Concord, NH — JCPenney, a longstanding tenant at Steeplegate Mall, has initiated legal action against Onyx Partners, the mall’s owner. The lawsuit arises from Onyx Partners’ controversial plan to demolish a significant portion of the shopping center to make way for a large residential and commercial complex featuring potentially 600 apartments and businesses, possibly including names like Costco or Whole Foods. The department store chain, which has occupied space in the mall since its inception, contests that the extensive construction will breach its lease agreements by causing undue disturbance. These agreements are set to last until 2030.
Court documents show that a temporary injunction has currently stalled the mall’s redevelopment efforts. A recent filing, dated April 7, indicated that both parties might soon reach an amicable solution that would prevent further legal battles.
The origins of the dispute trace back to last summer when JCPenney first contested the change in the mall’s use under its lease. The company expressed concerns not only about the proposed noise and mess but also about safety and security implications stemming from the extensive remodeling plans.
Onyx’s redevelopment vision includes conserving JCPenney as a standalone entity while erecting a series of four- to five-story apartment blocks with underground parking and additional retail space where much of the existing mall, including the adjacent Regal Cinema, currently stands. Altitude Trampoline Park and The Zoo Health Club are also slated to remain in situ.
Previously, another legal challenge had confronted Onyx’s ambitious plans. The owners of the land under the corner-situated TD Bank, operating under a condominium agreement with the mall and a neighboring Applebee’s restaurant, sued last year. They contended that the city’s approval of the demolition plan was flawed. This lawsuit concluded in December with a settlement of $2.5 million, significantly above the bank property’s assessed value.
JCPenney was historically one of four anchor tenants when the mall opened, alongside Sears, which closed in 2020, and now-defunct regional stores like Sage-Allen, Steinbach, and later, the Bon-Ton. Following the interior closure of the mall in 2022 and the surrounding area suffering from vandalism, Onyx Partners, based in Massachusetts, acquired the property in 2023. Safety concerns increased as trespassers, labeled as “urban explorers,” infiltrated the abandoned sections of the mall, leading Onyx to seek permission from the city to demolish much of the structure.
As legal proceedings evolve, the future of Steeplegate Mall hangs in balance, with significant implications for current tenants, prospective businesses, and the broader community. The redevelopment plan represents a shift toward mixed-use spaces balancing residential living with retail opportunities, reflecting broader trends in suburban real estate development.
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