PENSACOLA, FL-In a deal that proves investors are looking beyond grocery-anchored shopping centers even before the recovery is fully complete, Gulf Breeze Marketplace has traded for an undisclosed amount. Fourteen investors put an offer on the asset.
Plaza Advisors’ managing partners Jim Michalak and Anthony Blanco, together with senior financial analyst Lenard Williams, represented the seller, Atlanta-based DDR Corp. The buyer was a private equity group based in Tampa. The center was DDR's only asset in the Panhandle and leasing and management proved challenging from a distance, Michalak says.
Located at the intersection US 98 and County Road 281, Gulf Breeze Marketplace was constructed in 1998. The shopping center is 100% leased and spans 333,654 square feet in a prime Pensacola location.
“Grocery anchored retail assets are clearly the product of choice for both institutional and private equity investors,” Michalak tells GlobeSt.com. “Even though Gulf Breeze Marketplace does not contain a traditional grocery anchor the asset benefits from the consumer drawing power of the contiguous Walmart Supercenter and Lowes Home Improvement stores.”
Beyond the Walmart and Lows, the tenant mix also includes several national credit tenants that made the deal attractive. Those include Sally Beauty, Firehouse Subs, GNC, Radio Shack and Hibbett Sports. The sale also included a freestanding Wells Fargo bank branch.
“This sale further accentuates the strong demand for high quality retail investment assets,” Michalak says. “The capital markets displayed a very substantial interest in the asset as evidenced by the strong demand and numerous offers received.”
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