Site Centers buys Delray Beach shopping plaza for $40M

Tenants at 56K sf plaza include Henry’s restaurant, Wells Fargo and Starbucks

The Addison Place shopping plaza at 16850 and 16950 South Jog Road in Delray Beach with Site Centers CEO David Lukes (left) and Richard Caster of Azure Development (LinkedIn, Azure, Google Maps)
The Addison Place shopping plaza at 16850 and 16950 South Jog Road in Delray Beach with Site Centers CEO David Lukes (left) and Richard Caster of Azure Development (LinkedIn, Azure, Google Maps)

Site Centers bought The Shoppes at Addison Place west of Delray Beach for $40 million.

The Beachwood, Ohio-based real estate investment trust bought the buildings at 16800, 16850 and 16950 South Jog Road in three deals from sellers tied to Delray Beach-based Azure Development, according to records.

In the two biggest deals, Site Centers bought the building at 16950 South Jog Road for $20 million and the one at 16850 South Jog Road for $18 million. It bought the smallest building leased to Wells Fargo for $2 million.

Site Centers, led by David Lukes, is a publicly traded shopping center investor that focuses on well-heeled suburban areas. It has an interest in 138 shopping centers nationwide, including Village Square at Golf in Boynton Beach and Northlake Commons in Palm Beach Gardens, according to its website. It also owns The Shops at Midtown Miami.

Azure Development, which sold the buildings through three affiliates, developed the 56,000-square-foot plaza from 1999 to 2001 on 7 acres.

The Shoppes at Addison Place is 96 percent leased, with 40 percent original tenants that have leased space since the center opened, said Richard Caster, who leads Azure with Brian Grossberg.

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Tenants include Angelo Elia Pizza, Way Beyond Bagels, Hair by Scott, Bank of America and Starbucks. Henry’s restaurant is among the original tenants, Caster said.

The limited liability companies that sold the plaza are owned by Azure Development’s principals, including Caster, he said.

Delray Beach has seen several retail deals in recent months. In April, the Cook family sold a downtown building at 325 East Atlantic Avenue for $11.5 million, marking a windfall since the family had owned it for more than 40 years.

That came on the heels of Publix-anchored North Delray Commons shopping center in Delray Beach selling for $9.4 million in February.

Several retail centers also have traded in other parts of Palm Beach County. Raanan Katz, a Miami Heat minority owner, bought his third Best Buy through his RK Centers. He scooped up the store at 1880 Palm Beach Lakes Boulevard in West Palm Beach for $12 million in May. And Continental Realty bought the LA Fitness-anchored Shoppes at Sherbrooke retail center near Wellington for $11.3 million in April.