The partners are planning a major mixed-use redevelopment of the site. Calling it one of the largest redevelopment opportunities in Miami-Dade, they plan to modernize and reposition the mall while creating new high-quality housing. The mall was completely demolished in 2009, and in 2013 Cerner bought the property to redevelop. A representative for Macy's did not immediately respond to Nexstar . Last year, the mall was dealt another blow when Sears vacated its store. Tenant vacancies have had a sizable impact on the malls appraised value, according to Trepp. In November, BH Group partnered with Related Group and billionaire Teddy Sagi to buy the long-shuttered White House Inn in North Miami for $11.3 million. The massive Sears store in Southland Mall, long a fixture of the shopping center in Cutler Bay and an anchor store there since even before Hurricane Andrew in 1992 forced major remodeling of the mall, is closing. In more expensive real estate markets, the change could shift total mortgage closing costs by thousands of dollars. Sign up for free newsletters and get more CNBC delivered to your inbox. Francisco Alvarado. A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while . Jump to. Another shopper, who was uncomfortable with questions about her shopping experience, said that she was sad to see the store close, but that her opinion didnt seem to matter. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The final clearance will start Monday, January 12. Im also concerned about the quality of life, he said. Electra America and BH Group acquired 80-acre site in Cutler Bay Opportunity Zone, Electra America managing partner Joe Lubeck and Southland Mall at 20505 South Dixie Highway in Cutler Bay (Google Maps, Electra America). Electra America, a real estate private equity firm, and BH Group, a Miami-based private real estate investment firm, paid just over one hundred million dollars for the roughly 809,000 square foot mall which is on about 80 acres of land. The consensus seems to be that turning old retail space into new warehouses might not be so easy, even though it might seem like a logical solution. A Bureau of Prisons monitor gets his sentence. More Macy's stores to close in 2023. See the list of closing - MSN Ten years from now, there will be approximately 150 malls left in the US, Nick Egelanian, president of retail consulting firm SiteWorks, told The Wall Street Journal. Not in these states, Does Keurig owe you money? 10:00 am to 9:00 pm. To make the most of your backyard, look for durable and comfortable seating options. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. No other investor sought to pay more, and the lender was able to seize the property, documents show. Its unclear if Macys plans to close any additional stores in 2023. The locations included Market by Macys, according to a July press release from the company, a smaller store that offers customers more to love.. Fax:(305) 234-4251. This year alone, more than 8,600 stores could close, according to industry estimates, many of them the brand-name anchor outlets that real estate developers once stumbled over themselves to court . Macy's has yet to give an exact reason, but said this . In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027. With the majority of the proposed Target store closures planned to occur in the 2021 calendar year, this provides considerable time to explore all available options to redeploy affected team members. Office development is set to drop 10%, it said, while retail falls 15.7%. Southland Mall, currently the only enclosed mall that serves southern Miami-Dade and the Florida Keys, has a mix of more than 100 tenants including Macy's, JCPenney, TJ Max, L.A. He said hes first going to see if its worth talking to Macys to see if it will reconsider, and then hell sit down with the malls owners and create a plan even if that means offering tax incentives. Based on current macro-economic indicators and our proprietary credit card data, we believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly, said Macys CEO Jeff Gennette in a statement. Fitch Ratings Inc. said Brookfield Properties a global company with more than 200 retail holdings owes nearly $65.1 million on a $78.5 million loan from 2012. SOUTHLAND MALL. Attention focused on the Taylor shopping center after a New York financial rating service reported that the Toronto-based owner of Southland Center had defaulted on a multimillion-dollar loan payment due in July. That number is expected to shrink to 182 in February. After 24 years, Sears is closing its Baton Rouge location at the Mall of Louisiana, the last location in the state. Malls have suffered as online sales boomed. Investors have foreclosed on Southland Mall, 20505 S. Dixie Highway in Cutler Bay, after defaulting on a $67.5 million loan. So, if not warehouses and entertainment complexes, analysts have pondered other potential use cases for so-called dead malls: Churches, medical facilities, office spaces and even apartment complexes. By 1975 . US Malls Are Dying and There May Be Just 150 Left in 10 Years Once-bustling American malls are going bust as shoppers flock to online retailers instead of sprawling, brick-and-mortar locations. www .westlandcenter .com. Access your favorite topics in a personalized feed while you're on the go. Macy's to close some locations in 2023: Here's where An attorney representing Wells Fargo in the suit did not return a request for comment. Sears, a chain of department stores originally called Sears, Roebuck and Company, was founded by Richard Warren Sears and Alvah Curtis Roebuck in 1893 as a mail-order watch company. Real-time updates and all local stories you want right in the palm of your hand. 10:00 am to 9:00 pm. The judge ordered the 990,000-square-foot indoor mall at 20505 South Dixie Highway to be sold in a foreclosure auction on Feb. 10. Tens of thousands of stores could still close even after the - CNN One shopper, Rebecca Miranda, an area resident, was happy with the low prices on her finds but was not happy about the reason behind them. The Southland Mall in Miami opens at 10 am Monday to Saturday and closes by 8 pm but has different opening and closing times on Sunday. The Southfield mall defaulted on a $31 . The mall is the collateral for the loan. ABOUT US: A representative for Macys did not immediately respond to Nexstars request for comment. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. Southland Mall Hours: Opening, Closing & Holidays Hours | January 2023 But even office space is a risky bet now, as the working-from-home trend could become permanent for some. 2023 CBS Broadcasting Inc. All Rights Reserved. Southland Mall, currently the only enclosed mall that serves southern Miami-Dade and the Florida Keys, has a mix of more than 100 tenants including Macy's, JCPenney, TJ Max, L.A. City leaders said the closure came as a huge surprise. The property could attract investors seeking tax benefits from funding a project in an Opportunity Zone, a federally designated area meant to encourage development and job creation in low-income communities. Wells Fargo, representing CMBS investors, made a credit bid of just $2,600, Southland Mall in Cutler Bay (Google Maps). The marketing pitch cited the malls Opportunity Zone designation and redevelopment potential. Industrial development, meantime, is expected to pick up 3.6%. The firm did find five markets where it said it would make the most sense to covert vacant retail space into warehouse space, based on where retail has been underperforming and where warehouse demand is hot. Updated June 18, 2020 9:36 AM. We want to hear from you. The foreclosure marks another gloomy chapter in the ongoing slide of traditional retail. 10720 Caribbean Boulevard Part of the challenge is buying out anchor tenants, which own their spaces. A longtime employee working there, who didnt want to be identified, said that she is sorry to see the store closing and that the final day for the store will be Feb. 15. Another roadblock can be scoring the necessary zoning approvals from city and government officials. They said traditional shopping malls are at particularly high risk because shoppers now prefer to make quick trips to close-by stores, per CNBC. North Palm Beach-based Electra America and Miami-based BH Group teamed up to acquire the 808,776-square-foot indoor mall on a nearly 80-acre site at 20505 South Dixie Highway, according to a press release. The outdoor retailer REI is also looking to sell its recently completed corporate campus in suburban Seattle, shifting instead to more satellite offices, as a result of the pandemic. Southland Mall SoldA Message from the Mayor The property at 23000 Eureka accounts for more than $2 million in community tax payments. Heads up, homebuyers! Some people may have been surprised when it was announced on various real estate news websites that Cutler Bay's Southland Mall, 20505 S. Dixie Hwy., had been seized by Wells Fargo Bank . Wells Fargo, representing the CMBS investors, placed a credit bid, or a bid using its existing debt, of $2,600. 2022 CBS Broadcasting Inc. All Rights Reserved. That's a million-dollar question plaguingretailers and real estate developers. Southland Center defaults on $75M loan, but analyst says it's 'not a The mall offers more than 900,000 square feet of retail space, 4,990 parking spaces and features J.C. Penney and Macys as key tenants. Get the Android Weather app from Google Play, Gas Price Tracker Cheapest gas around Memphis, Tennessee Lottery College Basketball Bracket Challenge, Hammocks, outdoor lounge chairs and cushions to make, MPD: Woman gets into fight, shoots gun in Margaritas, 2 hurt, 2 detained following Beale Street shooting, 1 critical following shooting outside East Memphis, Dolphland: Young Dolph museum coming to Memphis, Mayor Jim Strickland makes a statement about gun, Accused South Memphis rapist, kidnapper faces judge, Gov. MEMPHIS, Tenn. Mayor A C Wharton is concerned sales tax revenue will take a hit now that Macys department store announced its leaving Southland Mall in Spring 2015. In a lawsuit filed on June 1 in Miami-Dade Circuit Court, Wells Fargo Bank charges the mall, which is owned by the Delaware-based Investcorp US Real Estate LLC, of defaulting on its $67.5 million loan. CoStar said Brookfield is likely working with a specialist to manage loan issues affecting Southland. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. According to court documents, JPMorgan Chase Bank, National Association made a $67.5 million loan to Investcorp on May 2, 2014. "State and local governments typically tax industrial properties at anywhere from half to two-thirds the rate of commercial properties, so municipalities have little incentive to rezone areas from commercial to industrial use, as they will collect less tax revenues," Calanog said. Fairlane Town Center in Dearborn was placed under new ownership after a loan default. Big changes have arrived in the way mortgage fees are calculated, and they could offer a windfall or an unexpected surcharge for your next home purchase. The company then added several new tenants; . Its remaining tenants include JCPenney, TJ Maxx, Regal Cinemas and LA Fitness. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Nexstar Media Inc. All rights reserved. Floodplain Mitigation Plan Advisory Committee, Watch this video to hear Mayor Tim Meerbott, Invasive Exotic Plant Species in Cutler Bay, 6th Annual Wings Over the Bay & Country Concert. While most such malls are expected to generate enough cash flow to cover debt service, Che said, others face continued performance challenges, liquidity pressures and overall market sentiment.. 25% of U.S. malls are set to shut within 5 years. What comes next? - CNBC WREG is told the 112 employees will be offered jobs in other nearby locations or severance packages. Sears offering discounts of up to 70 percent on merchandise ahead of store closing. Largest U.S. Mall Operator Simon Shuts Down, More Mall Closings Likely "Despite being given months to honor its past due rental obligations and despite Saks' impressive post-COVID sales at Bal Harbour Shops, Saks steadfastly refused to makeanyeffort to pay anypartof its rent," Bal Harbour Shops President and Chief Executive Matthew Whitman Lazenby said in a statement. Malls like Southland may struggle to refinance, said Melissa Che, a senior director at Fitch. Affected employees will be offered jobs at nearby locations or severance packages. Workers in JPMorgan Chase's corporate and investment bank, for example, will cycle between days spent at the office and at home, keeping the ability to work remotely on a part-time basis. Once it shuts down, the only department store left is Sears. And so with minimal revenue coming in, these are the businesses that are most likely requesting rent reductions, or not paying rent at all. Everything left in the store is being sold at up to 70 percent off original prices. Southland Mall, 1215 East Shelby Drive, Memphis, TN. The foreclosure was first reported by The Real Deal. Sears closed its store at Southland Mall in Houma in Houma in summer 2016. "Until we resolve this pandemic, I suspect we are going to be in a holding pattern with hollow retail space.". All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. Watch: Developer Patrick Carroll "spits" on restaurant manager, Connecticut private island sells for $3.5M, Investcorp wants out of struggling Southland Mall, Southland Malls $65M loan heads back to special servicing, Southland Malls troubled $65M CMBS loan for sale. Southland is the closest area mall to the Canadian border crossing, Brookfield said. . What were the changes in real estate prices in Broward County last week? The COVID-19 pandemic . Starting Monday, some fees will rise for homebuyers with higher credit scores, while buyers with lower scores will see a fee reduction. The company is also weighed down by $4 billion in debt and had previously closed numerous stores in recent years to help cut costs. America's Malls and Department Stores Are Dying Off | Time Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? We never give up, Collins said. He wants to make sure the closure doesnt have a domino effect. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. Below is a list of the J.C. Penney stores that are closing: Alabama "Unfortunately, this whole Covid thing has thrown the experiential pitch out the window," Moody's Calanog said in a phone interview. This material may not be published, broadcast, rewritten, or redistributed. He raped a Miami woman on house arrest, Live blog: Dolphins add these 19 undrafted rookies after NFL Draft, including two Hurricanes, With few rentals available, states push local officials to allow more housing, See the decrease in real estate prices in Monroe County in April, See how much real estate prices increased in Miami-Dade County in April. The Sunrise Mall has been a mainstay in . But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. This story was originally published June 10, 2020, 6:10 PM. The pandemic sped up the shift to online shopping, and the continued growth of e-commerce sales will lead to more stores shutting down after the pandemic ends, UBS retail analysts led by Michael . In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. Pleasenote that Town Hall is a drug, alcohol and tobacco-free workplace. The company is closing 14 stores across the county as part of a restructuring plan. Current tenants include JCPenney, Macys, TJ Maxx, L.A. Connect To Your Customers & Grow Your Business, There is Sears In key west which is south of southland. One of its largest anchor tenants, Kmart, left in 2017. The mall itself almost looks like a 4 spoke wheel where the mall itself owned the center of the mall and portions of the parking lot going out to the perimeter and around the other 4 parcels. Copyright 2023 Nexstar Media Inc. All rights reserved. The companys adjusted earnings per share for the period should meet the projected range of $1.47 to $1.67, Macys said. The deal does not include a Mercedes-Benz dealership and a former Sears store and auto center that are also on the property, a spokesperson for the joint venture said. "Just because retail space has gone vacant or remained fallow does not mean that it is automatically a good candidate for repurposing into industrial space," the head of Moody's Analytics commercial real estateeconomics division, Victor Calanog,said in a report released Thursday. A longtime fixture of American culture, shopping malls have suffered for decades amid a rise in online shopping, a decline in visitors to department stores, and, more recently, the COVID-19 pandemic, which kept consumers home. Website. Southland is the closest area mall to the Canadian border crossing, Brookfield said. There may be just 150 malls left in the US in 10 years, according to one industry watcher. Collins is frustrated, because he had no idea this was coming. "Bal Harbour Shops has worked tirelessly to ensure our business and our tenants can survive and thrive in this environment," he said. Could Blue Crush, COACT units hold lessons for MPD? How much longer can Kansas City's shopping malls hang on? Here's where The LLC is owned by the New York-based Investcorp International Realty, an investment firm founded in 1982 with holdings around the world. How much did it cost to buy a home in Miami-Dade County last week. Cutler Bay Town Hall A month later, the bank bought the property for $2,600 in a foreclosure sale, court records show. Macys has yet to give an exact reason, but said this is part of a greater plan to streamline in-store and online shopping. Top editors give you the stories you want delivered right to your inbox each weekday. Demand for various commercial real estate asset types is expected to shift noticeably because of the coronavirus pandemic, with more people now working from home, flocking to the suburbs for space and buying online things they used to browse for in stores. Investcorp had defaulted on its $65 million CMBS loan in April and initially asked its special servicer KeyBank for relief. When the loan matured on May 8, the trustee for the CMBS filed the $67.5 million suit against the mall, which includes accrued interest and legal fees. Is it true tuttle mall is closing? : r/Columbus - Reddit On Jan. 16, 2019 Sears announced that it had won its bankruptcy auction and would shrink and remain open with 425 stores nationwide. Southland Mall, formerly known as Cutler Ridge Mall, opened in 1978 as an extension of the Cutler Ridge Shopping Center, which opened in 1960. Got a confidential news tip? City leaders said the closure came as a huge surprise. Save my name, email, and website in this browser for the next time I comment. In May, Macys reported better-than-expected earnings for its national network of department stores. SMART 210, 250. The rise and fall of the American mall - Business Insider UPDATE: Southlake Mall under new management after owner defaulted on A foreclosure suit was filed in June and a receiver for the mall was appointed in the summer. SHARE THIS ARTICLE. Stay up to date with what you want to know. Northland Center mall could close by spring - hometownlife.com
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