Stiles Realty Closes $4.5 Million Sale of 25,000-SF Former West Marine in Fort Lauderdale
Posted on 7/18/2013Signaling strong market demand for quality retail properties, Stiles Realty announced today the sale of the former 25,000-square-foot West Marine (Nasdaq:WMAR) in Fort Lauderdale for $4.5 million or $180 PSF. The price per square foot is nearly 25 percent over the Broward retail market average price per square foot for retail properties over 10,000 square feet sold in 2013.
The property located at 2300 South Federal Highway comprises 1.93 acres on three separate parcels. A Stiles Realty team led by Vice President of Retail Services Ryan Karlin and including Retail Associate Michael Carpenter and Industrial Associate Patrick Conness were involved in its sale to Miami-based Sunshine Gasoline Distributors.
"The above-average market price captured for this property is a testament to its quality and location, as well as the momentum building in the downtown Broward submarket," commented Conness. "This particular asset gives Sunshine Gasoline Distributors the opportunity to expand its presence in the area while capturing premium exposure to a main thoroughfare in Fort Lauderdale."
According to Stiles research, this is the first single tenant big box retail sale (over 10,000 square feet) in the downtown Fort Lauderdale submarket for 2013, indicating the scarcity of this kind of product in the area. Stiles Realty had listed the property for lease, the company received significant interest from local investors to purchase it. This interest speaks to the improvement in retail property sales volume for this year, which, according to Stiles, has already exceeded the total volume of 2012.
"We have seen significant growth in retail property sales lately, especially for smaller properties like this one, which have captured the attention of private investors" said Carpenter. "In Broward County, the latest trends show an increase in the average price per square foot from 2012 to 2013. All in all, this year looks to be very positive."
West Marine is the biggest specialty retailer of boating supplies and accessories. This former store once served as a market staple until the company relocated to its current 50,000-square-foot build-to-suit flagship store less than a half-mile away at 2401 South Andrews Avenue on the corner of State Road 84 and Andrews Avenue. That relocation marked the beginning of Stiles' relationship with West Marine when the company was tapped by the boating retailer to develop its new store. West Marine signed a long-term lease agreement with Stiles and the new store, currently their largest in the U.S., opened in 2012.
"This sale reflects the strength of Stiles' platform and combined abilities to maximize every type of investment structure and serve each of our client's unique requirements," said Karlin. "We are proud to have built a strong relationship with West Marine based on our ability to create value by helping them to maximize their footprint in the area while disposing of an asset that no longer met their needs."
Stiles boasts a strong track record of showroom transactions that emulate this sale. In the last 12 months, Stiles completed seven showroom transactions in South Florida totaling $13.5 million and more than 200,000 square feet. In addition to West Marine, major clients include City Furniture and Harley Davidson.
Stiles is a full-service commercial real estate firm with a clear mission: Invest. Build. Manage. Stiles services include development, construction, tenant improvement, realty, property management, architecture, acquisitions and financing. Headquartered in Fort Lauderdale, Stiles maintains regional offices in Miami, Fort Myers, Tampa and Orlando, Florida, and has a development office in Charlotte, North Carolina. Stiles is responsible for more than 38 million square feet of office, industrial, retail and mixed-use residential projects throughout the southeastern United States. For leasing information, please contact Stiles Realty at 954-627-9400.