Loss of Nordstrom at Wellington mall drags taxable value down by as much as $50M

Starwood paid $341M for the mall in 2014, then an all-time record real estate sale in Palm Beach County
June 13, 2019 02:30PM

Palm Beach County property appraiser Dorothy Jacks, Barry Sternlicht and the Mall at Wellington Green

Palm Beach County property appraiser Dorothy Jacks, Barry Sternlicht and the Mall at Wellington Green

The Mall at Wellington Green, Wellington’s biggest taxpayer, will likely see a drop in its taxable value by up to $50 million, according to the Palm Beach County Property Appraiser’s Office.

The property appraiser is lowering its estimate for the mall to $170 million to $180 million, from $220 million. That’s thanks in part to the April loss of Nordstrom, an anchor tenant, according to the Palm Beach Post.

Starwood Capital Group’s Starwood Retail Partners bought the property in 2014 for $341.1 million, marking the largest real estate deal ever recorded in the county at the time.

Last year, Starwood paid $4.5 million in property taxes for the Mall at Wellington Green. Anchor tenants like Macy’s, Dillards and JCPenney, which own their spaces and parking lots, pay their own taxes, according to the Post.

An overall increase in property values will boost the village’s taxable values on a year-over-year basis, despite the expected drop in the mall’s taxable value. Wellington’s property values could total $8.66 billion next year, up from $8.3 billion this year.

Starwood Retail Partners, led by chairman Barry Sternlicht, owns 30 malls and shopping centers across the country, according to its website. [Palm Beach Post]Katherine Kallergis