Mervyn’s building fetched discount price
By Chad calder
June 22, 2013
Apparently, there was still one last bargain left at the former Mervyn’s department store at Cortana Mall.
Moonbeam Capital Inc. paid $150,000 for the two-story anchor building, according to The Woodmont Companies, which was marketing the property and also manages the interior of the mall for Moonbeam.
The purchase price was a steep discount from owner Klaff Realty’s list price of $980,000.
Moonbeam, which bought the interior portion of Cortana for $6 million earlier this year, closed on the Mervyn’s deal last week but did not make the purchase price immediately available.
Moonbeam said getting the building under its control was important to redeveloping the mall as a retail destination at Florida Boulevard and Airline Highway. Moonbeam and Woodmont have said they’d like to get a movie theater into the Mervyn’s building.
Jonathan Walker, a broker with Maestri-Murrell Commercial Real Estate who was not involved in the transaction, said the price of less than $2 per square foot is among the lowest he’s seen for retail. He noted, however, that if Klaff picked up a portfolio of Mervyn’s properties as the chain liquidated in 2008, then it may not have paid much for it to begin with.
Walker said that upkeep and maintenance on an empty building can be difficult, and if there was no note on the property, getting $150,000 may be worth more than paying the taxes and insurance on it.
Calder, C. (2013, June 22nd), Mervyn's building fetched discount price, The Advocate, (June 24, 2013), http://theadvocate.com/news/business/6315547-123/mervyns-building-fetched-discount-price