(Carl Cronan is editor of Real Estate Florida.)
JACKSONVILLE, FL-Cash is still king when it comes to retail property acquisitions, as evidenced by the $5.9-million sale of Village Shopping Center here. Greenacres-based Noble Management Co. bought the majority of the 20-year-old asset from BG Village LLC, an affiliate of Beachwood, OH-based Developers Diversified Realty Corp.
Plaza Advisors representing both parties in the all-cash deal. The purchase does not include a separately owned Publix supermarket that makes up roughly 45% of the 135,453-square-foot center.
Jim Michalak, co-managing partner of Plaza Advisors' Tampa office, says the sale marks the third retail transaction handled by the firm so far this year. The other two, Regency Village in Orlando and Belleair Bazaar in Clearwater, were Section 1031 exchanges, he says.
"Market conditions have really not strengthened, and getting debt is next to impossible," Michalak tells GlobeSt.com. With most bidders no longer able to get favorable loan-to-value financing and sellers trying to hold out for higher prices, he says, "there aren't as many transactions and not as many offers per deal."
Village Shopping Center is located at Blanding Boulevard and College Drive in Orange Park, a Jacksonville suburb. The center was 98% occupied at the time of the sale and includes several small yet nationally recognized tenants.
In a related note, Plaza Advisors has expanded to the Miami market, adding Anthony Blanco as co-managing partner. Blanco was previously vice president of investment sales with CB Richard Ellis in Miami. The Village Shopping Center transaction is the first deal that Michalak and Blanco completed together.
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