In a double play, Hollywood-based investor Todd Nepola bought two shopping centers in Palm Beach County for a combined $12.7 million.
Nepola, founder and president of Current Capital Management, told The Real Deal he acquired Shoppes of Lake Worth at 6651 Lake Worth Road, and Coco Plum Plaza at 2845 North Military Trail in West Palm Beach. The deal also included a billboard leased to Viacom and an outparcel primed for development adjacent to Coco Plum Plaza, Nepola said.
Benedict Gutierrez with Marcus & Millichap brokered the off-market sale. Matthew Korshoff with South State Bank provided a $9 million mortgage for the purchase, Nepola said.
The sellers, affiliates of New York-based Chatam Management, led by Raj and Anita Gupta, paid $8.7 million for the two retail properties in 2007, records show. The 38,213-square-foot Shoppes of Lake Worth was built in 1981, and the 43,801-square-foot Coco Plum Plaza was completed in 1985.
When Gutierrez called Nepola about the two shopping centers, he jumped to make a deal right away, Nepola said. “I own a lot of property in that area,” he said. “It is growing tremendously. Raj Gupta is a terrific real estate guy and a great owner to buy from. I saw a lot of upside with minimal risk.”
The two shopping centers were 100 percent occupied at the time of purchase, Nepola said. Both properties have mom and pop retailers paying below market rents, he added.
“The plan is to improve the centers and keep tenants’ businesses thriving so they remain long term,” Nepola said. “We will do minor upgrades such as painting, new LED lighting throughout, as well as landscaping and signage.”
About 60 percent of the tenants will be up for lease renewals in the next two to three years, Nepola said. “We bought it in a position that we don’t have to raise rents,” Nepola said. “But we will be bumping up rents little by little.”
With the addition of the two shopping centers, Nepola said he has paid more than $70 million for retail and industrial sites in the past year. Current Capital buys and manages income producing commercial and residential real estate assets, and offers brokerage services, the company’s website states.
In September, Nepola acquired the Crossroads Plaza shopping center in Margate for $10.7 million. He also owns the Promenade at Inverrary retail plaza in Lauderhill. In 2020, he paid $12.7 million for that 143,439-square-foot retail center.