Towne Square Mall Opens Its Doors in Owensboro
Towne Square Mall opened on March 1, 1978, along Frederica Street in Owensboro, Kentucky. The $20 million development was a joint project between David Hocker and Alan Squitieri.
The new mall featured 52 stores, three anchor department chains, 2,493 marked parking spaces, and a one-level design that connected directly to the Owensboro city bus line.
JCPenney relocated from its longtime downtown site to the mall, joining Sears and other national retailers. A video arcade and food counters completed the first phase.
JCPenney's relocation gave the project legitimacy with local shoppers, and Sears anchored the opposite end of the concourse.
Clothing chains filled the spaces in between. Dining choices were basic but steady, and the arcade quickly became a regular stop for teenagers.
The plan followed late-1970s retail layouts, characterized by a single floor, wide corridors, and parking that spread out in every direction.
With almost 2,500 slots, drivers could usually find a space. Shoppers without cars stepped off the Owensboro Transit System directly at the entrance.
In later years, other anchors came and went, including Macy's, but the opening lineup set the tone.
By the end of its first year, the mall had already become a popular destination to spend an afternoon, combining errands with food, browsing, and games.
Growth and First Ownership Shifts (1987–1998)
In 1987, Towne Square Mall was acquired by Heitman Advisory Corporation, which purchased most of the shares.
Management did not shift entirely. Hocker & Associates continued to run the property, maintaining leases and overseeing tenant operations.
Through the late 1980s and into the 1990s, the mall's anchors set the rhythm.
Sears remained a steady presence, and Macy's added another national department store name to the property. Around them, chain retailers filled inline spaces with clothing, shoes, and home goods.
The food court and arcade maintained a balance between shopping and entertainment, drawing families as well as weekday shoppers.
In 1998, the property underwent another change. TS Partners, a group that included Heitman Real Estate Fund III and the Southwestern Bell Corporation Master Pension Trust, sold the mall.
The buyers were Aronov Realty Management and NationsBank of Texas, who paid $29 million.
The sale closed out more than a decade of ownership under Heitman, bringing in new companies to guide leasing, marketing, and capital planning as the mall approached the turn of the century.
The 2000s Boom and First Signs of Decline (1998–2014)
Under new ownership, the property retained its three anchors and a roster of over 50 tenants.
Clothing retailers, shoe outlets, and national chain restaurants helped keep the concourses active during the first years of the new century, when enclosed malls still drew steady regional traffic.
In April 2007, Lakestar Properties became the new owner, paying the same $29 million that Aronov had invested less than a decade earlier.
Lakestar assumed control at a moment when malls across the country were facing new challenges.
Yet, Towne Square still had Macy's, Sears, and JCPenney holding their positions.
Smaller chains rotated in and out, while dining areas and an arcade gave families reasons to extend their visits.
By the early 2010s, changes in shopping habits were beginning to undercut stability. Online sales gained ground, and national department stores posted declining numbers.
The first visible break came at the end of 2014, when Sears shuttered its Towne Square Mall location.
Its departure removed one of the original anchors from the property, leaving a gap in both the floor plan and the customer flow that had sustained the mall for decades.
Foreclosure and Financial Troubles (2015–2017)
In July 2015, U.S. Bank National Association foreclosed on Towne Square Mall after debt reached $27.6 million.
Jones Lang LaSalle was brought in as the court-appointed receiver, tasked with overseeing leases and operations. At the same time, the bank managed the legal process.
Later that year, the mall was put up for auction. U.S. Bank purchased it back for nearly $19 million, a figure significantly lower than the previous sale prices recorded in 1998 and 2007.
The shift in control created a pause in long-term planning. Leasing slowed, and several inline stores left as retailers weighed whether the property would stabilize or continue to lose anchors.
During this period, the mall continued to operate with its remaining department stores, but the vacant Sears box stood out.
Without investment in updates or new tenants, the concourses began to show the pressure of stalled redevelopment.
Between 2015 and 2017, the mall operated mainly in a maintenance mode, open to the public but awaiting a buyer who would take it out of foreclosure and return it to private ownership.
Rapid Turnovers and Anchor Closures (2018–2020)
A new chapter began in May 2018 when Kohan Retail Investment Group purchased Towne Square Mall for $2.9 million.
The sale included most of the property but excluded Macy's, which owned its building separately.
Kohan added the site to its portfolio of distressed malls.
By December 2019, another ownership change arrived. Towne Square Mall Holdings LLC acquired the mall for $5.15 million and shifted management to Gulfstream Commercial Services LLC.
The company also invested $1.1 million in surrounding parcels, extending its control over property tied to the site.
Despite new ownership, the anchor lineup continued to weaken, reflecting national retail contractions.
In spring 2020, Macy's closed its Owensboro store, marking the end of its role as one of the three anchors.
That July, the vacant building was sold for $1.25 million to Owensboro Indoor Sports LLC, which announced plans to redevelop it into a sports facility.
The project stalled by early 2021. In late 2020, JCPenney shut its store, leaving the mall without a cornerstone tenant.
Final Days and Closure (2023)
On August 8, 2023, the remaining interior tenants of Towne Square Mall were handed eviction notices.
Management confirmed that the enclosed portion of the property would shut down in less than a month, closing its doors on September 5 after 45 years of operation.
The decision left only businesses with outside entrances, such as Planet Fitness in the former Burke's Outlet space, able to continue trading.
The closure followed years of declining anchors and frequent ownership changes.
By 2023, the concourses that once housed more than 50 stores had dwindled to scattered tenants, many of whom operated on short-term leases.
The eviction order cleared the way for redevelopment plans that had been circulating since 2019.
Redevelopment proposals focused on reshaping the 5000 Frederica Street property into what the owners called Towne Square Center, a project designed to attract new categories of tenants and services.
The shuttering of the mall's enclosed section marked the end of its retail era, opening the site to entirely different uses in the years ahead.
Reinvention into Entertainment Hub (2024–2025)
In October 2024, the Kentucky Tourism Development Finance Authority granted preliminary approval for a redevelopment proposal that aimed to reshape the closed mall.
The plan, submitted by TS Entertainment LLC, outlined an $18 million project designed to transform the former property into a family entertainment center featuring both indoor and outdoor attractions.
In March 2025, the same authority gave full approval for the project, making it eligible for more than $2 million in tax incentives through the Kentucky Tourism Development Act.
The proposal listed a wide range of activities, including bowling, laser tag, miniature golf, go-karts, an arcade, and a children's play area.
An indoor lawn and stage were also included to host performances and community gatherings.
TS Entertainment projected the creation of 75 full-time and 50 part-time jobs, along with measurable tourist traffic to Owensboro.
A new announcement followed in August 2025, when Malibu Jack's confirmed its partnership with TS Entertainment.
The indoor amusement operator committed to a 109,000-square-foot facility inside the former mall.
Plans called for a go-kart track, a 12-lane bowling alley, a miniature golf course, a laser tag arena, bumper cars, and a children's play zone.
Construction was scheduled to begin immediately, marking the property's transition from a retail center to a year-round entertainment venue.