apartment development in the U.S. is expected to be down 15.6% in a post-Covid . What was the decrease in real estate prices in Broward County in April? Fitch Senior Analyst Stephanie Duski said Southland has not been a significant underperformer, noting that the mall reported 91% occupancy in March, compared with 94% in 2019. GNC will close hundreds of stores as it restructures in bankruptcy. Below is a list of the J.C. Penney stores that are closing: Alabama It has said malls rated C and below "are not viable retail centers long term.". Southland Mall had financial issues prior to the coronavirus pandemic. 2022 CBS Broadcasting Inc. All Rights Reserved. After 24 years, Sears is closing its Baton Rouge location at the Mall of Louisiana, the last location in the state. I wish that the store were staying open, Miranda said in Spanish. Destiny USA mall reopens as the coronavirus disease (COVID-19) restrictions are eased in Syracuse, New York, U.S. How shrinking American mall will impact local tax revenue, cycle between days spent at the office and at home. One of Macy's department stores locations at an indoor shopping mall. Macys confirmed to USA Today and Axios that these four stores will close this year: Store closures also happened in 2020, 2021, and 2022. But Investcorp was unable to make its April 9 payment last month, battered by the coronavirus shutdown and the brick-and-mortar retail slump that shuttered one of its three anchor stores (Sears). Its unclear if Macys plans to close any additional stores in 2023. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. 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. Its appraisal fell from $130 million in 2014 to $68.4 million in June. 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. Everything left in the store is being sold at up to 70 percent off original prices. Southland is the closest area mall to the Canadian border crossing, Brookfield said. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Promote your business to the localized audience you want to reach with Miami's Community Newspapers. There are currently around 700 malls in the US, down from 2,500 in the 1980s. Jump to. A foreclosure suit was filed in June and a receiver for the mall was appointed in the summer. SOUTHFIELD - Stripped of its last anchor stores and losing nearly $250,000 every month, the entire Northland Center mall is now in danger of shutting down. "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," Moody's Analytics real estate analyst Victor Calanog said. 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. Save my name, email, and website in this browser for the next time I comment. A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while . The two-level mall was home to Macy's, JCPenny and Sears and was adorned in many red-brown tile foundations with plants surrounding them. The Southfield mall defaulted on a $31 . The shortfall cited by the real estate data service CoStar Group Inc. came as shopping centers across the nation try to rebound from the double whammy of online shopping and the COVID-19 pandemic. WREG is told the 112 employees will be offered jobs in other nearby locations or severance packages. 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. Current tenants include JCPenney, Macys, TJ Maxx, L.A. Macys has yet to give an exact reason, but said this is part of a greater plan to streamline in-store and online shopping. But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. It's part of a restructuring plan that includes new stores in some markets. A representative from Hudson's Bay-owned Saks was not immediately available to comment. 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. 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. According to its current website, Southland Mall houses 71 retailers, including Ross Dress For Less, Sephora and Mens Wearhouse, along with 18 casual/fast-food restaurants such as Applebees and Teriyaki Ninja. ABOUT US: The joint venture plans to redevelop the waterfront property into a luxury condominium. The foreclosure was first reported by The Real Deal. There may be just 150 malls left in the US in 10 years, according to . 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. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. Southland Mall, the 986,100-square-foot indoor mall at 20505 S. Dixie Highway in Cutler Bay, is the first major shopping center to be foreclosed due to the coronavirus outbreak. 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. 6796 SW 62nd AvenueSouth Miami, Florida 33143(305)669-7030, Miami Community Newspaper Sponsored Content, Latin Builders Association Community News. 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. Could Blue Crush, COACT units hold lessons for MPD? Another roadblock can be scoring the necessary zoning approvals from city and government officials. CoStar said Southlands net revenue declined to $16 million last year, from $18.5 million in 2019, while operating income was $8.97 million last year, compared with $7.95 million in 2019. 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. 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. 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). But an active community of former employees hopes to keep the doomed department store remembered through memorabilia and online. 10:00 am to 9:00 pm. Wells Fargo, representing a trust of commercial mortgage-backed securities investors, was awarded a foreclosure judgment of $68.7 million in January, which included the loans principal plus interest and fees, according to the filing. On April 29, 2022, Southland Mall was sold to Electra America and BH Group, a Miami-based private real estate investment and development firm, for $100.35 million. Department stores account for about 30 percent of the mall square footage in the United States, with 10 percent of that coming from Sears (which filed for . SOUTHLAND MALL. Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. They said traditional shopping malls are at particularly high risk because shoppers now prefer to make quick trips to close-by stores, per CNBC. Website. 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. During the pandemic, movie theaters and clothing shops have faced long windows of being closed, while consumers could still flock to strip centers for food, cleaning products and other essentials. The marketing pitch cited the malls Opportunity Zone designation and redevelopment potential. Rene Rodriguez has worked at the Miami Herald in a variety of roles since 1989. If they would have told us what they need to maintain their operation, Im sure they would have had one advocate for them and thats me, Councilman Harold Collins said. What were the changes in real estate prices in Broward County last week? By 1960, just four years after Gruen's first mall, there were 4,500 large shopping complexes in the United States, which averages to at least three new shopping centers opening every day. Fitness, Regal . 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. "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. The mall was completely demolished in 2009, and in 2013 Cerner bought the property to redevelop. 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. 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. The loan, which was classified as a Commercial Mortgage Backed Securities financing (CMBS), is essentially a syndicated mortgage held by a trust made up of various banks and lenders. How much did it cost to buy a home in Miami-Dade County last week. Experts estimate that hundreds of malls will close in the near future. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. (NEXSTAR) Macys will be closing a handful of its stores in 2023, the retail chain confirmed last week, as part of a plan announced three years ago. Francisco Alvarado. Sign up for notifications from Insider! Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? Sign up for free newsletters and get more CNBC delivered to your inbox. The company then added several new tenants; . The Associated Press contributed to this report. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. An A++ mall could bring in as much as $1,000 in sales per square foot, for example, while a C+ mall does about $320. The mall is the collateral for the loan. 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This makes malls the most vulnerable type of shopping centers to the Covid-19 impact, it said, compared with other properties like strip centers that have grocery stores and outlet centers that offer consumers bargains. The mall was devastated by Hurricane Andrew in 1992, reopened the following year and was renamed Southland Mall in 2003. Al Franken blasts Supreme Court: Its illegitimate, Rices departure brings relief to immigration advocates, Cardin wont seek reelection, opening up Maryland Senate seat, Saudi alfalfa sparks tension in Arizonas Sonoran Desert, Watch live: White House monkeypox response team holds briefing, Do Not Sell or Share My Personal Information, Los Angeles, California Baldwin Hills Crenshaw Plaza on Crenshaw Boulevard, Fort Collins, Colorado Foothills Mall on Foothills Parkway, Gaithersburg, Maryland Lakeforest Mall on Russell Avenue. The companys adjusted earnings per share for the period should meet the projected range of $1.47 to $1.67, Macys said. Other industry watchers predict a similarly painful fate for malls and retail stores more generally. The company is also weighed down by $4 billion in debt and had previously closed numerous stores in recent years to help cut costs. Fort Lauderdale-based property management firm Gumberg Asset Management, which manages the mall, declined to comment. . Southland Mall, formerly known as Cutler Ridge Mall, opened in 1978 as an extension of the Cutler Ridge Shopping Center, which opened in 1960. Rouse Properties was spun off from General Growth Properties in January 2012. Brookfield acquired Southland in 2016 when it acquired Rouse Properties Inc., the malls original developer. Industrial development, meantime, is expected to pick up 3.6%. The company is closing 14 stores across the county as part of a restructuring plan. From bad to worse: Student misbehavior rises further since return of in-person McConnell insists hes sitting out debt talks to disbelief. 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The lack of interest in the once bustling mall previously owned by . Pleasenote that Town Hall is a drug, alcohol and tobacco-free workplace. The new owners will provide more information about those plans at a later date, the spokesperson added. Copyright 2023 Nexstar Media Inc. All rights reserved. This story was originally published June 10, 2020, 6:10 PM. Southland Mall is the oldest in the city, and Macys has been there a decade. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. It's starting with these 248 stores. Four Macy's locations at shopping malls are slated to close, the company told Axios. Sears closed its store at Southland Mall in Houma in Houma in summer 2016. A lot of clothing for men and women still remains, as do some area rugs and appliances, but some parts of the store already are empty. But those businesses have also not fared well in an age of social distancing. On its website, Brookfield describes Southland as the only regional center located in the Detroit suburbs south of I-94 and less than one-quarter mile from I-75. Stay up to date with what you want to know. The partners are planning a major mixed-use redevelopment of the site. But later the firm said the property will be unsustainable, according to Trepp. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. 10:00 am to 9:00 pm. 25% of the country's approximately 1,000 malls. There may be just 150 malls left in the US in 10 years, according to one industry watcher. At the end of 2020, occupancy was just 74 percent, according to Trepp. Theyre not meant to treat viruses, however. Target team members impacted by store closures will be given priority consideration for new roles created in Kmart and Catch as these businesses . In the meantime, the joint venture retained Boca Raton-based Urban Retail Properties to manage and lease Southland Mall, which has a 20 percent vacancy rate, the spokesperson said. Fox says Parkinsons disease is getting tougher, State audit: Oregon should prepare for national competition on marijuana, No, Federal Home Loan Banks didnt cause the SVB collapse, Bed Bath & Beyond liquidation sale has started. 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 . SMART 210, 250. A representative for Macy's did not immediately respond to Nexstar . Tenant vacancies have had a sizable impact on the malls appraised value, according to Trepp. An upscale mall owner in Miami, Bal Harbour Shops, is currently moving to evict the luxury department store chain Saks Fifth Avenue for not paying rent since mid-March. This material may not be published, broadcast, rewritten, or redistributed. A representative for Macys did not immediately respond to Nexstars request for comment. A clearance sale will begin in January and run for approximately eight to 12 weeks, Macy's said. 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. The lack of interest in the once bustling mall previously owned by private equity firm Investcorp could signal just how bad things have gotten for Class B suburban malls in South Florida and across the country. Theres nothing like lazy summer days relaxing on the patio. Not in these states, Does Keurig owe you money? Absolutely, I am concerned about the loss of sales tax revenue. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. A Division of NBCUniversal. "Regrettably, this injudicious behavior has left us with no other option than to terminate the Saks lease and sue to evict Saks from Bal Harbour Shops.". "It is nearly impossible to find a property of this quality and size throughout South Florida. Westland Shopping Center, also known as Westland Center, is an enclosed shopping mall located in the city of Westland, Michigan, a suburb of Detroit. In June 2020, Wells Fargo filed a foreclosure lawsuit against Southland Mall Properties for defaulting on a $65.1 million mortgage. In May, Macys reported better-than-expected earnings for its national network of department stores. Real-time updates and all local stories you want right in the palm of your hand. Whether youre a real estate professional or simply an aficionado, the Miami Heralds new RE | source newsletter is your link to residential, commercial and industry news. Its remaining tenants include JCPenney, TJ Maxx, Regal Cinemas and LA Fitness. No one is really immune. Mall developers had up until now been courting entertainment companies likeDave& Buster's and iFly indoor skydiving, and restaurants like Cheesecake Factory, to lessen their dependence on shrinking retailers. 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. Eastland Center in Harper Woods closed in early 2022 to clear the way for warehouses and a distribution center.
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