Owned by TSM Holdings and managed by Gulfstream Commercial Services LLC, Towne Square Mall has announced plans to close on September 5. The mall opened on March 1, 1978, as a booming retail hub with over 50 stores offering various consumer options.
While the first several decades saw massive success, shopping preferences have shifted in recent years, leaving Gulfstream to consider additional options for the space. With increased online shopping and difficulties caused by the COVID-19 pandemic, the mall has dwindled to 10 tenants.
Ed Ray, Chief Operating Officer at Gulfstream Enterprises, said exterior Frederica Street frontage development would ensue with plans to reopen the mall. The new vision features a combination of retail, warehouse, restaurant, and office space, assuming the name of Towne Square Center.
“Redevelopment of the Town Square Mall campus is an exciting opportunity for a mix of medical, retail, location-based entertainment and restaurants along the Frederica street frontage, while utilizing the rest of the building and massive parking lots for alternate uses such as warehousing, distribution, recreation, senior/community center, education, light fabrication or industrial,” Ray said. “The campus is over 44 acres, has nearly 27 acres of surface parking, and over 357,000 square feet of leasable space. This center has unlimited potential.”
TSM Holdings initially purchased the mall — minus the Macy’s building, which had always been independently owned and operated separately — for $5.15 million in December 2019.
Owensboro Indoor Sports LLC bought the Macy’s building in July 2020 for $1.25 million. The group had plans to build an indoor sports facility, but those were scrapped after the City and County purchased sports flooring to host events at the Owensboro Convention Center. TSM Holdings purchased the Macy’s building from Owensboro Indoor Sports for $1.957 million in February 2022.
The mall’s ownership group expected a significant boost from an Ellis Park extension facility. Still, that deal ultimately fell apart after Churchill Downs Incorporated (CDI) nixed plans to use the mall due to the City’s unwillingness to change its smoking policy.
OT broke the news about the initial plans for the Ellis Park expansion in October 2021, and in March 2022, OT was the first to report Ellis Park had reached a definitive lease agreement with TSM Holdings LLC to lease 62,000 square feet in the former JCPenney’s location.
The project at the mall was estimated to cost $20 million. In September 2022, CDI announced it had signed a definitive agreement to acquire Ellis Park Racing & Gaming, including assuming the track extension project. CDI has since announced it secured a site to build a facility in eastern Daviess County.
Tenants remaining open inside the mall include Bath & Body Works – which recently secured a new location off KY-54 in Gateway Commons, property also managed by Gulfstream. Other operational stores include Maurice’s, Spencer Gifts, Hi-Tech Cell Phone and Accessories, Sports Country, and Gadsook Printing.
“It simply is not economically feasible to continue to heat, cool, maintain, and secure the massive interior space with less than a dozen tenants remaining in the building,” he said. “The timing is right to move forward with the overall master planning of the entire Town Square Mall campus, which we are considering renaming to Town Square Center. With the announcement of Bath and Body moving and Ellis Entertainment’s (the Churchill Downs subsidiary) choice to locate elsewhere, now is the time to close the interior and move forward with putting the site to alternative uses.”
While the mall itself is closing, Planet Fitness is moving forward with opening a second location in the space formerly home to Burkes Outlet, which spans just under 23,000 square feet. The gym will have an entrance from the parking lot, meaning it can remain open independently.
Halloween Havoc will soon open its seasonal store near the main entrance, featuring private access from the parking lot. Sports Country announced it was having a moving sale via Facebook but did not have a new location listed. At this time, it’s unclear if the other businesses will relocate or close permanently.
TSM Holdings is working diligently to refurbish the space and convert it into a more practical space as the Towne Square Center. Ray said the location offers prime real estate with endless possibilities from retail and entertainment to warehousing, distribution, and more.
“Despite the national trend towards online shopping during Covid, the consumers in our market still demand and frequent brick-and-mortar stores that offer multiple fulfillment options with companies that integrate their online and offline sales to cater to each customer,” Ray said. “Visiting a physical store provides an experience you simply cannot get online. Exceptional local service, being able to feel and touch the goods you are looking for, and offering in-store discounts are among the many reasons brick-and-mortar stores are still thriving, and we plan to continue to explore those opportunities at the Town Square Mall campus. Although indoor malls are dying across the entire country, we have shown how brick-and-mortar can continue to thrive in our region.”
Gulfstream is assisting the remaining tenants with securing a new location and offering an opportunity to reserve space in the redevelopment.
