November 6, 2017
CRC Acquires 155,000 SF Ridge Plaza in Davie, FL for $21.3M
CRC has acquired Ridge Plaza, a 155,204-square foot neighborhood shopping center located at 9000-9200 State Road 84 in the Davie section of Broward County, Florida for $21.3 million. The asset was nearly 100% leased and occupied at the time of the purchase. The Seller was represented by Danny Finkle, Luis Castillo and Eric Williams of Holliday Fenoglio Fowler (HFF) in Miami.
Positioned on approximately 17 acres fronting Interstate 595/State Road 84, Ridge Plaza was acquired on behalf of Continental Realty Fund IV, L.P., a $164 million fund focused on the acquisition of value-add retail and multifamily properties situated throughout the Mid-Atlantic and Southeast regions of the United States. This represents the fifth retail shopping center and tenth overall asset purchased by the Fund.
“This acquisition was achieved substantially below replacement cost at an attractive going-in yield in an irreplaceable location along Interstate 595 with high-barriers to entry, serving among the most densely populated sections of Broward County,” stated Paul Kang, Vice President of Acquisitions at Continental Realty Corporation. “Our cost basis allows for great downside protection and provides us with enough flexibility to add value through a potential redevelopment of the site in the long run. Our leasing team will continue to push rents and improve tenant mix with this long-term redevelopment vision in mind. Historically, the center has been substantially leased with multiple tenants occupying the project for an extended period of time, resulting in an extremely stable merchant base.”
Ridge Plaza was originally constructed in 1985 and is anchored by Paragon Theater and Off The Wall Family Entertainment Center. Five pad sites, including Dunkin’ Donuts and Metro PCS, are positioned at the front of the property and were included in the transaction with additional in-line stores offering complementary products and services, as well as restaurants.
“When considering potential retail shopping centers for purchase, our due diligence process involves a careful evaluation of the fundamentals of the marketplace and the project, including projected job and population growth, parking and visibility factors and the tenant mix as compared with nearby competition,” explained David Donato, Senior Vice President at Continental Realty Corporation. “Our team concluded that Ridge Plaza fulfills every requirement necessary for the asset to function as a quality, long-term investment. The diverse and unique merchant base continues to attract loyal customers from a large radius in the Broward County region.”
The property is contained within the Plantation retail submarket of Broward County consisting of more than 12 million square feet of space, with average rental rates increasing in each of the past five years. More than 120,000 households are located within a five-mile radius of Ridge Plaza, with an average household income exceeding $84,000. Over the next five years, more than 20,000 new residents are expected to live within the immediate trade area of the shopping center. The Jacaranda Golf Club is situated across the street from the shopping center and is approximately three miles from the South Florida Education Center, which is comprised of five major educational institutions: Broward College, Florida Atlantic University, McFatter Technical College & Technical High School, Nova Southeastern University, and the University of Florida.
The Town of Davie is situated five miles west from the Atlantic Ocean and east from the Florida Everglades Area and is approximately sixteen miles from both Miami and Boca Raton. Fort Lauderdale-Hollywood International Airport is positioned eight miles from Ridge Plaza.
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 $1.5 billion.
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