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Forge Real Estate Partners V, a private equity fund jointly sponsored by Forge Capital Partners and The Sembler Co., has purchased Palm Plaza, a 133,419-square-foot Publix-anchored shopping center in Leesburg, Fla. The joint venture between Crosspoint and Long Wharf Capital sold the asset for $17.8 million.
Colliers Vice Chair Brad Peterson, Senior Vice President Whitaker Leonhardt and Associate Tommy Isola represented the seller. The shopping center was 93 percent leased at the time the transaction closed.
The property previously traded in 2022, when Crosspoint purchased it from Wallington Enterprises for $14 million, according to CommercialEdge data.
Built in 1960, the retail center underwent a cosmetic renovation in 2002. Publix has been anchoring the property since it came online; the tenant roster also includes a diverse mix of national and regional retailers such as Planet Fitness, Popeyes, Quest Diagnostics, Rent-A-Center, Firehouse Subs, Core Health, OneMain Financial, T-Mobile and The UPS Store.
Strong demand for grocery-anchored retail
The sale of Palm Plaza highlights the investor demand for well-located grocery-anchored shopping centers, specifically in outsized residential growth markets in the Southeast U.S., Leonhardt said in a prepared remark. Grocery-anchored retail center performed well both during and after the COVID-19 pandemic.
Orlando’s retail inventory gained 1.8 million square feet by the end of last year, according to a Marcus & Millichap fourth quarter 2023 report, the greatest growth since 2017. Meanwhile, the vacancy rate reached 4.5 percent at the end of December; however, the value was 140 basis points below the trailing 16-year average.
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