Federal Realty Pays $181M For Discounted Pembroke Pines Mall
Despite the trade being Broward’s largest retail deal of the year, the mall sold for a $7.5 million loss
Federal Realty Investment Trust dropped $180.5 million for an outdoor mall in Pembroke Pines, Fla., the Maryland-based REIT announced.
Dubbed The Shops at Pembroke Gardens, the 392,000-square-foot shopping center is home to Nike, Sephora, Old Navy, DSW and Barnes & Noble stores, among others. It’s on 41 acres at 527 SW 145th Terrace, at the junction of Interstate 75 and Pines Boulevard.
While the deal is one of South Florida’s largest retail purchases of the year, the mall traded for a $7.5 million loss. The seller, Jeffrey R. Anderson Real Estate, paid $188 million in 2013 for the property, which was built in 2008, according to property records.
Federal Realty sees an “opportunity to increase value over time through remerchandising, increasing rents and incremental capital investment”, the firm stated in its second-quarter earnings report.
The top retail trade so far in South Florida goes to Miami’s The Shops at Mary Brickell Village, another outdoor mall, which sold for $216 million last month.
Back in January, Starwood Capital Group paid $130 million for a Whole Foods-anchored mall in West Palm Beach. Last year’s biggest retail purchase stood at $102 million for a 425,316-square-foot mall in Palm Beach Gardens.
As the threat of COVID-19 subsides and consumers return to in-person shopping, the retail market is rebounding. The portfolio of Federal Realty, which specializes in shopping centers, is 94.1 percent leased, representing a 140 basis point increase over the past year, per the REIT’s earning report.
Besides the Pembroke Gardens property in South Florida, Federal Realty owns Miami’s CocoWalk, Boca Raton’s Del Mar Village and Davie’s Tower Shops.
A representative for Jeffrey R. Anderson did not immediately respond to a request for comment.
Julia Echikson can be reached at email@example.com.