Regency Properties Picks Up 170 KSF Shopping Center in Florida
- Jun 07, 2013
Regency Properties increases the square footage of its Florida portfolio fivefold with the purchase of the 170,000-square-foot Oak Station Shopping Center in Marianna. The seller, a private developer based in Arizona, had owned the retail center since 2010.
Sited on 17 acres along Highway 90, Oak Station is 98 percent occupied, with Save-A-Lot, Big Lots, Fred’s, Bealls Outlet, Citi Trends & Goodwill serving as anchors. Commercial real estate services firm Cassidy Turley marketed the asset on behalf of the seller and found no shortage of interested investors. As Drew Fleming, a vice president and principal with Cassidy Turley, told Commercial Property Executive, hopeful buyers were lured in by the fact that, “90 percent of the GLA is leased to national and regional tenants and the property had recently undergone physical upgrades.”
Approximately $2 million in renovations were completed at the 24-year-old Oak Station, and there’s more to come. Christopher Folz, leasing representative with Regency, told CPE that the new ownership is planning its own makeover with the renovation of the shopping center’s façade.
Oak Station also offers outparcel development potential in a market with just 675,000 square feet of multi-tenant retail spread across eight shopping centers, and an average vacancy rate of 8.2 percent, which, Fleming noted, is below the national average. “The market is healthy due to the fact that there has been little to no major speculative retail construction in this area for a long time,” he added.
For Regency, the acquisition of Oak Station marks its second purchase this year and its second property in the Sunshine State. Regency also owns the 35,400-square-foot Green Acres Shopping Center in Havana, which the real estate company bought in 2011.
As for shopping around for more additions to its portfolio, Regency will continue to stick with the program. “We target county seat communities in the Midwest and Southeast,” Folz said.