New Life for GT Mall? Lormax Stern Purchases Macy’s, Ollie’s Eyeing T.J. Maxx Space

New owners and brands are circling the Grand Traverse Mall, with downstate real estate firm Lormax Stern purchasing the Macy’s site and courting new tenants and Ollie’s Bargain Outlet eyeing the former T.J. Maxx space. Though supportive of efforts to keep the property viable, Garfield Township officials have flagged the need to ensure redevelopment occurs in a cohesive way – similar to recent discussions about the Cherryland Center – as some proposed uses could change how the mall operates.

While the majority of the Grand Traverse Mall is owned by Brookfield Properties, three parcels (including their parking lots) are separately owned: Target, JCPenney, and Macy’s. The Ticker  reported in October that Macy’s sold its property to an unknown buyer with the plan of leasing back its store space until a targeted early 2025 closure. The Ticker can now confirm the buyer of the Macy’s building is Lormax Stern, a Bloomfield Hills-based real estate firm with an extensive portfolio across Michigan, including the Northport Boat Yard in Northport and Bay Mall in Petoskey. Lormax Stern also previously purchased and tried to redevelop the former Kmart site in Acme before Strathmore Real Estate Group ultimately took over that site.  

Drew Ford, leasing and marketing coordinator for Lormax Stern, said by email that the company is “actively negotiating with several potential tenants for both single and multiple tenant configurations (for the Macy's space). No leases have been executed yet, so unfortunately we cannot share any names at this time.” When asked about the company’s interest in the Grand Traverse Mall and thoughts on its long-term viability, Ford wrote:

“The interest from prospective tenants has been great. We have more users than we have space, and we’re excited about the positive impact this will have on the building and the surrounding area, including the balance of the mall. While nothing is finalized yet, we’ll be sure to share updates and details as soon as they’re confirmed.”

At a Garfield Township planning commission meeting last week, Township Planning Director John Sych said a retail outlet was eyeing the mall space formerly occupied by T.J. Maxx, which relocated earlier this year to Buffalo Ridge Center. The Ticker later confirmed with Sych that the retailer is Ollie’s Bargain Outlet, which describes itself as “America’s largest retailer of closeout merchandise and excess inventory.” The company has hundreds of stores across the country, including in Alpena, Muskegon, Walker, Wyoming, Alma, and Bay City. Ollie’s promises “real brands at real bargain prices in every department, from housewares to sporting goods to flooring and to food” due to acquiring inventory through “closeouts, overstocks, package changes, manufacturer refurbished goods, and irregulars.”

Sych referred to the T.J. Maxx space as an important “mini anchor” for the mall – not as large as Macy’s or Target, but bigger than most other stores. In a unique move, Ollie’s representatives have expressed a desire to close off the interior access to the store at the Grand Traverse Mall, meaning customers could only access it from the outside – similar to an outlet mall or the Cherryland Center. When planning commissioners asked why Ollie’s would want to block off interior foot traffic, Sych said he wasn’t certain but guessed it could be for security reasons or because the company wasn’t “necessarily accustomed to being in enclosed malls” and has a different corporate prototype for its stores.

“Our concern would be that if this were permitted, are we going to expect others to occur of that nature?” Sych asked. Township staff asked Ollie’s to have Brookfield Properties weigh in on the exterior access proposal before proceeding. Sych said Ollie’s hasn’t yet submitted a site plan application to the township, but when it does, the planning commission will need to review and approve it. Sych said he wasn’t sure if the township could “necessarily prevent” Ollie’s going to an outdoor-only entrance, though potentially could address the issue by reviewing standards related to the exterior entrance (Ollie’s declined to comment for this story).

The main issue is that the Grand Traverse Mall was developed as a cohesive enclosed shopping center, Sych said. Individual components within it should “function in a way that makes sure that those uses are productive and are not negatively impacting other uses or the operation of that site,” he told planning commissioners. When Cherryland Center was converted from an enclosed mall to an outdoor shopping center in the late 1990s, that change occurred across the property all at once. The Grand Traverse Mall should continue functioning as an enclosed mall unless there’s a plan to completely redo it, Sych said, “which we would be always open to, whether it’s to convert it to something similar like the Cherryland Center or something completely different.”

The Cherryland Center’s rapid redevelopment in recent years prompted township planning commissioners to require an updated mall plan to guide parking, signage, stormwater management, and cross-access drives as the site continues to be developed. The planning commission approved that plan last week. Planning commissioners discussed possibly needing something similar for the Grand Traverse Mall if piecemeal redevelopment continues to be a reality for the property. “Because there’s so much going on in a site like that, and it’s not conventional in terms of property boundaries...we need to have some mechanism and some assurances that things are going to be coordinated,” Sych said.

Sych tells The Ticker he still sees the value of having indoor shopping and entertainment spaces, particularly in the winter, and believes the Grand Traverse Mall property and location are both “excellent.” Pointing to redevelopment opportunities that have been embraced at other malls, from adding in residential or mixed-used components or interactives spaces like museums (such as the Great Lakes Children’s Museum recently opening in the Grand Traverse Mall), he believes some investment and creativity could help revitalize the property.

“There are a lot of ways this property can be altered to make it more successful,” he says. “The property is a little bit tired when you go into the mall itself; it was built in the early nineties. It seems like it could use a refresh. But if you think about organizing different uses there, I think it has great potential.”