5 Shocking Ways The Sears Building Demolition Paved The Way For Durham’s Ellerbe Square Transformation

The demolition of the former Sears department store at Northgate Mall in Durham, North Carolina, has become more than just the removal of a vacant big-box store. As of this current date, December 15, 2025, the removal of the Sears structure—a key anchor since the 1970s—is the symbolic and physical catalyst for one of the most significant urban redevelopment projects in the city's history. This transformation, spearheaded by developer Northwood Investors, will erase the memory of the struggling regional shopping center and replace it with a vibrant, community-focused mixed-use destination, tentatively known as Ellerbe Square.

The story of the Sears building’s fate is inextricably linked to the larger vision for the 55-acre Northgate Mall site. After the mall’s full closure in 2020, the fate of the property, strategically located off Interstate 85 (I-85) and Gregson Street, became a major point of discussion for the Durham City Council and the surrounding Walltown Community Association (WCA). The demolition of the long-vacant Sears and its adjacent Sears Automotive center was the first major step in turning the page on a retail era that began back in 1960.

The Northgate Mall to Ellerbe Square Transformation: A Project Overview

The complete redevelopment of the former Northgate Mall site is a monumental undertaking, shifting the land use from a traditional, enclosed shopping center to a modern, pedestrian-friendly mixed-use development. This project is a direct response to the decline of the mall, which struggled significantly after the opening of the competing Southpoint Mall in 2002 and the eventual departure of its major anchor tenants.

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Key Entities and Project Facts

• Original Property: Northgate Mall (opened 1960, fully closed 2020).
• Former Anchor: Sears (vacant since 2018).
• Developer: Northwood Investors (a private equity firm based in Charlotte/Denver).
• New Project Name: Ellerbe Square (a proposed name for the mixed-use hub).
• Total Acreage: Approximately 55 acres.
• Governing Document: The redevelopment is being guided by the community-driven Walltown Small Area Plan, which the Durham City Council unanimously adopted in August 2025.

The Sears building’s demolition was a complex affair, involving the main department store structure and the separate Sears Automotive building. The removal of these large, outdated structures was essential to clear the necessary footprint for the new, integrated street grid and development parcels that will define Ellerbe Square.

5 Shocking Ways the Sears Demolition Fueled Durham's Future

The physical act of tearing down a single department store has had a cascading effect, unlocking value and potential far beyond the simple clearing of a site. The demolition of the Sears building was not an end, but a powerful beginning for the entire Northgate district.

1. It Cleared the Path for the Walltown Small Area Plan’s Vision

The Sears property, which was one of several parcels owned by different entities, represented a significant block of real estate that needed to be integrated into a cohesive master plan. The demolition allowed Northwood Investors to move forward with the community-backed vision laid out in the Walltown Small Area Plan. This plan, championed by the Walltown Community Association, mandated key features that go beyond a typical commercial project, including a strong emphasis on affordable housing components, significant open space, and community buildings to serve the neighborhood.

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2. It Unlocked the Potential for a True Mixed-Use Density

The original Sears building and its massive surface parking lots consumed a huge area. By removing this low-density structure, the developers gained the flexibility to design a high-density, mixed-use environment. The current plans for Ellerbe Square envision a vertical mix of uses: ground-floor retail, commercial space, and life sciences facilities topped by residential units. This new density is critical for creating a vibrant, 24/7 neighborhood that can support local businesses and provide much-needed housing near the I-85 corridor.

3. It Ended the "Dead Mall" Stigma Permanently

For years, Northgate Mall was a classic example of a "dead mall," with its vacant anchor stores—Sears being one of the most prominent—acting as a visible symbol of economic decline. The complete demolition of the Sears building and the subsequent removal of the main mall structure effectively severed the site’s connection to its past. This physical erasure was a crucial psychological step for the community, signaling that the property was no longer a remnant of a bygone retail era but a completely blank slate for a modern, forward-looking urban center. The project’s success hinges on this fresh start.

4. It Facilitated the Creation of a New Street Grid

Traditional malls like Northgate were designed to be inward-facing, surrounded by a moat of parking and disconnected from the surrounding street network. The Sears building, in particular, was a large, impenetrable block. Its demolition was necessary to allow for the construction of new, public-facing streets, sidewalks, and pedestrian pathways that will weave the Ellerbe Square development into the existing Walltown and North Durham neighborhoods. This new, permeable street grid is a foundational element of the mixed-use design, making the area accessible and walkable.

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5. It Set a Precedent for Community-Driven Development

The Sears demolition was the first visible sign of the developer’s commitment to the community-driven Walltown Small Area Plan. The long process of negotiation and planning between Northwood Investors and local groups, including the Walltown Community Association, was contentious at times, with initial plans being criticized as "underwhelming." The eventual adoption of the community-backed plan, which prioritizes elements like a potential grocery store and specific percentages of affordable housing, means the demolition of the Sears building represents a victory for equitable development in Durham, NC. It established a precedent that future developments in the area must be responsive to resident needs, not just market forces.

The Future of the Former Sears Site and Ellerbe Square

As the site transitions from a demolition zone to an active construction site in late 2025 and early 2026, the focus shifts to the vertical construction of Ellerbe Square. The vision is to create a true destination that serves as a northern gateway to Durham. The new development will feature thousands of residential units, significant retail and commercial space, and civic areas. Entities like the Durham City Council continue to monitor the progress to ensure Northwood Investors adheres to the commitments made under the Walltown Small Area Plan.

The former Sears building, which stood vacant since 2018, is now a memory, but its removal is the most powerful symbol of Durham's commitment to reinventing its urban landscape. The transformation of this 55-acre parcel is expected to reshape the economic and social fabric of North Durham for decades to come, moving far beyond its history as a struggling retail center.