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Shopping Center
& Owner News
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The Shoppes at Pembroke Gardens in Pembroke Pines Sold for $181M ($460 PSF) Jeffrey A. Anderson Real Estate sold the 392,000 square-foot center to Federal Realty Investment Group on July 29th for $181 million. The price equated to $460 per square foot. Notable tenants include The Cheesecake Factory, Nike, Barnes & Noble, Old Navy, and DSW. (Business Journals 8/4) [Read]
Palms Plaza Shopping Center in Boca Sold for $35.75M ($518 PSF) An Affiliate of Dallas based Crow Holdings sold the 68,983 square-foot center to Kite Realty on July 19th for $35.75 million. The price equated to $518 per square foot. Notable tenants include Party City, Grove Kosher Market, and Brooklyn Water Bagel. (Business Journals 7/22) [Read]
Westland Gateway Plaza in Hialeah Sold Twice in One Day, Settling at $28.3M ($266 PSF) Seritage Growth Properties made over $6 million by purchasing and flipping the Westland Gateway Plaza shopping center in a single day. Daytona based CTO Realty Growth and three affiliates sold the 117,021 square-foot center to Seritage on July 16th for $22.15 million, who then immediately sold the center for $28.3 million to RK Centers. The price equated to $266 per square foot. Seritage held an option to purchase the property as part of that land lease. (Business Journals 8/4) [Read]
El Paraiso Shopping Center in Hialeah Sold for $43.25M ($317 PSF) Elpara and Elcanar Inc., managed by Antonio Rodriguez and Jesus A. Gonzalez, sold the 136,295 square-foot center to Boston-based Longpoint Partners on August 8th for $43.25 million. The price equated to $317 per square foot. The center is anchored by Sedano’s, University Healthcare, and Pet Supermarket.
(Business Journals 8/9) [Read]
The Commons at Royal Palm Sold for $34M ($206 PSF) North Miami based IMC Equity Group sold the 165,064 square-foot center to DJK Capital Management on July 16st for $34 million. The price equated to $206 per square foot. The center is anchored by Hobby Lobby, Big Lots, PetSmart, Party City, and Dollar Tree. (Business Journals 7/20) [Read]
Millenia Plaza in Orlando Sold for $74.1M ($180 PSF) North American Development Group sold the 411,503 square-foot center to Limestone Asset Management and Orion Real Estate Group on July 20th for $74.1 million. The price equated to $180 per square foot. The center is anchored by The Home Depot, BJ’s Wholesale Club, Ashley Furniture, Dick’s Sporting Goods, Total Wine & More and Ross Dress for Less. JLL was the broker on the deal. (Shopping Center Business 7/26) [Read]
Oviedo Park Crossing Sold for $28M ($150 PSF) Site Centers sold the 186,212 square-foot center to a group of Orlando based private investors on July 15th for $28 million. The price equated to $150 per square foot. The center is anchored by Bed Bath & Beyond, T.J. Maxx, Ross Dress for Less, Michaels, Office Depot, PetSmart, Shoe Carnival, and Sally Beauty Supply. JLL was the broker on the deal. (ReBusinessOnline 8/1) [Read]
Terra Obtains $230M Construction Loan for Mixed-Use Miami Project Terra secured a $230M loan for a mixed-use project, Centro City, which will include a new Target store. The property is currently a 301,806-square-foot retail center, which Terra will renovate, and then build apartment buildings behind the retail. In addition to a 100,000-square-foot Target, tenants will include Ross, DD’s, Fresco Y Mas, and Walgreens. Terra said the retail space is 95% leased. Construction recently started and is expected to be completed in 2024. (Business Journal 8/11) [Read]
Boca Developer has Shopping Center Project Under Contract Predesco Development is under contract to purchase the 8.55 acres at the north-east corner of Hypoluxo Rd and Adonis Dr. in west Lake Worth. They have submitted design plans totaling 49,000 square-feet of retail space, consisting of a 35,000 square-foot unnamed fitness center, and a multi-tenant building. The proposed center is located adjacent to a Walmart Super Center. (Business Journal 7/22) [Read]
Market News
US Economy Adds 528,000 Jobs in July Hiring in July was far better than expected, defying multiple other signs that the economic recovery is losing steam. Non-farm payrolls rose 528,000 for the month and the unemployment rate was 3.5%. The unemployment rate is now back to its pre-pandemic level and tied for the lowest since 1969. Wage growth also surged higher, as average hourly earnings jumped 0.5% for the month and 5.2% from the same time a year ago. (CNBC 8/5) [Read]
REITs Post Their Strongest Monthly Performance Year-to-Date The Nareit All REITs Index posted a total return of 8.6% and the FTSE Nareit REITs Index rose 9.1% in July, their strongest monthly performance since December 2021. Broader markets performed strongly as well, as the Dow Jones U.S. Total Stock Market was up 9.4% and the Russell 1000 rose 9.3%. The rally came as the yield on the 10-year Treasury declined from 2.97% on June 30 to 2.64% at the end of July. Continued tightening of monetary policy was taken in stride by markets with guidance on future rate hikes left unspecified. (NAREIT 8/5) [Read]
Retail Real Estate: Solid in Q2 In the midst of economic and market volatility, retail real estate held its own during Q2 2022. Retail sales increased by 8.9% in June, and foot traffic was comparable to numbers seen in 2019. Malls continued suffering from a decline in net absorption, while medical, dining and entertainment options are seeing a resurgence due to consumer demand for services as the pandemic’s impact dwindle. (Connect CRE 8/10) [Read]
Consumer Sentiment Inches Up as Gasoline Prices Fall; Inflation Fears Ease Consumers are feeling a bit better in August. The index of consumer sentiment edged up to 55.1 from a July reading of 51.1 and above the all-time low reading of 50 (adjusted from 50.2) in June. Amid continued decline in gasoline prices, consumer expectations for inflation during the next year inched down to 5%. The share of consumers blaming inflation for eroding their living standards remained near 48%. (Chain Store Age 8/12) [Read]
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The 25 Fastest Growing Retailers Harbor Freight Tools led an annual listing of the fastest-growing retail companies. The National Retail Federation’s 2022 Hot 25 Retailers List is determined by increases in domestic sales between 2020 and 2021. With a 93.4% increase, Harbor Freight topped the list, followed by Inditex, with 76.6% sales growth. Rounding out the top five were Burlington (65.8%), Dillard’s (53.2%) and TJX Cos. (51.3%). (Chain Store Age 8/5) [Read]
Sprouts to Enter Florida's Space Coast Sprouts Farmers Market will open a 23,000 square-foot store in West Melbourne near the interchange of I-95 and Palm Bay Road, in the West Melbourne Interchange Center. The store is slated to open summer 2023. Sprouts, which has 34 stores in Florida, has the infrastructure to continue to grow in and around Central Florida, as it opened a 135,000-square-foot distribution center in Orlando in May 2021. (Business Journal 6/29) [Read]
Florida Kosher KC Market to Open 40K SF Boynton Location KC Market, a kosher market chain based in Hollywood FL, will open a third location in Boynton Beach located at Village Square at Golf, at 3775 W. Woolbright Rd. The grocer will occupy the 40,000 square foot space formerly occupied by a Publix supermarket. KC Market anticipates to open the doors of their Boynton Beach location around August 2023. (VIN News 7/8) [Read]
At Home Continues to Add More Stores At Home opened five new stores in June, bringing its total count to 252 locations in 40 states. At Home has a long-term goal of 700-plus stores nationwide. The majority of At Home’s locations are second-generation retail. The company looks for stores in high-traffic retail nodes adjacent to other best-in-class retailers. (Chain Store Age 7/5) [Read]
BP Expands its Convenience Store Brand to East Coast BP has opened the first East Coast location of its ampm convenience store brand. The BP-owned and operated store is one of four scheduled ampm openings on the East Coast. The experience is modeled after Thorntons, a fuel and convenience retailer that BP took full ownership of in 2021. Thorntons includes more than 200 locations across six states: Kentucky, Illinois, Indiana, Ohio, Tennessee, and Florida. (Chain Store Age 8/11) [Read]
Ollie’s Continues Expansion Ollie’s Bargain Outlet has been opening 50 to 55 locations annually, with an ultimate goal of at least 1,050 stores. In June, Ollie’s reported that its first-quarter sales fell 10.1% to $406.7 million and same-store sales dropped 17%. The company predicted that would soon change because of record-high gasoline prices and swelling inventories at big-box rivals. (Chain Store Age 6/29) [Read]
Macy’s Plans to Open Smaller Stores Outside of Malls Macy’s is accelerating its plans to open smaller stores that aren’t attached to suburban shopping malls. Macy’s will open three stores this fall, their strategy includes closing a mall location to open a smaller-format Macy’s store, known as The Market by Macy’s, in a more densely populated part of town nearby. (CNBC 7/20) [Read]
Sprouts Continues Sales Rebound in Q2 For the quarter ended July 3, Sprouts reported net sales totaled nearly $1.6 billion, up 4.8% from $1.52 billion in the 2021 quarter. Second-quarter same-store sales rose 2% year over year. First-half 2022 net sales came in at $3.24 billion, up 4.5% from $3.1 billion a year ago. Comp-sales for the 26 weeks grew 1.8%, compared with a 9.7% decrease in the 2021 half. (Supermarket News 8/4) [Read]
Costco’s Closes First-Half 2022 With Strong Sales In June, Costco reported double-digit net and comparable sales gains every month through the calendar 2022 first half. For the five weeks ended July 3, net sales jumped 20.4% to $22.78 billion. Net sales in the 44-week year-to-date period totaled $188.34 billion, up 16.9% from $161.09 billion during the similar period last year. June’s results built on the growth pace from May, when Costco posted a 15.5% gain.
Publix Q2 Sales Up, but Stock Price Falls Amid Market Challenges Publix Super Markets reported sales increased 9.3% to $12.9 billion for the quarter ended June 25, up from $11.8 billion in 2021. Comparable store sales increased 7.8%. The company’s net earnings fell 37.7% to $628.4 million, compared to $1 billion in the year-ago period. Effective Aug. 1, 2022, Publix’s stock price decreased from $14.91 per share to $13.84 per share (Publix stock is not publicly traded). (Chain Store Age 8/1) [Read]
Kroger Kicks Off Grocery Delivery in South Florida Kroger has begun online grocery delivery service in South Florida, where the supermarket giant currently doesn’t operate any physical stores. Kroger has opened a 60,000-square-foot, Ocado-automated e-commerce fulfillment facility in Miami to support Kroger Delivery in the Miami-Dade County area. (Supermarket News 6/8) [Read]
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