Concerns and frustrations over Macy's closing in Southland Mall 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. Macys also helped Toys R Us make a comeback, opening locations in nearly every state last year. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. Once it shuts down, the only department store left is Sears. 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. Southland Mall had financial issues prior to the coronavirus pandemic. It is an older store, has been in the mall for a long time. Investment Firms Buy Southland Mall, Plan To Modernize It, Build High Save my name, email, and website in this browser for the next time I comment. 2023 Miami's Community Newspapers a Miller Publishing Company. Penney emerged from bankruptcy in 2020. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. Sears store in Southland Mall expected to close by Feb. 15 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. At the end of 2020, occupancy was just 74 percent, according to Trepp. This story was originally published June 10, 2020, 6:10 PM. Pleasenote that Town Hall is a drug, alcohol and tobacco-free workplace. 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). In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. America's Malls and Department Stores Are Dying Off | Time But the hurdles include the need to have properties rezoned, which could be met with pushback from local municipalities. 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. Southland Mall is the oldest in the city, and Macys has been there a decade. But an active community of former employees hopes to keep the doomed department store remembered through memorabilia and online. In May, Macys reported better-than-expected earnings for its national network of department stores. What was the decrease in real estate prices in Broward County in April? Sears' store in Louisiana will close soon - The Courier 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. Fitness, Regal Cinemas, Kay Jewelers, and Applebee's. Get browser notifications for breaking news, live events, and exclusive reporting. 25% of the country's approximately 1,000 malls. I wish that the store were staying open, Miranda said in Spanish. 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. Macys has yet to give an exact reason, but said this is part of a greater plan to streamline in-store and online shopping. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. "Often, that requires rezoning areas a long and tedious process with a low probability of success.". But later the firm said the property will be unsustainable, according to Trepp. "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. The Associated Press contributed to this report. Current tenants include JCPenney, Macys, TJ Maxx, L.A. 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. Starting Monday, some fees will rise for homebuyers with higher credit scores, while buyers with lower scores will see a fee reduction. 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 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. 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. The mall features more than 100 inline stores, with JCPenney and Kohl's serving as anchor stores. Southland Mall Holiday Hours. There are currently around 700 malls in the US, down from 2,500 in the 1980s. Electra America JV Pays $100M For Cutler Bay's Southland Mall 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 company is closing 14 stores across the county as part of a restructuring plan. This material may not be published, broadcast, rewritten, or redistributed. 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. 6796 SW 62nd AvenueSouth Miami, Florida 33143(305)669-7030, Miami Community Newspaper Sponsored Content, Latin Builders Association Community News. NOW: After an uptick in crime and a down-tick in customers, Bannister closed its doors in April 2007. 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.. Westland Shopping Center - Wikipedia No other investor sought to pay more, and the lender was able to seize the property, documents show. We have a never quit attitude out here. 4,560 [1] Public transit access. Investcorp had defaulted on its $65 million CMBS loan in April and initially asked its special servicer KeyBank for relief. Last week, Macys tempered its sales outlook for the fiscal fourth quarter after shoppers spent less than expected during the lull between Thanksgiving weekend and the final days before Christmas. Miami's retail market has rebounded strongly over the past year and currently has a vacancy rate of just under four percent. In more expensive real estate markets, the change could shift total mortgage closing costs by thousands of dollars. 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. 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. Macy's Southland Mall location to close - Action News 5 Rene Rodriguez has worked at the Miami Herald in a variety of roles since 1989. The LLC is owned by the New York-based Investcorp International Realty, an investment firm founded in 1982 with holdings around the world. Macys confirmed to USA Today and Axios that these four stores will close this year: Store closures also happened in 2020, 2021, and 2022. Real-time updates and all local stories you want right in the palm of your hand. You have entered an incorrect email address! Affected employees will be offered jobs at nearby locations or severance packages. Office development is set to drop 10%, it said, while retail falls 15.7%. Fitness, Regal Cinemas and Old Navy. It was bought by the management of the Kmart chain in 2005, becoming Sears Holdings after the merger. Starwood, which acquired the mall from Westfield Group in a $1.6 billion deal in 2013 and dropped the much-maligned Westfield Southlake Mall name, defaulted on its debt last March after its . Town officials preparing for changes to Southland Mall 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. 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. Investcorp declined to comment through a spokesperson. Investors have foreclosed on Southland Mall, 20505 S. Dixie Highway in Cutler Bay, after defaulting on a $67.5 million loan. The company then added several new tenants; . 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 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. Macy's to close some locations in 2023: Here's where Tens of thousands of stores could still close even after the - CNN 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. Most of the businesses have resumed operations since the mall reopened on May 21. Website. With Department Stores Disappearing, Malls Could Be Next Four Macy's locations at shopping malls are slated to close, the company told Axios. The new owners will provide more information about those plans at a later date, the spokesperson added. 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. 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. What is going to happen to America's dead malls? Theyre not meant to treat viruses, however. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. All Rights Reserved. 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. 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. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. The coronavirus pandemic has accelerated a demise that was already underway. He currently writes for the business desk covering real estate and the citys affordability crisis. 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.