PALM BAY, FL-Palm Bay West, a 263,356-square-foot shopping center constructed in 1989, has sold for $14.25 million in an all cash deal. The property is 91% leased.
Plaza Advisors Co-managing Partners Jim Michalak and Anthony Blanco, together with Senior Financial Analyst Lenard Williams, represented the seller, Edens & Avant, a private real estate investment company in Colombia, S.C. The buyer was an undisclosed New York-based private investor.
Michalak tells GlobeSt.com that the deal is interesting because of the sheer square footage and its location in a secondary market with long-term tenants that enjoy strong shopper loyalty. Major tenants include Winn Dixie, Beall’s Department Store, Ace Hardware, Dollar Tree, and a 10-screen theatre.
“From a capital markets perspective we are seeing the bulk of the 2010 shopping center investment sales are grocery anchored assets,” Michalak says. “Out of the 36 Florida anchored shopping center sales in 2010 26, or 72%, have been grocery anchored, including 21 Publix, three Sweetbay, one Winn Dixie, and one Presidente.”
Of course, the vast majority of investors prefer to purchase Publix anchored centers, which is driving up the price for those assets. But Michalak says the Winn Dixie-anchored plaza sale signifies a demand for alternative—secondary—grocery anchored assets. The fact that favorable debt was obtained, he adds, signals that the credit markets have capital for second tier assets.
Palm Bay is on Florida’s east coast, midway between Jacksonville and Miami. Michalak says the Palm Bay economy is diverse but still somewhat dependant upon the space exploration and adjunct industries.
“I am not certain about the health of the industrial, apartment or office markets but the anchored retail market, within three miles of Palm Bay West, contains over 1 million square feet and is 92.5% leased,” Michalak says. “The residential housing market is still in upheaval with 21% of the housing stock vacant.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
