MIAMI—As the retail market in Miami continues tightening, investors are finding it more difficult to find prime acquisitions in hot submarkets. But Hammock Plaza Center just acquired one in Kendall, Hammock Plaza, for what looks like a steal: $10.5 million

Cresa South Florida's Steve Gaunt and Eric Gaunt represented the seller, Miami-based Hammock Plaza. Coral Gables-based Hammock Plaza Center acquired the asset for $214 per square foot. Popular Community Bank provided financing for the buyer. The shopping center is 94% occupied.

“By concentrating on creating a tenant mix of customer traffic generators and service-oriented tenants, the seller stabilized the rent roll, increased the rental rates, boosted occupancy and raised the net operating income,” says Steve Gaunt, a senior vice president at Cresa. “Given the overwhelming domestic and foreign retail investor appetite, compressed cap rates and low cost of capital, this was the optimal time to sell.”

Located at 11735 Southwest 147^th Avenue in the West Kendall area of south Miami-Dade County, Hammock Plaza is a 49,000-square-foot shopping center anchored by the Florida Division of Motor Vehicles. Hammock Plaza is across the street from Beckman Medical Offices, which has 1,800 employees, and adjacent to the new U.S. Citizenship and Immigration Services building.

“The buyer is an experienced shopping center investor who was looking for a strong ROI opportunity,” says Eric Gaunt, an advisor at Cresa. “Hammock Plaza has a strong local customer base and offers an outparcel available on a long-term lease, creating additional value for the buyer. This sale is a confirmation of the strong interest in acquiring well-located retail assets in Miami.”

Hammock Plaza is in a dense trade area with steady population growth among middle to upper income earners. Tenants include Hacienda Dominican Restaurant, Pipobread Bakery, Lifesaver Pharmacy, a martial arts school, and a crossfit gym.

“There was tremendous investor interest in this property. Through our marketing efforts we worked with interested buyers from around world,” says Steve Gaunt. “The biggest challenge was identifying the prospect we felt would close on the purchase in a timely manner.”