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MIAMI—MMG Equity Partners has acquired two value-add strip centers in Miami-Dade County for a combined $12.7 million. Naranja Plaza, located at 27000-27100 S Dixie Hwy, Naranja was purchased for $7.1 million or $139 per square foot in an off-market transaction. Westlake Plaza is located on Bird Rd. and 109th Ave. was purchased for $5.6 million or $128 per square foot. Amerant Bank provided acquisition loans for both totaling $9.5 million including a future advance for construction.
An MMG spokesman tells GlobeSt.com that the Westlake seller is a private family, and the original owners who built the center in the 1950s. Two brothers, who own several properties in South Florida were the Naranja sellers. The spokesman said the renovation plan for the properties is to update the façade, parking, lighting, and signage. Naranja is expected to begin this year. Westlake is in the early planning stage, and is expected to begin 2021.
Naranja Plaza is a 51,246-sq.-ft. center anchored by Dollar General in South Dade which is experiencing a large amount of residential development. Built in 1980, the center sits on 4.09 acres and has 742 linear feet of frontage along South Dixie Hwy. The center is 100% occupied with the majority of the tenants occupying the center for over 15 years.
Westlake Plaza is a 43,781-sq.-ft. grocery anchored center located on one of Miami's major East/West corridors. Built in 1959, the property consists of 5 buildings spread across 3.24 acres and has 377 linear feet of frontage on the North side of Bird Road (40th street) and 109th avenue.
Both Westlake and Naranja are located within Urban Town Center Zoning Districts in different parts of Miami Dade County.
"We are very excited about both Westlake and Naranja Plaza, as both are a rarity in today's market: value-add strip centers, located in infill areas of Miami-Dade County," says Marcos Puente, MMG's director of acquisitions, in prepared remarks.
"The potential for both properties is enormous, given that our average net rents are $9.50 and $14/psf at Naranja and Westlake, respectively; market rent at each is more than double our current rates," he continues.
The company expects the renovations will be complete within the next two to three years.
MMG has been an active buyer of Miami-Dade retail over the last 12 months. In November MMG acquired the Centre at Cutler Bay for $16 million. In October the firm purchased 5850 Sunset Drive, a historic property in downtown South Miami as well as a retail property on the southwest corner of Miami Gardens Drive and 27th Ave. In June, together with CREC and Highline Capital the partnership acquired Homestead Pavilion for $62 million in one of the largest retail transactions of 2019.
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