August 6, 2018
CRC Acquires Shoppes at Pelican Preserve in Southeast Florida for $12.2M
CRC has acquired Shoppes at Pelican Preserve, a 69,475-square foot shopping center located at 10520 Colonial Boulevard in the Fort Myers section of Lee County, Florida for $12.2 million. Constructed in 2007, the grocery-anchored asset was nearly 98% leased and occupied at the time of the purchase with a mixture of national and local tenants. The seller was represented by Anthony Blanco and Lynn De Marco of The Shopping Center Group in this transaction.
Positioned on approximately 18.4 acres of land fronting Colonial Boulevard, the shopping center is anchored by a 51,000-square foot Winn-Dixie, as well as national tenants such as Pizza Hut and H&R Block. Nearly 30,000 residents in approximately 11,100 households reside within a three-mile radius of the center, with an average household income exceeding $109,000. Located behind the property, Colonial Country Club and Pelican Preserve highlight a conglomerate of neighborhoods with home values up to $700,000, most of which are still being developed and should add an additional 1,600 homes to the immediate market in the next 24 months.
“Shoppes at Pelican Preserve is predicated on strong market fundamentals and the opportunity to achieve long-term value with downside protection which is the foundation of our Fund,” stated Paul Kang, Vice President of Acquisitions at Continental Realty Corporation. “Residential population is expected to expand by almost 16% over the next five years, with the median household income projected to increase by nearly 14% percent during this period. This location is a top store for Winn-Dixie with sales well above the chain average supported by small shop tenants that are performing well. The center was originally developed as a Sweetbay which provided for strong underlying credit from the anchor with considerable lease term remaining. The property was acquired at substantially below replacement cost and at an attractive going-in yield with the ability to add inline density through a Phase II adjacent to the main center as well as two sizable pad sites that directly front Colonial Boulevard”.
Shoppes at Pelican Preserve is positioned at the signalized intersection of Colonial Boulevard, which has over 52,500 vehicles per day, and Treeline Avenue. Colonial Boulevard connects two major north-south arteries being Interstate-75, just a mile west of the property, and Lee Boulevard, under two miles east of the property. Both junctions will undergo extensive redevelopment to create more efficient traffic flow onto Colonial Boulevard which will enhance the center’s 1,017 linear feet of frontage.
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.