08-23-2006, 03:27 PM
It's no secret the Fashion Mall in Plantation has problems.
Less than 20 retailers remain in the mall, which has about 650,000 square feet of retail space, and hardly anyone shops there. Macy's, the mall's only anchor store, was damaged and shuttered after Hurricane Wilma, and won't reopen. And Cigna Dental Health, a division of the health insurance giant, will soon close its office and move 400 workers to Sunrise.
"Everything has been bad news for us since the storm and it keeps getting worse," said Karen Keena, owner of All Dolled Up, a specialty doll and collectibles store at the mall. "Without an anchor, nobody's going to make it."
U.S. Capital Holdings Group, a Hong Kong-based investment group with local offices, purchased the mall in the fall of 2004. The firm's vision is to revamp the mall into a venue with retail, residential and office space. But observers say U.S. Capital has much work to do before that happens and are skeptical of the company's loosely defined redevelopment plans.
"There's just so many different stories floating around about what's happening with the Fashion Mall," said Siobhan Edwards, president of the Plantation Chamber of Commerce. It would help, she said, if the mall owners would be candid about their plans. "We all would like to see it successful."
Situated in the heart of Plantation's downtown business district, the mall needs serious repairs and owners have stopped leasing space to new tenants.
Some of the escalators don't run and a few of the bathrooms are out of order. There are cracks in the skylights and problems with the air conditioning system. Worst of all, the mall doesn't meet city fire codes, a situation that mall owners have finally agreed to fix so mall tenants can remain open.
The shopping center opened in 1988 and has always struggled to compete with the Broward Mall, just a quarter of a mile away on University Drive. It's been on a steep decline since Lord & Taylor pulled out of Florida and closed its anchor store there.
Retail experts say the mall won't survive as a shopping center. Only a few national tenants remain, including Limited Brands stores Victoria's Secret, Bath & Body Works and The Limited, and Outback Steakhouse Inc. restaurants Cheeseburger in Paradise and Bonefish Grill.
"I don't see it reviving anytime soon," said Herbert Leeds of Miami-based Leeds Business Counseling.
Mall owners are in discussions with developers who may be willing to partner to remodel the mall into a mixed-use center, said Paul D'Arelli, a Fort Lauderdale-based attorney who represents U.S. Capital.
But, to date, U.S. Capital has not maintained the mall and officials with the company have not been forthcoming about their redevelopment plans.
Contractors and subcontractors claim the mall owners haven't paid for supplies and labor. And more than $1.7 million in liens have been filed since December 2004. Public records show U.S. Capital owes more than $120,000 in state taxes.
"We think all the differences they have are going to be worked out," said Alan S. Becker, a lawyer whose firm represents U.S. Capital. "Right now, a major focus is satisfying the city."
A major hurdle is redevelopment properties such as the Fashion Mall have such a high vacancy rate that landlords often bear the bulk of the operating costs, said Oscar Rivera, a South Florida lawyer who specializes in shopping centers and retail development.
"It becomes a huge cash drain," Rivera said. "Sooner or later, you run out of money or someone makes the decision that `I'm not going to do this anymore because it doesn't make financial sense.'"
Savvy real estate investors budget maintenance and operating costs into a redevelopment project's acquisition or construction mortgage, he said. And typically investors avoid spending money on a property unless they are sure it will add value to the property.
Well I guess the city fathers will want to buy the property costing millions, oh but we cant afford to give you guys a raise!!!
Hmmmm?
Less than 20 retailers remain in the mall, which has about 650,000 square feet of retail space, and hardly anyone shops there. Macy's, the mall's only anchor store, was damaged and shuttered after Hurricane Wilma, and won't reopen. And Cigna Dental Health, a division of the health insurance giant, will soon close its office and move 400 workers to Sunrise.
"Everything has been bad news for us since the storm and it keeps getting worse," said Karen Keena, owner of All Dolled Up, a specialty doll and collectibles store at the mall. "Without an anchor, nobody's going to make it."
U.S. Capital Holdings Group, a Hong Kong-based investment group with local offices, purchased the mall in the fall of 2004. The firm's vision is to revamp the mall into a venue with retail, residential and office space. But observers say U.S. Capital has much work to do before that happens and are skeptical of the company's loosely defined redevelopment plans.
"There's just so many different stories floating around about what's happening with the Fashion Mall," said Siobhan Edwards, president of the Plantation Chamber of Commerce. It would help, she said, if the mall owners would be candid about their plans. "We all would like to see it successful."
Situated in the heart of Plantation's downtown business district, the mall needs serious repairs and owners have stopped leasing space to new tenants.
Some of the escalators don't run and a few of the bathrooms are out of order. There are cracks in the skylights and problems with the air conditioning system. Worst of all, the mall doesn't meet city fire codes, a situation that mall owners have finally agreed to fix so mall tenants can remain open.
The shopping center opened in 1988 and has always struggled to compete with the Broward Mall, just a quarter of a mile away on University Drive. It's been on a steep decline since Lord & Taylor pulled out of Florida and closed its anchor store there.
Retail experts say the mall won't survive as a shopping center. Only a few national tenants remain, including Limited Brands stores Victoria's Secret, Bath & Body Works and The Limited, and Outback Steakhouse Inc. restaurants Cheeseburger in Paradise and Bonefish Grill.
"I don't see it reviving anytime soon," said Herbert Leeds of Miami-based Leeds Business Counseling.
Mall owners are in discussions with developers who may be willing to partner to remodel the mall into a mixed-use center, said Paul D'Arelli, a Fort Lauderdale-based attorney who represents U.S. Capital.
But, to date, U.S. Capital has not maintained the mall and officials with the company have not been forthcoming about their redevelopment plans.
Contractors and subcontractors claim the mall owners haven't paid for supplies and labor. And more than $1.7 million in liens have been filed since December 2004. Public records show U.S. Capital owes more than $120,000 in state taxes.
"We think all the differences they have are going to be worked out," said Alan S. Becker, a lawyer whose firm represents U.S. Capital. "Right now, a major focus is satisfying the city."
A major hurdle is redevelopment properties such as the Fashion Mall have such a high vacancy rate that landlords often bear the bulk of the operating costs, said Oscar Rivera, a South Florida lawyer who specializes in shopping centers and retail development.
"It becomes a huge cash drain," Rivera said. "Sooner or later, you run out of money or someone makes the decision that `I'm not going to do this anymore because it doesn't make financial sense.'"
Savvy real estate investors budget maintenance and operating costs into a redevelopment project's acquisition or construction mortgage, he said. And typically investors avoid spending money on a property unless they are sure it will add value to the property.
Well I guess the city fathers will want to buy the property costing millions, oh but we cant afford to give you guys a raise!!!
Hmmmm?