Woolbright Development purchased the 102,000-sf upscale specialty center, located at 201 to 280 S. Ocean Blvd., from Plaza Del Mar LP, a private investment company based in Fort Lauderdale, FL, and Boston. The sale price was $15.5 million, with a capitalization rate of approximately 8.5%. Steve Miskew, managing director of RJS Realty Group Inc., represented the seller and was the only broker involved in the transaction.
Tenants at the center include Smith Barney, Merrill Lynch, SunTrust, Florida Stage Theatre, Chico's and Evelyn & Arthur's. Woolbright Development's plans for the center include bringing its occupancy to 100% in eight to 12 months and implementing minor cosmetic improvements.
"The redevelopment opportunity" is what attracted Woolbright Development to the center, Soraya Tyriver, a director with Woolbright Development Inc., tells GlobeSt.com. She says the center has the potential to bring in "significant profit." The company does not yet know if it will sell the center or hang onto it after it makes the improvements and fully leases it.
Redevelopment and lease-up opportunities is one of Woolbright Development's focuses. The other is buying stabilized Publix shopping centers. Tyriver says the company has a "very aggressive leasing program," that's driven by its cash flow and proactive approach.
For example, Woolbright Development has a practice of helping out tenants financially. This may include giving them money to build out space, building out space for them, or giving them money to help stock inventory."We just have a lot of incentives," she says, noting this is not unusual in the industry; however, she thinks Woolbright Development does this a little more than other property owners.
In addition, the company does mailouts to all targeted businesses within a certain radius and has one person dedicated to making phone calls to national tenants, as well as having leasing agents for each property, Tyriver says.
The center is adjacent to the oceanfront Ritz Carlton and has major exposure on South Ocean Boulevard. Given this and interest in the center, "we anticipate a fast lease-up program," Mike Fimiani, vice president of Woolbright Development, says in a statement.
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