Delray Square II Gets Joint Venture Partner, Explores Redevelopment

Written by on 10.13.15 in Retail - No comments

Tremont Realty Capital has found a joint venture partner for Delray Square II as it seeks to bring the shopping center’s occupancy rate up from 39.9 percent.

The property could be redeveloped to create more attractive spaces for retailers and restaurants.

Avison Young’s John K. Crotty and Joshua Ladle represented Boston-based Tremont in signing a deal with Hallandale Beach-based Isram Realty Group, which is now a joint venture owner and operating partner. Its goal is to bring national, big-box tenants to the major spaces, national chain restaurants to the out parcels and an array of local and national tenants to the smaller retail bays. Led by Shaul Rikman, Isram Realty Group manages over 2 million square feet of commercial real estate.

Delray Square II, at 14530 to 14590 South Military Trail, could be redeveloped to lure new tenants.

Delray Square II, at 14530 to 14590 South Military Trail, could be redeveloped to lure new tenants.

The property at 14530 to 14590 South Military Trail changed hands in a quit claim deed for minimal consideration. Israel Discount Bank of New York provided a $13.2 million loan to the joint venture partners.

Delray Square II totals 150,157 square feet on 15.1 acres and was built in 1987. It’s on the corner of West Atlantic Avenue. Tenants include Planet Fitness, H&R Block, Subway and Express Docs Urgent Care.

“Delray Square II is an exciting redevelopment opportunity for Tremont and Isram,” Ladle said. “The property is poised to benefit from a strong retail market in South Florida and the redevelopment of the adjacent Publix-anchored center.”

The adjacent Delray Square I, owned by an affiliate of Keith Corp., is in the midst of a redevelopment plan that would create new out parcels and a new space for Publix.

“As properties are becoming more valuable and consumer confidence continues to be positive, retail property investment has experienced an uptick nationwide in the form of sales and strategic partnerships,” Crotty said. “More specifically, value-add and redevelopment opportunities have been top-of mind opportunities for investors.”

 

Source: SFBJ

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