the mall’s property was also abated, and a case of a leak causing water to seep into an electrical light fixture was closed within two weeks.

On the other side of the country, in College Township, Pennsylvania, a sink hole opened up at the Nittany Mall property in 2023. Altoona based WTAJ News reported that owner Namdar Realty Group was not responsive to the township’s efforts to remediate the sinkhole, prompting authorities to open the project up for bids. A Sept. 13, 2024 report from WTZJ News says Namdar sued the township to stop the work.

The real estate company faced a similar situation in Bangor, Maine, where Namdar Realty faced two lawsuits, accusing Namdar of various code violations regarding the Bangor Mail, including a “leaking roof, large potholes, a dilapidated sign, and failing to fix sinkholes that caused a sewer line to break, [and] spilling sewage into nearby ponds.”

According to a report by the Bangor Daily News. a 10-inch sewer line and an 18-inch stormwater pipe broke when a sinkhole opened up on the property. The city claims Namdar did not immediately respond when the city told the company to remedy the problem, the report said.

An April 21 report by WABI News in Bangor says repairs are “reportedly underway” after a judge ruled that Namdar had violated city ordinances.

Following an inspection, service of a Notice to Abate in May and June, and filing a lawsuit against Namdar Realty Group in July, the City of Citrus Heights has considered a potential purchase of Sunrise Mall, prompting city leaders to take part in a closed negotiations on Aug. 13 with Namdar Realty Group, according to an Aug. 8 agenda packet.

The closed session was scheduled to last one hour from 5 p.m. to 6 p.m., but adjourned around 6 p.m., then recommenced and adjourned again at 8:04 p.m., the city confirmed via email. A regular council meeting took place in-between from 6 p.m. to 7:22 p.m.

“The city is looking at all the tools that we have within our toolbox to realize the vision the community and the City Council has for Sunrise Tomorrow,” Citrus Heights City Manager told The Sentinel on Aug. 20, adding that there was “no reportable action,” from the closed session a week prior. Feeney did not indicate whether there were more negotiations planned.

Citrus Heights isn’t the first city to consider such an option. The Bangor Daily News also reported last January that a bill was introduced in the Maine Legislature that could direct the state’s housing authority to take over the Bangor Mall, allowing for negotiations to acquire the property from Namdar for a reasonable price. If that fails, the bill would direct the local housing authority, Maine Housing, to take eminent domain.

The city of Bloomingdale, Illinois, succeeded in acquiring the Stratford Square Mall from Namdar Realty after “failed attempts to collaborate with its owner” according to a report by 5Chicago.

The report stated that the City of Bloomingdale previously approved a mixed-use redevelopment plan similar to Citrus Heights’ Sunrise Tomorrow Plan, that includes open spaces, dining and entertainment, and housing. After successfully acquiring the property for a reported $8.75 million, Bloomingdale closed the mall, and the city started demolition, 5Chicago reported.

Multiple attempts to reach Namdar Realty Group for this report have been unsuccessful. A New York-based public relations firm representing the real estate company confirmed receipt of multiple messages sent by Sentinel staff, but said Namdar Realty has not provided a statement.

Several emails sent to multiple addresses listed on websites for Namdar Realty Group, and for other Namdar-owned properties, were returned as invalid.