September 30, 2022
Shopping Center
& Owner News
Gables Station Mixed Use Project in Coral Gables Sold for $430M ($633 PSF) Coral Gables-based Nolan Reynolds International and New York-based 54 Madison Partners sold the 1.2 million-square-foot project to Houston-based Hines on August 28th for $430 million. The 14-story building consists of 495 apartments, a Lifetime Fitness, a Trader Joes, and other retail tenants. Cushman & Wakefield was the broker on the deal. (Business Journals 8/30) [Read]
Grove Market in Westlake Sold for $19.5M ($254 PSF) Miami Beach-based Starwood Property Trust sold the 76,902 square-foot center to a group of private investors on September 12th for $19.5 million. The price equated to $254 per square foot. The center is anchored by a Winn Dixie Supermarket. (Business Journals 9/19) [Read]

Osceola Village in Kissimmee Sold for $36M ($297 PSF) An entity related to Tampa-based East Coast Acquisitions sold the 121,445 square-foot center to Publix on August 16th for $36.05 million. The price equated to $297 per square foot. The center is anchored by Publix, Goodwill, and Orlando Health. JLL was the broker on the deal. (Business Journals 8/19) [Read]

Mainstreet at Boynton Sold for $33M ($633 PSF) Boca Raton-based developers Pebb Enterprises and Banyan Development sold the 52,152 square-foot center to an LLC affiliated with Carlyle management on September 8th for $33 million. The price equated to $633 per square foot. Completed in 2021, Mainstreet at Boynton is fully leased. Tenants include Sprouts, AT&T, Crown Wine & Spirits, F45, & Capital Carpet & Tile. JLL was the broker on the deal. (Business Journals 9/12) [Read]

Northlake Commons in Palm Beach Gardens Sold for $21M ($171 PSF) Site Centers sold the 123,039 square-foot center to Slate Asset Management on July 15th for $21 million. This was part of a portfolio of 13 shopping centers CBRE brokered on behalf of Site Centers. Seven of them are in Florida. The price equated to $171 per square foot. Tenants include Ross Dress for Less, Joann Fabric, Jimmy John’s, Five Below, and Starbucks. (Business Journals 8/30) [Read]

Flamingo Falls in Pembroke Pines Sold for $33M ($286 PSF) Site Centers sold the 115,204 square-foot center to Slate Asset Management on July 15th for $33 million. The price equated to $286 per square foot. This was part of a portfolio of 13 shopping centers CBRE brokered on behalf of Site Centers. Seven of them are in Florida. The center is anchored by a Fresh Market and a CVS. (Business Journals 8/25) [Read]

Plantation Crossings Sold for $22.2M ($316 PSF) An LLC affiliated with Azor Advisory Services sold the 70,369 square-foot center to Azora Exan USA, a partnership between European real estate fund Azora Capital with Miami-based Exan Capital, on August 29th for $22.2 million. The price equated to $316 per square foot. The center is anchored by an Aldi. Marcus and Millichap brokered the deal. (Business Journals 8/31) [Read]

Market News
South Florida Retail Rent Growth Expected to Outpace Rest of US Through 2024 A lack of inventory, coupled with South Florida's popularity as a place to live, work and visit, will push rents upward faster here compared to other parts of the U.S. Asking retail rents have risen significantly since the pandemic in South Florida. As of Q2 2022, net asking rents average $41.67 per square foot in Miami-Dade (17% increase since 2019), $28.72 In Broward County (23% increase since 2019), and $29.16 in Palm Beach County (26% increase since 2019). By 2024, year-over-year retail rents are expected to rise 4% in Miami-Dade, 4.1% in Broward, and 3.9% in Palm Beach County. For the national average, the year-over-year increase is expected to be 2.9%. (Business Journals 9/7) [Read]

Grocery-Anchored Centers Remain in Demand, But Are Going Mostly to Private and All-Cash Buyers. Investor sentiment toward grocery-anchored centers is the strongest it’s been since the mid-2000s, but increased cost of capital has not only slowed dealmaking activity, it changed the composition of today’s buyer pool. Ninety days ago, the average deal would’ve received 10-15 offers from a mix of investors, including private investors, institutional buyers, and REITs. Today, that same property would receive seven to 10 offers, mostly from private buyers. Pension fund advisors are too concerned about the overall economic outlook to make big bets on any property type right now. REITS, meanwhile, are challenged to make acquisitions pencil out, largely because it’s too expensive to raise money in the public market. (Wealth Management 9/08) [Read]

Retail Space Leased Hits Five-Year High A recently released report on retail activity in Q2 2022 put the retail leasing total at 78 million sqft., the highest it’s been since 2017. Over the past 12 months, more than 250 million sqft. of retail space has been claimed, lifting net absorption in the category to a likewise five-year high. Retailers opened 4,432 stores so far this year and closed just 1,954. (Chain Store Age 9/8) [Read]

US Consumer Spending Rose in August as Gas Prices Fell August US retail sales rose unexpectedly by 0.3% on a monthly basis, following a revised decrease of 0.4% in July. Retail sales, which are not adjusted for inflation, were up by 9.1% from a year ago. The strong reading, indicating a resilient consumer, is likely to give more ammunition to the Federal Reserve, which has been raising interest rates in a bid to tamp inflation. Consumer prices in August rose by 8.3% over the past year. (CNN 9/15) [Read]

CMBS Delinquency Rates Finally Fall to Pre-Pandemic Levels CMBS delinquency rates in August 2022 were 2.98%, falling below 3% for the first time since the pandemic. A year before they had dropped under 6%. It’s been six months since they went below 4%. The all-time high for CMBS delinquency was in July 2012, when it hit 10.34%. The high for the pandemic was 10.32% in June 2020. (Globest 9/8) [Read]
Retail News
Starbucks To Open 2,000 Stores by 2025 Starbucks plans to add 2,000 net new stores in the U.S. by 2025, diversifying its brick-and-mortar portfolio across cafes, pick-up stores, drive thru-only, and delivery-only locations. In addition, next year, Starbucks will invest $450 million to modernize its existing stores in North America with new equipment. (Chain Store Age 9/13) [Read]

Kohl’s Adding In-Store Sephora Shops at All Locations Kohl’s expanding its partnership with beauty giant Sephora. The retailer plans to expand its Sephora store-within-a-store concept to all its 1,100-plus stores nationwide. The expansion comes one year after the first round of Sephora shops at Kohl's opened. (Chain Store Age 8/18) [Read]

BJ’s Wholesale Club Reports Record-Breaking Q2 BJ’s Wholesale Club beat analyst expectations as it reported its best-ever earnings in the second quarter of fiscal 2022. Total revenues rose 22% year-over-year to $5.1 billion. Excluding the impact of gasoline sales, comparable club sales increased by 7.6% in the second quarter of fiscal 2022 compared to the second quarter of fiscal 2021. (Chain Store Age 8/18) [Read]

ULTA Beauty’s Strong Second Quarter Ulta’s net income increased 17.8% to $295.7 million for the quarter ended July 30, compared with net income of $250.9 million in the year-ago quarter. Adjusted earnings were $5.73 a share. Net sales jumped 16.8 % to $2.3 billion. (Chain Store Age 8/26) [Read]

Dollar General Posts Strong Q2 Dollar General reported net income of $678 million for the quarter ended July 29, compared to $637 million in the year-ago quarter. Sales increased 9% to $9.4 billion. Same-store sales rose 4.6%. During the second quarter, the company opened 227 new stores, remodeled 533 stores, and relocated 30 stores. (Chain Store Age 8/25) [Read]

Publix, Trader Joe’s, and Aldi, Among Highest Sales Growth Grocery Chains Amid high inflation, most supermarkets are experiencing growth in transaction values according to recent research. All the researched grocers chalked up at least 10% growth in sales in July 2022 year over year. Ahold Delhaize grew 18%, followed closely by Aldi and H-E-B at 17%, and then Publix at 15%, Trader Joe’s at 14%, Kroger at 12% and Albertsons at 10%. (Supermarket News 8/18) [Read]

Bed Bath & Beyond Closing Two Florida Locations Two Bed Bath & Beyond stores in Florida are among 56 nationwide targeted for closure by the national retailer, which last month said it would eventually shut down 150. Included on a recently updated list of stores slated to close are the Sunrise location at 12801 W. Sunrise Blvd. and the Sanford location at 111 Towne Center Blvd. (Patch 9/15) [Read]
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