New Owners Want to Transform Prescott Gateway Mall into Shopping Destination

The Prescott Gateway Mall has been sold for $12.2 million to ZL Properties, a privately owned LLC. Part owner Chris Lupo said a major priority will be to transform the Prescott Gateway Mall into a primary shopping destination for the greater community. He said he considers it to be a great property in a city with appealing potential and that he and his colleagues plan to enhance the experience for the residents of Prescott.

The mall covers approximately 31 acres of shopping center and land. At this time, three main anchor stores include JC Penney, Dillard’s and Bed, Bath & Beyond. A previous anchor store, Sears, closed its doors in February 2020. That space was recently purchased and converted for pickleball and other activities by Espire Sports.

Original plans for the mall east of Prescott on SR 69 were announced by Westcor in 1998. Construction began in 2001 and the mall officially opened March 8, 2002. At that time, mall space was 80 percent rented, and a year later, increased when 24 more stores were added.

Trader Joe’s added an adjacent store in 2011 to a group of stores called Shops at Prescott Gateway.

In 2013, the mall was sold to the Tahani Group, and then later was sold to the Kohan Retail investment Group in 2018. That sales was for $8.8 million.

In all, there are 96 suites available among the 313,132 square feet of retail space. All are one-story buildings but with high roofs.

Real estate brokers Matthew Fish and Peter Nieman of Prescott Commercial Real Estate represented both parties in the negotiations.

The sellers were Kohan Retail Investment Group of Great Neck, New York. They held the title as Prescott Gateway Realty Holding LLC, an Arizona liability company. QCBN

By Ray Newton, QCBN