The Lorain County Port Authority is on the hunt for a new buyer for the Midway Mall property in Elyria after prior interests fell through. Industrial Commercial Properties LLC (ICP) terminated its agreement to purchase the mall, which has been owned by the Port Authority for two years. As ICP wrapped up its thorough due diligence process, it delivered its decision to pull out of the deal last Wednesday, Nov. 26, before a final Dec. 1 deadline, expressing their discontent with their findings, as The Chronicle reported.
After taking a longer look, which included two due diligence extensions—one for 90 days in July and a subsequent 60 days in April—ICP opted not to proceed with the acquisition. These extensions, along with the deal's termination, fell within the terms laid out in the original purchase agreement. Before deciding it was not satisfied with the results of the property review, ICP performed their assessment not once but twice, according to a statement obtained by Cleveland19.
As the Lorain County Port Authority regroups following the deal's termination, they remains committed to the mall's redevelopment. In a release quoted by Cleveland19, they acknowledged their dealings with ICP, stating, “We appreciate the professionalism that ICP demonstrated throughout these many months... While this outcome is not what any of us hoped for, we respect their internal business decision and wish them well moving forward.”
The search for a new suitor for the 58-acre shopping center is now underway. The property, once a retail hub, has faced challenges common to malls across the nation. In revitalizing the space, the Port Authority likely foresees an uphill battle, equipped with the lessons learned from the deal with ICP. The commitment to breathing new life into the Midway Mall reflects an adaptation to retail's evolving landscape, which ICP, having conducted a due diligence process that enabled them to make a strategic retreat, seems to have discovered it was not the right fit for their portfolio, despite the Port Authority's turnaround aspirations, as suggested by the outcome stem from their rigorous review.
