Westport, Connecticut-based Rand Real Estate Services listed Palmetto Plaza, an Aldi-anchored shopping center in Miami Gardens, for $31.75 million, a nearly 48 percent increase from its last sale about four years ago.
The 176,000-square-foot center, at 16301 Northwest 57th Avenue, is 93.3 percent occupied by Aldi, Sherwin Williams, Dunkin’ Donuts, a Regions Bank and others. Rents average about $20 per square foot, which broker Drew Kristol said is “much lower than in the surrounding market.” Kristol and Kirk Olson, both with Marcus & Millichap’s Institutional Property Advisors division, are listing the shopping center.
Rand Real Estate Services is a commercial real estate firm that handles tenant and buyer representation in Connecticut and South Florida. The firm looks for value-add retail properties in South Florida ranging in price from $2 million to more than $20 million, according to its website. Property records show CLR Palmetto LLC, a Rand affiliate, paid $21.5 million for Palmetto Plaza in 2013. Charlie Manuel, executive vice president, manages the LLC.
“They bought it when it had a lot more vacancy. They’ve since stabilized the property and have done a really good job repositioning it,” Kristol said, later adding that some tenants have “really aggressive annual rent bumps.”
The $31.75 million price tag breaks down to about $180 per square foot. Similar properties trade in the $275 per square foot to $400 per square foot range, according to Kristol.
The 12-acre property stretches north from Northwest 159th Street to 163rd Street and includes four retail buildings built in 1978. It has about 1,500 linear feet of frontage along Red Road. Aldi, the grocery store chain that also owns Trader Joe’s, opened in September and recently signed a 10-year lease with multiple options, Kristol said. In all, Palmetto Plaza has 37 tenants.
Nearby, IMC Equity Group is building a $60 million, 252,000-square-foot shopping center on a nearly 33-acre site at 18000 Northwest 27 Avenue in Miami Gardens. It’s about 80 percent preleased to tenants that include Wawa, Burlington, Dollar Tree and Marshalls.