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Galleria Fort Lauderdale Sells, Will Add Residential and Revamp Its Retail Mix

A partnership of GFO Investments, InSite Group, Atlas Hill RE and Prime Finance has purchased South Florida’s 800,000-square-foot Galleria Fort Lauderdale. The seller was Keystone-Florida Holding Corp., an affiliate of a pension fund for Pennsylvania teachers, which bought the property in 1993 for $126 million. Atlas Hill founder and managing partner Sandeep Mathrani tells C+CT that plans include the addition of residential.

Mathrani, who has held CEO roles at Brookfield Properties Retail and WeWork, also told C+CT the property fills a gap between Aventura and Boca Raton along South Florida’s affluent eastern coast. Tenants include Apple, Banana Republic, The Capital Grille, Dillard’s, Macy’s, Powerhouse Gym and Sephora. “The Galleria mall has long been a landmark in Fort Lauderdale, and now we have an opportunity to reimagine it for a new generation,” InSite Group founder Ben Shmul said in an announcement cited by Miami Herald.

Keystone-Florida Holding Corp. put the Galleria on the market two years ago, after several redevelopment plans fell through, the Miami Herald reported. In 2023, the occupancy rate stood at 67%, according to the South Florida Sun Sentinel.

For Atlas Hill, the deal follows recent success reinvigorating another East Coast mall. The firm partnered with Centennial, Waterfall Asset Management and Lincoln Property Co. to acquire the superregional Annapolis Mall last September. In just one year, Atlas Hill has leased more than 350,000 square feet there, bringing occupancy, including tenants that have signed but not yet opened, to more than 90%. New tenants Dick’s House of Sport, Tesla, Uniqlo, Dave & Buster’s, Swarovski and Talbots join existing tenants like Apple, Zara, Lululemon, The Cheesecake Factory and Maggiano’s Little Italy.

Pittsburgh-Area Mall Reinvention Will Go Retail in the Front, Business Park in the Back

Industrial Realty Group and real estate fund management and advisory firm PREP Funds acquired the 443,000-square-foot Washington Crown Center, 30 miles southwest of Pittsburgh and will rename it Franklin Crossroads Park. They plan an adaptive-reuse development with 97,000 square feet for existing and new retail tenants facing Interstate 70. On the other side, 346,000 square feet of retail that has sat vacant for quite a while will become a business park that could include office, industrial or research and development.

Construction will begin this fall, and the mall will remain open through the end of the year. The new owners expect first retail tenants to occupy space by the first quarter of 2026 and business park tenants to start taking occupancy in the spring or early summer.

Industrial Realty Group and PREP also plan a 60-acre business park for the defunct Towne West Square mall in Wichita, Kansas.

Investments Drive Next Chapters for Office Depot, Forever 21, Claire’s and Bed Bath & Beyond

The parent of Office Depot and OfficeMax just got a $1 billion shot in the arm, Forever 21 has signaled a brick-and-mortar comeback in the U.S., Ames Watson has purchased Claire’s, and Bed Bath & Beyond has completed its acquisition of Kirkland’s Home.

Office Depot Parent To Go Private in $1B Acquisition

An affiliate of Atlas Holdings, which owns a portfolio of manufacturing and distribution businesses, has agreed to buy the parent company of Office Depot and OfficeMax in a go-private deal valued at roughly $1 billion. Atlas said it will pay $28 per share in cash for The ODP Corp. The acquisition is expected to be completed by the end of 2025, and once the deal closes, shares of ODP no longer will be publicly traded.

Forever 21 Eyes Return to U.S. Brick-and-Mortar Stores

The revival of the Forever 21 fast-fashion brand may include the return of brick-and-mortar stores in the U.S. The retailer closed its U.S. locations, primarily at malls, after filing for Chapter 11 bankruptcy protection in March. Forever 21 had hired RCS Real Estate Advisors to sell the retailer’s roughly 360 U.S. store leases, totaling 7.6 million square feet.

Now, Authentic Brands Group, which owns Forever 21’s intellectual property, is “in advanced discussions with a leading retail operating partner to open new U.S. stores,” a spokesperson said. No word on how many locations might be involved or when the new stores might open. Forever 21 continues to maintain a brick-and-mortar footprint in international markets.

News of the potential resurrection of Forever 21 stores comes on the heels of Authentic Brands’ Sept. 17 announcement of new U.S. partners for Forever 21 in e-commerce, wholesale and children’s apparel. That announcement made no mention of brick-and-mortar stores and rather had indicated Forever 21 would shift to an online-focused strategy in the U.S.

Claire’s Acquired for $140M; New Owners Emphasize In-Store Experiences

Investment firm Ames Watson acquired Claire’s for $140 million and plans to “modernize and revitalize” the mall retailer with “exclusivity, customization and cultural relevance.” The retailer filed for Chapter 11 protection in early August.

According to an Ames Watson press release: “The goal is to make every Claire’s visit meaningful by creating experiences that cannot be replicated online and keeping the mall a destination for discovery and connection.”

Ames Watson owns or has investments in brands like Champion, Margaux, South Moon Under and Lids, which it acquired in 2018. In April, the brand unveiled a new format that focuses on customization and exclusive products.

On behalf of Ames Watson, RCS Real Estate Advisors arranged agreements with landlords to keep more than 800 Claire’s stores open and could lift that number to 950, according to an RCS press release. RCS also worked with Lids, among other brands, for Ames Watson.

Bed Bath & Beyond Completes Kirkland’s Home Deal, Plans Store Conversions

Also this month, Bed Bath & Beyond Inc. completed the $10 million acquisition of the trade name and brand assets of Kirkland’s Home. The brand will join Bed Bath & Beyond Inc.’s Bed Bath & Beyond, BuyBuy Baby and Overstock brands on the wholesale market, and Kirkland’s Home stores will convert to Bed Bath & Beyond Home stores.

The first conversion, representing Bed Bath & Beyond’s return to brick-and-mortar after a 2023 bankruptcy filing, opened Aug. 8 in Brentwood, Tennessee. Five more Bed Bath & Beyond Home stores will follow in the Nashville area, according to a June press release from Kirkland’s. “The Greater Nashville area was selected as our launch market given our headquarters presence, allowing us to closely manage every detail and set the standard for future rollouts,” the press release said.

Blackstone’s BREIT Names New CEO, and BREDS Closes $836.9M Loan Deal

A 13-year employee of alternative asset manager Blackstone has been named CEO of Blackstone Real Estate Income Trust and global head of the core-plus real estate business. Katie Keenan is succeeding the late Wesley LePatner in those two roles. Keenan’s most recent positions are president and CEO of Blackstone Mortgage Trust and global co-chief investment officer at Blackstone Real Estate Debt Strategies, or BREDS.

Notably, BREDS affiliates agreed this month to purchase $836.9 million worth of performing single-tenant-lease financing loans. The transaction closed this week, according to a spokesperson for seller First Internet Bancorp. The deal follows Blackstone’s purchase of $22 billion in commercial real estate loan portfolios over the past 24 months.

BREIT also elevated head of shareholder relations Zaneta Koplewicz to co-president of BREIT alongside current co-president A.J. Agarwal. Robert Harper, who has served as interim CEO of BREIT since LePatner’s death, will return to his longtime role as the REIT’s head of asset management.

Maven and Goldman Merge in Bay Area; TSCG Expands in D.C. With Indigo Deal

Bay Area brokerages Maven Commercial and Goldman Ltd. have merged and will be called Maven, the San Francisco Business Times reported. The publication noted that Maven Commercial has a presence in upscale San Francisco retail neighborhoods and that Goldman will boost the company in the East Bay. Goldman founder Nadine Whisnant has joined Maven as a principal.

Architecture and Engineering Firm HFA Hires CFO

Architecture and engineering firm HFA — whose commercial real estate work includes retail, mixed-use, restaurant, hospitality and entertainment projects — has hired Nick Wille as CFO. He most recently was CFO of construction management company EDC.

—Additional reporting by Commerce + Communities Today editor-in-chief Amanda Metcalf