The former CEO of WeWork for the second time now is part of a venture that’s acquired a large U.S. mall, this time a retail property in South Florida.
Sandeep Mathrani’s firm, Atlas Hill Real Estate, is part of a developer-investor group that’s purchased the Galleria in Fort Lauderdale, a roughly 1 million-square-foot superregional shopping center at 2320-2650 E. Sunrise Blvd.
The mall was acquired by GFO Investments — led by Florida developer Russell Galbut — and InSite Group, in partnership with Atlas Hill and Prime Finance, the companies said. The buyers didn’t disclose the price of the acquisition, but public documents show the deal closed at $73 million. The seller was the Penn Public School Employees’ Retirement System of Harrisburg, Pennsylvania, the pension fund said in an email to CoStar News.
Mathrani’s first involvement in purchasing a mall was in August last year, when he teamed up with Dallas real estate firm Centennial to acquire the 1.5 million-square-foot Annapolis Mall in Maryland from Unibail-Rodamco-Westfield for $160 million, according to CoStar data.
Mathrani is a retail veteran who had a stint as head of WeWork. He served as CEO of the coworking firm from February 2020 to May 2023 before leaving to join Sycamore Partners and then launching Atlas Hill. His prior roles included serving as CEO of General Growth Properties and CEO of Brookfield Properties’ retail group and vice chairman of Brookfield Properties. He also worked for Vornado Realty Trust and is now on the boards of Dick’s Sporting Goods, Tanger and Lucky Strike Entertainment.
Mathrani’s association with Centennial is continuing in Florida. The Galleria’s new owners have tapped Centennial to manage the roughly 1 million-square-foot mall, which is slated to be redeveloped “as a vibrant hub of retail, culture and community” in South Florida.
Centennial on Tuesday said it had been awarded the management contract, providing services including property management, marketing and accounting for the retail site.
The game plan for the Galleria and Annapolis Mall appear to be similar: revamping and revitalizing both properties.
Local vision, national expertise
In Fort Lauderdale, the new locally based Galleria ownership said it plans “to spark customer engagement and economic growth and create a destination that serves the community while attracting visitors from across South Florida.”
The joint venture expects to unveil detailed plans in the coming months.
“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.”
The goal is to have a collaboration that combines local vision with national retail expertise, according to the buyers. GFO and InSite will oversee the redevelopment of the mall, while Mathrani has a track record in operations and repositioning retail-destination properties that he’ll bring to the table, the buyers said.
“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.”
The Galleria, opened in the early 1980s, has a prime location on East Sunrise Boulevard with nearby waterways and easy access to downtown Fort Lauderdale and the beaches, according to Centennial. That offers a strong foundation for the center’s revitalization, according to the real estate firm.
Tenant roster
Jim Heilmann is the Galleria’s newly appointed senior general manager.
The mall is anchored by Macy’s, Dillard’s and H&M. Its tenant roster also includes Altar’d State, Apple, Banana Republic, Free People, Michael Kors and Pandora. The dining options include Capital Grille, Seasons 52 and P.F. Chang’s.
Centennial has a national portfolio of shopping, dining, entertainment and mixed-use destinations as well as a full-service property management platform serving third-party owners.
GFO, headquartered in Miami Beach, Florida, is a private wealth management advisory firm focusing on real estate development and ventures such as hospitality operations, private financing and capital market securities. InSite Development, based in Fort Lauderdale, is a real estate investment and development firm specializing in hospitality, residential and mixed-use properties.
For the record
Robert Given, Brad Capas and Casey Rosen of CBRE exclusively represented the seller in the sale. O’Connor Capital Partners served as asset manager and strategic adviser to the seller.