O’Connor Capital Partners boosted its Palm Beach County portfolio, paying $28.8 million for a Delray Beach shopping center anchored by Michael’s and a CVS store on an outparcel.
An affiliate of New York-based O’Connor Capital, led by CEO Bill O’Connor, acquired Delray Corner at 14802 South Military Trail and 4970 West Atlantic Avenue, records show. The deal breaks down to $335 per square foot for the 86,000-square-foot retail complex.
Douglas Mandel and Zach Levine with Marcus & Millichap represented both the buyer and the seller, Boca Raton-based Berta Management, led by Michael and Slyvia Kanoff and Lawrence Abrams.
In 2007, Berta Management paid $14.2 million for the 9-acre site, and built the CVS-leased store in 2018, records show. Delray Corner’s main building was completed in 1981.
Delray Corner underwent a substantial renovation in 2023, which included the addition of Michaels, Conviva Care, and the construction of a new Starbucks outparcel, a press release states. Michael’s moved into an empty big box store previously leased to Bed, Bath & Beyond.
Other tenants include Hacienda Restaurant, Enterprise Rent-A-Car, Power Financial Credit Union and Taso’s Greek Taverna.
Delray Corner is currently 96 percent occupied, and a majority of the tenants have lease terms of more than eight years, providing O’Connor Capital with “immediate stable cash flow in a submarket with limited vacancy,” Mandel said in a statement.
Last year, Berta Management secured an $18.5 million refinancing for Delray Corner, according to published reports.
In Palm Beach County, O’Connor owns The Esplanade, an outdoor luxury retail plaza in Palm Beach, and a Boca Raton office building at 230-240 Royal Palm Way, according to the firm’s website.An O’Connor affiliate, Keystone-Florida Holding Corporation, owns the Galleria Fort Lauderdale mall. In 2023, Keystone-Florida listed the mall for sale with the owner expecting offers north of $100 million. The listing does not include two department stores owned by Macy’s and Dillard’s. The site is permitted for 1,899 residential units, or 60 units per acre, and buildings with a maximum height of 150 feet, according to a CBRE brochure.
