South Florida Retail Center Fetches $66M in Sale to REIT

New owner Federal Realty Investment Trust cited the property's densely populated Broward County trade area as well as its significant redevelopment potential.

A densely populated trade area and an attractive upside helped a South Florida community center fetch $66.1 million in a sale to Federal Realty Investment Trust, the Rockville, Md.-based REIT has disclosed.

Located in Davie, a town of about 90,000 in Broward County, the 372,000-square-foot community center has a tenant roster that includes such national brands as Ross Dress for Less, TJ Maxx, Michaels and Old Navy. A Best Buy outlet is slated for a fall opening. In a statement, Federal executive vice president and chief investment officer Jeff Berkes cited Tower Shops’ redevelopment possibilities, prominent market position, earnings potential and infill location. The property’s trade area encompasses some 326,000 people in a five-mile radius.

Tower Shops is the third property in Federal Realty’s South Florida portfolio, which also includes Del Mar Village in Boca Raton and Courtyard Shops in Wellington. All told, Federal Realty’s holdings in the region now total 680,000 square feet.

Tower Shops is also at least the second recent acquisition of a South Florida retail property by an institutional investor.  Earlier this month, RREEF disclosed that it paid $95.3 million for London Square, a 360,000-square-foot property located in the Miami suburb of  Kendall, from Woolbright Development Inc. Ross Dress for Less and TJ Maxx are also tenants at that center, which includes a 60,700-square-foot office building as well as the 299,100-square-retail property.