Around that time, the mall was about 66 percent occupied and had “significant deferred maintenance throughout the property,” Trepp previously reported.Īfter the foreclosure, the mall changed its name to Prizm and underwent a face-lift. Rialto foreclosed on the property in September 2018, records show. By spring 2018, the mall had an appraised value of about $25.5 million, down from $125 million in mid-2012, according to mortgage-tracking firm Trepp. Within a few years, though, financial issues were brewing.Ī notice of default was filed against the property in late 2017 in connection with a $73 million loan, Clark County records show. As recently as 2015, Fashion Outlets of Las Vegas boasted “100 designer outlets,” including Banana Republic, Coach and Hugo Boss. Primm’s outlet mall debuted in 1998 to an opening-day crowd of around 10,000 people, and it was 85 percent leased with a roster of stores that included Versace, Calvin Klein and Kenneth Cole, the Review-Journal reported at the time.īy 2007, the property was reportedly 99 percent leased and among the top 10 outlet centers nationally by sales. Ultimately, Kohan Retail Investment Group bought the mall in April 2021 for around $400,000, according to the lawsuit, which says the New York firm specializes in buying “troubled” shopping malls.Įfforts to speak with Kohan Retail founder Mike Kohan about Prizm were unsuccessful. Also, some kiosks had items such as cellphone cases, hats and sunglasses, and the Viva Vegas souvenir shop was stocked with merchandise but wasn’t open.Īttempts to sell Prizm in January 2021 resulted in a final bid of just $1.5 million, but the deal failed to close, according to Icahn’s complaint, which doesn’t identify the bidder. Only five stores inside the mall were open that day: Bath & Body Works, Polo Ralph Lauren, Levi’s, Michael Kors and Sanithrift. POLICE WILL BE CALLED! RESTROOMS CLOSED!” a sign attached to the food-court caution tape declared. When a Review-Journal reporter visited a few weeks ago, the corridors were lined with vacant shops, stretches of the mall had no one walking around, and the food court was empty and blocked with yellow caution tape. The single-story, enclosed mall spans more than 370,000 square feet but is largely empty. The mall is positioned to lure people who are driving between Las Vegas and Southern California - a heavily traveled route - and want to stop in to shop for bargains. Prizm, formerly Fashion Outlets of Las Vegas, sits off Interstate 15 and is attached to Primm Valley Resort. Rialto did not respond to requests for comment.Īttorney Jake Greenberg of Miami law firm Bilzin Sumberg Baena Price & Axelrod LLP, who according to court records is representing Rialto, could not be reached for comment. New York law firm Kasowitz Benson Torres LLP, representing Icahn’s funds in the case, issued a news release in June saying it had filed the lawsuit. According to the complaint, the funds and other certain bondholders should have obtained certain control rights, but Rialto allegedly “schemed to deny control” to those investors “while running Prizm Outlets into the proverbial ground.” Icahn’s funds were investors in a pool of commercial real estate mortgages that included one tied to Prizm, and Rialto serviced the soured loans in that pool, the lawsuit indicates. The mall, appraised at $125 million a decade ago, was sold last year for just $400,000, according to the complaint. It has since been purchased for a fraction of what it was once worth, and now a lawsuit has been filed claiming Prizm “exemplifies the death of the American mall in under-serviced areas.”įunds managed by billionaire Carl Icahn sued Rialto Capital Advisors in Clark County District Court last month, alleging the Miami firm “manipulated appraisals” after it foreclosed on the mall in 2018 and embarked on a “quixotic” plan to reposition the property rather than “promptly” sell it. Prizm, about 40 miles south of the Strip on the California border, faced increased vacancies and foreclosure proceedings even before the pandemic hit. “Doesn’t change the fact that it’s dead in here.” “The paintings are cool,” his cousin Javier Alvarado chimed in, citing the murals that blanket the corridors. Almost all of the stores inside are vacant, the food court is closed, and the fountains where people could toss coins for charity are bone dry. The mall, Prizm Outlets, has just a handful of retailers left. Even if they wanted to shop all day, there were only so many places to spend their money. PRIMM – Edgar Alvarado was walking around the sprawling outlet mall in Primm with his cousin one recent afternoon. The outlet mall is just off Interstate 15 at the California state line. The Prizm Outlets on Thursday, June 23, 2022, in Primm.
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