Forbes And Taubman Take $24 Million Loss On Worldcenter

Taubman Centers and The Forbes Company wrote off about $24 million after cancelling plans to build an enclosed mall at Miami Worldcenter last month.

Publicly-traded Taubman booked an impairment charge of $11.8 million for Worldcenter in an earnings report released last week. In a conference call, Taubman’s CFO said that the loss “was $24 million roughly” between Taubman and partner Forbes.

Most of the costs were for architecture, engineering, and legal expenses, according to the CFO.

Company president Robert Taubman said that he is excited about the high street retail plan at Worldcenter, which they have a preliminary agreement on. The company would have an option to purchase 100% of “what is effectively a condominium of the street retail at a favorable price,” and wouldn’t have to decide on the investment until construction is complete.

 

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Anonymous
4 years ago

Sucks that they are at a loss, but I still prefer the open air high street retail project than to an enclosed mall. I read elsewhere that the project manager stated that regardless the change of plans it is still scheduled to complete in the Fall of 2018. Full speed ahead I hope.

Anonymous
4 years ago

full speed ahead? kind of like how this project was supposed to break ground a year and a half ago? oh wait, “it did”- demolishing will call/mekka and adding construction fences.

Anonymous
4 years ago

And pile driving as well.

Anonymous
4 years ago

Drive by, they broke ground…I’m not in construction but I hear the pilings take awhile…

Anonymous
4 years ago

I’m losing faith in what was once an amazing project.

Marc305
4 years ago

I am past “losing faith” I have completely lost it, and despite of how happy some of the people on this board feel about an open high street retail, that is not what we are hearing from people who actually invested money in this area with the expectation of having a Macy’s and a Bloomingdale’s inside a Mall. This whole is just bad.

Anonymous
4 years ago

Who wants MAcys …. Aren’t they closing 40 stores in the USA ?? I wouldn’t want to live where an empty Dept store went out of biz. The big white elephant in the dark ….

Anonymous
4 years ago

Although I do much prefer the street style, open concept this is starting to smell of rotten tomatoes…

Anonymous
4 years ago

Better to cut losses than throw good money after bad.

Anonymous
4 years ago

Renderings of highstreet design are up on Curbed. What happens to all the condo buyers who were sold on the massive amenity deck?

Anonymous
4 years ago
marc
4 years ago

Looks good.

suomynona
4 years ago

Can you provide a link?

Anonymous
4 years ago

Condo buyers are screwed

Anonymous
4 years ago

Not at all….?

Anonymous
4 years ago

they are still going to have the amenity deck?

Anonymous
4 years ago

Yes they will on top of the stores, and will have a bridge connecting them from the tower to the amenity deck.

Anonymous
4 years ago

I went in for a presentation apparently they are not loosing any amenities on the contrary, adding some……

Anonymous
4 years ago

They need to start on damage control like yesterday and show what they have planned.

marc
4 years ago

So looks like it has begun. New renders are up on several sights.

Anonymous
4 years ago

What a mess.

Luis Herrera
4 years ago

Why??? What went wrong??

Anonymous
4 years ago

http://www.businessinsider.com/walmart-and-macys-closing-stores-2016-1

Big box retail stores including macys are closing everywhere in favor of online retail. No need to open a new store. Macys and Bloomingdales accounted for a huge percentage of the mall square footage. With those gone, the whole thing needed to be red3esigned and thought out conceptually. (I believe)

Anonymous
4 years ago

Don’t see so many anchored malls closing these days, Big box retail is something entirely different, and not much of that is closing either. The internet has put a dent in stores selling commodity goods, but less so fashion oriented.

Anonymous
4 years ago

not too difficult to understand, too much new retail in too small an area with the Design District, Bal Harbour, Miami World Centre, Brickell Citi Center, and Merrick Park. You can add or subtract a center, but the conclusion is the same. A mall too far, as they used to say. And all going after the same stores. So, the mall stores voted with their leases, and unfortunately MWC got the short end of the stick. Quality retailers are going to be even less excited about coming to an unachored retail strip, so Motwani has his work cut out for him.

Anonymous
4 years ago

Company president Robert Taubman said that he is excited – wot a joke

Anonymous
4 years ago

Exactly, they’ve done so much of it.

Frank Schnidman
4 years ago

Given the substantial decrease in capital expenditure at Worldcenter for the new design, it would appear that the level of CRA tax increment rebate needs to be revisited. Is the award still justified or should it be modified in relation to the change in the “basis of the bargain” for the large incentive?
Certainly, this requires more of a public analysis than a CRA Board vote after no staff or developer presentation at a meeting held between Christmas and New Years.
Certainly, in light of the Miami-Dade County CRA Grand Jury Report, more transparency is needed when such hugh sums of County and City taxpayer funds are diverted to the SEOPW CRA tax increment “slum and blight” trust fund. If the developer can change the project that was the basis of the incentive, then the CRA should be able to change the incentive—unless there is some flaw in the agreement that will not allow the CRA to do so.
And, as to all the other projects underway or proposed–how will this open air retail relate to the retail redevelopment efforts along Flagler Street? The competition from the Swire Brickell City Centre project, and the potential competition from what is proposed as the largest shopping mall in the USA just up the road in the Miami Lakes?

Frank Schnidman
John M. DeGrove Eminent Scholar Chair in Growth Management and Development
Executive Director, Center for Urban and Environmental Solutions (CUES)
School of Urban and Regional Planning
Florida Atlantic University