Dillard’s has purchased Longview Mall in East Texas for $34 million, according to a report by the Wall Street Journal. The Little Rock-based retailer partnered with Trademark Property to acquire the 47-year-old shopping center from Washington Prime Group.
This move is notable as many department-store chains are selling their real estate holdings. For example, JCPenney recently agreed to sell 119 stores to Onyx Partners for $947 million. In contrast, Dillard’s decision signals a commitment to physical retail locations at a time when others in the sector are downsizing.
Chris Johnson, co-chief financial officer for Dillard’s, explained that the purchase was not only about expansion but also about protecting the property from “bad actors” in the mall business. He said, “The company wanted to keep the asset out of the hands of ‘bad actors’ in the mall business.”
Some companies such as Kohan Retail and Namdar Realty have faced lawsuits and criticism for neglecting properties while continuing to collect rent.
The acquisition is reminiscent of an earlier era when department stores commonly co-owned malls they anchored—a practice that largely ended by the early 1990s. Industry observers noted it has been decades since a major department-store chain held such a stake, with recent exceptions being Walmart’s purchase of Monroeville Mall near Pittsburgh and Home Depot’s acquisition of a Virginia mall.
Unlike many competitors who are reducing their footprint, Dillard’s owns most of its 272 locations and reported more than $1 billion in cash on hand during the second quarter. This financial position allowed CEO Bill Dillard to make this investment and potentially strengthen local ties.
Longview Mall had remained one of Washington Prime Group’s stronger assets through bankruptcy proceedings. Observers credit Dillard’s with helping maintain its relevance over time. Trademark Property will manage leasing and operations at Longview Mall, starting with upgrades including improved lighting, refreshed entrances, and new seating areas aimed at increasing leasing activity and sales.
