South Florida Retail Asset Commands Royal Price
- Jul 19, 2019
InvenTrust Properties Corp. has acquired Southern Palm Crossing, a 346,200-square-foot Costco-anchored shopping center in Royal Palm Beach, Fla., for a record-breaking $97 million. InvenTrust also bought Shoppes at Fairview, a 67,500-square-foot Whole Foods-anchored center in Fairview, Texas, for $36 million this month.
Christopher Covey, senior vice president of transactions for the Downers Grove, Ill.-based REIT, said these purchases will give the company additional operational economies of scale in the South Florida and Dallas markets. The Shoppes at Fairview also has tenants such as Capital One and Jos. A Bank and will be adding a new multi-tenant building this summer that will have additional national and regional tenants. Southern Palm Crossing, located in a key, high-traffic area of Palm Beach County, also has a Marshalls/Homegoods store and a newly leased 24-Hour Fitness that will replace Stein Mart.
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ShopCore Properties, a Chicago-based retail owner/operator and a Blackstone Group affiliate, sold Southern Palm Crossing, according to Daily Business Review. The deal was also the biggest retail transaction in more than two years in South Florida.
Located at 11001 Southern Blvd. on a 50-acre parcel, Southern Palm Crossing was built in 2006. In April 2016, Gertz Builders & Developers sold the shopping center to an unidentified institutional investor now believed to be ShopCore for a reported $78.5 million. CBRE’s National Retail Investment Group in Florida, led by Executive Vice Presidents Casey Rosen and Dennis Carson, represented the seller. Rosen and Carson also provided exclusive representation to the seller in the latest transaction.
In January 2017, Carson and Rosen also represented the seller of another Royal Palm Beach retail property, an affiliate of Retail Properties of America Inc. Commons at Royal Palm, a 158,345-square-foot retail center with stores such as Hobby Lobby, Big Lots and Party City, was sold to an undisclosed buyer.
InvenTrust, which became a self-managed REIT in 2014, focuses on acquiring grocery-anchored centers in key growth markets with favorable demographics. In March, the REIT added two assets to its Orlando area holdings with the acquisition of Lakeside Winter Park and Lakeside Crossing, two retail centers totaling 76,000 square feet in Winter Park, Fla., for $63.5 million. In May, InvenTrust picked up PGA Plaza, a 120,000-square-foot retail center in Palm Beach Gardens, Fla., for $88 million from Menin Development. The asset is anchored by Trader Joe’s and also includes tenants such as Marshalls, Ulta Beauty and Orangetheory Fitness.
Other acquisitions in 2018 included a retail center in Los Angeles, a grocery-anchored power center in Austin, Texas, and an open-air retail pro and an open-air retail property in Dothan, Ala. The REIT notes that as of the end of March, it was an owner and manager of 73 retail properties representing 12.3 million square feet.