Reflecting ongoing demand for grocery-anchored shopping centers in South Florida, a plaza in Deerfield Beach attracted strong interest from suitors and changed hands for $17 million, The Shopping Center Group said this week.
An affiliate of Investments Limited, a private fund based in Boca Raton, bought Palm Trails Plaza at 1101 South Military Trail in Deerfield Beach from Savitar Realty Advisors. The 76,067-square-foot shopping center last sold in 2006 for $9.15 million, according to property records.
Palm Trails Plaza is anchored by Walmart Neighborhood Market, the chain that’s a distant second in a South Florida grocery market dominated by Publix Super Markets.
The property fetched a capitalization rate of slightly more than 5 percent, a number that’s “historically low” for properties anchored by Walmart Neighborhood Market, said Anthony Blanco, partner and senior managing director of investment sales at The Shopping Center Group.
Blanco represented the seller. A dozen investors bid on the property, and competition drove up the price, he said.
“There’s not that much in the way of grocery-anchored centers in South Florida that come to market, let alone at major intersections,” Blanco told Commercial Observer.
The property is at South Military Trail and Southwest 10th Street. Tenants include MetroPCS and several restaurants. Outparcels occupied by Regions Bank and Pollo Tropical were not part of the sale.
Palm Trails Plaza was built in 1998 and renovated in 2012. The property was fully leased at the time of the sale, Blanco said, a common situation for properties featuring supermarkets.
“The pandemic proved grocery-anchored centers were very resilient,” Blanco said. “Occupancy at grocery-anchored centers remained strong.”
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