Struggling Northgate Mall facing foreclosure

The mall's owners owe about $60 million to Northwood Investors and hasn't been keeping up on its payments, so the fund is moving to foreclose and take control of the property.

This week, Durham County Superior Court officials said Northwood could proceed with the foreclosure and could sell the property, but not before Dec. 14.

"Northgate has had ongoing discussions with Northwood, but Northwood chose to cease communications earlier this month," mall owners said in a statement Thursday. "Northgate is doing everything it can to avoid the foreclosure and continue to operate in the Durham community of which we’ve been a vital part for over 60 years."

The owners said the delay until December should provide enough time to "come up with a strategy to move forward."

Northwood representatives couldn't be reached for comment.

Following the closure of Macy's as an anchor tenant last year, the mall has tried to reinvent itself, leasing out space as offices and hosting a farmers market and community events to attract customers.

Some Durham residents said they weren't surprised Northgate Mall is in financial trouble, given the decline in popularity nationwide of shopping malls.

"There wasn’t nothing there, so I don’t care much about it. I’d rather go to [Streets at] Southpoint than Northgate," Durham resident Eric Lucas said.

But people said the property could offer untapped potential because of Durham's growth and increasing popularity.

"Whoever gets it, it would be a good investment, if you can make it grow. That's what it's all about," Durham resident Desi Akins said.

Meanwhile, a significant portion of Lakewood Shopping Center, on Chapel Hill Road in Durham, was recently purchased out of foreclosure for $5.2 million. Many of its storefronts sit vacant, yet the area has seen a recent surge in popularity.