Why Winn-Dixie-Anchored Centers Are Hot

MIAMI—The Shoppes at Cresthaven, a grocery-anchored neighborhood center in West Palm Beach, FL, has traded hands. It sold for $12.7 million to a private, New York-based investment group. 

Shopping Center Group's team of Anthony Blanco, Lenard Williams, and Mallory Ham represented the seller.  The deal marks the seventh Winn Dixie-anchored property sale facilitated the firm has closed in the past two years and the fourth since July.

“This transaction illustrated the strong interest for Winn Dixie-anchored properties, particularly in Florida's major markets,” Blanco, director of investment sales, The Shopping Center Group, tells GlobeSt.com. “Investors are comfortable with these properties that are situated in densely populated areas with very limited prospects for future competition.”

With its inline tenant line-up representing a mix of convenience and necessity retail goods and services, Shoppes at Cresthaven sits within a well-developed, dense trade area with high barriers to entry. The tenant roster includes Dollar Tree, Youfit Health Clubs, Dade Medical College and CitiTrends as well as McDonald's along South Military Trail. Another 13,000 square feet of small shop space is available.

“Priced out of Publix-anchored shopping centers, many private investors have shifted their attention to Winn Dixie-anchored properties situated within densely populated areas in major markets—as is the case with this property,” says Blanco. “Retail properties in South Florida are performing very well and are receiving very strong interest and exceptional pricing.”

Built in 1987, the neighborhood center is located at the intersection of South Military Trail and Cresthaven Boulevard where 42,000 vehicles pass daily.  It is about three miles south of Palm Beach International Airport, west of Interstate 95 and east of the Florida Turnpike. There are nearly 209,000 residents with an average household income of more than $53,000, as well as 85,000 employees, within a 10-minute drive.

“The Shoppes at Cresthaven received considerable interest from a variety of investor types including foreign investment groups,” Blanco says. “We received several competitive offers, but ultimately, the selection of this buyer was based on their terms and level of familiarity in transacting Winn Dixie-anchored properties.”