February 2, 2015
CRC Sells 73,000 SF Shopping Center in Fort Myers, FL for $14.4M
Transaction represents first retail disposition in Fort Myers sub-market for Baltimore-based commercial real estate and investment firm
Continental Realty Corporation (CRC), a Baltimore-based commercial real estate investment and management company, has completed the sale of The Shops at Verandah, a 72,795 square foot shopping center located at 11961 Palm Beach Boulevard in Fort Myers, FL for $14.4 million on behalf of CRC Fund III. This is the first sale for CRC Fund 111, which now holds 11 other properties. The property was sold to Publix Supermarkets, Inc., headquartered in Lakeland, FL. Jim Michalak and Mike Cvetetic of Plaza Advisors represented the seller in the transaction.
The Shops at Verandah, located near the intersection of Palm Beach Boulevard and Florida State Road 31, is anchored by Publix Supermarkets and was approximately 98% occupied at the time of sale. Other notable national and regional tenants at the shopping center include Advance America, Principal Life Insurance, Subway, Pizza Hut, H&R Block, Beef O’Brady’s, and Allstate. The five parcels surrounding the center, Wells Fargo, Regions Bank, 7-Eleven, Walgreens, and First Bank, were not included in the sale. Continental Realty Corporation acquired the property in December 2011.
During its ownership of the property, the occupancy rose from approximately 88.7% to 98%. “CRC Leasing Manager Kristina O’Keefe and local brokers Tom Strauss and Ashley Knie of LandQwest were able to find a great group of tenants to add to the center,” stated David Donato, Vice President of Continental Realty’s Commercial Division. Working together, the leasing team significantly increased the value of The Shops at Verandah during our ownership of the asset.”
“Our acquisitions team recognized an outstanding opportunity in The Shops at Verandah, with a very high performing anchor in Publix Supermarket, its relative new construction and position within a growth corridor. Our team was successful in increasing net operating income, which we elevated by 16% during our ownership,” stated Paul Kang, Director of Acquisitions for Continental Realty Corporation. “Our leasing and asset management team executed our investment strategy and now was the opportune time to sell the asset and capitalize on the value that was added through stabilization of the center. The sale shows the success of the CRC Fund III value-add strategy.”
The Shops at Verandah was built in 2005 as part of Verandah, a 1,500-acre premier master-planned community offering world class golf and amenities. The community includes two 18-hole golf courses designed by Bob Cupp and Jack Nicklaus. The property is less than 20 minutes from downtown Fort Myers and The Bob Janes Preserve, a 5,600 acre conservation preserve in Lee County, Florida.
Continental Realty Corporation (CRC), headquartered in Baltimore and founded in 1960, is a full-service commercial real estate investment and management company. The privately-owned firm owns and manages a diversified portfolio of retail centers consisting of over 3.5 million square feet of space, as well as apartment communities featuring nearly 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the value of the portfolio exceeds $2 billion.
Also Covered By