JACKSONVILLE, FL—Regency Plaza, a shopping center directly across from the Regency Square Mall, has traded for $6.5 million. Kimco Realty sold the asset to DLC Management Corp.
Plaza Advisors Holdings represented Kimco in the shopping center disposition. Jim Michalak, a managing principal at Plaza Advisors, handled the sale.
“The capital markets are searching for either the best in class grocery-anchored assets or opportunistic deals,” Michalak tells GlobeSt.com. “This transaction represents the epitome of a value-add opportunity with nearly 50,000 vacant square feet.”
The shopping center is located on Atlantic Boulevard. The retail center totals 205,696 square feet of gross leasable area and is situated on about 18.63 acres. Tenants include Burlington Coat Factory, Office Max, dd’s Discounts, Chuck E. Cheese, Baby Depot, and Carrabba’s Italian Grill.
“Regency Plaza is at the apex of the area’s two main road systems,” Michalak says. The mall was Jacksonville first enclosed regional enclosed retail asset. The trade area dynamics have changed dramatically due to the impact of the St. Johns Town Center developments.”
According to Marcus & Millichap, the majority of retail space coming online through year end is preleased or build-to-suit and will contribute to positive absorption in the coming months. As a result, the firm said, vacancy will fall 50 basis points in the second half to 11 percent, though the rate will still be 10 basis points higher than at the end of last year. In 2011, vacancy fell 60 basis points.
“Demand for space in the coming months will allow operators to increase rents in the metro,” M&M said in its third quarter report. “Asking rents will rise to $14.65 per square foot and effective rents will reach $11.90 per square foot, an increase of 0.4% each. Asking and effective rents were down 0.9% and 0.8%, respectively, at the end of 2011.”