Sunday, April 26, 2009

There but for the grace of the Charette goes the Cove

The Palm Beach Post.Com reports on a shopping center, The Palm Beach Mall, which has been sued for foreclosure.

There are similarities in the mall’s history to our Deerfield Cove Shopping Center (much smaller scale, but similar background) and we can breathe a giant sigh of relief that our city didn’t carry out the proposed plan to raze the center and build a mixed use store-condo development back in 2006.

The West Palm Beach center evicted many of the owners and did not renew the leases of others. The post stated:

“Simon once had grand plans to redevelop the 42-year-old property into a mixed-use center consisting of big-box retailers, furniture store Ikea, restaurants and even homes.”

…’I've been saying it's the next shoe to drop. It's an old saying in real estate development: Commercial follows the roofs. As more residential was built, more commercial, generally office and retail, followed.’"

But since much of the residential growth was fueled by speculation, there weren't really people living in a lot of those homes. And so the retail shops built up around these homes weren't needed.”

Lackey agreed, saying the Palm Beach Mall foreclosure is the first wave of a series of lawsuits that likely will be lobbed against shopping center owners. "This lawsuit is a precursor of things to come," Lackey said.”’


Read the rest of the Post article at http://www.palmbeachpost.com/business/content/business/epaper/2009/04/26/sunbiz_thesource_0426.html

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