Mount Vernon Company paid $66.9 million for a Palm Beach Gardens shopping plaza whose anchor tenant is a renovated Publix grocery store.
Nuveen Real Estate sold the 207,900-square-foot Promenade Shopping Plaza for $17.6 million more than it paid — $49.3 million in 2017.
The deal closed at $321 per square foot. Beacon Bank provided Boston-based Mount Vernon with a $35.9 million loan.
The neighborhood shopping strip at 9810 Alternate A1A was built in 1989 and sits on about 22.8 acres. Its central tenant is a Publix that reopened after renovations last year. Planet Fitness, Goodwill and Ace Hardware are among the other tenants. The property is 98 percent occupied.
The buyer plans to hold the shopping center long term, according to a news release.
This marks the first major shopping center acquisition in South Florida for Mount Vernon, led by Chairman Bruce Percelay.
JLL’s Danny Finkle, Jorge Portela and Kim Flores represented Nuveen.
The county assessed the property’s value at $49 million this year. Its neighbors are mostly condos and single-family homes.
The sale is atypical of recent activities from Chicago-based Nuveen, which has largely expanded its local grocery investments. Earlier this year, it raised $330 million for its U.S. Cities Retail Fund meant to acquire grocery-anchored retail properties across the country.
The company in April bought the Aldi-anchored Coral Landings III shopping center in Margate for $46.3 million, or $268 per square foot. The company, led by Bill Huffman, operates under the Teachers Insurance and Annuity Association.
Nuveen has hit distress in the office market in recent years, as loans it originated to office landlords didn’t pay off. In January, Nuveen and Pacific Coast Capital Partners took over a 35-story office tower in Chicago’s River North after the landlords defaulted on a $296 million floating-rate loan issued in 2021.
Mount Vernon’s Percelay sold a Palm Beach empty lot with plans for a 6,900-square-foot home for $10.3 million in 2022. The sale nearly doubled what he’d paid for the land 16 months earlier.
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