Sterling Organization, a vertically-integrated private equity real estate investment firm headquartered in Palm Beach, negotiated a 20-year lease agreement with Costco Wholesale, the membership-only warehouse shopping club, to develop a new 151,104-square-foot building at Mall of the Americas on W. Flagler Street in Miami.
Bryan Fetherston from The Shopping Center Group and Ernest Annibale from Northwest Atlantic represented Costco In the transaction.
In order to accommodate Costco, a portion of the north wing of Mall of the Americas will be demolished. Some of the businesses in the existing north wing of the mall have been relocated to the south wing in anticipation of the redevelopment. The landlord expects construction to commence in mid-October and Costco to open in late 2016. Costco will close its existing location just a few blocks away on NW 82nd Avenue in Doral.
Mall of the Americas is an almost 800,000-square-foot partially enclosed shopping center located on W. Flagler Street and the Palmetto Expressway/SR 826. It was originally developed in 1970 as Midway Mall. Its name was changed to Mall of the Americas in 1987.
“Mall of the Americas is a fantastic retail real estate location with approximately 500,000 cars passing it per day between Flagler Street and the confluence of the adjacent Palmetto and Dolphin Expressways,” said Greg Moross, Principal and Chief Operating Officer of Sterling Organization. “The property has the potential to once again be a premier shopping destination in Miami, and the addition of Costco should be the impetus of such.”
Mall of the Americas is currently anchored by Home Depot, Tiger Direct, Old Navy, Marshalls, and Ross Dress for Less. The mall will remain open during the construction.
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