A month and a half after redevelopment plans for the site officially failed, The Shops at Sunset Place, a 9.68-acre mall in South Miami that was once frequented by national retailers but had problems in recent years, sold for New Year’s Eve for $ 65.5 M, the buyer announced this weekend. That’s roughly 59.5% of the price the mall was trading at in 2015.
The shops on Sunset Place in 2016
The package is located at 5701 SW 72nd St. on US 1, a main street. It was originally developed as a location for the Holsum Bakery and converted into the Bakery Center Shopping Plaza in the 1980s. That was demolished in 1996 to make way for The Shops at Sunset Place, which opened in 1999 with an FAO Schwarz and a Virgin megastore, both of which were long closed.
The mall has struggled with vacancies in recent years, and Simon Property Group sold the property in 2015 for $ 110 million to the Maryland-based REIT Federal Realty Investment Trust, along with local partners Grass River Property and the Comras Co. An annual report, the mall was only 62% leased in 2019, though it still had major tenants, including an AMC Theaters and an LA Fitness.
The owners planned to demolish half of the shopping complex, around SF 80,000 of free retail space, and replace it with three 17-story towers that would contain apartments and hotel rooms. However, during the coronavirus pandemic, the partners were in default on a $ 61 million loan.
In November, Don Wood, CEO of the Federal Realty Investment Trust, said the partners would abandon the recovery plans. On New Years Eve, Sunset Place Fee Owner LLC’s FRIT Shops sold the property to Midtown Opportunities, a Miami-based company developing parts of Midtown Miami, including co-development of the recently opened 32-story GIO Midtown Tower 22 acres in Orlando.
“When the opportunity arose to buy Sunset Place, a landmark in South Miami, we pounced on it. For us, it’s about more than just real estate, “said Alex Vadia, Principal of Midtown Development, the development division of Midtown Opportunities, in a statement.” Although Midtown Opportunities has completed significant transactions in several key sectors, South Miami is our home turf. We look forward to redefining the possibilities of Sunset Place together with our community partners. ”
Grass River will continue to manage the property.