Pebb sells Wellington retail center to MetLife for $74M

Pebb Capital and Pebb Enterprises just sold a retail center in Wellington to MetLife Investment Management for $74 million.

Both firms said they are looking to invest the proceeds of the sale into Opportunity Zones in Florida or throughout the country, which would allow them to defer capital gains taxes on the Wellington deal, plus forego capital gains on a new investment.

The families behind Pebb began assembling the 22 acres of land for the Shoppes at Isla Verde, at 1020 South State Road 7, in 1998, according to a release. Pebb Capital, led by Jeffrey Rosenberg, Todd Rosenberg, and Ian Horowitz, split off in 2014 from Pebb Enterprises, now led by Ian Weiner and Bruce Weiner.

The late Jared Weiner led the development and leasing of the shopping center. Jared was among a number of Pebb principals and employees who died in a plane crash in November 2015, and the company has been working quietly to rebuild since then.

The 207,030-square-foot Shoppes at Isla Verde was completed in 2008 and is 94.2 percent leased to Best Buy, Ulta, Old Navy, Petco, Total Wine, Anthony’s Coal Fired Pizza, Chipotle, Verizon Wireless, HSBC, Panda Express and CVS. It will also be home to a Sprouts Farmers Market.

Ian Weiner and Todd Rosenberg said that while Pebb Enterprises has historically held onto its properties for the long term, the right opportunity presented itself with this deal.

Weiner said he’s looking into buying some development sites in South Florida for retail, office and mixed-use, with a focus on Palm Beach County. And Rosenberg said that his firm will likely use the proceeds for preferred equity, multifamily and student housing deals.

The proceeds “would fit nicely into an Opportunity Zone,” Rosenberg added. The program, part of President Trump’s tax plan, is designed to encourage investment in low-income areas across the country by giving developers a huge tax advantage.

HFF’s Danny Finkle, Luis Castillo and Eric Williams represented the sellers. Pebb Enterprises will continue managing and leasing the property for MetLife.

While Pebb Enterprises is selling a number of its out-of-state properties to reinvest into South Florida, Pebb Capital is focusing on selling more retail assets and diversifying its investments. Pebb Capital recently sold Downtown Dadeland with Duncan Hillsley Capital for about $78 million.