Fort Lauderdale, Florida - Our Net Lease Properties reports from the day come from a Sunny, but colder, south Florida. A retail shopping center sold in Davie, Florida. Davie is a western sub-market of Fort Lauderdale, Florida. The Tower Shops, which is an approximately 372,036 square foot retail shopping center in Davie, sold for $66.1 million. Turnberry Associates has sold the Tower Shops for approximately $26.5 million more than the balance of their commercial loan. The retail shopping center is located at 1904 S University Drive. This net lease property is near the intersection of University Drive and I-595, which are two major roads in Broward County, Florida.
The buyer of this net lease property was Federal Realty Investment Trust. Federal Realty Investment Trust is a real estate investment trust (REIT) that owns, manages and develops retail shopping centers and mixed-use properties. Federal Realty Investment Trust is a Rockville, Maryland-based REIT, and jumped on this value-add net lease property in South Florida. This net leased property offers a fantastic opportunity for expansion and increasing the net operating income (NOI).
This retail shopping center, Tower Shops is situated in a highly populated area with a population of about 325,790 within a five-mile radius to fuel retail traffic. The retail shopping center benefits from great national retail Tenants. This retail shopping center is anchored by The TJX Companies, Inc. (TJ Maxx) and Ross Stores Inc., Michaels, Old Navy and will wait for Best Buy. Best Buy is preparing to open a retail store later this year, possibly in the fall. Yes the Tower Shops had lost some tenants, including Linens ’N Things in recent years. However the retail shopping center has net-leased much of its vacant space with other Tenants including Office Depot, Dress Barn, Pep Boys, DSW, Carter’s, and Bath & Body Works.
This Florida retail shopping center is also shadow-anchored by Costco Wholesale Corporation and The Home Depot, Incorporated. A shadow anchor can be described as a major retail store that generates a great deal of customer foot traffic and provides customer attraction for another retail shopping center of which it itself is not a part. The commercial real estate with Home Depot and Costco at Tower Shops are owner-occupied so they were not included in this transaction. Also, we are unaware if a 1031 exchange was in play with this commercial real estate transaction
The net lease property seller, Turnberry Associates is one of the premier commercial real estate development and property management companies in the Country. Turnberry Associates have had an roller coaster ride with this economy. Turnberry Associates did lose their premier property, Fontainebleau Las Vegas to bankruptcy. However, Turnberry Associates received a commercial loan extension on their prestigious Turnberry Isle Resort & Club. The Turnberry Isle Resort & Club is a beautiful piece of commercial real estate in growing Aventura area, just north of Miami.
Federal Realty’s Investment Property portfolio (excluding joint venture properties) contains approximately 18.3 million square feet. Their commercial real estate is located for the most part in strategically selected metropolitan markets in the Northeast, Mid-Atlantic, and California. In addition, the Trust has an ownership interest in approximately 1.0 million square feet of retail space through a joint venture in which the Trust has a 30% interest.
The Florida retail shopping center, Tower Shops is the third commercial property acquired by Federal Realty’s South Florida investment property portfolio. Federal Realty Investment Trust also owns some great property including Del Mar Village in Boca Raton and Courtyard Shops in Wellington. Federal Realty primarily owns Class-A shopping centers in desirable retail regions and high-growth areas. The commercial investment properties owned by the company are anchored by supermarkets, drug stores or high-volume retail net lease Tenants.
We specialize in providing Triple Net Lease Properties to investors for Acquisitions and Dispositions.
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