Michalak Runs Hot Streak to $128M

In Jacksonville, FL, the senior director in the Tampa office of Cushman & Wakefield of Florida Inc., negotiated the sale of the 33-year-old, 166,759-sf Beach Boulevard Shopping Center for owner EIC Jacksonville in 10 weeks. The buyer, 1980 Unionport Associates of New York, paid $7.2 million, or $43.17 per sf, for the 15.6-acre, fully leased property at 7500 Beach Blvd.

Karl Johnston, a director in the Jacksonville office of Cushman & Wakefield, and associate director Patrick Berman of the firm's Tampa office, worked with Michalak on the deal. There were nine bidders for the property.

"The asset is well-positioned in its trade area and features a high percentage of creditworthy tenants with below market rental rates," Michalak tells GlobeSt.com. "It's a great buy for the new owner."

He says the $43.17 per-sf-price may be on the low side for such a property today but the price is "indicative of the rents, which were low." The average asking base rent for local space at the center is $12 to $14 per sf. The anchors include Winn-Dixie, Bealls Outlet, Big Lots, Super Fitness and Sticks N' Stuff.

The center had only nine tenants at closing and five of the tenants occupied about a total 21,000 sf. Michalak estimates the per-sf-price is about $85 below replacement value today. EIC has owned the center since 1995. The property was built in 1971 and renovated in 1996.

Michalak says the deal was done at this time because the partnership owners "wanted to reallocate funds."

In New Port Richey, FL, Michalak represented owner RP Klein LLC of Clearwater in the $2.7-million sale of the 15-year-old, 30,877-sf, Congress Crossings Shopping Center to Congress Crossings Inc. of Las Vegas. The buyer paid $88.25 per sf for the 12-tenant property at the southwest quadrant of Massachusetts and Congress Avenues. The center, now 96% leased, is asking for average base rents at $11 per foot. Michalak was the sole broker in the transaction.

The center is shadow-anchored by a Kash N' Karry grocery store and a Family Dollar. Michalak doesn't think Tampa-based Kash N' Karry's recently unveiled plans to close stores in certain markets will hurt Congress Crossings. "The store sales were strong and the rent-to-sales factor was low," the broker says.

In Atlanta, Michalak and Tampa colleagues Patrick Berman, Kris Cooper and Margaret Coldwell teamed to represent owner New RonStone of Atlanta in the $28.1-million sale of the 336,663-sf, 13-year-old Stone Mountain Square community shopping center in Stone Mountain, GA.

Stone Mountain Acquisition LLC of Brooklyn, NY paid $83.47 per sf for the 38.7-acre property which is anchored by Marshalls, TJ Maxx, Staples, Rugged Warehouse, Old Navy, Media Play and Bally's.

"This property is the dominant retail asset servicing the trade area," says Michalak. "The center's occupancy level has consistently outperformed competitors within the retail submarket."