Northgate Mall in Durham, NC: 60-Year History and Future Plans

Northgate Mall Launch and Early Retail Setup (1960–1970s)

Northgate Mall opened in 1960 as an open-air shopping strip on West Club Boulevard in Durham, North Carolina. W. Kenan Rand developed it to serve the growing retail demand in the region. The initial setup included Colonial Stores, Roses discount store, and Kerr Drug.

By 1962, a cinema had been added, attracting a broader crowd and increasing foot traffic. The cinema remained a key entertainment feature in the early days of Northgate, complementing the shopping experience.

In 1973, mall operators decided to enclose the space to keep pace with evolving retail trends and competition. This move connected Sears and Thalhimers department stores, which became key anchor tenants.

Throughout the late 1960s and early 1970s, Northgate benefited from its strategic location near Interstate 85, a major transportation artery. Proximity to Duke University also contributed to consistent customer traffic.

The commercial landscape shifted by the middle 1970s, pushing Northgate to consider further expansion. Nearby shopping centers, including the upcoming South Square Mall in 1975, presented fresh competition.

Despite these challenges, Northgate remained a vital shopping destination in Durham and set the foundation for future developments in its retail space.

Northgate Mall Expansion and New Anchor Tenants (1980s)

In 1986, Northgate Mall began a major expansion. Developers added a new location for Thalhimers department store, which moved to the east end of the mall.

This expansion included new retail spaces and reshaped the existing mall layout to accommodate shoppers better. The original strip section, which had been part of Northgate since 1960, was partially demolished to make room for a new food court.

Another key tenant, Big Star supermarket, moved into a newly built strip-style plaza called “The Shops at Northgate.” The new plaza also housed smaller local businesses that had been in the original strip center.

Big Star later rebranded as Harris Teeter, strengthening its presence in Durham’s grocery market. By the late 1980s, Kerr Drug had moved closer to Sears, and Roses had remained in its original location until 1992 when it finally closed.

Thalhimers’ move in the mid-1980s brought more retail activity, but it didn’t stop there. In 1994, Hecht’s replaced Thalhimers at the new location. This shift kept Northgate relevant, as department stores still drove a lot of retail traffic at the time.

Retail Competition and Changing Landscape (1990s–2000s)

In the 1990s, Northgate Mall faced increasing competition from other shopping centers like South Square Mall and, later, The Streets at Southpoint, which opened in 2002.

Northgate had to adjust to keep up with the shifting retail environment. While South Square’s closure in 2002 initially brought some relief, it was short-lived. The opening of The Streets at Southpoint had a strong impact on retail in Durham.

One of the major changes during this time was Belk’s departure in 2003. The space was converted into a movie theater, Phoenix Theaters, which opened as Northgate Stadium 10. The theater attracted a new crowd and kept some foot traffic flowing through the mall.

The closure of Harris Teeter in the adjacent Shops at Northgate Plaza also marked a shift in tenant dynamics. C&H Cafeteria moved into the former Harris Teeter space, and Guitar Center opened nearby, adding to the mix of businesses trying to revitalize the area.

Despite these efforts, crime became a problem, with reports of violence and disturbances occurring throughout the late 2000s. These incidents damaged Northgate’s reputation and deterred shoppers from visiting.

Macy’s Exit and Northgate’s Decline (2010s)

In January 2017, Macy’s announced it would close its Northgate Mall store, a blow to the mall’s lineup of anchor tenants. The store had occupied its space since 2006, after taking over from Hecht’s, which had been there since 1994.

Macy’s exit came after a weak holiday season and was part of a larger plan to close dozens of stores nationwide. This left Northgate without one of its key draws, leading mall management to rethink the property’s future.

After Macy’s closure, Northgate Associates, the mall’s owners, worked on plans to repurpose the space. In December 2017, Duke Health purchased the vacant Macy’s building and repurposed it for administrative offices and medical facilities.

Meanwhile, Sears, another anchor tenant since 1974, continued to operate but was struggling financially. In June 2018, Sears sold its property at Northgate to Northwood Investors, a Colorado-based real estate investment firm.

Northwood took ownership of the Sears space but allowed the store to stay open under a leaseback agreement. Despite these efforts to keep the mall going, Northgate faced growing challenges in the retail environment.

By late 2018, foreclosure loomed. Northwood Investors moved toward foreclosure proceedings against Northgate Associates.

In December of that year, the original owners sold the mall to Northwood for $34.5 million to avoid foreclosure. This allowed Northgate to continue operating, but the mall’s retail future remained uncertain.

Final Years and Permanent Closure (2019–2020)

In December 2018, Sears announced it would close its Northgate location as part of a plan to shutter 80 stores across the country. The closure took place in March 2019, and with it, Northgate lost its last remaining anchor tenant.

The former Sears building was briefly repurposed as a statewide hurricane shelter during Hurricane Dorian in September 2019, but it didn’t see much use beyond that.

The mall’s decline accelerated in early 2020 when the COVID-19 pandemic hit. With retail already in trouble, the pandemic forced many businesses to close temporarily or reduce operations.

On May 4, 2020, Northgate Mall’s management announced the mall would close permanently. They cited the pandemic as a primary reason, but the mall had already been struggling for years.

Northgate’s closure marked the end of an era for Durham retail. Plans for the future of the site included potential demolition and redevelopment into a mixed-use space, but the specifics were still in discussion.

Redevelopment and Controversies Surrounding Northgate Mall

Plans to redevelop Northgate Mall throughout 2023 and into 2024 have sparked various discussions and controversies.

Northwood Investors, the mall’s current owners, revealed their intent to transform the abandoned property into a mixed-use development, focusing on integrating residential, commercial, and community spaces.

Early proposals for the site included affordable housing, grocery stores, and entertainment venues to create a vibrant community hub. However, debates over zoning and community impact have delayed progress.

Controversies arose during public meetings in early 2024. Community members expressed concerns about gentrification, displacement, and the overall impact on the Walltown neighborhood, which borders Northgate Mall.

Tensions came to a head during a public meeting in February 2024, which dissolved into chaos as residents and city officials disagreed on the best path forward.

The pushback against the initial plans prompted revisions, but discussions continue about how to balance redevelopment with community needs.

In May 2024, Northwood tweaked its redevelopment plans to include affordable housing after feedback from residents and officials.

As of September 2024, Durham’s plan to redevelop the abandoned Northgate Mall focuses on creating a mixed-use area that includes affordable housing, retail spaces, offices, entertainment venues, and community recreation facilities. This aim is to revitalize the region and boost local economic development.