With only three remaining businesses — Sears, Palais Royal and Cinemark Movies 12 — Texas City's Mall of the Mainland is closing almost entirely, effective Feb. 1, 2014, after failing to develop into the shopping destination it had hoped to become.
While it may come as a shock for some, the mall has been struggling since its inception. The initial construction in 1991 cost approximately $200 per square foot, a hefty sum for such a structure, and the mall was only 80 percent leased on its opening day. In 1997 the property was taken over by JPMorgan Chase Bank, the project's initial lender, but the bank did little to further the mall's success and it subsequently suffered financially.
All interior store leases will end Jan. 31 and of the mall's common areas will close in order to cut costs.
In May 2002, the mall, reported to be only 65 percent occupied, was competing (rather unsuccessfully) with Baybrook Mall, located only 10 miles away, which was reported to be 96 percent filled. At this time the mall was purchased by Triyar Cos. LLC, although the mall's major tenants, Dillard's, Foley's and J.C. Penney, owned their own buildings within the complex.
In Nov. 2006, Triyar Cos. LLC put the mall and several other Greater Houston malls up for sale and Mall of the Mainland was purchased by The Brentwood Group in March 2007. In 2010, Brentwood filed for Chapter 11 Bankruptcy Protection and the mall became owned by Pacific Western Bank, who in turn hired Boxer Retail to manage the property.
In Jan. 2012, Macy's (formerly Foley's) announced that it would close its Mall of the Mainland location, leaving Sears as the mall's last major department store. Finally, in Sept. 2012, Pacific Western Bank put the mall on the market for $15.4 million.
After being on the market for months, nothing seems to be happening. All interior store leases will end Jan. 31 and of the mall's common areas will close in order to cut costs for the current owner and to make the property more attractive for sale.