Towne Square Mall
Towne Square Mall was a regional shopping mall in Owensboro, Kentucky, that operated from 1978 until its permanent closure in September 2023.
Last updated August 25, 2026
AI crawler reads
No AI crawler has read this profile since Oct 28, 2026.
Overview
Towne Square Mall was a regional enclosed shopping center in Owensboro, Kentucky. Developed by David Hocker and Alan Squitieri, the mall opened on March 1, 1978, after an investment of approximately $20 million. It became one of the largest shopping centers in the surrounding area and helped shift a significant portion of Owensboro retail activity away from the downtown district. JCPenney moved from downtown into the new mall, and the center subsequently attracted major department-store and specialty-retail tenants, including Macy's and Sears, along with clothing stores, dining facilities, and a video arcade. The property changed ownership and financial control several times during its operating life. Heitman Advisory Corporation, also known as Heitman Financial, acquired most of the mall's shares in 1987 while Hocker and Associates continued to manage it. In 1998, TS Partners, consisting of Heitman Real Estate Fund III and Southwestern Bell Corporation Master Pension Trust, sold the property to Aronov Realty Management and NationsBank of Texas for approximately $29 million. Lakestar Properties acquired the mall in April 2007 for the same reported price. The mall later experienced serious financial pressure. Sears closed its location in December 2014. U.S. Bank National Association foreclosed on the property in July 2015 after the mall was reported to owe approximately $27.6 million. Jones Lang LaSalle served as receiver and manager during the foreclosure process, after which U.S. Bank acquired the mall at auction for nearly $19 million. Kohan Retail Investment Group purchased the property in May 2018 for approximately $2.9 million, while Macy's was excluded from that transaction because it owned its own building. Related property around the mall was acquired for an additional reported $1.1 million. In December 2019, ownership transferred to Towne Square Mall Holdings LLC, also referred to as TSM Holdings LLC, for approximately $5.15 million. Management shifted to Gulfstream Commercial Services LLC, identified as one of the ownership group's participants. The center then lost two of its most important remaining department-store anchors: Macy's closed in spring 2020 and JCPenney closed later that year. The former Macy's building, which was separately owned, was sold in July 2020 to Owensboro Indoor Sports LLC for approximately $1.25 million, with plans to convert it into a sports facility. Those plans were delayed during the COVID-19 pandemic. On August 8, 2023, the mall announced that it would close permanently as part of future redevelopment plans and issued eviction notices to the remaining interior tenants. The mall ceased operating as a traditional enclosed shopping center by September 2023, ending approximately 45 years of operation. The former property has since been considered for entertainment and adaptive-reuse projects rather than restoration as a conventional regional mall. A Planet Fitness facility continued operating in part of the former mall complex after closure. In 2025, TS Entertainment LLC received approval to develop part of the site as a multi-concept indoor and outdoor entertainment center. A later partnership announcement identified Malibu Jack's as the intended indoor-theme-park partner, and reference material reports that the venue opened under the name Maui's Indoor Theme Park on May 8, 2026. The former Sears building was being used by a landscaping company, while the former JCPenney building remained vacant according to the same reference material.
History
Towne Square Mall was developed in Owensboro, Kentucky, by David Hocker and Alan Squitieri. Construction represented an investment of about $20 million, and the enclosed shopping center opened on March 1, 1978. It quickly became one of the largest retail destinations in the area. One of its early strategic effects was the relocation of JCPenney from downtown Owensboro to the mall, reinforcing the center's role as a suburban and regional retail hub. The property hosted a mixture of department stores, apparel retailers, food outlets, and entertainment uses. Macy's and Sears were among the prominent department-store tenants during the mall's history, while dining areas and a video arcade broadened the center's appeal beyond routine shopping. Ownership was not static. Heitman Advisory Corporation, also known as Heitman Financial, purchased most of the mall's shares in 1987, although Hocker and Associates continued in a management role. In 1998, TS Partners, comprising Heitman Real Estate Fund III and Southwestern Bell Corporation Master Pension Trust, sold the mall to Aronov Realty Management and NationsBank of Texas for a reported $29 million. Lakestar Properties acquired Towne Square Mall from Aronov Realty Management in April 2007 for approximately $29 million. The property later entered a period of severe financial stress. Sears closed in December 2014, weakening the tenant mix and the mall's anchor structure. U.S. Bank National Association foreclosed on the mall in July 2015 after reported obligations of about $27.6 million. Jones Lang LaSalle managed the property as receiver during the foreclosure process, and U.S. Bank subsequently purchased the mall at auction for nearly $19 million. Kohan Retail Investment Group bought the mall in May 2018 for approximately $2.9 million. The transaction did not include Macy's because Macy's owned its building independently of the mall's principal ownership. Additional nearby property purchases were reported at roughly $1.1 million. In December 2019, the mall changed hands again, this time being sold to Towne Square Mall Holdings LLC, or TSM Holdings LLC, for approximately $5.15 million. Management was transferred to Gulfstream Commercial Services LLC, described as one of the ownership group's owners or affiliated participants. The mall's department-store base continued to contract. Macy's closed in spring 2020, and JCPenney closed later in the year. The former Macy's building was separately sold to Owensboro Indoor Sports LLC in July 2020 for approximately $1.25 million, with the proposed redevelopment aimed at creating a sports facility. The COVID-19 pandemic delayed that plan as of January 2021. A Planet Fitness operation continued in part of the former mall building even after the enclosed shopping center ceased functioning as a conventional retail destination. On August 8, 2023, the remaining interior tenants received eviction notices as the mall announced a permanent closure tied to redevelopment plans. The mall closed by September 2023, after approximately 45 years of operation. Its closure reflected the loss of anchor stores, financial distress, and the broader difficulty of sustaining a traditional enclosed mall without a strong department-store and specialty-retail base. The site subsequently moved toward adaptive reuse. On March 19, 2025, TS Entertainment LLC received approval from the Kentucky Tourism Development Finance Authority to convert part of the former mall into a multi-concept indoor and outdoor entertainment center. On August 25, 2025, Malibu Jack's was announced as a partner for an indoor-theme-park project. Reference material reports that the attraction opened as Maui's Indoor Theme Park on May 8, 2026, occupying most of the former mall building. The former Sears building was being used by a landscaping company, while the former JCPenney building remained vacant according to that material. These later uses mean that the physical property continued to evolve even though Towne Square Mall itself was defunct as a shopping-mall brand.
- 2026
Maui's Indoor Theme Park opens
[1]Reference material reports the opening of Maui's Indoor Theme Park in part of the former mall building on May 8, 2026.
- 2025
Entertainment redevelopment approved
[1]TS Entertainment LLC received approval for a multi-concept entertainment redevelopment of part of the former mall.
- 2023
Permanent closure
[1]The mall announced closure and tenant evictions in August and permanently ceased operating as an enclosed shopping mall in September.
- 2020
Department-store anchors depart
[1]Macy's closed in spring 2020 and JCPenney closed later in the year.
- 2019
TSM Holdings acquisition
[1]Towne Square Mall Holdings LLC acquired the property in December 2019 and changed management to Gulfstream Commercial Services LLC.
- 2018
Kohan Retail Investment Group acquisition
[1]Kohan Retail Investment Group bought the mall in May 2018.
- 2015
Foreclosure and auction transfer
[1]U.S. Bank foreclosed on the mall and later acquired it at auction after a receiver-managed process.
- 2014
Sears closes
[1]The Sears anchor closed in December 2014.
- 2007
Lakestar Properties acquisition
[1]Lakestar Properties purchased Towne Square Mall in April 2007 for approximately $29 million.
- 1998
Property sold to Aronov and NationsBank interests
[1]TS Partners sold the mall to Aronov Realty Management and NationsBank of Texas for a reported $29 million.
Products and positioning
A regional enclosed shopping mall serving Owensboro and the surrounding western Kentucky market. During its active years, Towne Square Mall was positioned as a major local destination for department stores, apparel shopping, dining, and family entertainment; after the mall's closure, the property shifted toward adaptive reuse and entertainment development.
Retail property · 1978
Enclosed regional shopping mall
Towne Square Mall's principal offering was a regional enclosed shopping environment serving Owensboro and nearby communities. It combined department-store anchors, specialty apparel and fashion retailers, dining areas, and family-oriented entertainment in one commercial complex. Its role was primarily local and regional rather than national, with the mall serving as a major retail destination after opening in 1978.
Department-store retail · 1978
Department-store anchor space
The property included large anchor locations occupied at different times by department-store operators such as Macy's, Sears, and JCPenney. These stores supplied broad merchandise assortments and generated traffic for the mall's interior tenants. Sears closed in 2014, while Macy's and JCPenney left in 2020, contributing to the eventual decline of the traditional mall format.
Indoor entertainment · 2026
Maui's Indoor Theme Park
Maui's Indoor Theme Park is a later adaptive-reuse entertainment project occupying a majority of the former mall building according to the supplied reference material. It followed redevelopment planning by TS Entertainment LLC and a partnership announcement involving Malibu Jack's. The attraction is not a continuation of Towne Square Mall's retail operations, but represents the post-closure reuse of part of the property.
Brand decisions
2025
Indoor and outdoor entertainment redevelopmentStrategyBackground
Following the mall's closure, TS Entertainment LLC sought to repurpose part of the former property for entertainment uses.
Action taken
The Kentucky Tourism Development Finance Authority approved a multi-concept indoor and outdoor entertainment-center project.
Aftermath
The redevelopment plan later incorporated an indoor-theme-park concept associated with Malibu Jack's and subsequently reported as Maui's Indoor Theme Park.
2023
Permanent mall closure and redevelopment transitionStrategyBackground
The mall had lost its major department-store anchors and was operating with remaining interior tenants before the ownership group announced a redevelopment-oriented closure.
Action taken
Remaining interior tenants received eviction notices on August 8, 2023, and the mall permanently closed by September 2023.
Aftermath
The property moved from enclosed retail use toward partial entertainment and other adaptive-reuse projects.
2020
Former Macy's building targeted for sports conversionStrategyBackground
After Macy's closed, the separately owned former anchor building was sold to Owensboro Indoor Sports LLC.
Action taken
The buyer proposed converting the building into a sports facility, although the project was delayed during the COVID-19 pandemic.
Aftermath
The plan demonstrated an effort to reuse an anchor building independently from the mall's main retail operation.
Sale price. $1.25 million (July 2020)
Sources1 sources
Cite this profile: Cite the canonical profile. /brand-wiki/towne-square-mall · Editorial policy · How profiles are compiled