More tenants exit DeSoto Square

Just a few months after Sears shut its doors for good at DeSoto Square, the mall is out four corporate tenants and several others, leaving just a few household names in retail remaining at the Bradenton shopping center.

Victoria's Secret, which said it would close more than 50 stores this year because of less-than-stellar sales, was boarded up on Monday at DeSoto Square, as if it hadn't just been selling bras, pajamas and underwear there just three months ago.

Kay Jewelers, which was near JCPenney, has also closed, and the etchings of one of its signs are still visible along a wall. Kay's parent company, Signet Jewelers, said in early April that it plans to close more than 150 stores this fiscal year.

Charlotte Russe closed all of its stores this year following a bankruptcy filing. Its sign is still up at DeSoto Square, but the store is closed.

Payless ShoeSource also closed all of its stores after filing for bankruptcy in February, and its sign was still up over a closed storefront near JCPenney on Monday.

Some of the tenant exits can be chalked up to issues at the corporate level — bad sales, too much real estate, not being nimble enough to adapt to the modern retail environment and the like — but it's not just corporate bankruptcies that are causing DeSoto Square's problems. Those problems run deep.

Years ago, Simon Property Group let a $62 million loan on the mall fall into arrears. The mall was purchased in 2012 for $24.6 million by Mason Asset Management, which promised to bring in big-name retailers but never did, besides leasing the old Dillard's anchor space to Hudson's Furniture.

Lebovits purchased DeSoto Square for $25.5 million in March. At the time, a major redevelopment was promised. But things fell apart once again when the mall's mortgage lender, Romspen US Master Mortgage LP, filed an action to foreclose in August.

Most recently, a Manatee County Circuit Court judge referred the matter to mediation in an order issued April 8. The matter is currently scheduled to be mediated on May 6 at 10 a.m.

Redevelopment plans for the mall are in the works. A team made up of commercial real estate group JLL, Studio V. Architecture of New York, engineering firm Kimley-Horn and law firm Blalock Walters is working on a major redevelopment for DeSoto Square. They are not yet finalized, but plans could include apartments, town homes, retail, a gas station, entertainment and retail.

Paul Rutledge, senior vice president at JLL, said that the group plans to look beyond just the DeSoto Square property. The idea of creating a whole area he called "DeSoto Park Promenade," a walkable area with signage, landscaping, seating and access points that would let you know you were in that area the whole time, kind of like Lakewood Ranch, is being floated around. 

"There is discussion that we could do so much more on the site than proposed. How could it be more significant? It sent us back to the drawing board," he said. He said there's been strong interest in the property from the residential and retail standpoint, even in the early stages.

In March, DeSoto Square General Manager Trina Silenzi filed notices to evict six tenants on the grounds that all six failed to pay rent in various amounts. All of those stores — White Craft Black Market, S. Braiding Salon & Barber, Fina's Tacos, 3J's Vault, Intrigue Jewelers and Empire Barber Shop and Salon — were closed Monday, although a sign outside Intrigue indicated Monday is the store's regular day off.

That same month, the Sears building was sold for $6.75 million to entities tied to Madison Capital Group, a Charlotte, North Carolina investment group specializing in self-storage and multi-family.

Although redevelopment plans are in the works, the mall is quiet for now.

All of the storefronts in the cluster right outside of where Sears used to be are empty, with the exception of Fletcher Music Centers. Plus Sizes & More Consignment Shop, which was for sale as of December, is now closed, because the owner's husband said they were unable to find a buyer.

There are a few corporate stores remaining at DeSoto Square, including JCPenney, Journeys, Hot Topic, Hudson's Furniture, Bath & Body Works, T-Mobile, Rack Room Shoes, Avis and Budget Truck Rental, Spencer's and Champs Sports. Other retailers include Legends in Sports, Perfume Collection, Saturn 5, Ocean Nails & Spa, Jenny's Wigs, Gentlemen's Choice and resale business Your Treasure House, which is located where Macy's used to be. 

The food court itself has just two restaurants — Fusion Sushi and China Max — and the mall also has a sit-down eatery called Guatemalan Restaurant. The mall's map still lists Fry Guys, Chick-fil-A, Bourbon Street Grill, TJ's Food Corner and Charley's Steakery as food court tenants, though they are all long gone.

William Campa, husband of Plus Sizes & More Consignment Shop owner Juanita "Janie" Campa, said he still has shelving and fixtures for sale, and anyone interested in buying them should call 941-301-3004.

Rutledge said that his team is actively involved in renewing leases at DeSoto Square. Some tenants, like Rack Room Shoes and Hot Topic are doing well, and the redevelopment team has discussed future plans with the existing tenants.

"We've asked them if they can see themselves in the future as opposed to not. We're not trying to be clandestine about it," he said. "We've talked to everybody and kept them abreast of what we're doing."