Related Ross scooped up a development site next to a planned Publix grocery store in West Palm Beach.
The firm, led by billionaire Miami Dolphins owner Stephen Ross, purchased a nearly 3-acre site at 209 and 210 North Sapodilla Avenue and 755 Second Street for $7.5 million from the Florida Public Utilities Company.
Related Ross already owns 605 and 621 Banyan Boulevard, which would comprise part of the planned Publix, the South Florida Business Journal reported.
The site in the latest transaction is north of a planned Publix location, which is intended to span more than 47,200 square feet, according to the outlet. West Palm Beach officials in November declared the 1.7-acre site “surplus property” and greenlit negotiations to sell the vacant land to the grocery-store chain.
Miami-based Alleguez Architecture designed the store’s plan.
It was not immediately clear what Related Ross intends for the parcels it bought near the future Publix, but Ross has called for greater economic development in West Palm Beach.
The South Florida market for grocery-anchored retail centers is attractive to investors, driven by strong demand and low overall retail vacancy.
Significant transactions include Boston-based Longpoint’s $34 million acquisition in July of Miramar Parkway Plaza, anchored by Presidente Supermarket.
Atlanta-based Invesco purchased the Marketplace at the Outlets at 1821 Palm Beach Lakes Boulevard in West Palm Beach from Barry Sternlicht’s Starwood for $133.2 million this summer.
South Florida’s retail vacancy rates have hovered at historic lows, contributing to tight supply and strong pricing for well-located centers.
Grocery-anchored centers are desirable because they drive consistent foot traffic and stable rents, making these centers defensive assets in a shifting retail landscape.
Meanwhile, Publix itself is expanding its real estate portfolio by purchasing Publix-anchored shopping centers. The Lakeland-based grocery chain has paid a combined $248.5 million for six Publix-anchored shopping centers in the tri-county region since May.
— Mary Diduch
