Mall developer Taubman announced today that they will try to build an open air shopping mall at Worldcenter, instead of an enclosed one.
The “high street retail plan” will likely require a smaller initial capital outlay than building an enclosed mall.
It isn’t clear if Macy’s and Bloomingdales will stay on. A spokesman for Macy’s told the Herald that they were in touch with the developers and evaluating their options.
Construction continues at Paramount, the 60-story, 513-unit condo tower. Buyers there were promised amenities including direct elevator access to the mall and rooftop soccer above the mall.
Taubman Announces Update on Miami Worldcenter Project
Taubman Centers, Inc. (NYSE: TCO) today announced that it has decided not to move forward with an enclosed regional mall that was slated to be part of the Miami Worldcenter mixed-use, urban development in Miami, Florida. Instead, Taubman, in conjunction with The Forbes Company and Miami Worldcenter’s master developer, Miami Worldcenter Associates, is now pursuing a high street retail plan that will better utilize the unique characteristics of the site and the market.
As a result of the decision, during the fourth quarter of 2015, Taubman expects to recognize a charge of $11-$12 million for the write off of previously capitalized costs related to predevelopment of the enclosed mall plan. This is expected to reduce 2015 Funds from Operations and net income allocable to common shareholders per diluted common share (EPS) by $0.13-$0.14.
“We’ve invested a significant amount of time on the project,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “Unfortunately, we were unable to structure an enclosed mall program that meets our investment criteria. We’re pleased, however, to work with The Forbes Company and Miami Worldcenter Associates on the potential development of a high street plan that we all believe will provide an outstanding retail experience.”
Taubman and Forbes have agreed with Miami Worldcenter Associates on preliminary terms to lease the retail portion of the street level project, with an option to purchase the retail component for a predetermined price once it opens.
About Miami Worldcenter
Occupying 27 acres in the heart of downtown Miami, Miami Worldcenter is one of the largest private real estate developments underway in the United States. The ten-block project will include world-class retail, hospitality and residential uses in the center of Miami’s urban core. All told, the project is expected to account for $2 billion in new investment in downtown Miami.