Rudy Milian, CRRP’s Post

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President and Chief Executive Officer at Woodcliff Realty Advisors, LLC

The top 25% of U.S. malls average $750 to $1,200 a square foot in sales compared with an average of $150 to $475 at lower-quality malls, according to Green Street, and Simon Property Group is on its way to making America’s oldest climate controlled enclosed mall one of those top-tier properties again. The formula for the once declining Southdale Center in suburban Minneapolis: - Reducing retail GLA. - Bringing in highly performing and luxury retailers, such as Apple Store, Burberry, Gucci, Moncler, Max Mara Fashion Group, Kate Spade, lululemon, Tory Burch, BREITLING and Coach. - Replacing all defunct and underperforming department stores with non-retail anchors like Life Time Inc. (upscale fitness) connected to a co-working facility, Kowalski's Markets (a local high-end grocer) and Puttshack (a minigolf chain). Macy's is the last standing department store located in the space originally occupied by Dayton’s. Department store chain Dayton-Hudson (now Target) built the mall in 1956. A subsidiary of Equitable Life Assurance Society bought it in the 1970s then sold it to O’Connor in the 1990s. - Spending $400 million for T.A. to attract desirable tenants and rip up floors, rejigger the layout, update the interior from its mid-1980s teal and flamingo-pink color scheme to more modern cherry-wood paneling. - Converting the once iconic 100% retail mall into a live-work-play community. - Bringing in more entertainment-focused tenants to complement the existing AMC Theatres and Puttshack. - Redeveloping or selling parts of the sprawling parking lot and out parcels with income generating luxury multifamily apartments, a Homewood Suites by Hilton, a Shake Shack and an RH. The overhaul of the 1.1 million-square-foot Southdale Center is still a work in progress, with construction noise reverberating throughout the mall but the conversion is promising for what malls can become with ingenuity and capital deployment.

A $400 Million Bet Says This Is the Mall of the Future

A $400 Million Bet Says This Is the Mall of the Future

wsj.com

Harry G. Koehler

Retired Vice President at Macy's, Inc.

7mo

The new frontier, Rudy. Many, many more creative redevelopment opportunities to forge throughout the U.S., enabling comprehensively planned, mixed-use mall sites to become even a more integral part of their communities.

Kelly Laughton

CEO @ Top Cats Commercial | Broker of Record

7mo

Rudy, Thanks for sharing. Can’t wait to see 👀 the end result.

Alan Barocas

Retired Senior Exec VP of Leasing,Bus Development and Strategy of GGP, Former SVP of RE of Gap Inc, Board Member

7mo

Apple continues to be the single retailer who has the biggest impact on a malls sales per sq foot

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Kym Espinosa

Strategic Sales & Marketing | Event Management | Customer Journey & Experience | Retailer Merchandising and Sales Analytics| Coaching, Training & Mentoring | Technology | Social Media & Storytelling |

7mo

Work/Play? Does the area need more office space? Kind of like finding a unicorn in2024!

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Michael McHugh

FlexTek-Media DBA Creative / Owner/producer/director/technical Immersioneering! Creating and exploring projects and worlds with fun technology. I ain't dead yet! Tons to share. OPEN TO WORK Have assets that need a home

7mo

We want to help and have some FUN solutions in the works! Let's talk!

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Steven Silverman

Top Ranked National Commercial Real Estate Broker | Investment Sales + Auction Expert | Specialize in Shopping Centers, Net Lease, Office, Housing, Industrial | CoStar Power Broker + Crexi Platinum Broker | 🏢🏆📊

7mo

Rudy: This transformation plan for Southdale Center is truly impressive! By focusing on reducing retail space, attracting top-tier retailers, and creating a vibrant live-work-play environment, it's poised to become a standout destination. The investment and strategic initiatives highlight the potential for malls to evolve and thrive in today's dynamic retail landscape. Exciting times ahead!

Steph Miller

Experiential Event Activation Manager + Partnerships & Sponsorships (Director Level)

7mo

Watching this thoughtful & clever revamp has been fun. Southdale has held its charm & magic through every year of existence and because of that, has always attracted great neighbors including, at one time, one of the earliest Best Buy stores.

Avishkar Sabharwal

I Help Immigrant Doctors Accelerate To Financial Freedom Through Passive Investment Opportunities | Host 'The Immigrant Doctor Podcast'

7mo

Southdale Center's transformation strategy is truly remarkable!

Gregory Jenkins

SEC/Financial Reporting I XBRL I IPO I Debt/Equity Offerings I DataSite I M&A I Printing

7mo

Impressive.

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