Galleria Fort Lauderdale Mall Listed for Sale with Anticipated Sale Price Exceeding $100 MillionDecember 1, 2023
The Galleria Fort Lauderdale, an 800,000-square-foot indoor shopping center located at 2442 East Sunrise Boulevard, is now on the market for potential redevelopment, aiming for a sale price surpassing $100 million. The listing, managed by a CBRE team led by Robert Given and Brad Capas, comes without a specified asking price. Still, Capas expected the property to command a value above $100 million.
Owned by Keystone-Florida Holding Corporation, under the leadership of President William O’Connor, and advised by O’Connor Capital Partners, a New York-based real estate investment firm, the mall is positioned for a transformation. The listing excludes the Dillard’s department store building, which is independently owned, and a Macy’s store operating under a ground lease.
The Galleria is reported to be 67 percent occupied, as per a CBRE marketing brochure. Keystone-Florida has made two unsuccessful attempts to redevelop the luxury mall, most recently in the previous year when Fort Lauderdale still needed to approve the proposed development agreement for a project featuring a minimum of 1,900 apartments on the 31.6-acre site.
The property is permitted for 1,899 residential units, equating to 60 units per acre, with buildings allowed a maximum height of 150 feet, as outlined in the CBRE brochure. However, potential buyers could leverage Florida’s Live Local Act to pursue a more considerable development, provided 40 percent of new units are designated workforce housing.
Established in 1980, Galleria comprises various retail buildings, primarily vacated big-box stores once occupied by Saks Fifth Avenue, Lord & Taylor, and Neiman Marcus. Keystone-Florida’s previous proposal involved demolishing a significant portion of the shopping center, replacing it with buildings not exceeding 150 feet in height, and gradually tapering down near adjacent residential neighborhoods.
In 2017, faced with opposition from residents, the Fort Lauderdale City Commission deferred a vote on Keystone-Florida’s redevelopment plan, which sought to construct 1,250 condo units in three buildings exceeding 20 stories and four shorter structures. Keystone-Florida eventually withdrew its proposal in response to the community’s concerns.