MIAMI-Flagler and AMB Property Corp. have unveiled plans to do what no other developers have dared since the recession started—build a big-box shopping center in Miami.
The development duo will build The Shops at Beacon Lakes, the first project in a six million-square-foot master planned business park. The project is scheduled to come online in late 2012 or early 2013.
The first major big-box retail development in the West Miami-Dade submarket in more than two years, the Shops at Beacon Lakes will span 45 acres. The project will offer 470,000 square feet of build-to-suit retail development near the intersection of the Florida Turnpike and the Dolphin Expressway (836).
“Retail is a key amenity for our business park,” Brian Latta, senior project manager of development at Flagler, tells GlobeSt.com. “When we went through the rezoning process we got involved with the community and the neighbors said they wanted a retail center. There are a lot of rooftops out there. We have the demographics and the demand.”
Beth Azor, principal of Azor Advisory Services in Davie, tells GlobeSt.com that Dade County is a hot market for retailers. That’s because national retailers are seeing significant sales in Miami.
“With a new project, retailers can build their prototype,” Azor says. “They don’t have to go through variances to retrofit older boxes. That’s appealing to retailers. Plus, Flagler has owned this land for a long time, so their basis is lower than competitors. That means they can be more competitive on rents than developers who are buying land at today’s prices.”
Flagler and AMB have owned the land that’s being developed for 10 years. That could allow the joint venture to come to market with rental rates that are more in line with what retailers are willing to pay and still turn a profit.
The challenge for Flagler and AMB isn’t land costs or financing. The joint venture has equity in the land and AMB, a public REIT, has a strong balance sheet. The challenge may be filling up hundreds of thousands of square feet of retail space in a market that may or may not be fully recovered at grand opening. Latta, of course, is optimistic.
“We are seeing a lot more interest from retailers,” Latta says. “If you look at just the attendance at the International Council of Shopping Centers in Vegas from last year to this year, it was up substantially. Retailers are back in the market and feeling much more confident this year.”
But Flagler isn’t taking any chances. The joint venture has already hired Continental Real Estate Companies (CREC) as the exclusive leasing and marketing agent for The Shops at Beacon Lakes. The early appointment signals the development team’s plans to aggressively market the property to tenants. CREC’s goal is to fill the development with a mix of big box retailers and smaller tenants.
“Future tenants can commit with confidence knowing this project is backed by two well capitalized, well respected real estate developers who have depth of knowledge and years of experience, namely Flagler and AMB,” says Sabrina Meerbott, senior vice president at CREC.
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