Eastland Center in Harper Woods closed in early 2022 to clear the way for warehouses and a distribution center. But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. Later, in 2011, the Borders store shut down when that chain became defunct. Most of the businesses have resumed operations since the mall reopened on May 21. 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. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. 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. But those businesses have also not fared well in an age of social distancing. 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. Updated June 18, 2020 9:36 AM. The malls most at risk of going dark are classified as so-called B-, C- and D-rated malls, meaning they bring in fewer sales per square foot than an A mall. The Tuttle mall property is actually 5 separate parcels of land. 10:00 am to 9:00 pm. 2022 CBS Broadcasting Inc. All Rights Reserved. By. The partners are planning a major mixed-use redevelopment of the site. This is not a dead mall, not at all, Duski said. The final two Zellers stores will shut down later this month. Store closures also happened in 2020, 2021, and 2022. Collins is frustrated, because he had no idea this was coming. The partnership converted the building into an AKA hotel. Copyright 2023 Nexstar Media Inc. All rights reserved. 10:00 am to 9:00 pm. The seller is Wells Fargo Bank as trustee for a JP Morgan Chase commercial mortgage-backed securities trust, which seized the property in February of last year as a result of a $68.7 million foreclosure judgment against the previous owner. For more Miami community news, look no further During the few months I have been studio Artist-in-Residence, Sears store in Southland Mall expected to close by Feb. 15, Poiema of Grace spreads Gospel message with athleisure clothing, Jeep Wrangler Rubicon 44 still darling of off-road enthusiasts, Grant Miller Joins Christopher Columbus High School LINK Club at Night Of the Stars, Coral Gables Swearing In Ceremony Photo Gallery, Deering Estate Artist-in-Residence Spotlight: Andres Cabrera-Garcia. 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. It is an older store, has been in the mall for a long time. It has said malls rated C and below "are not viable retail centers long term.". Brookfield said Southland features the best mix of national retailers, big box brands and local vendors. Among those cited by Brookfield: Best Buy, Victorias Secret, Pink, American Eagle, H&M, Pandora and a Cinemark theater. 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. In 2004, Southland Mall Properties paid $46 million for the retail site, according to records. The COVID-19 pandemic . What is going to happen to America's dead malls? The coronavirus pandemic has accelerated a demise that was already underway. Westland Shopping Center, also known as Westland Center, is an enclosed shopping mall located in the city of Westland, Michigan, a suburb of Detroit. There may be just 150 malls left in the US in 10 years, according to . From bad to worse: Student misbehavior rises further since return of in-person McConnell insists hes sitting out debt talks to disbelief. 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. Tenant vacancies have had a sizable impact on the malls appraised value, according to Trepp. This is an archived article and the information in the article may be outdated. Jump to. It's unclear if Macy's plans to close any additional stores in 2023. Is DeSantis a hometown hero in this Florida city or just someone who lived there? 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. The timings are subject to change depending upon different locations and any special event coming by: Week Days. We never give up, Collins said. Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. 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. Those are:Central New Jersey, Northern New Jersey, Long Island, Memphis and Detroit. (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. By 1975 . These closures come on the heels of Macys opening multiple off-mall, small-format stores in 2022. CoStar said Brookfield is likely working with a specialist to manage loan issues affecting Southland. Brookfield and Southland officials could not be reached for comment on how the unmet loan payment will be handled. A representative from Hudson's Bay-owned Saks was not immediately available to comment. The final clearance will start Monday, January 12. 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. Fitness, Regal Cinemas, Kay Jewelers, and Applebee's. Malls have suffered as online sales boomed. Cutler Bay Town Hall Get browser notifications for breaking news, live events, and exclusive reporting. Tuesday. Sears has no other full department store locations south of Coral Gables, and it likely will be missed by shoppers and former employees. 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. Save my name, email, and website in this browser for the next time I comment. In more expensive real estate markets, the change could shift total mortgage closing costs by thousands of dollars. Part of the challenge is buying out anchor tenants, which own their spaces. The mall is the collateral for the loan. Sales continued to decline and the parent company filed for Chapter 11 bankruptcy on Oct. 15, 2018. Once-bustling American malls are going bust as shoppers flock to online retailers instead of sprawling, brick-and-mortar locations. The marketing pitch cited the malls Opportunity Zone designation and redevelopment potential. In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. Wells Fargo, representing the CMBS investors, placed a credit bid, or a bid using its existing debt, of $2,600. According to court documents, JPMorgan Chase Bank, National Association made a $67.5 million loan to Investcorp on May 2, 2014. There are currently around 700 malls in the US, down from 2,500 in the 1980s. MIAMI (CBSMiami) - Southland Mall in Cutler Bay has been acquired by two real estate investment firms that have big plans for the property. 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. 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. Call 305.669.7030 or view our Media Kit. Southland Mall, 1215 East Shelby Drive, Memphis, TN. Even high-end malls are under pressure, though. 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. 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. I wish that the store were staying open, Miranda said in Spanish. The company then added several new tenants; . The company is also weighed down by $4 billion in debt and had previously closed numerous stores in recent years to help cut costs. Penney emerged from bankruptcy in 2020. It was bought by the management of the Kmart chain in 2005, becoming Sears Holdings after the merger. They said traditional shopping malls are at particularly high risk because shoppers now prefer to make quick trips to close-by stores, per CNBC. May 6, 2022 / 6:00 AM We have a never quit attitude out here. Its remaining tenants include JCPenney, TJ Maxx, Regal Cinemas and LA Fitness. Francisco Alvarado. 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. 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. Target team members impacted by store closures will be given priority consideration for new roles created in Kmart and Catch as these businesses . Rene Rodriguez has worked at the Miami Herald in a variety of roles since 1989. May 2, 2022, 1:30 PM. A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while adding a residential component. Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? Once it shuts down, the only department store left is Sears. "Until we resolve this pandemic, I suspect we are going to be in a holding pattern with hollow retail space.". 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. You may login with either your assigned username or your e-mail address. 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. You have entered an incorrect email address! The lack of interest in the once bustling mall previously owned by . In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. 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. as well as other partner offers and accept our. www .westlandcenter .com. The company is closing 14 stores across the county as part of a restructuring plan. The mall opens at noon on Sunday and closes by 6 pm. 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The new owners will provide more information about those plans at a later date, the spokesperson added. 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. Office development is set to drop 10%, it said, while retail falls 15.7%. 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 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 . 2023 CBS Broadcasting Inc. All Rights Reserved. The mall is also home to Regal Southland Mall cinema, which remains closed. By clicking Sign up, you agree to receive marketing emails from Insider Data is a real-time snapshot *Data is delayed at least 15 minutes. Fitness, Regal . 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. At the end of 2020, occupancy was just 74 percent, according to Trepp. 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. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. City leaders said the closure came as a huge surprise. Its appraisal fell from $130 million in 2014 to $68.4 million in June. Mayor Wharton admits this is a blow to Whitehaven, and is worried about the 112 people losing jobs, and shoppers leaving the city. 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. Miami-Dade Circuit Court Judge Mavel Ruiz entered a final judgment on behalf of Wells Fargo in January 2021. This material may not be published, broadcast, rewritten, or redistributed. It owes Bal Harbour roughly $1.9 million, according to court documents. Mortgage fees to rise for buyers with high credit scores, fall for those with lower scores, DeSantis-appointed oversight board fires back days after Disney sues governor, Shipwreck found off Florida beach is much larger than originally suspected, team says. The New York-based department store chain, which also operates upscale Bloomingdales and Bluemercury stores, said Friday that sales for the November-to-January period will fall in the low end to the midpoint of its expected range of $8.16 billion to $8.4 billion. "Must be a reason, you know, sales might be down in this area," said Whitehaven resident Eric Hillard. She had an armful of clothes in one hand and was pushing her childs stroller with the other. 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. The Sunrise Mall has been a mainstay in . 25% of the country's approximately 1,000 malls.
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