December 21, 2018
South Florida’s biggest retail sales in 2018
Investment sales in South Florida remain strong despite the latest wave of store closures across the country.
The majority of the top deals in 2018 were for new or recently renovated shopping centers in suburban neighborhoods throughout the tri-county region, according to data from brokerages that include Cushman & Wakefield and Colliers International South Florida.
“You’re seeing institutional-level capital invest in the retail space but in centers that have made that investment to keep up with what the shoppers and tenants demand,” said Ken Krasnow, executive managing director of Colliers in South Florida.
Krasnow said the successful retail centers have a thought-out mix of tenants, including fitness concepts and destination restaurants. “There’s a reason to go to these centers. It’s stuff you’re not necessarily going to experience in an online-type shopping experience,” he added.
InvenTrust Properties buys PGA Plaza in Palm Beach Gardens for $88M
InvenTrust Properties Corp. dropped $88 million to buy the PGA Plaza in Palm Beach Gardens in May, marking the top retail sale in South Florida this year.
Menin Development sold the 121,000-square-foot shopping center at 2500, 2570 and 2658 PGA Boulevard after investing $14 million to renovate the property in 2015. Menin paid about $17.5 million for the shopping center in 2004.
The renovations allowed the developer to build a space for anchor tenants including Trader Joe’s. Other tenants include Marshalls, Ulta Beauty, Anthony’s Coal Fired Pizza and Orangetheory Fitness. InvenTrust, a real estate investment trust, bought the property 95 percent leased.
In 2011 the property was hit with a foreclosure lawsuit, but the developer transferred the property to a joint venture with institutional investor C-III Capital in exchange for paying $37.3 million in debt, which Menin said cleared the way for revamping the plaza.
InvenTrust, based in Oak Brook, Illinois, owns and manages about 80 retail properties totaling 14.2 million square feet.
Terra sells first phase of Pines City Center to TA Realty for $88M
David Martin’s Terra sold the first phase of Pines City Center to TA Realty for $80 million earlier this month.
Terra is developing the rest of the mixed-use project, which includes more retail, apartments and a $60 million civic center.
TA Realty paid about $550 per foot for the nearly 150,000 square feet of retail space at the southwest corner of Pines Boulevard and Palm Avenue. It’s leased to Publix, Rooms to Go Outdoor, West Marine, Outback Steakhouse, Cooper’s Hawk, City Mattress and Humana.
Terra is currently building another 150,000 square feet of retail, entertainment and restaurant space next to apartments that are also under construction at Pines City Center.
Downtown Dadeland sells to Midtown Capital Partners for $78M
Midtown Capital Partners acquired the retail component of Downtown Dadeland in October.
A joint venture between Pebb Capital and Duncan Hillsley Capital sold about 26,000 square feet of ground floor retail space at 7270 North Kendall Drive to Midtown Capital Partners, which is led by Alejandro Velez and Alexander Saieh.
The retail portion of Downtown Dadeland was 97 percent leased when it sold, to tenants like Pasión del Cielo, West Elm, Orangetheory Fitness, Ghee and Harry’s Pizzeria.
Midtown Capital Partners also acquired the underground parking as part of the deal, and the firm financed the purchase with a 10-year, nearly $47 million loan.
Downtown Dadeland was built in 2008 and renovated in 2015. The Pebb-Duncan Hillsley joint venture, DHPI Dadeland LLC, paid $39 million for the property in 2014. It was 50 percent leased at the time.
MetLife picks up Shoppes at Isla Verde in Wellington
Pebb Capital and Pebb Enterprises sold their Shoppes at Isla Verde in Wellington to MetLife Investment Management for $74 million.
The families behind Pebb began assembling the 22 acres of land at 1020 South State Road 7 in 1998. Both firms said they are looking to invest the proceeds of the sale into Opportunity Zones in Florida or throughout the country, which would allow them to defer capital gains taxes on the Wellington deal, plus forego capital gains on a new investment.
The 207,030-square-foot shopping center was completed in 2008 and was 94.2 percent leased when it sold, to Best Buy, Ulta, Old Navy, Petco, Total Wine, Anthony’s Coal Fired Pizza, Chipotle, Verizon Wireless, HSBC, Panda Express and CVS. It will also be home to a Sprouts Farmers Market.
HFF’s Danny Finkle, Luis Castillo and Eric Williams represented the sellers. Pebb Enterprises will continue managing and leasing the property for MetLife.
Jamestown drops $72M on Publix-anchored shops in Doral
At the start of the year, Jamestown paid $71.6 million for a Publix-anchored shopping center in Doral called Doral Commons.
Terra sold the 140,000-square-foot, 18.3-acre property at 7550 Northwest 104th Avenue for about $510 per foot.
Doral Commons is anchored by a 49,000-square-foot Publix and was 95 percent leased to tenants that include TJ Maxx, Citibank and McDonald’s at the time it sold.
The retail plaza is across from Terra’s 319-unit single-family residential community, Modern Doral.