Marking its expansion into the Florida market, Maryland-based Greenberg Gibbons, developer and owner of mixed-use properties along the East Coast, has purchased Sanford’s Gateway Plaza Mall for $23.6 million.
According to Seminole County Deed Records.
The total sale is $109.8 per square foot.
“We are excited to further expand Greenberg Gibbons’ footprint in the South with the acquisition of Gateway Plaza,” Tom Falatko, senior vice president of acquisitions at Greenberg Gibbons, said in a press release. “Florida’s population continues to grow as more people choose to move there, and we see exciting opportunities to further increase the value of this property.”
The mall, built in 1995, was previously owned by New York-based Apollo Global Management. JLL Capital Markets, a national property management and investment firm, marketed the property on behalf of the seller.
In a press release announcing the sale, JLL said it had received “about a dozen offers from investors” and advertised Sanford as “one of Florida’s most desirable and affluent communities.”
He also touted the mall’s location, saying the 1.1 million square foot mall across the street is “ripe for redevelopment and reinvention” with the completion of the road at SR-417 / SR-429 toll and super-regional accessibility. .
Sanford city officials have been discussing the need to reinvent the struggling mall for years, while development plans have emerged with that goal in mind.
In 2020, operator of the mall in New York Kohan Retail Investment Group purchased the Seminole Towne Center with the intention of redeveloping it into a mixed-use destination that will feature new entertainment concepts and multi-family residences.
The Gateway Plaza, located on 24.3 acres, is adjacent to Interstate-4 and five miles from Orlando Sanford Airport and historic downtown Sanford.
The JLL Retail Capital Markets sales and investment advisory team representing the seller was led by Senior Managing Director Brad Peterson and Senior Managing Director Whitaker Leonhardt.
“Over the past three to five years, residential developers have purchased land and built apartments in anticipation of the completion of the SR-417/SR-429 outer loop at the intersection with Interstate 4,” said said Peterson. “As a result, the area is already booming, but it will get another adrenaline rush once it is completed in 2023, with many more residents living in new apartments in the immediate area.”
He added, “This, combined with even better super-regional access for Northwest Orlando buyers, will have a significant effect on visitor traffic and tenant success at Gateway Plaza.”
Landsea Homes recently signed plans to build a 149-unit subdivision at E Lake Mary Boulevard and Eaglewoods Trail in Sanford, approximately three miles southeast of Orlando-Sanford Airport.
Meanwhile, M/I Homes is considering a southward expansion of its 95-lot Cadence Park in Sanford, near Seminole State College and the Seminole County Administrative Complex. The addition, if approved, would bring approximately 100 additional homes to the area.
Wendover Housing Partners is also in the process of planning the development of another affordable housing community with 84 units in Sanford’s historic Goldsboro neighborhood.
The Gateway Plaza Center was purchased through the Greenberg Gibbons Real Estate Income Fund, which launched in March 2021 to strategically acquire shopping centers in the East Coast, Southeast and Midwest markets.
This is the fund’s fourth acquisition.
Greenberg Gibbons’ property portfolio on its website lists 24 malls on the east coast; 19 of them are located in Maryland. There’s one in Rhode Island, one in Delaware, one in Virginia, one in North Carolina, and now, with the recent acquisition of Gateway Plaza, one in Florida.
In total, the company has developed and managed a portfolio of more than 10.6 million square feet of properties, its website says.