Lakeforest Mall Up For Sale

Lakeforest Mall has been put up for sale after falling behind on their loan payment, according to the Washington Post.

The shopping center, which is 25-percent owned by Simon Property Group and 75-percent by General Motors Asset Management, was opened in 1978, but has seen a decline in recent years, according to the Post.

The Wall Street Journal reports that when the mortgage came due in July, 2011, the owners "opted against using the one-year extension option it had available to it, according to a real-estate research division of Morningstar Inc."

The mall was appraised for $120 million in July, the Journal reports.

Les Morris, director of corporate public relations for Simon Property, said it was policy not to comment on any sales or acquisitions.

There are more than 100 shops in the 1-million-square-foot mall, including the four anchor stores, Macy's, JC Penny, Sears, and Lord & Taylor.

The anchors owns their own space, the Post reports, and therefore don't pay any rent.

Lakeforest has struggled recently with cash flow problems, the Post reported in 2010.

The mall property, as well as the County Fairgrounds, has come up as a major factor in discussions by Gaithersburg City planners about redevelopment plans for the Frederick Avenue corridor.