Retail has been struggling under pressure from e-commerce but isn’t dead. Transwestern managing director John Bell closed on the $24.9 million sale of a shopping plaza in Central Florida.
The Winter Springs center has tenants immune to the rise of online shopping, said Bell, who is based in Miami. They are a gym, restaurants, an urgent care center and medical offices, and the plaza is anchored by a Publix supermarket.
Those “type of uses … are not akin to something you can order on the internet. This, you have to experience,” said Bell, who represented the seller. “You can’t go to dinner on the internet, you can’t go see a physician on the internet.”
Phillips Edison & Co. bought the plaza from the Tabani Group, according to property appraiser and state records. The deal closed Oct. 20.
Phillips Edison & Co. is a Cincinnati-based shopping centers real estate investment trust, and the Tabani Group is a Dallas-based commercial real estate company.
The nine-building, 115,767-square-foot shopping center at 1170 Tree Swallow Drive sold for about $215 per square foot.
It’s the town center of the city, fittingly named the Winter Springs Town Center.
It used to mainly house tenants such as banks and clothing and technology stores, tenants that were affected by e-commerce, Bell said. But the seller worked to change that.
“There was more of a shift toward the expansion of the health club and also increasing the restaurant percentage and adding health care centers as well,” Bell said. ”That allowed us to maximize pricing … given the ideal tenant mix of the asset (and) by effectively communicating to investors the ideal tenant mix in the property.”
Tenants include Zoo Health Club, Quest Diagnostics, an urgent care center, a UPS store and Subway.