Brookfield acquired Southland in 2016 when it acquired Rouse Properties Inc., the malls original developer. Most of the businesses have resumed operations since the mall reopened on May 21. That's a million-dollar question plaguingretailers and real estate developers. Southland Mall, formerly known as Cutler Ridge Mall, opened in 1978 as an extension of the Cutler Ridge Shopping Center, which opened in 1960. It began opening retail locations in 1925, starting in Chicago, and eventually became the largest retailer in the United States until Walmart and Kmart surpassed Sears in sales in 1990. The lack of interest in the once bustling mall previously owned by . A Bureau of Prisons monitor gets his sentence. After 24 years, Sears is closing its Baton Rouge location at the Mall of Louisiana, the last location in the state. Experts estimate that hundreds of malls will close in the near future. Sign up for notifications from Insider! 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. With Department Stores Disappearing, Malls Could Be Next A representative for Macys did not immediately respond to Nexstars request for comment. Office development is set to drop 10%, it said, while retail falls 15.7%. Call 305.669.7030 or view our Media Kit. 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.. In some states, such as New York and California, movie theaters remain closed to this day. 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. Macys has yet to give an exact reason, but said this is part of a greater plan to streamline in-store and online shopping. ABOUT US:
I am sad to see it go.. The mall opens at noon on Sunday and closes by 6 pm. Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. 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 . The new owners will provide more information about those plans at a later date, the spokesperson added. 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Best Debt Consolidation Loans for Bad Credit, Personal Loans for 580 Credit Score or Lower, Personal Loans for 670 Credit Score or Lower. May 2, 2022, 1:30 PM. Access your favorite topics in a personalized feed while you're on the go. In June 2020, Wells Fargo filed a foreclosure lawsuit against Southland Mall Properties for defaulting on a $65.1 million mortgage. 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. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. As final Zellers stores close, former employees swap memories - CBC Everything left in the store is being sold at up to 70 percent off original prices. The Tuttle mall property is actually 5 separate parcels of land. Macy's has yet to give an exact reason, but said this . The locations included Market by Macys, according to a July press release from the company, a smaller store that offers customers more to love.. Macy's Southland Mall location to close - Action News 5 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. Investcorp declined to comment through a spokesperson. Later, in 2011, the Borders store shut down when that chain became defunct. But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. Other industry watchers predict a similarly painful fate for malls and retail stores more generally. The rise and fall of the American mall - Business Insider Chang W. Lee/The New York Times. Monday. All four of the impacted stores are located in malls, a company representative told USA Today. 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. By 1975 . In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. Southland Mall, 1215 East Shelby Drive, Memphis, TN. Operating hours. SOUTHLAND MALL. 25% of U.S. malls are set to shut within 5 years. What comes next? - CNBC Northland Center in Southfield is undergoing a makeover into a mixed-use development for retail, residential and office development. 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. 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. "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. 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. www .westlandcenter .com. However, the list below shows better . 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. But even office space is a risky bet now, as the working-from-home trend could become permanent for some. Im also concerned about the quality of life, he said. 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. Miami's retail market has rebounded strongly over the past year and currently has a vacancy rate of just under four percent. Macy's to close some locations in 2023: Here's where Its unclear if Macys plans to close any additional stores in 2023. The companys adjusted earnings per share for the period should meet the projected range of $1.47 to $1.67, Macys said. A foreclosure suit was filed in June and a receiver for the mall was appointed in the summer. Jump to. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. Concerns and frustrations over Macy's closing in Southland Mall 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. WREG is told the 112 employees will be offered jobs in other nearby locations or severance packages. Its appraisal fell from $130 million in 2014 to $68.4 million in June. It's starting with these 248 stores. The partnership converted the building into an AKA hotel. 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. 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? City leaders said the closure came as a huge surprise. . "You know, everybody moving out a little bit further." It is still owned by SPG and they owe . Pleasenote that Town Hall is a drug, alcohol and tobacco-free workplace. Sears' store in Louisiana will close soon - The Courier 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. 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. 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. There may be just 150 malls left in the US in 10 years, according to . The timings are subject to change depending upon different locations and any special event coming by: Week Days. 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. Most store employees at the Southland Mall location were reluctant to talk about the store closing, but the customers were not. Sign up for free newsletters and get more CNBC delivered to your inbox. Southland Center defaults on $75M loan, but analyst says it's 'not a 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. Southland Mall Hours: Opening, Closing & Holidays Hours | January 2023 The mall features more than 100 inline stores, with JCPenney and Kohl's serving as anchor stores. On June 7, 2019, Investcorp secured an extension agreement that pushed the maturity date of the loan back to May 8, 2020. Fort Lauderdale-based property management firm Gumberg Asset Management, which manages the mall, declined to comment. Part of the challenge is buying out anchor tenants, which own their spaces. The Southland Mall follows the schedule given below in the table. Those are:Central New Jersey, Northern New Jersey, Long Island, Memphis and Detroit. 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. Southland Mall will be dramatically renovated and upgraded and plans are being developed for beautiful residential spaces on excess land, the spokesperson said. All Rights Reserved. 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. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. But the hurdles include the need to have properties rezoned, which could be met with pushback from local municipalities. Updated June 18, 2020 9:36 AM. "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. 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 . 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. Website. Brookfield and Southland officials could not be reached for comment on how the unmet loan payment will be handled. But an active community of former employees hopes to keep the doomed department store remembered through memorabilia and online. I wish that the store were staying open, Miranda said in Spanish. 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. 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 news that the largest U.S. mall operator, Simon Property Group, has decided to close all of its more than 200 shopping centers is expected to trigger more mass mall closings across the country . 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. 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. The Mall at Partridge Creek in Clinton Township faltered under debt and entered receivership. A joint venture paid $100.3 million for a shopping mall in a Cutler Bay Opportunity Zone, with plans for a major renovation while . Town officials preparing for changes to Southland Mall J.C. Penney stores closing: Full list of closures due to bankruptcy and "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.". To make the most of your backyard, look for durable and comfortable seating options. In May, Macys reported better-than-expected earnings for its national network of department stores. He currently writes for the business desk covering real estate and the citys affordability crisis. The South Florida Business Journal first reported the news of the judgment and the auction. US Malls Are Dying and There May Be Just 150 Left in 10 Years What were the changes in real estate prices in Broward County last week? NOW: After an uptick in crime and a down-tick in customers, Bannister closed its doors in April 2007. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. An attorney representing Wells Fargo in the suit did not return a request for comment. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. It was bought by the management of the Kmart chain in 2005, becoming Sears Holdings after the merger. Got a confidential news tip? 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. Is it true tuttle mall is closing? : r/Columbus - Reddit Store closures also happened in 2020, 2021, and 2022. 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. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. Now the lenders plans for the mall are unclear. Could Blue Crush, COACT units hold lessons for MPD? 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. Southland is the closest area mall to the Canadian border crossing, Brookfield said. How much did it cost to buy a home in Miami-Dade County last week. 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. 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. . 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. But those businesses have also not fared well in an age of social distancing. 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. Francisco Alvarado. More than 30 percent of LGBTQ youth attribute poor mental health to anti-LGBTQ laws, Human brains show larger-than-life activity at moment of death, Not going to be 80: Michael J. 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. A clearance sale will begin in January and run for approximately eight to 12 weeks, Macy's said. "Must be a reason, you know, sales might be down in this area," said Whitehaven resident Eric Hillard. The Southland Mall Macy's is closing along with 14 other stores nationwide.
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. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. It's unclear if Macy's plans to close any additional stores in 2023. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. 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. What is going to happen to America's dead malls? Wells Fargo, representing the CMBS investors, placed a credit bid, or a bid using its existing debt, of $2,600. Industrial development, meantime, is expected to pick up 3.6%. These closures come on the heels of Macys opening multiple off-mall, small-format stores in 2022. 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Below is a list of the J.C. Penney stores that are closing: Alabama Not in these states, Does Keurig owe you money? One of its largest anchor tenants, Kmart, left in 2017. Cutler Bay, FL 33189, Phone:(305) 234-4262 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. Tenant vacancies have had a sizable impact on the malls appraised value, according to Trepp. This is not a dead mall, not at all, Duski said. 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. Southland Mall Holiday Hours. 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. According to court documents, JPMorgan Chase Bank, National Association made a $67.5 million loan to Investcorp on May 2, 2014. Get browser notifications for breaking news, live events, and exclusive reporting. In October, the commercial brokerage JLL was tapped to sell the $65.1 million CMBS loan tied to the mall. Penney emerged from bankruptcy in 2020. Four Macy's locations at shopping malls are slated to close, the company told Axios. Demand for logistics buildings is skyrocketing as e-commerce sales balloon. It's part of a restructuring plan that includes new stores in some markets. Even high-end malls are under pressure, though. Fitness, Regal Cinemas and Old Navy. City leaders said the closure came as a huge surprise. 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. 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. Fax:(305) 234-4251. 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. Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? The property at 23000 Eureka accounts for more than $2 million in community tax payments. Dog and cat antibiotics are medications prescribed by a veterinarian that can help treat a bacterial infection. What was the decrease in real estate prices in Broward County in April? Malls have suffered as online sales boomed. Copyright 2023 Nexstar Media Inc. All rights reserved. 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 massive Sears store in Southland Mall, long a fixture of the shopping center in Cutler Bay and an anchor . Malls like Southland may struggle to refinance, said Melissa Che, a senior director at Fitch. Tens of thousands of stores could still close even after the - CNN The company is closing 14 stores across the county as part of a restructuring plan. "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. There are currently around 700 malls in the US, down from 2,500 in the 1980s. 2023 CNBC LLC. 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. It owes Bal Harbour roughly $1.9 million, according to court documents. The foreclosure marks another gloomy chapter in the ongoing slide of traditional retail. A Division of NBCUniversal. Crowds, high prices and the White Lotus effect: Worst places to travel McCarthy to Russian reporter: I do not support what your country has done to Federal judge rules Pennsylvania school district must allow After School Satan Facebook privacy settlement: Who is eligible for a payment? 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. Top editors give you the stories you want delivered right to your inbox each weekday. The Associated Press contributed to this report. The LLC is owned by the New York-based Investcorp International Realty, an investment firm founded in 1982 with holdings around the world. 2023 Miami's Community Newspapers a Miller Publishing Company. We have a never quit attitude out here. Macys also helped Toys R Us make a comeback, opening locations in nearly every state last year. You must have JavaScript enabled to use this form. "Until we resolve this pandemic, I suspect we are going to be in a holding pattern with hollow retail space.".