JV Acquires Florida Grocery Centers with 'Strong Sales and Traffic'
They are located in Lithia Square and Midway Plaza.
ShopOne Centers REIT in collaboration with its joint venture partners, which consists of a global institutional investor, and Pantheon has acquired two Florida grocery shopping centers that have been seeing some big demand, according to the real estate developer.
Both of the purchases in Lithia Square, Tampa Bay, and Midway Plaza in Miami-Fort Lauderdale, were independent transitions for an undisclosed amount.
The Midway Plaza center spans 218,400 square feet, containing a projected 85,000 to 187,000 residents located within three miles of the spot. The shopping center, which is 84 percent occupied, is headlined by major brands including Publix and Ross Dress for Less, which have served as tenants in the area for three and a half decades. They “continue to generate strong sales and high repeat traffic,” ShopOne said in a statement. Plus, 1,600 units of residential developments are planned in the area, which could help drive even more visits.
Lithia Square comes out to 69,007 square feet and features a Walmart store. About 101,000 live within three miles of the shopping center, averaging a household income of $115,000. The occupancy sits at 79 percent. Plus, ShopOne said it plans to implement a “series” of leasing improvements and make renovations to the property.
“We are very pleased to acquire two grocery-anchored shopping centers in Florida with such strong upside potential,” Chris Reed, CEO of ShopOne, said in a statement.
“Florida has been and will continue to be among the country’s most popular states for families and transplants alike given its robust job growth, moderate climate and tax-friendly environment. These two assets provide us with a unique opportunity to capitalize on these fundamentals and, by strengthening their underlying performance and merchandising mix, generate significant value for the community and our investors alike.”
The two purchases take the JV’s shopping center portfolio in Florida to four. In total, the JV operates 17 shopping centers in its portfolio, exceeding 1.8 million square feet.
While retail demand has overall been strong this year, with record-low vacancies, Scott Sherman, founder and principal, of Torose Equities, warned that spending is starting to slow down. Even though Torose mainly focuses on South Beach and other parts of Florida, some near-term volatility in the industry might be something to watch out for.