The Real Deal Miami

Boston investors tap SoFla firm for Delray center

Owner acquired center after it won foreclosure judgment

October 08, 2015 05:15PM
By Sean Stewart-Muniz

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The Delray Square II shopping center at 14530 Military Trail

The Delray Square II shopping center at 14530 Military Trail

The Boston-based owners of a Delray Beach shopping center have brought on a local partner to help kick-start a new leasing program.

Tremont Realty Capital, a real estate lending firm headquartered in Boston, owns the Delray Square II retail center at 14530 Military Trail. The center is surrounded by other retail developments and has 150,157 square feet of leasable space.

It’s only 39.9 percent leased with a mix of tenants including Planet Fitness, an urgent care, H&R Block and Subway.

In an effort to fill in the empty spaces, Tremont has entered into a joint venture with Isram Realty Group, a full-service real estate firm in Hallandale, according to a news release. Isram plans on bringing in new big-box stores and tenants for the smaller spaces, as well as developing an outparcel for a national restaurant chain.

The venture was arranged by John K. Crotty and Joshua Ladle of brokerage Avison Young.

John Crotty and Joshua Ladle of Avison Young

John Crotty and Joshua Ladle of Avison Young

“As properties are becoming more valuable and consumer confidence continues to be positive, retail property investment has experienced an uptick nationwide in the form of sales and strategic partnerships,” Crotty said in the release. “More specifically, value-add and redevelopment opportunities have been top-of mind opportunities for investors.”

Tremont acquired the shopping center in 2011 after one of its funds won a foreclosure judgment against the previous ownership, an affiliate of Virginia’s Meladon Development Group.

The affiliate, Meladon IX LLC, had paid $20.5 million for the shopping center in 2007, according to Palm Beach County records. Tremont had loaned $25 million to Meladon at the time of that sale.