By Sara Beth Williams–
The Citrus Heights City Council on Wednesday is scheduled to hold a closed session meeting to discuss real estate negotiations with Namdar Realty Group involving three property parcels, according to an agenda packet released Friday evening.
Limited information is posted in the agenda, which cites Gov. Code Section 54956.8, allowing for closed session negotiations “prior to the purchase, sale, exchange, or lease of real property by or for the local agency to grant authority to its negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease.” The agenda lists negotiating parties as Namdar Realty Group and negotiators for the city listed as Citrus Heights City Manager Ash Feeney and City Attorney Ryan Jones, with “price, terms of payment, or both” to be negotiated.
The agenda specifies the parcels under negotiation as being APNs 243-0192-015, 243-0192-017, and 243-0192-012, which constitute the Sunrise Mall, of which Namdar Realty Group is the majority owner. Parcel number 243-0192-015-0000 was once home to Macy’s Men’s, parcel number 243-0192 is home to the main structure of Sunrise Mall, and Parcel number 243-0192-012 was home to Macy’s Women’s, and houses a significant chunk of parking located in the southeastern corner of the mall property.
Namdar Realty Group, a New York–based firm known for purchasing struggling malls nationwide, acquired a portion of the Sunrise Mall property in December 2018, and then acquired another portion in 2020, which was home to Macy’s at the time.
The property has declined significantly over the years, with only roughly 20 businesses remaining in a mall according to a count by staff at the end of July. The mall property can reportedly house 120 tenants. The mall building has also incurred over $500,000 in code enforcement violations as of mid-July.
After completing a comprehensive inspection of the interior and exterior of the mall with the help of Sacramento County, and Metro Fire District officials, the city issued Namdar a Notice to Abate, but has said Namdar has not to date corrected any of the multiple major health and safety violations. Due to the ongoing neglect, the city filed a lawsuit against Namdar on July 15.
The Sunrise Mall property spans just under 100 acres and is currently divided into seven separate parcels owned by five different entities, which has caused confusion and complications for redevelopment of the site.
Namdar currently owns a 25-acre parcel where the core mall building stands and two 12-acre parcels home to Goodyear Tires, and the buildings which formerly housed Macy’s Men’s and Macy’s Women’s.
The remaining portions of the mall property are controlled by Ethan Conrad Properties, JCPenney, Red Robin, and Antioch Street LP.
The Citrus Heights City Council will hold a regular meeting in open session, following the closed-door meeting. The closed session begins at 5 p.m. and the regular City Council meeting is scheduled to begin at 6 p.m. Citrus Heights City Hall is located at 6300 Fountain Square Drive.
