Old mall in Cutler Bay gets new life. Owners bet on people wanting to live and shop there
A turnaround could occur for an aging Cutler Bay mall property after a $100 million change of ownership, ending years of financial woes.
Southland Mall, formerly the Cutler Ridge Mall that opened in 1978, is slated for renovations, and a developer and an investor plan to put housing on part of the 80-acre tract after a sale closed on Friday. The deal excludes the existing Mercedes-Benz dealership, a Sears department store and its automotive repair center.
Private equity investor Electra America and developer BH Group bought the mall property at 20505 South Dixie Highway for $100.35 million from a commercial mortgage-backed securities trust tied to Wells Fargo. The bank had acquired control of the property in 2021 with a $2,600 auction bid.
In 2020, a New York investment firm that had owned the mall defaulted on a $67.5 million loan, leaving the property to Wells Fargo. The mall remained open, during the financial maneuvering.
Now plans consist of remodeling the 88-tenant mall, adding new tenants and building an undisclosed number of residential units on the parking areas surrounding the retail center. Among key Southland tenants are JCPenney and Macy’s department stores, DSW shoe store, Ross and TJ Maxx.
The entire property is zoned for a maximum height of 15 floors and 720 apartments or condominium residences, according to the zoning code for the Town of Cutler Bay. Electra and BH Group declined to reveal to the Miami Herald details about renovations, new tenants planned or the housing portion of the project.
“Cutler Bay’s proximity to high-paying employment centers and top-rated schools, along with minimal developable land in the area, made this an attractive investment opportunity,” Joe Lubeck, managing partner of Electra America, said in a prepared statement.
Formerly an extension of the Cutler Ridge Shopping Center, the property was devastated by Hurricane Andrew in 1992. It reopened in 1993 and was renamed Southland Mall in 2003.
“Southland Mall, because of the lack of population, should have never been built,” said Beth Azor, retail expert, founder and principal at her namesake Azor Advisory Services. But housing along with the retail would mark a turning point. “The more people they bring, the higher the possibility there will be a turnaround for that mall.”
The new retailers better pack a punch, though, Azor said.
“You have to have retailers you want to go see,” she said, noting that chains like Dave & Buster’s, Topgolf and Houston’s restaurant would add something special to the mall site. There’s no indication any of those companies are going to open on the Southland retail property.
“It’s a destination concept,” Azor said, explaining what is needed to draw people to the old mall. “A fun bowling alley. Ax throwing. Fun escape rooms. Things to bring the family.”
The new owners will need to meet with the Town of Cutler Bay to discuss project plans, zoning and incentives, said Rafael Casals, Cutler Bay’s town manager. No such meeting has been scheduled yet, Casals said.
Casals said he and his staff are enthusiastic about the mall’s prospects. Once completed, he hopes the project would encourage residents and nearby south Miami-Dade County locals to shop and eat close to home. He said, “Over and over, we’ve heard from our residents that they want more entertainment and restaurants.”
The sale is another step forward for the Cutler Bay community. In March, residents approved a $37 million plan, which would deliver a new town center and 16-acre park.
