MELBOURNE, FL-New York-based Benbrooke Realty Investment Co. has entered the Florida retail market with the nearly $6.6-million acquisition of Northgate Shopping Center, a 21-year-old, 131,851-sf Kimco Realty Corp.-owned asset here on Florida's Space Coast.
Delayed by Florida's hurricanes last fall, a Benbrooke affiliate and an affiliate of New Hyde Park, NY-based Kimco have completed the deal for the 80%-leased property on Wickham Road, a primary commercial artery in south Brevard County. The acquisition price equates to $49.68 per sf, "considerably below replacement cost," Benbrooke principal Richard Lubkin tells GlobeSt.com.
The company plans an extensive renovation program that "could run into several hundred thousand dollars," Lubkin says. "We have earmarked up to $1 million for renovations, if we need it." The average asking base rent for small shop space is $12 per sf, lower for larger tenants. Current anchor tenants at the 18-tenant cent include Save-A-Lot grocery, Harbor Freight Tools and Goodwill. Construction of a Family Dollar Store is near completion and scheduled to open in April.
"The acquisition of Northgate Shopping Center, coupled with our recent acquisition of Franklin Marketplace [223,562 sf] in Philadelphia, is in keeping with Benbrooke's core focus of acquiring value-added properties," says George Ackerman, another Benbrooke principal.
The company plans to increase the occupancy level after renovations by setting up an asset management plan to lease the remaining vacant space. Coldwell Banker's Melbourne office, led by Michael Dwyer and Ron Robbins, along with Benbrooke's in-house leasing team, will make a nationwide search for new tenants, Lubkin says.
Michael Oestreich, a Benbrooke principal, will lead management efforts. The company has selected Melbourne-based JM Real Estate, led by Jewel McDonald, to work with Benbrooke as the local property management liaison.
Wells Fargo Bank is providing debt financing for the project. Lubkin declined to disclose the loan amount.
"Although Northgate is Benbrooke's first foray into Florida real estate, it certainly won't be our last," Lubkin tells GlobeSt.com. "We are committed to continued opportunistic growth throughout Central Florida, similar to our recent expansion throughout North Texas and the Mid-Atlantic seaboard states."
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