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). Wells Fargo, representing CMBS investors, made a credit bid of just $2,600, Southland Mall in Cutler Bay (Google Maps). 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. The final two Zellers stores will shut down later this month. The new owners will provide more information about those plans at a later date, the spokesperson added. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. www .westlandcenter .com. "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.". Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. No one is really immune. "It is nearly impossible to find a property of this quality and size throughout South Florida. Last year, the mall was dealt another blow when Sears vacated its store. But an active community of former employees hopes to keep the doomed department store remembered through memorabilia and online. 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 . A foreclosure suit was filed in June and a receiver for the mall was appointed in the summer. Another roadblock can be scoring the necessary zoning approvals from city and government officials. America's Malls and Department Stores Are Dying Off | Time SOUTHFIELD - Stripped of its last anchor stores and losing nearly $250,000 every month, the entire Northland Center mall is now in danger of shutting down. Southland Mall Holiday Hours. 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. 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. 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. "Bal Harbour Shops has worked tirelessly to ensure our business and our tenants can survive and thrive in this environment," he said. How much longer can Kansas City's shopping malls hang on? Here's where "Often, that requires rezoning areas a long and tedious process with a low probability of success.". 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. City leaders said the closure came as a huge surprise. Macy's Southland Mall location to close - Action News 5 25% of the country's approximately 1,000 malls. The timings are subject to change depending upon different locations and any special event coming by: Week Days. 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. Theres nothing like lazy summer days relaxing on the patio. 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. SHARE THIS ARTICLE. Store closures also happened in 2020, 2021, and 2022. Southland Mall Hours: Opening, Closing & Holidays Hours | January 2023 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. Cutler Bay, FL 33189, Phone:(305) 234-4262 An attorney representing Wells Fargo in the suit did not return a request for comment. This material may not be published, broadcast, rewritten, or redistributed. Sears has no other full department store locations south of Coral Gables, and it likely will be missed by shoppers and former employees. It owes Bal Harbour roughly $1.9 million, according to court documents. Starting Monday, some fees will rise for homebuyers with higher credit scores, while buyers with lower scores will see a fee reduction. City leaders said the closure came as a huge surprise. as well as other partner offers and accept our. (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. Cutler Bay Town Hall 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. ABOUT US: Southland Mall is the oldest in the city, and Macys has been there a decade. 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. According to Egelanian, the malls that will weather the storm will be premium locations with entertainment, dining, and luxury stores. One of its largest anchor tenants, Kmart, left in 2017. UPDATE: Southlake Mall under new management after owner defaulted on He wants to make sure the closure doesnt have a domino effect. But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. Miami-Dade Circuit Court Judge Mavel Ruiz entered a final judgment on behalf of Wells Fargo in January 2021. Southland Mall, 1215 East Shelby Drive, Memphis, TN. 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. 2023 Miami's Community Newspapers a Miller Publishing Company. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. apartment development in the U.S. is expected to be down 15.6% in a post-Covid . The foreclosure was first reported by The Real Deal. Fitness, Regal Cinemas and Old Navy. 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. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. Operating hours. Im also concerned about the quality of life, he said. Eastland Center in Harper Woods closed in early 2022 to clear the way for warehouses and a distribution center. Fitness, Regal . We never give up, Collins said. 10:00 am to 9:00 pm. A lender has taken control of Southland Mall in Cutler Bay after a foreclosure auction failed to yield any bids over $2,600. 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. 6796 SW 62nd AvenueSouth Miami, Florida 33143(305)669-7030, Miami Community Newspaper Sponsored Content, Latin Builders Association Community News. From bad to worse: Student misbehavior rises further since return of in-person McConnell insists hes sitting out debt talks to disbelief. And so with minimal revenue coming in, these are the businesses that are most likely requesting rent reductions, or not paying rent at all. "Unfortunately, this whole Covid thing has thrown the experiential pitch out the window," Moody's Calanog said in a phone interview. Part of the challenge is buying out anchor tenants, which own their spaces. 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 rise and fall of the American mall - Business Insider That's a million-dollar question plaguingretailers and real estate developers. Get this delivered to your inbox, and more info about our products and services. 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 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. On June 7, 2019, Investcorp secured an extension agreement that pushed the maturity date of the loan back to May 8, 2020. 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. Not in these states, Does Keurig owe you money? Francisco Alvarado. The foreclosure marks another gloomy chapter in the ongoing slide of traditional retail. Largest U.S. Mall Operator Simon Shuts Down, More Mall Closings Likely Tuesday. 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. 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.. Stay up to date with what you want to know. 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. We have a never quit attitude out here. Investors have foreclosed on Southland Mall, 20505 S. Dixie Highway in Cutler Bay, after defaulting on a $67.5 million loan. 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. The judge ordered the 990,000-square-foot indoor mall at 20505 South Dixie Highway to be sold in a foreclosure auction on Feb. 10. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. The company is closing 14 stores across the county as part of a restructuring plan. It's starting with these 248 stores. 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. 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. One of Macy's department stores locations at an indoor shopping mall. There may be just 150 malls left in the US in 10 years, according to one industry watcher. The mall opens at noon on Sunday and closes by 6 pm. 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. This is an archived article and the information in the article may be outdated. A representative for Macy's did not immediately respond to Nexstar . What were the changes in real estate prices in Broward County last week? Southland Mall had financial issues prior to the coronavirus pandemic. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Macy's to close some locations in 2023: Here's where Four Macy's locations at shopping malls are slated to close, the company told Axios. These closures come on the heels of Macys opening multiple off-mall, small-format stores in 2022. 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. 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. In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027. In May, Macys reported better-than-expected earnings for its national network of department stores. But later the firm said the property will be unsustainable, according to Trepp. Southland Mall SoldA Message from the Mayor Copyright 2023 Nexstar Media Inc. All rights reserved. We want to hear from you. Jump to. Could Blue Crush, COACT units hold lessons for MPD? The locations included Market by Macys, according to a July press release from the company, a smaller store that offers customers more to love.. 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. 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. US Malls Are Dying and There May Be Just 150 Left in 10 Years By clicking Sign up, you agree to receive marketing emails from Insider Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The Mall at Partridge Creek in Clinton Township faltered under debt and entered receivership. "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. Penney emerged from bankruptcy in 2020. Industrial development, meantime, is expected to pick up 3.6%. Collins is frustrated, because he had no idea this was coming. Investment Firms Buy Southland Mall, Plan To Modernize It, Build High Absolutely, I am concerned about the loss of sales tax revenue. 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. Those are:Central New Jersey, Northern New Jersey, Long Island, Memphis and Detroit. Target team members impacted by store closures will be given priority consideration for new roles created in Kmart and Catch as these businesses . 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. The property at 23000 Eureka accounts for more than $2 million in community tax payments. Malls like Southland may struggle to refinance, said Melissa Che, a senior director at Fitch. In some states, such as New York and California, movie theaters remain closed to this day. Fitness, Regal Cinemas, Kay Jewelers, and Applebee's. A clearance sale will begin in January and run for approximately eight to 12 weeks, Macy's said. "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. Sunrise Mall in Massapequa tells tenants to vacate, leaving store Tom Pennington/Getty Images. Concerns and frustrations over Macy's closing in Southland Mall Southland Mall Hours Of Operation [Updated 2023] But the hurdles include the need to have properties rezoned, which could be met with pushback from local municipalities. Southland Center defaults on $75M loan, but analyst says it's 'not a With Department Stores Disappearing, Malls Could Be Next Experts estimate that hundreds of malls will close in the near future. 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. Oct 12, 2022, 9:40 AM PDT. 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 more expensive real estate markets, the change could shift total mortgage closing costs by thousands of dollars. You must have JavaScript enabled to use this form. 2023 CNBC LLC. Its remaining tenants include JCPenney, TJ Maxx, Regal Cinemas and LA Fitness. 25% of U.S. malls are set to shut within 5 years. What comes next? - CNBC 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.