Grocery-Anchored FL Retail Center Commands $74M

Investors remain keen on Palm Beach County, where MetLife Investment Management acquired the Shoppes at Isla Verde, a 207,000-square-foot shopping center.
Shoppes at Isla Verde - CVS
Shoppes at Isla Verde – CVS

The Palm Beach County retail market’s allure among investors continues and the Shoppes at Isla Verde trophy shopping center near West Palm Beach in Wellington, Fla., is among the recent trades. Shoppes at Isla Verde Ltd., a partnership that consists of PEBB Enterprises and Pebb Capital, sold the 207,000-square-foot, grocery-anchored power retail property to MetLife Investment Management in a transaction valued at approximately $73.8 million.

Pebb Enterprises developed the Shoppes in 2008, delivering a 22-acre shopping destination to one of the most affluent submarkets in Palm Beach County. Today, the property is 94.2 percent leased to a roster of tenants that features such national retailers as Best Buy, CVS, Old Navy, Petco, Ulta Beauty and the soon-to-open Sprouts Farmers Market. 

Pebb Enterprises and Pebb Capital relied on commercial real estate and capital markets services provider HFF to market the Shoppes. “This is one of the finest retail projects in South Florida that sets a high standard in terms of functional design, best-in-class tenancy and market dominant location,” Daniel Finkle, senior managing director & co-head of HFF’s retail practice, said in a prepared statement. In addition to Finkle, the HFF team that represented the seller included Managing Director Luis Castillo and Director Eric Williams.

Pebb Enterprises isn’t parting ways with the Shoppes entirely. The private equity real estate investment company will retain its role as head of management and leasing for the retail center.

Competing in Palm Beach

Investors are keen on Palm Beach County and the limited pool of properties available for sale makes for a highly competitive market. And the competition for these assets is not expected to wane anytime soon. “Minimal construction and the fastest-growing population in South Florida will keep investors and retailers active in the search for prime locations across the county,” according to a mid-year 2018 report by Marcus & Millichap.

The list of notable retail transactions in Palm Beach County this year includes InvenTrust Properties Corp.’s $88 million purchase of PGA Plaza, a 120,000-square-foot, grocery-anchored property in Palm Beach Gardens. Crow Holdings acquired the 68,700-square-foot Palms Plaza in Boca Raton for $30.2 million and Northbridge Investment Management snapped up the 155,300-square-foot Shoppes of Boynton in Boynton Beach for $27.8 million.

Image courtesy of HFF