Publix Buys Coral Springs Retail Center for $59M
By Julia Echikson May 23, 2024 2:29 pm
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In yet another instance of a retailer buying its own store, grocer Publix paid $58.5 million for a shopping center in Coral Springs, Fla., where it is the anchor tenant, property records show.
Called Ramblewood Square, the 157,914-square-foot shopping center sits on 15 acres between 1201 and 1327 North University Drive, just north of the Coral Square mall. Tenants also include Ross Dress for Less, Men’s Wearhouse, Starbucks, T-Mobile, Five Below, the UPS Store, Aspen Dental and Wings Plus.
The seller, private equity giant Apollo Global Management (APO), purchased the retail center, which was built 1990, for $21 million in 2019, according to property records — which means Apollo nearly tripled its initial investment. Last year, the 54,964-square-foot Publix store reopened after undergoing a major renovation, which records suggest cost at least $3.8 million.
Representatives for Publix and Apollo did not immediately respond to requests for comment.
The purchase is the latest example of tenants buying up their stores, largely in a bid to hedge against further rent increases at a time when the investment market is less competitive because of interest rate hikes.
In the last six months, sports apparel brand Alo Yoga and Whole Foods bought their stores in Miami for $22 million and $21 million, respectively.
In the most notable example, in New York, luxury fashion behemoths Prada and Gucci owner Kering spent nearly $2 billion in the last year buying properties along Fifth Avenue, portions of which they operate as stores.
Julia Echikson can be reached at jechikson@commercialobserver.com.
