CREC Sells Sunrise Shopping Center For Three Times Original Acquisition Price
CRE-Sources | South Florida Commercial Real Estate News
CREC announced that CPAC, a joint venture between CREC and members of the Lindemann Family, has completed the sale of University Shoppes of Sunrise in Sunrise, for $12.6 million, to Luxcom, founded by Oscar Barbara.
With this sale, which closed on November 20, the partnership achieved three times its original acquisition price.
CPAC acquired University Shoppes of Sunrise through foreclosure after purchasing the distressed note in 2012 at a significant discount. At the time of purchase, the property was comprised of a 135,011-square-foot retail center located on 13.2 acres, which included a vacant 103,480-square-foot former BJ’s Wholesale Club.
The partnership identified this purchase as a redevelopment opportunity and began to reposition the property to execute a ground lease with Aldi for a portion of the property. Upon completion of the new grocer, 9.2 acres of prime developable land remained, which CREC recognized as a prime suburban 222-unit multifamily development site and positioned the property for sale as such.
“This transaction adds yet another layer to the depth of CREC’s acquisition activity this year, further highlighting our ability to recognize opportunities that yield a robust return,” said CREC Chairman and Co-Founder Warren Weiser. “We saw tremendous value in purchasing the note for this property, at a low basis point that allowed us to evaluate the best use for its future, which we ultimately concluded to be multifamily. The execution of the sale was a strong land play, where we maximized value.”
“We continue to engage in high-level acquisition and sales activity with the benefit of providing our partnerships with full-service capabilities across our diverse product types and services, which includes the ability to seamlessly underwrite and execute deals across the state of Florida,” added CREC Co-Founder and President Carol Greenberg Brooks.
CREC Vice President Andrew Remick and Aztec Group Managing Director Peter Mekras represented the seller, CPAC.