One popular Florida mall was recently sold, and there is a chance that what has long been considered an eyesore will get a much-needed face lift. The mall is called CocoWalk -- an outdoor mall located in the Miami area. The commercial real estate establishment was sold for a total of $87.5 million.
The parties who bought the mall include an investment trust, a local developer with multiple projects underway and a developer who focuses on retail and is heralded for his Miami Beach work. A representative of the trust said that the area was attractive since it was one of only a few areas in Miami that were considered walkable and authentic. The area surrounding the mall appears to be resurging.
This four-story mall is a whopping 198,000 square feet. However, its vacancy rate is at about 20 percent, and the top floor of the mall is barren. The brand new owners intend to bring a mixture of national, regional and local retailers to the establishment, along with office space, as well as restaurants overseen by noteworthy chefs. The mall, which opened back in 1990, will be renovated to include much-needed infrastructure and design updates.
Commercial real estate opportunities continue to draw the interest of buyers, including developers, in Florida. While some deals, such as the CocoWalk deal, do go smoothly, others do not. A commercial real estate transaction can quickly hit a snag if the parties on both sides of the deal cannot find common ground. This can end up wasting both parties' money, energy and time. An applied understanding of real estate laws in Florida, however, can help buyers and sellers to strike a deal that protects both parties' interests.
Source: Miami Herald, "What's next for CocoWalk? Mall sold to new owners for $87.5 million", Nicholas Nehamas, May 4, 2015