Worldcenter Mall Will Be Open Air Instead Of Enclosed

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.

 

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Dave
5 years ago

Wasn’t the roof of the mall supposed to be that huge crazy amenity deck for the condo tower? How does that effect the people who already bought units?

Marc305
5 years ago

Wow! If they lose Macy’s and Bloomindale’s this project will not succeed. Wish I could say I was surprised but knowing how things turn out in Miami, this is just one more let down upon many. SMH.

Anonymous
5 years ago

Not necessarily, mid-range department stores Like Macy’s aren’t doing too well these days They have been having weaker sales year after year. Smaller high end labels and smaller bargin chains are doing well the past couple years. Having a Nordstrom Rack, Saks Off Fifth, sprinkled in with a lot of luxury brands might fair well here. Think Colonnade at Sawgrass, but actually urban, not fake urban. Also, there is a Macy’s literally a half mile away already downtown.

Anonymous
5 years ago

Very true. I have been shopping at Macys lately all last year because of their constant weekly huge percentage off sales. I bought bedroom products that would of normally costed me $250.00 for just $65.00. Crazy but not complaining.

Anonymous
5 years ago

Have to disagree. Retail is shifting away from large department stores and anchors to smaller stores like H&M, Zara, etc. The Design District is a great example of a successful, outdoor pedestrian “mall” with smaller retail spaces. Glad to see this shift to a more pedestrian friendly and open retail experience.

If this project doesn’t get built, it will be because of the overall market in Miami, not because of the loss Macy’s and Bloomingdale’s.

Marc305
5 years ago

Point taken, however, I can tell you that the people we have personally helped as well as clients from friends who are also realtors. They purchased with the expectation that there would be a mall, not a shopping center, and that the amenities would be located on top of that mall. Only time will tell what their reaction will be.

Alpina
5 years ago

This might be bad news for Paramount but not necessarily for the mall portion. I believe an open street concept could be a lot better for the area and I honestly never liked the idea of an enclosed mall. The good thing about high street retail is that it may help to generate future developments and to create the urban fabric that we don’t have in Miami. I just hope the time is right for this massive change for the project.

Anonymous
5 years ago

in Seattle they have a lot of high street retail downtown with detached department stores and works really well. if they do that here, would be nice.

Anonymous
5 years ago

according to developer the amenities deck will be built on top level of new centers parking garage and will not change….otherwise buyers would probably back out left and right…..I am VERY skeptical that this development moves forward during this cycle…although I do like the new concept I think timing might be tough…but….sure would love to see it happen

Anonymous
5 years ago

who needs that much area for ameneties? at the the end, they are all going to pay for the maintenance…

Anonymous
5 years ago

Reading between the lines, words like – “Decided Not To Move Forward ” – ” Unable To Structure ” – ” Potential Development ” – ” Work with Forbes on POTENTIAL development – ” Pursuing a high street retail plan that will better utilize the site and the market “. This project is toast.

Anonymous
5 years ago

Very interesting news about this development. Think it is wise from Taubman perspective as department stores are struggling nationwide. The real losers are Macy’s and Bloomingdales…..but they would probably perform stronger at Brickell Citycentre and there is potentially room in future phases to develop there.

Anonymous
5 years ago

I agree with those who have said Bloomingdales and Macy’s should simply join brickell city centre in their phase 2. Malls do better when they are larger (Aventura Dadeland & Dolphin vs Sunset Place/Merrick Park etc) Brickell is the real heart of downtown Miami and where the vitality is. The 2 lots adjacent to BCC that Carlos Mattos owns should be retail because condos there wouldn’t do well with the huge towers about to be built in front of them (One Brickell & One Brickell City Centre)

marc
5 years ago

Wow, all the BCC fan girls are out en force.

Anonymous
5 years ago

Interesting choice, looking forward to the new renderings

Oscar
5 years ago

Prefer the idea of an open-air high street over a closed-in mall but, considering what we’ve seen from this development over the past 6+ years, I can’t help but worry that this is a sign of trouble/delay. Would not surprise me at all to see the Marriott deal fall-through. Outside of Paramount, I’m starting to expect an extremely scaled back version of the vision(s) that have been presented. Really hope I’m wrong.

Anonymous
5 years ago

I could see the Macy’s doing well at Brickell City Centre. The one in downtown was going to close when WorldCenter opened so there would be room for a Macys in downtown/Brickell

Anonymous
5 years ago

originally brickell citycentre was supposed to have 2 department stores – now macys or bloomingdales could join BCC during phase 2. And the other could build a boutique bloomingdales in design district. I would not want to have a deposit down on paramount. Sounds like whole project has fallen apart.

Anonymous
5 years ago

I had high hopes for this project but know Im just disappointed. So many changes from the original model to now this right before grown breaking. I wonder what the hell is going to happen at this point????

Anonymous
5 years ago

I visited paramounts sales center….very nice and sales staff very nice but something kept pulling me back….I could not get a real definitive start or end date for any aspect of project….I still think its a nice change but the condo project will be in trouble if they don’t start some meaningful construction soon

Anonymous
5 years ago

The Herald article said the amenity deck was built on top of the parking structure so no changes for Paramount. I think we have enough malls and I like the idea of a Lincoln Road in downtown. I would go to the mall for shopping but hopefully it will be more of an entertainment district now.

Suomynona
5 years ago

A Lincoln road in downtown? Isn’t that what Flagler is supposed to be with Mana?

Anonymous
5 years ago

What a great opportunity to incorporate BAYLINK through this new high street connecting South Beach to the new BRIGHTLINE Terminal.

Anonymous
5 years ago

Open Street concept is definitely a better option for an urban center. However, as much as I hate to be pessimistic on this one; I’m sorry to hear this has changed. Who knows how long it will be before anything gets built in this wasteland.

Laz
5 years ago

I do like this more open concept using Lincoln road as a model, but let’s see the actual execution? Hopefully the end result is grand and not thrifty? Maybe it will be closer in look to the original World Center publicity videos. Even Flagler is getting a facelift. They need to give neighboring areas a real reason to shop, eat and play in this section of downtown. Eating street side while people watching is entertaining. This area is closest to the arts and entertainment section of downtown and closest to all the stadiums, so if planned smart has a great chance to succeed! I think it can be a more fun area than Brickell.

Anonymous
5 years ago

Bloomingdales is better off going into the design district anyway. High end one like soho

Anonymous
5 years ago

They are TRYING. Nothing official yet.

Anonymous
5 years ago

I think the roof of the mall was the amenity deck, interesting. I wonder what happens to Paramount?

WhyNotNow
5 years ago

So…China didn’t work out…Dubai didn’t work out…. These guys bit off more than they could chew. I knew things were going south when they did press releases for events such as “Miami World Center Moves Forward With Removing Chain Link Fence.”

marc
5 years ago

No actually China is buying in to Paramount which is rising but the Paramount does not make a mall by itself.

Anonymous
5 years ago

Unlike the Herald article, this article has “try to” running through it.

MrDreTheOne
5 years ago

It sounds to me like Macy’s is pulling the plug due to their financial woes, they just decided to close many stores across the nation, they are probably being cautious with investing in new ones. The developers are now trying to reformat the layout and weight their options.

PJMinMIA
4 years ago

Enclosed malls are so 1990’s

Old local guy who remembers the Miami OMNI mall
5 years ago

Do you know what OMNI stands for?

Anonymous
5 years ago

Maybe we can use this for the Beckham soccer stadium. ✌️?

Anonymous
5 years ago

Penny wise and pound foolish. Obviously Taubman has zero confidence in this mall’s future given that department stores are being killed by online outfits. This land should just be occupied by the state of the art, stand-alone condo towers. It’s too prescious for another Omni Mall twin.

Anonymous
5 years ago

maybe they all know something we don’t about a back room gambling deal and are crossing their fingers to build a casino instead of a mall, lol

marc
5 years ago

That would be sickening.

Anonymous
5 years ago

A mall probably wouldn’t have worked well there but i don’t think this change will help either. There is lots of other retail within 15 minutes of this area. Tourists would also probably rather go to Lincoln road or the new Brickell city center.

I’ll be surprised if this project moved forward. I think they missed their opportunity. I think they know it.

marc
5 years ago

So all the tourists that congregate and visit right across the street rather go elsewhere?

Anonymous
5 years ago

I disagree. This is a great location for an open air mall. With the AAA Arena across the street, the Port of Miami next door and direct access from the Metro Mover, there will be no shortage of tourists and other visitors. This does not include all of the residents and future residents that will be living in the area.

defamed
5 years ago

All the tourists will continue to go to Bayside, as they have been doing for the past three decades and will be even more inclined to do so if the giant paperclip gets built. A mall in that area would only work with strong anchors. If they get H&M, Uniqlo, Zara and a few more of that caliber it may still work as a high-street retail area, but I doubt it will get done…