Melbourne Square Mall has new owners, who say they will invest in upgrading the shopping center, the county’s largest.
The sale was part of the bankruptcy proceedings of its former owner, Washington Prime Group.Second Horizon describes itself as “an impact investment firm that partners with communities to transform large-scale, underinvested commercial properties into vibrant destinations and local economic engines.”
The buyers announced plans to make investments into Melbourne Square immediately, “including incremental resources into community engagement, center operations, and building upgrades.”
“Additionally, Second Horizon Capital will expand Melbourne Square’s programming and foster additional partnerships with local organizations and businesses to support the center’s ongoing role as an essential community hub,” Second Horizon announced.
The investment group adds the 710,000 square-foot retail center with 125 retailers to its portfolio, which includes malls around the country in Florida, Illinois, Utah and Arkansas.
“For more than 40 years, Melbourne Square has served as a central gathering place for the Space Coast community,” said Howard Levine, Managing Partner & Co-Founder of Second Horizon Capital, in a prepared statement.
“With a strong mix of national brands, local retailers, and experiences that bring people together, the center already has a strong foundation. We are now building on that momentum by making targeted investments that elevate the guest experience and strengthen tenant performance to ensure Melbourne Square continues to thrive as a community destination for neighbors and visitors,” Levine added.
According to a consumer report from Capital One, regional malls such as Melbourne Square are still in the midst of a downturn in the face of competition from online shopping. Although the busiest malls saw a small uptick in foot traffic, From 2016 to 2024, a net 18,730 mall stores closed.
According to one market research report from CBRE Investment Management, many brick-and-mortar retailers have been able to find their stride alongside online shopping in the modern market. Indoor malls such as Melbourne Square have remained an outlier in that recovery, however.
“The rise of digital platforms like Temu and Shein has captured market share, particularly in the fast fashion and discount retailer segments, contributing to store closures. This has disproportionately affected malls and power centers that have not adapted to online sales channels,” according to that research.
Tyler Vazquez is the Growth and Development Reporter at FLORIDA TODAY. Contact Vazquez at 321-480-0854 or tvazquez@floridatoday.com. Twitter: @tyler_vazquez.
This article originally appeared on Florida Today: Melbourne Square Mall sold to investment group with plans to upgrade the property
Reporting by Tyler Vazquez, Florida Today / Florida Today
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