The former Sears buildings on the north end of Edison Mall in Fort Myers were purchased for $5.8 million.
Edison Florida Real Estate LLC bought the buildings at 4125 Cleveland Ave. on Nov. 18. The company is owned by Hong Kong-based Hopewell Holdings Limited. The company could not be reached for comment.
Seritage SRC Finance LLC had owned the property since 2015. Sears vacated the buildings in early 2020, and they have been vacant ever since.
The main building measures 62,040 square feet, and the former garage outparcel measures 21,210 square feet. The combined 83,250 square feet amounts to about $70 per square foot.
Gary Tasman, CEO of Cushman & Wakefield Southwest Florida, said the new owners have a history of revitalizing properties. The new owners plan to build an Asian restaurant and Asian market, Tasman said, although he has yet to see any renderings.
But Tasman said there will be plenty of room for other concepts and restaurants in the two buildings.
“What’s really interesting in my mind about this transaction is we were able to find out-of-market investors,” Tasman said. “The fact that investors from Hong Kong are looking in Southwest Florida is exciting.
“It speaks to the way the world sees our region as an investable market. Because of our growth. Because of our job creation. And because of the trends we have established over time, you’re seeing more and more outside investors.”
The $70-per-square-foot price should set the tone for future deals in the area, Tasman said.
“And that’s actually a really good data point for the market,” Tasman said. “Because it informs us to what some of these old buildings with the intent to be reused and repurposed are worth in today’s market.
“For anybody in the market that has old buildings that have antiquated uses and have a new idea for the building, this is a really good data point for what it could be worth.”
The former Sears building at Merchant’s Crossing in North Fort Myers was torn down, and an apartment complex was built in its place. But Tasman said building an apartment complex on the north end of the Edison Mall would have proved to be challenging.
“Am I surprised that this didn’t go to multifamily?” Tasman said. “Not at all. Because when you peel the onion back on the restrictions on this property in terms of not just deed restrictions but codes and zoning, it would be very difficult to tear this building down and put apartments up.”
Instead, Tasman said he foresees a positive, redevelopment trend for the Cleveland Avenue corridor.
“We’re seeing the beginnings of a major trend of revitalization and gentrification. The vacant buildings are being bought, they’re being repurposed, and they’re being absorbed,” he said.
“I predict that over the next five to 10 years, this section of U.S. 41 is going to be one of the hottest development corridors in Southwest Florida again.”
