The Real Deal Miami

Blackstone buys Costco-anchored shops in Royal Palm Beach for $79M

50-acre plot last sold for $14M in 2005

April 04, 2016 04:25PM
By Katherine Kallergis

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Costco-anchored shops in Royal Palm Beach

Costco-anchored shops in Royal Palm Beach

Blackstone Group spent $78.5 million on a Costco-anchored shopping center in Royal Palm Beach, records show. 

Blackstone's Jon Gray

Blackstone’s Jon Gray

The Centre on Southern LLLP, an entity managed by a Sea Ranch Lakes attorney, sold the 343,009-square-foot retail center to Blackstone. The deal covers the 50-acre property at 11001 Southern Boulevard. Besides the warehouse retailer and its Costco gas station, the sale includes HomeGoods, Marshalls, Starbucks, European Wax Center, Rack Room, Carrabba’s Italian Grill, Hurricane Grill & Wings, and a Goodyear Auto Sales Center.

Property records show the limited partnership bought the land in 2005 for $14 million, and completed the shopping center, which includes two lakes, in 2006. Costco opened in 2007.

Blackstone financed the deal with a nearly $67 million mortgage from U.S. Bank National Association.

Blackstone was among the top commercial buyers of 2015 in Miami-Dade. The New York-based private equity firm acquired Strategic Hotels for $6 billion, which included an 85 percent stake in the InterContinental Miami. Blackstone sold the Hilton Key Largo Resort to KHP Capital Partners for $62.3 million in March.