Tampa Trade Demos Ferocious Retail Appetite

MIAMI—University Collection, a 107-square-foot, grocery-anchored neighborhood center in Tampa, has traded hands. The retail asset sold for $18.4 million.

The Shopping Center Group's Investment Sales Division represented the seller, University Collection CRP LLC. The firm is a joint venture between Ram CRA Partners and Forge Capital Partners.

“University Collection is one of the most successful retail centers in a trade area strengthened by the presence of the University of South Florida and two hospitals,” says Anthony Blanco, director of Investment Sales at The Shopping Center Group. “In addition, the redevelopment of the adjacent University Mall is expected to further increase retailers' interest in this commercial node, enabling the new owners to add additional value to the property in the near future.”

The companies acquired University Collection in 2006 as one of 14 shopping center acquisitions as part of its Community Reinvestment Partners closed-end private equity real estate investment fund. An institutional commercial real estate investment fund Charlotte, NC-based Faison manages acquired the asset.

“The neighborhood center provides retail and service amenities to a dense daytime and nighttime customer base surrounding the intersection of Fowler Avenue and Bruce B. Downs Boulevard,” says Blanco. Built in 1984, the shopping center is about 80% leased with a retail and restaurant line-up that includes: Sweetbay Supermarket, Dollar Tree, Pet Supermarket, Chili's, Tijuana Flats, Five Guys Burgers and Fries, Firehouse Subs, Jason's Deli, Mattress One, and FedEx Office. The Sweetbay Supermarket was not included in the transaction.

“We have seen a substantial increase in investment sales activity for retail properties throughout the Southeast,” says Blanco. “While this is in some part due to the return of non-recourse financing for most retail property types, the fact is that several institutional groups are acquiring assets without financing, and their appetite for well-positioned, income-producing properties far exceeds available supply. The bottom line is that the improvement in retail property fundamentals has whetted the appetites of both institutional and private investment groups and has brought about a resurgence in demand.”