Reflecting the continued demand for grocery-anchored shopping malls in South Florida, a spot in Deerfield Beach attracted strong interest from suitors and changed hands for $17 million, The Shopping Centers Group said this week.
A subsidiary of Limited investmentsa private fund based in Boca Raton, bought Place of palm trails at 1101 South Military Trail in Deerfield Beach from Savitar Real Estate Advisors. The 76,067-square-foot mall last sold in 2006 for $9.15 million, property records show.
Palm Trails Plaza is anchored by Walmart Neighborhood Marketthe chain that is far behind in a South Florida grocery market dominated by Publix Super Markets.
The property achieved a cap rate of just over 5%, a “historically low” number for properties anchored by Walmart Neighborhood Market, said Anthony BlancoPartner 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 the price up, he said.
“There aren’t many grocery-anchored malls in South Florida coming to market, let alone at major intersections,” Blanco told Commercial Observer.
We are located at South Military Trail and Southwest 10th Street. Tenants understand MetroPCS and several restaurants. Outplots occupied by Bank of Regions and Tropical Pollo were not part of the sale.
Palm Trails Plaza was built in 1998 and remodeled in 2012. The property was fully leased at the time of the sale, Blanco said, a common situation for properties that include supermarkets.
“The pandemic has proven grocery store-anchored hubs to be very resilient,” Blanco said. “Occupancy at grocery-anchored centers remained strong.”
Jeff Ostrowski can be contacted at [email protected]