(Save the date: RealShare Industrial 2012 comes to The Bankers Club, Miami, December 5 – 6.)
MIAMI—Flamingo Kids, Ltd. just closed an $18.2 million refinance on its Hialeah shopping center. Flamingo Park Plaza spans about 129,000 square feet south of Miami.
Bilzin Sumberg represented the borrower, Flamingo Kids, which is controlled by Jack Glottmann. Wells Fargo Bank made the loan, which intends to securitize it in the CMBS market.
“This deal is yet another example that the retail market is coming back, with renewed sales and leasing taking place across South Florida,” Lustig tells GlobeSt.com. “As the economy recovers we should see even more activity on the part of tenants aiming to expand their foothold in what continues to be an attractive market.”
The shopping center complex is located 4410 West 16th Avenue. The property’s anchor tenants include Navarro, CAC Florida Medical Centers, Dollar Tree Stores, and Goodwill.
While financing activity in general and CMBS financing in particular are increasing, Lustig says he has not seen a tremendous amount of financing in South Florida on non-grocery anchored shopping centers of this type. He expects South Florida’s foreign investment and residential growth to continue spur retail development.
According to Marcus & Millichap’s latest Retail Research report, completions for the year will total 240,000 square feet, expanding inventory by 0.3%. Additions to inventory over the past two years are well below the prerecession five-year average of 1 million square feet annually. Developers completed just 191,700 square feet of retail space last year.
“Below-average completions and an increased interest from new retailers this year will push vacancy to the lowest level since the end of 2008,” the report says. “Vacancy will reach 6.2% by year end, marking a 70-basis point decline year over year. Retail vacancy fell 90 basis points last year.”