Woolbright Development, based in Boca Raton, FL, recently bought the center from Cartagena Holding Co. NV Inc., a private investment company based here, for $13.25 million.
Now Inland Retail Real Estate Trust Inc. of Oak Brook, IL, has purchased the center from Woolbright Development for $18.51 million--$5.26 million more than Woolbright paid for it less than a month ago.
Woolbright Development, which had plans to redevelop the 19-year-old center, will still do that at an estimated cost of $1 million to $1.5 million, Soraya Tyriver, a director with Woolbright Development, tells GlobeSt.com. The plans include leasing the remaining space, undergoing a major landscaping upgrade, putting on a new roof, and reconfiguring space and attracting new tenants, she says.
Village Square at Golf, anchored by a 39,795-sf Publix, is at the northeast corner of Military Trail and Woolbright Road. Other major tenants include Bank of America, Wachovia Bank and Lifestyle Design Furniture.
Besides committing to improvements to the center, Woolbright Development increased the value of the center by getting Publix to extend its lease nine to 10 months before its renewal date, Steve Sanders, senior VP of Inland Real Estate Acquisitions Inc., tells GlobeSt.com. The lease extension, which occurred around the first of this month, is effective now through October 2008.
Publix is only paying $4.35 per sf, as the store's original lease at the center was in 1983, Sanders says.
The center was attractive to Inland because "first of all, it's in one of our target areas for acquisitions, which is Palm Beach County," Sanders says. In addition, he says, Inland also targets Publix-anchored shopping centers. Third, "This is in an area where there won't be any new competition," as there is no room for it, he says. The center's low vacancy rate was also attractive.
Inland bought the property based on 100% financial occupancy, meaning Woolbright Development is responsible for paying rent on any vacant space in the center, Sanders says. Currently, the property is more than 95% occupied.
Sanders and outside counsel Charles Benvenuto handled the transaction for Inland Retail. Duane J. Stiller of Woolbright and attorney Peter Holton represented the seller, Woolbright Golf LTD, a Florida limited partnership.
Woolbright Development has aggressive buying plans for the coming year, specifically to double its $60 million spent on purchases in 2002 throughout Florida.
Inland Retail buys class A shopping centers, with a specific focus on centers anchored by grocery stores or major discount stores. Florida is also a major market for Inland.
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