November 14, 2019
CRC Acquires 166,465 Square Foot Mango Plaza Shopping Center Near Tampa, FL
Acquisition represents the fifth retail property and seventh asset overall purchased by Continental Realty Fund, V, L.P., a $210.8 million private equity fund focused on retail and multifamily properties
CRC has announced the acquisition of Mango Plaza, a 166,465 square foot neighborhood shopping center located in Seffner, Florida, approximately 20 miles from Tampa, for $12.49 million. The asset, which was nearly 94% leased at the time of the purchase and anchored by Walmart and Publix Super Markets, was purchased from a joint venture between Field Real Estate Holdings LLC and Southern Management and Development, L.P. This represents the 16th asset currently owned and managed by CRC in Florida. The seller was represented by Kirk Olson and Drew Kristol of Marcus & Millichap in Miami, Florida.
The asset was acquired on behalf of Continental Realty Fund V, L.P., a $210.8 million private equity fund focused on the acquisition of value-add retail and multifamily properties in the Mid-Atlantic and Southeast regions. This represents the fifth asset acquired by the Fund this year, following last month’s acquisition of The Bluestone, a 360-unit multifamily community located near Hilton Head, South Carolina.
Constructed in 1986 and positioned at the signalized intersection of Mango Road and E. Martin Luther King Jr. Boulevard, Mango Plaza’s tenant mix is comprised of 18 national and local retailers offering soft goods, professional and business services and sit-down and fast-casual dining options. More than 70,000 consumers reside within a three-mile radius of the center, including approximately 25,000 households with an average household income exceeding $70,000. The population has expanded by more than 11% in the past nine years, with future growth over the next six years expected to eclipse 7%.
“We were attracted to Mango Plaza because of the two high-performing anchors in Walmart and Publix, which together occupy more than 60% of the total shopping center space and are recognized as among the leading brands in their respective categories,” stated Paul Kang, Vice President of Acquisitions for Continental Realty Corporation. “Our team believes this represents an outstanding opportunity to acquire the dominant shopping center in the immediate submarket. We were able to acquire the property significantly below replacement cost, with strong prospects to add significant value with the execution of our leasing and asset management strategy. Mango Plaza is a well-positioned asset that will deliver a solid risk-adjusted yield to our investors.”
According to information generated by the Tampa Hillsborough Economic Development Corporation, the population in Hillsborough County is expected to grow by more than 125,000 residents over the next five years, to more than 1.5 million people, an 8.7% growth rate – the highest in the State of Florida. Year-over-year single-family building permits increased by 32% in June of this year. In addition, more than one million square feet of commercial office space and more than two million square feet of industrial space are under construction throughout the county. The Hillsborough County labor force has also grown 23% over the last decade.
“This brings us to 16 properties in Florida. We know the Florida markets well, and we believe in the robustness and growth story of the greater Tampa metropolitan market,” stated JM Schapiro, CEO of Continental Realty Corporation. “This region has a demonstrated history of business attraction, job growth and the influx of new residents moving from throughout the country to take advantage of a favorable climate and cost of living structure. Fueled by our strong relationships in the area and retail industry, we are confident in our ability to lease the remaining few spaces, retain the existing tenants and build value in the asset.”
Continental Realty Corporation (CRC), is focused on acquiring value-add retail and multifamily properties, located throughout the Mid-Atlantic and Southeast regions of the United States. Headquartered in Baltimore and founded in 1960, CRC is a full-service commercial real estate and investment company. The privately-owned firm owns and manages a diversified portfolio of retail centers, consisting of over 4.5 million square feet of commercial space, as well as almost 10,000 apartment homes. Positioned throughout the Mid-Atlantic and Southeast regions, the portfolio’s value exceeds $2 billion.
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