TAMPA, FL—Highlands Plaza, a Winn-Dixie-anchored shopping center in Lakeland, FL, has traded for $4.7 million. Built in 1989, the retail center is 84% leased.

Highlands Plaza offers 102,575 square feet of gross leasable area. Beyond Winn-Dixie, Central Florida Speech & Hearing Clinic, and Chase Bank. The asset was constructed in 1989 and was 84% leased at the time of sale.

Jim Michalak and Paul Bores of Plaza Advisors represented the seller, DDR Corp., in the transaction. Highlands Plaza Building Owner, LLC a private equity firm based in south Florida, acquired the retail asset.

“While the capital markets demand for Publix-anchored centers are at an all-time high this transaction is reflective of the continuation of the investor migration for necessity based retail product located in middle market areas of Florida” Michalak tells GlobeSt.com. “Investors tend to garner better returns and experience less acquisition competition as compared to Publix centers located in Florida's primary markets.”

The Tampa retail market will strengthen this year, bolstered by job growth and an improved housing market. Local employers will double hiring efforts in 2013, expanding payrolls 2%, according to Marcus & Millichap. Higher demand and a stable delivery pace will move vacancy down 90 basis points this year to 7.5%. As demand from foreign buyers puts upward pressure on prices, more local investors will be willing to move to the sidelines.

“An influx of cash-laden foreign investors, especially from Canada and South America, are targeting assets in Tampa Bay for lower entry costs and higher initial yields than are available in other Florida metros. Cap rates on local net-leased single-tenant assets start in the 6 percent range for a 25-year lease, while stabilized multi-tenant properties trade 300 basis points higher,” M&M reports. “Aggressive buyer activity has converged with the limited number of available retail properties to lift prices from recessionary lows.”