Russell Galbut’s GFO Investments, InSite Group, Atlas Hill Real Estate and Prime Finance paid $73 million for Galleria Fort Lauderdale, representing a significant discount off the price the seller was aiming for.
The four firms acquired the 800,000-square-foot indoor mall at 2414 East Sunrise Boulevard in Fort Lauderdale with plans to eventually redevelop the property. The joint venture paid roughly $91 a square foot for Galleria Fort Lauderdale.
Fort Lauderdale-based InSite is led by Ben Shmuel and Ronald Tercer. Atlas Hill is led by Sandeep Mathrani and Prime Finance is led by John Atwater.
The seller, Keystone-Florida Holding Corporation, led by President William O’Connor, paid $25.1 million for the 31.6-acre site in 1993, records show. O’Connor also leads New York-based O’Connor Capital Partners, which served as asset manager and strategic advisor to Keystone-Florida, a press release states.
A CBRE team led by Robert Given and Brad Capas marketed Galleria Fort Lauderdale on behalf of Keystone-Florida. The mall hit the market in 2023 without an asking price, but Capas told The Real Deal at the time that the seller was targeting $100 million-plus.
The mall’s occupancy was at 67 percent, according to an offering when Galleria Fort Lauderdale was put up for sale. The tenant roster includes Aldo Shoes, Apple, Blue Martini, H&M, Macy’s, Michael Kors, P.F. Chang’s, the Capital Grille and Zales.
Redevelopment plans will be unveiled in the coming months, according to a spokesperson for Galbut’s Miami-based GFO and its partners. The purchase does not include a Dillard’s department store building that is separately owned, and a Macy’s store that has a ground lease.
During its ownership of Galleria Fort Lauderdale, Keystone-Florida was unsuccessful in attempts to redevelop the mall. Most recently, in 2022, the firm proposed a mixed-use project with at least 1,900 apartments on the 31.6-acre site. The plan was withdrawn before city of Fort Lauderdale officials could approve it.
The property is currently zoned for a maximum of 1,899 units and a maximum height of 150 feet for buildings.
