Lands of the President Condos

Update on The Palm Beach Mall

The Palm Beach Post had an artile about The Palm Beach Mall that I wanted to share with you. The article discusses the multiple owenership situation the mall faces, and what kind of consquences it may have. I will also post the article below just in case that link becomes disabled any time soon.

"The Palm Beach Mall in West Palm Beach has gone through a lot in recent years: Crime, neglect by its owner, a recession, a foreclosure lawsuit and finally, an auction.

But just as new owner ORIX takes control of Palm Beach County's first regional mall, a new snag has emerged. A Luxembourg-based firm quietly has engineered a deal to buy the building and land formerly occupied by Dillard's department store.

Since the Palm Beach Mall became the subject of a foreclosure action in April 2009, plenty of buyers have expressed interest in the property. The 90-acre site has some of the best interstate frontage in South Florida.

But potential buyers soon learned of the site's major shortcoming: Simon Property Group, which previously owned the Palm Beach Mall, did not own all the land.

Both Dillard's and Macy's owned their own "pads," meaning that anyone who wants to redo the mall site has to buy those properties from the department store companies. Those pads were not a part of the foreclosure sale and they remain the property of the department stores. Now an affiliate of Turbo Investments International Inc. has the 4-acre Dillard's property under contract, real estate sources say.

The affiliate group includes RG Developments of Jupiter. Randall Greene, an RG principal, declined comment. A Dillard's spokeswoman at the company headquarters in Little Rock, Ark., did not return a phone call seeking comment.

The Dillard's deal was a shrewd move for Turbo. The parcel is in the center of the mall, with the best frontage along Interstate 95, at Palm Beach Lakes Boulevard. Word is Turbo is protecting its nearby investment, the Chase Bank Center office building, on the corner of Congress Avenue and Palm Beach Lakes Boulevard. Although only 2 acres, the property is at the gateway to the mall property.

Sources say an affiliate of ORIX has the 11-acre Macy's property under contract, but alas, not the better-situated Dillard's site. (Macy's spokesman Jim Sluzewski said the West Palm Beach site is for sale, but he said he could not comment until any sale closes.)

West Palm Beach Mayor Lois Frankel indicated she was aware ORIX still was trying to gain control of the entire site.

As to Turbo's move to buy Dillard's, "I hope they're in it to be productive," Frankel said. "I don't know the motivation, but I want to assume the best."

It's not clear what Turbo's real motives are for seeking control of the Dillard's land. Turbo could just want a seat at the table as part of the redevelopment, or it could squeeze ORIX for big money to be bought out of its two parcels, the Dillard's site and the bank building.

Jim Lingle, an attorney for ORIX in Dallas, referred questions to Madison Marquette's Chuck Taylor, court-appointed receiver for the mall property. Taylor could not be reached for comment.

Despite the recession, sources say numerous retail tenants want to take space in a mall redevelopment. Plans floated by ORIX would turn the property into a "lifestyle" center, along the lines of Legacy Place in Palm Beach Gardens.

Bass Pro, a sporting goods retailer, and Ikea, the Swedish furniture store, remain keenly interested in the property because they like to be seen from major highways, real estate sources say. Retailers ranging from fast-casual restaurants to established chain stores also want to be in on the redo.

And with good reason. ORIX, a Japanese financial group and formerly the servicer of the mall's mortgage, has plenty of money to finance a redevelopment. These days, access to capital is the ticket to getting any deal off the ground.

But Frankel acknowledged that other monied developers still are circling the mall and could snap up the property from ORIX at the right price, whatever that is.

Frankel said she'd like to see the mall site become "a great economic generator" that will create plenty of jobs. At the same time, she wants the project to be compatible with the neighborhood and include amenities that would be of use to nearby residents. (Think grocery stores and restaurants, for example.)

Whatever the mall becomes, Frankel knows it's a unique redevelopment opportunity, an unusually large parcel along an interstate that is expected to become "one of the most important projects in the city. It's a great spot with tremendous potential," she said.

Toward that end, she said the city would be willing to help finance the public elements of the project, such as lighting, roads or a garage, she said.

The 1.2 million-square-foot mall, which opened in 1967, officially closed Jan. 31. JC Penney and George's Music, which still have active leases, remain open and accessible through exterior doors. Firestone automotive service, on an out parcel, also is open.

Alexandra Clough writes about the economy, real estate and the law. Contact her at alexandra_clough@pbpost.com."

What's Good About West Palm Beach?

West Palm Beach is located on the southeast coast of Florida, about an hour’s drive north of Miami with easy access to beaches, Palm Beach International Airport, shopping centers and entertainment. It’s served by I95 and the Florida Turnpike.

CityPlace and Clematis are its newest shopping areas. CityPlace is an enclave of shops, restaurants and theatre situated around an old style Mediterranean town center with a beautiful dancing fountain, live music and entertainment. It’s a destination attraction featuring a smaller style Macy’s indoor and outdoor dining, upscale shops and a two storey movie theatre. Nearby is Clematis, part of the old downtown of West Palm Beach featuring restaurants, shops, the library, a “dancing waters” fountain that children love and a Green Market every Saturday during season.

There are theatres, such as the Kravis Centre featuring Broadway shows, concerts and children’s attractions. There’s the new Opera House which will open soon. The Norton Museum of Art is a fabulous venue for art shows and also features a café and unique gift shop. The Armory is another smaller attraction featuring up and coming artists, a teaching center for painting and sculpture and from time to time, shows featuring their students. Located nearby in Palm Beach is the Four Arts Center offering art shows, foreign films, concerts and interesting speakers.

Additionally there’s a great zoo, a Fairgrounds with antique shows, concerts and the circus among their offerings.

Within a 30 minute drive, there are more theatre and Palm Beach with its fascinating shops and million dollar homes. Arts and craft shows are regular happenings as well.