The 140,000-square-foot Doral Commons shopping center has been sold for $71.6 million, pointing to a solid real estate market fueled in part by the city’s speedy population growth and a cluster of big-name employers.
Atlanta-based Jamestown LP bought the shopping center from its developer, Terra Group LLC. The deal closed Jan. 8 and 9 with seller Terra Doral Commons Retail LLC, an affiliate of Terra, according to Miami-Dade County and state records. The price works out to $616 per square foot.
Doral Commons sits on about 18 acres on the northeast corner of Northwest 107th Avenue and 74th Street. The plaza, which is 95 percent leased, is anchored by a Publix and a T.J. Maxx, and other tenants include Citibank, GNC, AT&T and McDonald’s.
“Terra developed Doral Commons with the goal of attracting a tenant mix that would meet the everyday needs of nearby residents, and the success of that formula ultimately led to this sale,” David Martin, who co-founded Terra with his father Pedro Martin, said in an emailed statement.
In 2012, Terra bought 100 acres destined for Doral Commons and the 319-home Modern Doral. Doral Commons was finished in 2015, and Modern Doral in 2014, according to Terra’s website.
“This is a case of Terra taking a forward-looking approach to acquiring a site, recognizing a void in the market and creating value through execution and leasing,” Mark Gilbert, executive managing director for Cushman & Wakefield South Florida capital markets and Terra’s representative in the deal, said by email.
The purchase by Jamestown shows how valuable Doral has become to institutional investors.
The city is “one of the most dynamic markets in the Southeast for all property types in the eyes of core real estate investors,” Gilbert said.
Transactions during 2017 speak to this. The more than 390-unit upscale apartment development Manor at CityPlace Doral traded for $135 million to an affiliate of real estate investor TA Realty. Also, the 116,179-square-foot retail center Doral Plaza traded for $71 million to shopping center owner and operator ShopCore Properties.
“The fact that Doral is one of the fastest-growing cities in the Southeast is special, but it’s the quality of residential and employment growth that makes it a must-own market for institutional investors,” Gilbert said in the release.
The 2016 U.S. census put Doral’s population at 57,947. But thousands more people come to the city daily to work and shop.
The daytime population is 100,000, and the city is home to 250 corporate headquarters and 100 multinational corporations, according to a Cushman & Wakefield 2017 retail markets report.
Doral has a retail occupancy rate of 97.6 percent, and 50,000 square feet of retail space was under construction, according to the 2017 report released October.
Terra still owns Modern Doral, which is east across Northwest 104th Avenue from Doral Commons. The two-story cubist homes with contemporary details have 10- to 12-foot high ceilings.