Four companies teamed up to buy North Miami Beach’s ailing Mall at 163rd Street for $46 million, The Real Deal has learned.
Taillard Capital, Tuesday Properties, Ark Ventures and Strategic Capital Alliance acquired the 24-acre retail site at 1205 Northeast 163rd Street, said Matt Press, a principal with Tuesday Properties.
The joint venture “will ultimately redevelop the property, but that hasn’t been finalized yet,” he said. “We bought the property for a fair price. Our goal is to revitalize the mall.”
Tuesday Properties, a subsidiary of Miami-based real estate firm EquiShares, and its three partners paid roughly $90 a square foot for the 500,000-plus-square-foot mall, Press said. The buyers obtained $16 million in financing from Hollywood-based Sheridan Capital and closed the deal within 10 days of going under contract, Press added.
John Crotty and David Duckworth led an Avison Young team that marketed the Mall at 163rd Street on behalf of the seller, an affiliate of New York-based Brixmor Property Group, an online offering states.
In 1998, Brixmor paid $20 million for Mall at 163rd Street, which at the time included two outparcels, records show. In 2000, Brixmor sold one outparcel to Home Depot for $5.1 million and sold the second outparcel three years later to Walmart for $13 million.
Mickey Taillard, who along with his partner Yaniv Sananes leads Dania Beach-based Taillard Capital, spearheaded the deal for the group that just bought Mall at 163rd Street, Press said. The deal closed Monday afternoon.
The mall is currently 85 percent vacant, Press said. “We have hundreds of thousands of square feet to fill up,” he said. “We are negotiating with a major entertainment complex to come there and curate a bunch of [new] tenants there.”
Daniel Solomon with Boca Raton-based Katz & Associates is leading leasing efforts, Press said. The mall is currently anchored by a Ross store. Other tenants include Chase Bank, Truist Bank and Foot Locker.
Ross’ lease expires in 2026 and the national retail chain has two five-year renewal options, “providing significant space and flexibility for redevelopment of the remaining mall space,” the offering states.
Utilizing Florida’s Live Local Act, Mall at 163rd Street’s new owners could redevelop the entire mall or portions of it into a mixed-use project “with increased residential density” for about 12,000 apartments, based on the offerings.
“Existing parking could potentially be utilized for multifamily development eliminating the need to build new structured parking and significantly limiting development costs,” the offering states.
The adjacent Walmart Supercenter is among the national grocery chain’s highest performing stores in the nation, said David Abrams with New York-and-Miami-based Masonre, who was not involved in the deal.
“[Mall at 163rd Street] is a retail broker’s dream to reimagine retail like that,” Abrams said. “It is so close to so much action too. The new owners plan to convert it from an outdated shopping mall into an upgraded lifestyle center.”
Talliard Capital owns and co-owns seven commercial properties in South Florida, including New Century Commons, a Delray Beach shopping center, and Stirling Town Center, a Cooper City shopping center, according to the firm’s website.
Founded in 2004 by principal Isaac Khabie, Miami-based Ark Ventures is co-developing four multifamily projects in Fort Lauderdale, Hollywood and North Miami Beach, the company’s website shows.
Strategic Capital Alliance is a Miami-based real estate investment firm led by Chaim Breier.
Also in North Miami Beach, Tuesday Properties’ Press and Ark Ventures’ Khabie are partnering with Ari Pearl’s PPG Development to build a planned 700-unit apartment complex on the site of a former Nova Southeastern University campus.