Palm Beach Gardens shopping center fetches record $102M

German fund manager sold property for nearly $79M less than purchase price in 2007

Miami /
Oct.October 27, 2021 03:57 PM
Lone Star Funds founder and chair John Grayken and Woolbright Development founder and president Duane Stiller (Woolbright, Lone Star, Facebook via Legacy Place Shops)

Lone Star Funds founder and chair John Grayken and Woolbright Development founder and president Duane Stiller (Woolbright, Lone Star, Facebook via Legacy Place Shops)

The Legacy Place shopping center traded for $101.7 million, marking the biggest Palm Beach County retail deal this year.

Yet, the plaza also traded at a loss of nearly 44 percent compared to its last price in 2007.

A joint venture of private equity mammoth Lone Star Funds and retail investor Woolbright Development bought the property at 11290 Legacy Avenue in Palm Beach Gardens, according to a news release from CBRE. The brokerage’s Casey Rosen and Dennis Carson represented the seller in the deal.

An affiliate of Munich, Germany-based GLL Real Estate Partners GmbH sold the 43-acre property. The company paid $180.2 million for Legacy in 2007, a year after it was completed.

GLL, led by Rainer Göbel, is a real estate fund manager for institutional investors that focuses on office, retail and industrial properties, according to its website.

(Facebook via Legacy Place Shops)

(Facebook via Legacy Place Shops)

The 425,316-square-foot center is 72 percent occupied, according to the release. Some of the anchor tenants are Best Buy, Barnes & Noble, Bassett Furniture, Ethan Allen, Michael’s, Nicklaus Children’s Hospital, Petco, The Container Store and Total Wine & More.

The deal comes as the retail market seems to be rebounding from the hit last year caused by the pandemic lockdown and rise in e-commerce.

In the third quarter of this year, rents in parts of South Florida were above pre-pandemic highs, according to a Colliers report. The average asking rent in Palm Beach County was nearly $25 per square foot, higher than the apex of close to $22.50 in the fourth quarter of 2019.

CBRE’s Rosen called it a “rare value-add” opportunity in the release, which means the buyers could increase the asset’s value through capital improvements or higher rents.

Boca Raton-based Woolbright Development, led by Duane Stiller, focuses on retail and has a portfolio of more than 30 properties totaling over 5 million square feet of commercial real estate, according to its website.

Dallas-based Lone Star Funds, led by John Grayken, advises funds in global investments in real estate, equity, credit and other assets, according to its website. It started its first fund in 1995 and since then organized a total of 21 with aggregate capital commitments of over $85 billion.

Lone Star also invests in senior living communities. This summer, the company bought a complex in Palm Beach Gardens and another near Boca Raton for a combined $57 million.





    Related Articles

    arrow_forward_ios
    Sean and Ashly Heyniger along with an aerial view of 3140 Washington Road in West Palm Beach (Getty, Google Maps, Watermark Medical, Facebook/Ashly Haniger)
    Health care mogul sells waterfront West Palm estate for record $21M
    Health care mogul sells waterfront West Palm estate for record $21M
    Ambrose’s Aasif Bade and a rendering of the warehouse at 15810 Walgreens Drive
    Ambrose scores $27M construction loan for warehouse project in Jupiter
    Ambrose scores $27M construction loan for warehouse project in Jupiter
    Intech Investment Management's Robert Garvy and Warner Pacific Insurance Services' John J. Nelson with The Bristol Palm Beach at 1100 South Flagler Drive
    Financier sells Bristol condo in West Palm for $21M
    Financier sells Bristol condo in West Palm for $21M
    Landstar’s Virginia Cepero, David Serviansky and Rosa Eckstein Schecter
    Avenir scores $80M in bond financing to build infrastructure
    Avenir scores $80M in bond financing to build infrastructure
    Wayne Huizenga Jr. and his new West Palm Beach mansion at 3100 North Flagler Drive
    Wayne Huizenga Jr. faces lawsuit tied to West Palm Beach mansion
    Wayne Huizenga Jr. faces lawsuit tied to West Palm Beach mansion
    Miami Skyline
    South Florida by the numbers: A look back at 2022
    South Florida by the numbers: A look back at 2022
    From left: Simon Property Group’s David Simon and Cohen Brothers Realty's Charles Cohen with the Dadeland Mall and the Design Center of the Americas (Getty, Scott Francis)From left: Simon Property Group’s David Simon and Cohen Brothers Realty's Charles Cohen with the Dadeland Mall and the Design Center of the Americas
    Lease roundup: Simon’s Dadeland Mall reaps leasing bonanza
    Lease roundup: Simon’s Dadeland Mall reaps leasing bonanza
    Gina Rinehart with 107 Dolphin Road and 6 Via Los Incas in Palm Beach
    Australian billionaire family linked to Palm Beach home purchases totaling $100M-plus
    Australian billionaire family linked to Palm Beach home purchases totaling $100M-plus
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...