New owner wants to revitalize Robinson mall

ROBINSON, Pa. (KDKA) - The Mall at Robinson has a new owner: the Kohan Retail Investment Group.

The new owner tells KDKA money editor Jon Delano what his future plans are with this property.

The Mall at Robinson is one of the popular retail shopping malls in the Pittsburgh region, and it was purchased by New York-based Kohan Retail Investment Group for $46 million.

"The purchase price is a real bargain basement price," says Burt Flickinger, a national expert on shopping malls with the Strategic Resource Group.

Flickinger says the Kohan Group is getting a good deal, paying low COVID-style prices, at least 20 percent below value, for a mall with great potential in the western suburbs of Pittsburgh.

"People who want to move and raise their families in Pittsburgh makes the Mall at Robinson perfect for future growth and a real bargain price," says Flickinger.

"It makes the Mall at Robinson a real crown jewel property and a property to grow both for existing tenants, anchors and inline tenants and to attract new tenants."

In a phone conversation with KDKA's Jon Delano, Mike Kohan, founder of the Kohan Retail Investment Group, said he wants to revitalize the mall and attract more tenants, calling the Mall at Robinson one of the best in Pittsburgh.

His company already owns the Clearview Mall in Butler, the Indiana Mall in Indiana County, and Washington Crown Center in Washington County.

"Kohan tends to work in, quote-unquote, special situations and turn around malls," says Flickinger.

Flickinger says malls in Pittsburgh are considered much safer than those in other urban areas.

Last year there was a domestic dispute but no shooting at the Mall at Robinson, and Flickinger says local police respond quickly when needed in our region and crimes from shoplifting to flash mob looting are not tolerated by local prosecutors here.

"Retailers feel good about investing and mall owners feel good about investing where there's an exodus of retail from Target to Whole Food to Walmart, etcetera, in cities like Chicago."

In some parts of the country, malls are coming back after COVID, says Flickinger, and one key is safety.

"The customers feel safe shopping at the Mall at Robinson."

Delano:  "Is there a future for shopping malls like the Mall at Robinson?"

Flickinger:  "Jon, there is a future for shopping malls in key areas of the country like the Mall at Robinson."

People are returning to malls post-COVID often because they want to try on new clothes in the aftermath of the pandemic, says Flickinger.

"Nineteen-point-two percent of all children between the ages of 2 and 19 became obese during COVID – overweight or obese; 67 percent of women either overweight or obese; and 73 percent of men either overweight or obese.  So they really have to go to the stores to try on the clothes."

The Mall at Robinson is already anchored by Macy's, JC Penney and Dick's, but there's a large vacant space where Sears used to be.

Flickinger sees a potential tenant in BJ's Wholesale Club, a discount store similar to Costco.

"What looks to be the wild card in this deal, which makes it undervalued by the Kohan purchase price by 20 percent, is BJ's Wholesale Club," says Flickinger.

"What BJ's Wholesale Club is doing like Costco and like Amazon is they're converting vacant abandoned Sears properties into Wholesale Club properties."

There is no confirmation this is happening here, but Flickinger says he's talked to BJ's leadership who are looking at areas like Pittsburgh to expand.  Currently, BJ's has only two wholesale clubs here in Ross Township and South Fayette.

"They're actively looking in what's called shoulder markets, which Pittsburgh is."

Whether it's BJ's or some other tenant that takes over the Sears location, the Mall at Robinson will see upgrades, says Mike Kohan, the new owner.