Circle Centre Mall, a downtown fixture that has struggled to attract visitors for decades as brands cycled in and out, was sold to Wisconsin-based Hendricks Commercial Properties Wednesday in a roughly $85 million deal.

Hendricks Commercial Properties, the developer behind the Bottleworks District on Mass Ave, announced plans to redevelop the mall as a mixed-used property in December. The company plans to transform the space into retail, housing, office space and entertainment venue.

The tentative plans include open-air space from Georgia to Washington Streets, including public green space.

The renovated downtown space is expected to open by 2028, said Lance Evinger, the vice president of acquisitions at Hendricks Commercial Properties.

Some tenants could remain at the downtown location. Tenants include IndyStar, St. Elmo's, Harry & Izzy's, Forever 21, Punch Bowl Social, among others. Another tenant, The Sugar Factory, faces potential eviction for failing to pay rent.

Plans for apartments, which could include a mix of affordable and market rate housing, are also being developed, Evinger said.

It could be a year to a-year-and-a-half before construction begins as plans for the mall are developed, he said.

During that time, property company JLL will no longer manage the mall and Hendricks Commercial Properties will take over.

History of Circle Centre Mall

Circle Centre Mall was a major retail attraction when it opened in 1995, a time when malls across America were thriving. But over the next few decades, online shopping and modern retail places like open-air shopping villages and pop-up stores began replacing malls.

In Indianapolis, the closure of stores like Nordstrom and Carson's were indicative of waning interest in major brands.

Efforts to rehabilitate the shopping center took another blow when a pandemic depressed retail business even further.

Restaurants, stores, movie theaters and comedy clubs all had to close for months to prevent the spread of COVID-19. Even when rules began to loosen up and retail store could open, people opted for outdoor venues where the spread of disease was less likely.

Simon Property Group, which managed the mall during the first year of the pandemic, revealed in mid-2020 that it had only collected half of the rent due in April and May.

History of mall ownership

In 2022, Simon Property Group, a company with a heavy footprint in Indianapolis, sold its 15% share of the downtown mall to the remaining majority owners. The move launched a discussion among the owners about plans to redevelop the property.

The ownership of the mall is complicated. Hendricks purchased the remaining interest in the mall held by Circle Centre Development Co., a limited partnership of 17 businesses and investors and the mall's original investors.

Hendricks plans to spend $600 million, including acquisition costs, to redevelop the mall. IndyStar reporter Bradley Hohulin contributed to this story.

Binghui Huang can be reached at 317-385-1595 or Bhuang@gannett.com

This article originally appeared on Indianapolis Star: Circle Centre Mall is sold. Plans for redevelopment underway.