NYC-Based REIT Acquires Publix-Anchored Shopping Center

ORMOND BEACH, FL—ShopOne Centers REIT Inc. has purchased the recently renovated Trails Shopping Center here for nearly $22 million in an all cash transaction.

ShopOne, which is headquartered in New York City, acquired the 135,286-square-foot shopping center that is anchored by grocer Publix from Irvine, CA-based Sabal Financial Group, LP – Slate Trails Holdings LLC.

Faris Lee Investments, which brokered the deal, reports the transaction was valued at $21.9 million. The Trails Shopping Center is situated on approximately 19 acres at 282 N. Nova Road in the greater Orlando-Deltona-Daytona Beach retail market.

The Trails Shopping Center is a Mediterranean-themed retail property anchored by a 36,866-square-foot Publix grocery store and serves an immediate population of nearly 90,000 in addition to large seasonal population of tourists and part-time residents. Some of the center’s other notable tenants include: Talbot’s, Chico’s, LOFT, Dairy Queen, Anytime Fitness, White House-Black Market, Jos A Bank, BurgerIM, Sale and Pepe, Pacific Bistro and Supercuts.

“Our acquisition of The Trails shopping center advances ShopOne’s core strategy of acquiring and operating high-caliber shopping centers in markets with strong fundamentals,” says Michael Carroll, CEO of ShopOne, “The Trails presented us with a fantastic opportunity to expand our footprint to a densely populated and growing Florida market. In addition, we have several value-add improvements planned which will serve to solidify The Trails position as the top shopping and dining destination in the market.”

Faris Lee Investments president and CEO Richard Chichester, senior managing partner Donald MacLellan and senior managing director Shaun Riley represented the buyer and the seller in the transaction.

Built in 1978, the property underwent a major renovation, which included a new façade, in 2017.

“Although there were multiple offers submitted, the key to closing the transaction was sourcing ShopOne who was an all-cash buyer with a strong relationship with Publix,” Faris Lee’s MacLellan says.

Riley adds that Publix currently operates in a smaller 1970s footprint, which allows ShopOne the opportunity to reposition the asset by providing Publix with a new, larger store format, which he says will significantly change the look and dynamics of the center to increase occupancy and its overall value.

Faris Lee also cites the property’s strong demographics with more than 44,000 residents and approximately 22,000 employees within a three-mile radius. The center also benefits from residential growth now underway across the street that includes a 286-unit senior community, Ormond Renaissance, and Antares, a 123-unit assisted living community.