WEST PALM BEACH, Fla., November 8, 2019 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of The Shoppes at Southern Palms, a 200,888-square-foot Kohl’s and Dick’s-anchored community shopping center in West Palm Beach, Florida. The property sold for $23.55 million, which was over 95 percent of the list price.
“One-hundred-percent occupied by 11 tenants at the time of the sale, The Shoppes at Southern Palms is very unique in that it is located within the border of a federal opportunity zone, but it is an upscale property that is within immediate proximity to affluent communities. The purchaser will enjoy the tax advantages of its opportunity zone location, yet has acquired a high-quality, stabilized retail asset that is very atypical of most opportunity zone offerings” said Craig Fuller, IPA executive director. “Kohl’s occupies a 92,396-square-foot building with a long-term ground lease through January 2030 and Dick’s Sporting Goods has 80,000 square feet leased through January 2028” added Olson, IPA senior director. Fuller, Erin Patton, and Scott Wiles, IPA executive directors along with Kirk D. Olson and Drew A. Kristol, both IPA senior directors in Miami, represented the seller, a New York-based private fund. The property was thoroughly marketed through IPA’s platform and the purchaser, a South American-based investment group, was also procured by the IPA team and selected after numerous rounds of competitive bids. “The transaction was complicated by the recently issued CMBS note that had to be assumed by the international purchaser, however, we successfully navigated the tedious assumption process and were able to achieve a great result for both buyer and seller,” commented Fuller. Ryan Nee, first vice president and district manager is Marcus & Millichap’s broker of record in Florida.
“Anchor and national/regional small-shop tenancy accounts for 97 percent of the gross leasable area and 93 percent of the effective gross income,” added Olson. “The largest small-shop tenant, Dollar Tree, is leased through January 2024, and four of the eight small shop tenants are leased into 2024 or longer.” An 0.95-acre developable outparcel was included in the sale.
Built in 2009 on more than 22 acres, the property is located at the busy signalized intersection of U.S. Route 98 (Southern Boulevard) and Sansburys Way with over 1,100 feet of frontage along the “going home” side of U.S. 98. The Florida Turnpike and State Road 7 (441) are one mile east and west of the property, respectively. There are 225,497 residents within five miles of the center and the average household income within a mile is $131,591. Two luxury golf courses, the Mayacoo Lakes Country Club and The Breakers Palm Beach, are less than one mile away and the affluent community of Wellington is nearby. Kohl’s and Dick’s occupy 86% of the gross leasable area and the remaining 28,492 square feet consists of small-shop space. National and regional small-shop tenants include Dollar Tree, Hard Exercise Works, GNC, Phenix Salon Suites, and Experimac. The local tenants are Principled Chiropractic, Garden Nails, and Medwear.
Year to date, Fuller, Wiles, Patton, Olson, and Kristol have sold over $400 million of retail properties totaling over 3.8 million square feet throughout numerous states spanning the Southeast and Midwest. “We have several other large community and regional shopping centers slated to close before the end of the year and also have a more than a dozen new shopping center offerings hitting the market in the next couple weeks. Buyer interest in anchored retail remains strong and our group is looking forward to a strong end to 2019 and a busy start to 2020” said Fuller in closing.
Shopping Center Business – https://shoppingcenterbusiness.com/ipa-arranges-23-6-million-sale-of-kohls-anchored-retail-center-in-west-palm-beach/
Commercial Property Executive – https://www.cpexecutive.com/post/west-palm-beach-retail-asset-sells-for-24m/
South Florida Business Journal – https://www.bizjournals.com/southflorida/news/2019/11/13/shoppes-at-southern-palms-sells-at-a-loss.html