Perkins Realty Management, LLC has acquired the Shoppes of Delray, a 23,094-square-foot multi-tenant center, and Gables End Plaza, an 18,311-square-foot retail and professional center, in Florida’s Palm Beach County for a combined $9.1 million from Pebb Enterprises.
Franklin Street, along with Neal Realty & Investments, Inc., represented the buyer in the transaction of the two open-air centers. David Donnellan of CBRE represented the seller.
“The buyer is a savvy real estate investor originally from the Northeast who traded in multifamily assets,” Greg Matus, Franklin Street’s regional managing partner-South Florida, told CPE. “Since the spring, he has been turning his attention to buying and holding high-quality retail assets in South Florida, which is currently experiencing a retail boom.”
Located at 14400-14428 Military Trail, the Shoppes of Delray had a sales price of $5.1 million and is nearly 90 percent occupied with key tenants such as: Radio Shack, Cucina Fra Divolo Restaurant, China Garden Restaurant and Atlantic Insurance.
Located at 4895 Windward Passage Drive in Boynton Beach, the Gables End Plaza sold for $4 million and is nearly 100 percent occupied.
“Each is located near major arteries that have high traffic counts, which is very important to the success of a retail center,” Matus said. “The properties have solid long-term tenants in place and based on competitive properties in the market, the buyer sees an opportunity to increase rents as leases come due. Overall, the two properties are quality assets, which the investor plans on holding for the long-term.”
Rents are currently between $18 and $20 per square-foot, while rents at nearby competing centers are in the $30s per square-foot.
According to Matus, Perkins’ strategy is to buy quality assets at a fair market price with value add upside that can be held for the long term. Both of these properties fit into that plan. It plans on making some cosmetic improvements to the properties where needed, but no significant renovations at this time.