The Real Deal Miami

Weingarten buys Deerfield Beach Mall for $93M

394,000 sf outdoor mall last sold for $51M in 2007

May 06, 2016 05:30PM
By Katherine Kallergis

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Deerfield Mall

Deerfield Mall

Houston, Texas-based Weingarten Realty Investors paid $92.75 million for a nearly 180-acre retail center in Deerfield Beach. 

Records show the Cornfeld Group sold the 394,248-square-foot shopping center at 3700, 3650-4060 West Hillsboro Boulevard. Its tenants include Publix, TJ Maxx, Marshalls, Ulta, YouFit Health Club, and Cinepolis Theater. The sale breaks down to $235 per square foot. A mortgage was not recorded.

Property records show the shopping center, made up of three parcels, last sold for $51.3 million in 2007, which means it now sold at a more than 70 percent increase. It was built in 1988 and renovated in 2009, according to Select Strategies Realty, an Ohio-based real estate firm that previously handled leasing.

HFF’s Daniel Finkle, Luis Castillo, Nat Scarmazzi and Scott Wadler brokered the sale, according to a press release. Weingarten acquired the property free and clear of existing debt. The mall is nearly 95 percent leased.

Deerfield Beach is undergoing a residential and commercial renaissance. On the commercial side, Deerfield Beach experienced a flurry of trades in 2015 that illustrates the bullish nature of investors in the city. Fairlead Commercial Real Estate purchased a Class A office property at 800 Fairway Drive for $21 million from American General Life Insurance Company in November. And in December, Publix bought the Hillsboro Square shopping center for $45 million, paying $287 per square foot. The previous owner, DDR paid $19.2 million for the 13.7-acre property in 2002.

Weingarten, a public real estate investment trust, owns a 20 percent stake in the Northridge Shopping Center, 18.5-acre retail property at 1003 East Commercial Boulevard in Oakland Park. The company’s stock was trading at $38.81 as of Friday afternoon.

The seller, a Hollywood-based investment and management company, recently listed a portfolio of three South Florida apartment complexes for sale for an undisclosed price.

Correction: An earlier version of this story stated that the property sold for nearly $87 million. Together with outparcels, the shopping center traded for $92.75 million, HFF announced on Monday, May 9.