The Real Deal Miami

Publix bags shopping centers in Hialeah and Miami

Lakeland grocer owns the real estate of more than a third of its locations
By Amanda Rabines | March 08, 2018 02:31PM

Paraiso Plaza and DDR’s David Lukes (Credit: Google and DDR)

UPDATED March 16th, 4:20 p.m.: Publix Super Markets just purchased two shopping center it anchors in Hialeah and Miami.

The Lakeland-based grocer paid $15.7 million, or about $245 per square foot, for the 64,260-square-foot Paraiso Plaza shopping center at 3339 West 80th Street, according to property records. The seller is an affiliate of DDR Corp., a publicly traded retail-focused real estate investment trust.

DDR paid $9.65 million for the 7.3-acre property in 2003. The shopping center, built in 1997, is home to an IHOP, Little Caesars Pizza and Chase Bank.

In Miami, Publix paid $21.58 million, or about $254 per square foot, for the 85,060-square-foot Plaza Del Paraiso shopping center at 12100 Southwest 127th Avenue. Records show DDR paid $15.3 million for the 9-acre shopping center in 2003. Other tenants include a T-Mobile, Subway and Dollar Tree.

The sales in Hialeah and Miami are part of a nine-property acquisition for Publix in Florida and Georgia. DDR is under contract to sell 732,000 square feet of retail space to Publix, according to Madison International Realty, which owns a majority stake in the portfolio.

Publix has continued to purchase shopping centers where it has locations. As of December it owned about 32 percent of its locations – an increase from the 11 percent it owned in 2007, according to the Palm Beach Post. A year ago, Publix said it planned to invest $1.53 billion to buy its store-anchored shopping centers, as well as build and remodel additional stores.

In April, the company paid $23.2 million for the new location in West Miami and $29.6 million with its joint venture partner Echo Realty for a shopping center in Pompano Beach.

DDR owns and manages more than 300 open-air shopping centers across the country. In June, Madison International Realty refinanced a portfolio of 52 shopping centers it owned via a joint venture with DDR for $1.05 billion, and upped its stake in the portfolio to 80 percent.