Simon Property Group’s Miami International Mall is in precipitous condition.
The struggling indoor retail center ‘s current market value nosedived to $159 million, compared to a $391 million valuation a decade ago, a recent Morningstar report shows.
The 59 percent decline in value is on the heels of Simon securing a one-year forbearance on a $157.4 million commercial mortgage-backed securities loan that matured in February, the report states.
A Simon spokesperson did not immediately respond to a request for comment. The company owns 303,000 square feet of Miami International Mall’s central component, but does not own five big box stores that account for nearly 700,000 square feet of retail space on the property.
Spanning 96 acres, Miami International Mall is at 1455 Northwest 107th Avenue in Doral.
The CMBS loan went to a special servicer when the 10-year mortgage matured on Feb. 6, but Simon secured a forbearance from the lender, a pair of CMBS trusts, until February of next year, the report states.
As of March, Miami International Mall’s occupancy was 78 percent, as Simon experienced an exodus of tenants, Morningstar found.
Simon, led by CEO David Simon, also owns The Falls in south Miami-Dade County, Dadeland Mall in Kendall and Sawgrass Mills in Sunrise. The firm and Aventura-based Turnberry also own Aventura Mall in Aventura.
Other indoor malls across South Florida are in trouble. In March, a partnership between four firms — Taillard Capital, Tuesday Properties, Ark Ventures and Strategic Capital Alliance — paid $46 million for North Miami Beach’s ailing Mall at 163rd Street.
At the time of sale, the mall was 85 percent vacant. The new owners plan to redevelop the property in the future, and are planning to reposition the Mall at 163rd Street in the near term.
In November, the Galleria Fort Lauderdale mall hit the market with its owner, Keystone-Florida Holding Corporation, seeking north of $100 million. The Galleria is 67 percent occupied and Keystone-Florida is marketing the property as a redevelopment play.
The site is permitted for 1,899 residential units, or 60 units per acre, and buildings with a maximum height of 150 feet, according to a CBRE brochure. Although a new owner could utilize Florida’s Live Local Act to build a larger project as long as 40 percent of the new units are workforce housing.