Former WeWork CEO Among New Owners Of Fort Lauderdale Galleria Mall
An executive who took over for Adam Neumann and has led one of the biggest mall landlords in the country is part of the team that acquired the struggling Galleria at Fort Lauderdale.
A joint venture of GFO Investments, InSite Group, Atlas Hill Real Estate and Prime Finance has purchased the 1980s-era mall at 2414 E. Sunrise Blvd. and plans to redevelop it, according to a release.
Representatives for the buyers declined to disclose the acquisition price and how much they plan to spend on the redevelopment.
Atlas Hill is owned by Sandeep Mathrani — formerly CEO of WeWork, General Growth Properties and Brookfield Properties' retail group — and will handle repositioning the property's retail. Developer Russell Galbut's GFO and InSite Group, led by Ben Shmul, will oversee the redevelopment of the property, according to the release.
“The Galleria Mall is an integral part of Fort Lauderdale’s retail scene,” Mathrani said in a statement. “With its distinguished location and rich history, we have a rare chance to create a modern destination that celebrates its legacy while introducing new experiences for both residents and visitors.”
Keystone-Florida Property Holding Corp., an affiliate of a pension fund for Pennsylvania teachers, was the mall's longtime owner after buying it in 1993 for $126M, the Miami Herald reported.
It made multiple attempts to revamp the property, which ultimately fell through due to pushback from local neighborhood associations, Florida Trend reported last year.
Starting in 2015, a proposal for a 45-story condo was rejected, followed by an even larger plan for 1,600 residential units with hotel, office and retail that later fell through. In 2017, the project was downsized to 1,250 units across seven towers, but that plan was also rejected, Florida Trend reported.
CBRE’s Robert Given, Brad Capas and Casey Rosen listed the 800K SF mall on behalf of Keystone-Florida in 2023 when it was only 67% occupied.
The mall is anchored by two major department stores, Macy’s and a separately owned Dillard's. Other stores include H&M, Free People, Banana Republic and Apple.
“Our vision is to restore The Galleria as the premier shopping and lifestyle destination for Broward County,” Galbut said in a statement. “It will be a place where people can gather, shop and experience Fort Lauderdale’s diverse and creative energy.”
Mathrani served as WeWork CEO between 2020 and 2023 and led efforts to shrink the company's footprint and restructure its debt following a failed attempt to take the company public in 2019. The coworking giant did eventually go public in 2021 via a merger with a special purpose acquisition company, but it never turned a profit as the pandemic dragged on its occupancy.
Mathrani stepped down just months before WeWork filed for bankruptcy in 2023.
He joined New York-based private equity firm Sycamore Executive Advisors as a managing director and remains in that role, according to his LinkedIn profile and the company’s website. But he's begun to take on more mall turnarounds, his longtime specialty.
Atlas Hill made a similar deal last year with Centennial and other partners to acquire and reposition the Annapolis Mall in Annapolis, Maryland, CoStar reported at the time.
