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. Got a confidential news tip? "Bal Harbour Shops has worked tirelessly to ensure our business and our tenants can survive and thrive in this environment," he said. Industrial development, meantime, is expected to pick up 3.6%. He currently writes for the business desk covering real estate and the citys affordability crisis. Theyre not meant to treat viruses, however. 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 marketing pitch cited the malls Opportunity Zone designation and redevelopment potential. 25% of U.S. malls are set to shut within 5 years. What comes next? - CNBC 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. 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.. Even high-end malls are under pressure, though. Fort Lauderdale-based property management firm Gumberg Asset Management, which manages the mall, declined to comment. Another roadblock can be scoring the necessary zoning approvals from city and government officials. Time to claim part of $10 million settlement running out, Giant seaweed blooms beaching begins, expected to worsen, Crowds, high prices and the White Lotus effect: Worst places to travel this summer, More than 200 people died in national parks last year: These were the deadliest. Im also concerned about the quality of life, he said. 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. 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. 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. The South Florida Business Journal first reported the news of the judgment and the auction. Francisco Alvarado. Like every other business in America, Southland Mall opens and closes on certain holidays. It owes Bal Harbour roughly $1.9 million, according to court documents. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. There may be just 150 malls left in the US in 10 years, according to . 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. 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. Sears' store in Louisiana will close soon - The Courier 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. In October, the commercial brokerage JLL was tapped to sell the $65.1 million CMBS loan tied to the mall. Southland Mall Hours Of Operation [Updated 2023] Theres nothing like lazy summer days relaxing on the patio. 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 new report out this week from Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years, with the pandemic accelerating a demise that was already underway before the new virus emerged. Its unclear if Macys plans to close any additional stores in 2023. 25% of the country's approximately 1,000 malls. A month later, the bank bought the property for $2,600 in a foreclosure sale, court records show. The COVID-19 pandemic . These closures come on the heels of Macys opening multiple off-mall, small-format stores in 2022. Sunrise Mall in Massapequa tells tenants to vacate, leaving store 10:00 am to 9:00 pm. 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. 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. 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. Oct 12, 2022, 9:40 AM PDT. Connect To Your Customers & Grow Your Business, There is Sears In key west which is south of southland. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. Investment Firms Buy Southland Mall, Plan To Modernize It, Build High It's part of a restructuring plan that includes new stores in some markets. Later, in 2011, the Borders store shut down when that chain became defunct. 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. SOUTHLAND MALL. Cutler Bay Town Hall 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 2004, Southland Mall Properties paid $46 million for the retail site, according to records. Office development is set to drop 10%, it said, while retail falls 15.7%. 2023 Miami's Community Newspapers a Miller Publishing Company. With Department Stores Disappearing, Malls Could Be Next document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Nexstar Media Inc. All rights reserved. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. 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. Sears store in Southland Mall expected to close by Feb. 15 Largest U.S. Mall Operator Simon Shuts Down, More Mall Closings Likely All Rights Reserved. There are roughly 380 C- and D-rated malls in the U.S., according to an analysis by the commercial real estate firm Green Street Advisors. No one is really immune. Fairlane Town Center in Dearborn was placed under new ownership after a loan default. With a report circulating earlier this month that the biggest U.S. mall owner Simon Property Group has been in talks with Amazon to convert some shuttered Sears and J.C. Penney department stores into fulfillment centers, many industry analysts have been pontificating on the future of malls as logistics hubs. Real-time updates and all local stories you want right in the palm of your hand. We want to hear from you. Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. Updated June 18, 2020 9:36 AM. But the hurdles include the need to have properties rezoned, which could be met with pushback from local municipalities. 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 Associated Press contributed to this report. 2023 CBS Broadcasting Inc. All Rights Reserved. "It is nearly impossible to find a property of this quality and size throughout South Florida. apartment development in the U.S. is expected to be down 15.6% in a post-Covid . 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. Most store employees at the Southland Mall location were reluctant to talk about the store closing, but the customers were not. 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. Access your favorite topics in a personalized feed while you're on the go. 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. By clicking Sign up, you agree to receive marketing emails from Insider / CBS Miami. A foreclosure suit was filed in June and a receiver for the mall was appointed in the summer.