TH Real Estate, an affiliate of TIAA, just paid $49.25 million for the Promenade Shopping Plaza in Palm Beach Gardens, sources familiar with the sale told The Real Deal.
The 202,696-square-foot retail center at 9800 – 9900 Alternate A1A is 97 percent occupied with major tenants including Publix, Bealls Outlet, Planet Fitness, Club Outlet Store and CVS. It was first developed in 1972 and redeveloped in 2015. The deal breaks down to $243 per square foot.
Woolbright Development is the seller. In December, the Boca Raton-based investment firm purchased another Publix-anchored shopping center in North Palm Beach for $12.6 million, or about $152 per square foot.
The Promenade Shopping Plaza deal marks the first for TH Real Estate’s new Miami office, which opened in January to invest and manage properties in 11 states and Latin America. Headed by Manuel Martín, who was formerly based in Madrid heading TH Real Estate’s activities in Spain and Portugal, the regional office currently has $10.5 billion in assets under management in the region, totaling 36 million square feet. South Florida assets include office properties 701 Brickell, 801 Brickell, the Waterford at Blue Lagoon; multifamily assets such as the Village of Merrick Park and the Manor at Flagler Village in Fort Lauderdale; and various industrial properties. In addition, TIAA owns the shopping mall JK Iguatemi in Sao Paulo, Brazil.
Martín told TRD in January that he plans to focus on strengthening the firm’s third-party institutional business, while overseeing acquisitions, dispositions and asset management. For acquisitions, he said he will be particularly looking at the industrial market, as well as the retail sector, with an eye on “micro locations.” Retail purchases could be in the $30 million to $150 million range, he told TRD. The multifamily market, he said, is “too hot right now.”
TH Real Estate, an operating division of TIAA Global Asset Management, is one of the largest real estate managers in the world with $96.8 billion in assets under management.