Orlando Fashion square purchased by real estate firm for $35 million

At one point, Orlando Fashion Square was doing well. Almost from the moment it opened near downtown in 1973, it has been a mainstay of the Orlando shopping scene.

Lately, though, the shopping mall has had trouble keeping anchor stores and stanching rampant turnover among independent, smaller retailer tenants. A 2002 remodel and the addition of a movie theater in 2005 failed to jump-start the mall's flagging sales figures and give it a long-term boost.

Those reasons are believed to be behind the decision of Pennsylvania Real Estate Investment Trust's to sell Orlando Fashion Square to UP Development of Franklin, Tennessee, for $35 million. The sale was announced last week.

The sale is noteworthy because it will be interesting to see whether UP Development has the resources and know-how to turn Orlando Fashion Square's luck around.

On paper, there is not much reason for Orlando Fashion Square to have hit hard times. The mall itself is located near some of Orlando's most well-to-do neighborhoods, including Winter Park, Thornton Park and Baldwin Park, and its location on East Colonial Drive makes it fairly easy to access.

However, many of its tenants, including Pac Sun, Hot Topic and Charlotte Russe, are not quite as popular as they once were. Also, malls everywhere in the U.S. have struggled to compete against online giants like Amazon as well as against brick-and-mortar "lifestyle centers," which consumers seem to prefer these days because they are more conducive to in-and-out shopping.

As of right now, UP Development has not made public any plans for dramatic overhauls or makeovers, but it will be interesting to see what the future holds.

Sources:

• The Orlando Sentinel, "Orlando Fashion Square sold for $35 million," Sandra Pedicini, Feb. 12, 2013
• Pennsylvania Real Estate Investment Trust, "Orlando Fashion Square Factsheet," last accessed Feb. 18, 2013
• The St. Paul Pioneer Press, "The future of the shopping mall: It's turning inside out," Feb. 16, 2013

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