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. A month later, the bank bought the property for $2,600 in a foreclosure sale, court records show. Heads up, homebuyers! Francisco Alvarado. There may be just 150 malls left in the US in 10 years, according to . 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 Associated Press contributed to this report. 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. 2023 Miami's Community Newspapers a Miller Publishing Company. Northland Center in Southfield is undergoing a makeover into a mixed-use development for retail, residential and office development. 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 . 10:00 am to 9:00 pm. In October, the commercial brokerage JLL was tapped to sell the $65.1 million CMBS loan tied to the mall. Fax:(305) 234-4251. Part of the challenge is buying out anchor tenants, which own their spaces. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. Save my name, email, and website in this browser for the next time I comment. We want to hear from you. 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. SHARE THIS ARTICLE. It is still owned by SPG and they owe . Southland Mall, 1215 East Shelby Drive, Memphis, TN. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. CoStar said Brookfield is likely working with a specialist to manage loan issues affecting Southland. A Division of NBCUniversal. Industrial development, meantime, is expected to pick up 3.6%. The joint venture plans to redevelop the waterfront property into a luxury condominium. 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. The company is closing 14 stores across the county as part of a restructuring plan. Sears has no other full department store locations south of Coral Gables, and it likely will be missed by shoppers and former employees. 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 . A representative for Macy's did not immediately respond to Nexstar . I am sad to see it go.. Top editors give you the stories you want delivered right to your inbox each weekday. 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). To make the most of your backyard, look for durable and comfortable seating options. Got a confidential news tip? Those are:Central New Jersey, Northern New Jersey, Long Island, Memphis and Detroit. Investcorp had defaulted on its $65 million CMBS loan in April and initially asked its special servicer KeyBank for relief. Southland Center (also known as Southland Mall) is an enclosed mall located at 23000 Eureka Road in Taylor, Michigan . May 6, 2022 / 6:00 AM "You know, everybody moving out a little bit further." Tuesday. Fitness, Regal . 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. 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. What was the decrease in real estate prices in Broward County in April? According to data pulled by Moody's Analytics REIS, apartment development in the U.S. is expected to be down 15.6% in a post-Covid-19 world. That's a million-dollar question plaguingretailers and real estate developers. 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. Montana legislator sues House speaker over censure, Supreme Court to consider overruling Chevron doctrine, Tucker Carlson, on leaked video, derides Fox streaming service, Senate rankings: Here are the 5 seats most likely to flip. Monday. Theyre not meant to treat viruses, however. Bill Lee and First Lady give away meal boxes, Southaven Police search for car theft, shooting suspects, Shooting in Orange Mound leaves 1 injured, School truancy could fuel juvenile crime trend, Concerns rise after escapes, assaults at TN youth. 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 coronavirus pandemic has accelerated a demise that was already underway. 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. WREG is told the 112 employees will be offered jobs in other nearby locations or severance packages. Fitness, Regal Cinemas and Old Navy. Last year, the mall was dealt another blow when Sears vacated its store. In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. 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The company is closing 14 stores across the county as part of a restructuring plan. In May, Macys reported better-than-expected earnings for its national network of department stores. This is an archived article and the information in the article may be outdated. Malls have suffered as online sales boomed. 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. 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. About 90% of occupants in U.S. malls are either experiential tenants like movie theaters, or department store chains and apparel retailers, according to the Coresight analysis. Stay up to date with what you want to know. Absolutely, I am concerned about the loss of sales tax revenue. Store closures also happened in 2020, 2021, and 2022. The final clearance will start Monday, January 12. These closures are part of a plan announced in February 2020 when Macys confirmed it planned to close 125 of its least productive stores over three years. Southland Mall will be dramatically renovated and upgraded and plans are being developed for beautiful residential spaces on excess land, the spokesperson said. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. One of Macy's department stores locations at an indoor shopping mall. 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. The mall is the collateral for the loan. 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. 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. 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. Like every other business in America, Southland Mall opens and closes on certain holidays. This material may not be published, broadcast, rewritten, or redistributed. 2022 CBS Broadcasting Inc. All Rights Reserved. Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? Fitness, Regal Cinemas, Kay Jewelers, and Applebee's. 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. Cutler Bay Town Hall A clearance sale will begin in January and run for approximately eight to 12 weeks, Macy's said. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. But the hurdles include the need to have properties rezoned, which could be met with pushback from local municipalities. In more expensive real estate markets, the change could shift total mortgage closing costs by thousands of dollars. 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). Fairlane Town Center in Dearborn was placed under new ownership after a loan default. Four Macy's locations at shopping malls are slated to close, the company told Axios. Even high-end malls are under pressure, though. Sign up for free newsletters and get more CNBC delivered to your inbox. 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. All Rights Reserved. City leaders said the closure came as a huge surprise. Not in these states, Does Keurig owe you money? Most of the businesses have resumed operations since the mall reopened on May 21. Fort Lauderdale-based property management firm Gumberg Asset Management, which manages the mall, declined to comment. 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 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. The LLC is owned by the New York-based Investcorp International Realty, an investment firm founded in 1982 with holdings around the world. The mall offers more than 900,000 square feet of retail space, 4,990 parking spaces and features J.C. Penney . Heres what you need to know, Top scientist quits Google, issues AI warning: Bad actors could use it for bad things, List of most expensive ZIP codes released, Mega Millions: Can a jackpot winner remain anonymous? (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. 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. The expecting mother will need diapers and bottles, but she will also need comfy maternity clothes to wear throughout her pregnancy or a maternity pillow. No one is really immune. Once it shuts down, the only department store left is Sears. Jump to. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. This is not a dead mall, not at all, Duski said. "Unfortunately, this whole Covid thing has thrown the experiential pitch out the window," Moody's Calanog said in a phone interview. 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. A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while . www .westlandcenter .com. 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. According to Egelanian, the malls that will weather the storm will be premium locations with entertainment, dining, and luxury stores. 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 foreclosure was first reported by The Real Deal. Macys confirmed to USA Today and Axios that these four stores will close this year: Store closures also happened in 2020, 2021, and 2022. He wants to make sure the closure doesnt have a domino effect. The Southland Mall Macy's is closing along with 14 other stores nationwide. Watch this video to hear Mayor Tim Meerbott address some of the questions residents have asked regarding this sale and what it means for the future of Cutler Bay. 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Two of its other anchors, Macys and JCPenney, have also been highly stressed and have closed stores around the U.S. over the last year. City leaders said the closure came as a huge surprise. The Tuttle mall property is actually 5 separate parcels of land. The property at 23000 Eureka accounts for more than $2 million in community tax payments. The lack of interest in the once bustling mall previously owned by . A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. We are excited to be partnering with BH Group to revitalize this key Miami asset, and we appreciate the opportunity to work with the Town of Cutler Bay in the redevelopment of the site to create new high-quality housing and employment opportunities for its residents," said Joe Lubeck, Managing Partner of Electra America, in a statement. Even before the pandemic, brick-and-mortar retailers struggled with online competition and shifting consumer habits, forcing Bloomingdales to shutter its Falls store and Pier 1 to declare bankruptcy. "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. 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. That number is expected to shrink to 182 in February. 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. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The mall opens at noon on Sunday and closes by 6 pm. This material may not be published, broadcast, rewritten, or redistributed. Im also concerned about the quality of life, he said. May 2, 2022, 1:30 PM. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. But those businesses have also not fared well in an age of social distancing. 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. Mayor Wharton admits this is a blow to Whitehaven, and is worried about the 112 people losing jobs, and shoppers leaving the city. After 24 years, Sears is closing its Baton Rouge location at the Mall of Louisiana, the last location in the state. Brookfield acquired Southland in 2016 when it acquired Rouse Properties Inc., the malls original developer. Starting Monday, some fees will rise for homebuyers with higher credit scores, while buyers with lower scores will see a fee reduction. 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. There may be just 150 malls left in the US in 10 years, according to one industry watcher. 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. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Nexstar Media Inc. All rights reserved. A representative from Hudson's Bay-owned Saks was not immediately available to comment. And so with minimal revenue coming in, these are the businesses that are most likely requesting rent reductions, or not paying rent at all. Southland is the closest area mall to the Canadian border crossing, Brookfield said. / CBS Miami. Rouse Properties was spun off from General Growth Properties in January 2012. Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. The Southland Mall follows the schedule given below in the table. 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. The world's biggest Wall Street bank by revenue has said itcould shutter backup trading floors located outside New York and London as a result of the move. 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 DeSantis a hometown hero in this Florida city or just someone who lived there? Now the lenders plans for the mall are unclear. Most store employees at the Southland Mall location were reluctant to talk about the store closing, but the customers were not. Pleasenote that Town Hall is a drug, alcohol and tobacco-free workplace. 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. What is going to happen to America's dead malls? Other industry watchers predict a similarly painful fate for malls and retail stores more generally. The mall was completely demolished in 2009, and in 2013 Cerner bought the property to redevelop. The company is also weighed down by $4 billion in debt and had previously closed numerous stores in recent years to help cut costs. By. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. But an active community of former employees hopes to keep the doomed department store remembered through memorabilia and online. The mall features more than 100 inline stores, with JCPenney and Kohl's serving as anchor stores. 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. "Bal Harbour Shops has worked tirelessly to ensure our business and our tenants can survive and thrive in this environment," he said. ABOUT US: But later the firm said the property will be unsustainable, according to Trepp. Sears closed its store at Southland Mall in Houma in Houma in summer 2016. Data is a real-time snapshot *Data is delayed at least 15 minutes. Amazon and the whole digital entity of ordering stuff online is the main reason that malls are shutting down nowadays," mall patron Kevin Winston 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. Chang W. Lee/The New York Times. No other investor sought to pay more, and the lender was able to seize the property, documents show. Demand for logistics buildings is skyrocketing as e-commerce sales balloon. Later, in 2011, the Borders store shut down when that chain became defunct. 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