Fitch analysts said the Southland experience is increasingly familiar among bricks-and-mortar retail centers, from coast to coast. But later the firm said the property will be unsustainable, according to Trepp. But shopping malls are likely going to be shuttering in suburbs all across the country, as store closures grow in number and landlords capitulate. The locations included Market by Macys, according to a July press release from the company, a smaller store that offers customers more to love.. A representative for Macy's did not immediately respond to Nexstar . An attorney representing Wells Fargo in the suit did not return a request for comment. Industrial development, meantime, is expected to pick up 3.6%. 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. Even high-end malls are under pressure, though. 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. The loan, which was classified as a Commercial Mortgage Backed Securities financing (CMBS), is essentially a syndicated mortgage held by a trust made up of various banks and lenders. Southland is the closest area mall to the Canadian border crossing, Brookfield said. Southland Center (also known as Southland Mall) is an enclosed mall located at 23000 Eureka Road in Taylor, Michigan . Part of the challenge is buying out anchor tenants, which own their spaces. "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. The COVID-19 pandemic has claimed its first Miami-Dade indoor shopping mall. SMART 210, 250. On Jan. 16, 2019 Sears announced that it had won its bankruptcy auction and would shrink and remain open with 425 stores nationwide. We want to hear from you. Redeveloping malls has proven to be a difficult task even for the largest mall owners in the country like Simon Property Group and Brookfield Property Partners. 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. Fairlane Town Center in Dearborn was placed under new ownership after a loan default. All Rights Reserved. (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. The new owners are planning for a mixed-use redevelopment of the 80-acre site with commercial and residential components. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. I am sad to see it go.. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 Nexstar Media Inc. All rights reserved. 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. May 2, 2022, 1:30 PM. Im also concerned about the quality of life, he said. www .westlandcenter .com. Its appraisal fell from $130 million in 2014 to $68.4 million in June. 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. It's part of a restructuring plan that includes new stores in some markets. 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 . Most of the businesses have resumed operations since the mall reopened on May 21. 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. Industrial development, meantime, is expected to pick up 3.6%. Starting Monday, some fees will rise for homebuyers with higher credit scores, while buyers with lower scores will see a fee reduction. A clearance sale will begin in January and run for approximately eight to 12 weeks, Macy's said. 2022 CBS Broadcasting Inc. All Rights Reserved. The hospitality investment arm of Electra America, co-founded by managing partner Joe Lubeck, recently teamed up with Korman Communities to purchase an 217-micro-unit multifamily project in West Palm Beach for $83.9 million. The new owners will provide more information about those plans at a later date, the spokesperson added. 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. 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. 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. Office development is set to drop 10%, it said, while retail falls 15.7%. One of Macy's department stores locations at an indoor shopping mall. 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. Four Macy's locations at shopping malls are slated to close, the company told Axios. All four of the impacted stores are located in malls, a company representative told USA Today. That number is expected to shrink to 182 in February. The mall was completely demolished in 2009, and in 2013 Cerner bought the property to redevelop. At the end of 2020, occupancy was just 74 percent, according to Trepp. 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. 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. 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. "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. The Tuttle mall property is actually 5 separate parcels of land. A Bureau of Prisons monitor gets his sentence. Copyright 2023 Nexstar Media Inc. All rights reserved. Electra America and BH Group acquired 80-acre site in Cutler Bay Opportunity Zone, Electra America managing partner Joe Lubeck and Southland Mall at 20505 South Dixie Highway in Cutler Bay (Google Maps, Electra America). 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 . 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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The mall itself almost looks like a 4 spoke wheel where the mall itself owned the center of the mall and portions of the parking lot going out to the perimeter and around the other 4 parcels. "One cannot simply build industrial buildings in areas zoned for commercial use," he explained. This story was originally published June 10, 2020, 6:10 PM. What is going to happen to America's dead malls? 10:00 am to 9:00 pm. Tom Pennington/Getty Images. 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? 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. A Division of NBCUniversal. The property at 23000 Eureka accounts for more than $2 million in community tax payments. 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. 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. Target team members impacted by store closures will be given priority consideration for new roles created in Kmart and Catch as these businesses . Its unclear if Macys plans to close any additional stores in 2023. Dog and cat antibiotics are medications prescribed by a veterinarian that can help treat a bacterial infection. 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. I wish that the store were staying open, Miranda said in Spanish. The mall offers more than 900,000 square feet of retail space, 4,990 parking spaces and features J.C. Penney and Macys as key tenants. 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. 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. 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. 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. 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 joint venture plans to redevelop the waterfront property into a luxury condominium. The Southland Mall follows the schedule given below in the table. 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. Last year, the mall was dealt another blow when Sears vacated its store. 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. Tenant vacancies have had a sizable impact on the malls appraised value, according to Trepp. 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). The coronavirus pandemic has accelerated a demise that was already underway. After 24 years, Sears is closing its Baton Rouge location at the Mall of Louisiana, the last location in the state. Investcorp had defaulted on its $65 million CMBS loan in April and initially asked its special servicer KeyBank for relief. Southland Mall, formerly known as Cutler Ridge Mall, opened in 1978 as an extension of the Cutler Ridge Shopping Center, which opened in 1960. During the pandemic, movie theaters and clothing shops have faced long windows of being closed, while consumers could still flock to strip centers for food, cleaning products and other essentials. Sears offering discounts of up to 70 percent on merchandise ahead of store closing. Access your favorite topics in a personalized feed while you're on the go. 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. The mall opens at noon on Sunday and closes by 6 pm. 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. A year later its loan was transferred to special servicing due to the retail vacancy, and its maturity date was extended. It was bought by the management of the Kmart chain in 2005, becoming Sears Holdings after the merger. Fitness, Regal Cinemas, Kay Jewelers, and Applebee's. 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 . 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. 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. 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.. 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. "You know, everybody moving out a little bit further." Connect To Your Customers & Grow Your Business, There is Sears In key west which is south of southland. Call 305.669.7030 or view our Media Kit. THE HILL 1625 K STREET, NW SUITE 900 WASHINGTON DC 20006 | 202-628-8500 TEL | 202-628-8503 FAX. How much did it cost to buy a home in Miami-Dade County last week. 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. Coresight Research estimates 25% of America's roughly 1,000 malls will close over the next three to five years. 10:00 am to 9:00 pm. Sign up for free newsletters and get more CNBC delivered to your inbox. This property has not changed hands since 2013. Facebook agrees to pay $725M settlement: Whats the deadline to file a claim? 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. . Investors have foreclosed on Southland Mall, 20505 S. Dixie Highway in Cutler Bay, after defaulting on a $67.5 million loan. Southland Mall had financial issues prior to the coronavirus pandemic. 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. 2023 CBS Broadcasting Inc. All Rights Reserved. The mall is also home to Regal Southland Mall cinema, which remains closed. 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. The foreclosure was first reported by The Real Deal. The foreclosure marks another gloomy chapter in the ongoing slide of traditional retail. 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. 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. She had an armful of clothes in one hand and was pushing her childs stroller with the other. It has said malls rated C and below "are not viable retail centers long term.". 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. Store closures also happened in 2020, 2021, and 2022. The partners are planning a major mixed-use redevelopment of the site. You may login with either your assigned username or your e-mail address. According to Egelanian, the malls that will weather the storm will be premium locations with entertainment, dining, and luxury stores. 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. Could Blue Crush, COACT units hold lessons for MPD? ABOUT US: Malls have suffered as online sales boomed. Wells Fargo is the trustee. 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Macys also helped Toys R Us make a comeback, opening locations in nearly every state last year. Chang W. Lee/The New York Times. 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. This is an archived article and the information in the article may be outdated. 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. Affected employees will be offered jobs at nearby locations or severance packages. Cutler Bay Town Hall According to court documents, JPMorgan Chase Bank, National Association made a $67.5 million loan to Investcorp on May 2, 2014. In May, Macys reported better-than-expected earnings for its national network of department stores. Stay up to date with what you want to know. Its remaining tenants include JCPenney, TJ Maxx, Regal Cinemas and LA Fitness. It is still owned by SPG and they owe . Experts estimate that hundreds of malls will close in the near future. In some states, such as New York and California, movie theaters remain closed to this day. The COVID-19 pandemic . Wells Fargo, representing CMBS investors, made a credit bid of just $2,600, Southland Mall in Cutler Bay (Google Maps). Investcorp declined to comment through a spokesperson. NOW: After an uptick in crime and a down-tick in customers, Bannister closed its doors in April 2007. In April, analysts at UBS projected that 40,000-50,000 American retail stores would shut down by 2027. In June 2020, Wells Fargo filed a foreclosure lawsuit against Southland Mall Properties for defaulting on a $65.1 million mortgage. Based on current macro-economic indicators and our proprietary credit card data, we believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly, said Macys CEO Jeff Gennette in a statement. The mall was devastated by Hurricane Andrew in 1992, reopened the following year and was renamed Southland Mall in 2003. Fitness, Regal . This material may not be published, broadcast, rewritten, or redistributed. The Southfield mall defaulted on a $31 . No one is really immune. Below is a list of the J.C. Penney stores that are closing: Alabama By 1975 . This is not a dead mall, not at all, Duski said. Theres nothing like lazy summer days relaxing on the patio. The Mall at Partridge Creek in Clinton Township faltered under debt and entered receivership. From bad to worse: Student misbehavior rises further since return of in-person McConnell insists hes sitting out debt talks to disbelief. 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. Southland Center is the latest mall in metropolitan Detroit to face a financial challenge. Sales continued to decline and the parent company filed for Chapter 11 bankruptcy on Oct. 15, 2018. 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. Francisco Alvarado. Southland Mall Holiday Hours. Everything left in the store is being sold at up to 70 percent off original prices. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. 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. Get this delivered to your inbox, and more info about our products and services. Cutler Bay, FL 33189, Phone:(305) 234-4262 Miami-Dade Circuit Court Judge Mavel Ruiz entered a final judgment on behalf of Wells Fargo in January 2021. Southland is the closest area mall to the Canadian border crossing, Brookfield said. Brookfield acquired Southland in 2016 when it acquired Rouse Properties Inc., the malls original developer. Demand for logistics buildings is skyrocketing as e-commerce sales balloon. In 2020, Coresight Research projected that 25% of the country's approximately 1,000 malls would close shop in the following 3-5 years. Jump to. Collins is frustrated, because he had no idea this was coming. Another roadblock can be scoring the necessary zoning approvals from city and government officials. These closures come on the heels of Macys opening multiple off-mall, small-format stores in 2022. 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.