The Shops At Sunset Place In South Miami Sells For $65.5 Million To Alex Vadia's Midtown Equities

Midtown Equities, led by Alex Vadia, has acquired The Shops At Sunset Place for $65.5 million from FRIT Shops at Sunset Place, a joint venture between Federal Realty Investment Trust (NYSE: FRT), Grass River Property and The Comras Company. The 9.7-acre, 524,180 square foot shopping center, which is located at 5701 SW 72nd St., Sunset Drive in South Miami, last traded for $111.5 million in 2015, representing a significant loss for the selling joint venture. The shopping center’s current occupancy is reportedly just below 60%, a significant gap from the reported 83% in March 2020.

The Shops at Sunset Place was initially developed in 1999 and plans have been approved for a major renovation which would include the addition of 414 rental apartments, 182 hotel rooms, reducing the retail component to 440,148 square feet and adding 32,840 square feet of office space. The impact of COVID-19 stalled the development plans when Federal Realty Investment Trust was hit with a $50.7 million net impairment charge in Q3 2020 when its $60.6 million non-recourse CMBS loan matured and was declared in default by the lender.

Sunset Place Redevelopment Proposal Finally Gets Approved By South Miami

Nearly two years after the South Miami voted against the redevelopment of Sunset Place, the city has now approved the proposal after a special commission meeting where the South Miami City Commission voted unanimously to approve ordinances that allow will give the go-ahead to the developers to revitalize the aging mall. A partnership between Federal Realty Investment Trust, Grass River Property and The Comras Company will redevelop the 500,000 SF shopping mall into a mixed-use development with a renovated 440,000 SF mall, 32,000 SF of office space, 2 apartment buildings with 414-units and a 182-room hotel.

The developers have agreed to several climate change resistant modifications to the proposal including rooftop solar panels, a reflective or white roofing system, green roofs and the elimination of underground parking. The developers will also fund $250,000 to the city for a new streetscape on Sunset Drive, $1.5 million for pedestrian safety measures and a public amphitheater.

South Miami Votes Against The Zyscovich Architects-Designed Proposal To Redevelop The Shops at Sunset Place

After a year of developing plans with Zyscovich Architects to redevelop the Shops at Sunset Place with the addition of a hotel and 2 residential rental buildings, the South Miami City Commission has voted 3-2 against the project. PROFILEmiami first reported in October 2016 that Federal Realty Investment Trust, Comras Company and Grass River Property had acquired the aging Sunset Place mall for $110 million and and were planning a major redevelopment to reenergize the property. In October 2017 we reported that the Zyscovich Architects-designed proposal would include the addition of a 17-story hotel with 182 hotel rooms, and two 14-story residential rental buildings with 442 units total. That proposal was ultimately killed by the City of South Miami's Special Planning Board which was under pressure from worries that the project would open the door to immense development in South Miami. Mayor Philip Stoddard and Vice-Mayor Bob Welsh voted yes, while others voted against it. 

Check-Out The Zyscovich Architects-Designed Proposal To Redevelop The Shops at Sunset Place

A Zyscovich Architects-designed proposal to redevelop the Shops at Sunset Place is under review by the City of South Miami's Special Planning Board. The developers goal is to reenergize the existing, aging, Shops at Sunset Place into a lively mixed-use, urban district. The proposal calls for the addition of a "substantial residential component" including a hotel, restaurants, retail, offices and outdoor parks/gardens. Among the residential towers include a 17-story hotel with 182 hotel rooms, and two 14-story residential rental buildings with 442 units total. The first phase of the project would include demolishing and rebuilding large sections of the existing shopping center to update it with a more up-to-date, modern design. The second phase is to add a "true resident population." The redevelopment is being designed by Zyscovich Architects and Developed by Federal Realty, Grass River Realty and Comras Company.