OVIEDO, Fla. — The Oviedo Mall is finally getting a long-overdue transformation.

Property owners are moving forward with a plan to build 700 new apartment units after reaching a critical agreement to unlock the first phase of development.

“I think it’s the first step to fixing the mall. The mall needs to be what we call mixed-use,” Oviedo Mall Director of Development Kevin Hipes said. “Eat, sleep, work, play. So, you have to have a little bit of everything.”

Developers will complete the project in two phases. Phase 1 will be on the site where the Macy’s used to be located, a 15-acre parcel that has been sitting empty for 10 years, and where the city of Oviedo approved construction of up to 400 high-end market-rate apartments.

Crews will tear down the Macy’s department store building and replace it with the new $125 million apartment development.

The developer for Phase 1 will likely obtain a demolition permit within the next 90 days, Hipes said. Construction will begin in early 2027, with plans to start leasing apartments by early 2028, he said.

“And the developer there, it’s also building us a new entrance for the mall over there, because right now, there’s no entrance there because the mall entrance goes right at the Macy’s,” Hipes said. “So that’s going to bring all that traffic back into the mall and those people move in. So we’re excited about that.” 

Phase 2 will take place on a 14-acre land parcel on the west side of the mall, where more than 300 apartment units and, possibly, a hotel, will be built. Hipes said that development will be valued at over $100 million and will be self-contained on the parcel.

“So that’s going to be another 325 units. And we’re just as excited about that. That’ll be about a year behind this (Macy’s site) one,” Hipes said.

With a central location, the Oviedo Mall has been in the community since 1998.

“This mall is on 95 acres. It’s right on (State Road) 417, 25 miles north of Orlando, 15 minutes south of Lake Mary. It’s a prime location in Oviedo, which is a wonderful community,” Hipes said.

But over the years, Hipes said it’s been difficult to attract people to the mall, so mall officials had to look for ways to change that.

“We’ve got to fix it by making it mixed-use. And that means bringing in residential. Those 700 units will bring a few thousand people that will actually live here, but also those thousands of people will shop here,” he said.

Some business owners in and around the mall also said they are excited. Justin Steiner, who opened The Dog Stop in October 2025 at site of the old Sears Auto Center, said traffic is already picking up.

“It’s fantastic,” said Steiner, whose business is a fully functional dog daycare site that also offers boarding, grooming and a dog-related retail shop. “You know, with the increased apartments there, with other businesses coming in, you know, traffic is already picking up. And so we’ll get more of those drive-by customers as well.”

Discussions first started about the redevelopment in 2020, Oviedo Mayor Megan Sladek said.

“I can think of no better place in all of Oviedo to redevelop than there at the mall. Not a single tree will come down to put these homes in,” she said.

The Oviedo Mall’s original business plan was as a development of regional impact, Sladek said.

“And basically, it means that the stormwater, the utilities, the roads, the whole plan was thought out and fully executed when it first went in,” she said. “So all of the traffic capacity and all of the flood capacity up, it’s already completed.”

Sladek said she also expects the development to boost the local economy.

“These are people who have disposable income, who can help support the businesses, who are already here and already right next door at the Oviedo Mall,” Sladek said.

Hipes said he is hopeful developers can turn around business at the mall.

“Lots of flow through. People will come in; they’ll eat; they’ll go to the movies; they’ll, you know, buy stuff, hopefully, you know, come to the food court, go to their medical appointments, download an app, go get their nails done, then go back to the doctor’s office. It’s going to be a great place,” Hipes said.