Palm Beach County Commands South Florida Retail Investment Wave
Major retail transactions totaling hundreds of millions swept through South Florida in early 2024, with Palm Beach County capturing four of the five largest deals. International investors and institutional buyers drove the surge.
Palm Beach County emerged as the epicenter of South Florida's retail investment activity in the first quarter of 2024, capturing four of the region's five largest commercial transactions as investors deployed significant capital across suburban retail destinations.
The crown jewel transaction involved London-based billionaire brothers Simon and David Reuben, who partnered with Crown Onyx to acquire the Esplanade shopping complex on Worth Avenue for $200 million in March. The 1979-built center houses luxury retailers including Carolina Herrera, Emilio Pucci, Lugano Diamonds and Piaget, though it faced challenges after Saks Fifth Avenue departed its 50,000-square-foot flagship location following four decades of operation.
The Esplanade purchase represented an 88.7 percent appreciation from its previous sale in 2014, when New York-based O'Connor Capital Partners acquired the property for $106 million. This dramatic value increase reflects Palm Beach's substantial growth trajectory over the past decade.
Chicago-based Nuveen Real Estate, the investment division of TIAA, executed a $46.3 million acquisition of the Coral Landings III shopping center in Margate, anchored by Aldi. The 172,500-square-foot complex spans 23.2 acres and consists of six single-story buildings constructed between 2008 and 2019. West Palm Beach-based Sterling Organization, which sold the property, had purchased it for $37.4 million in 2022, representing a 24 percent value increase over four years at $268 per square foot.
Fort Lauderdale-based Berritto Family Office, under CEO Anthony Berritto's leadership, assembled a $92.7 million mixed-use retail portfolio in Boca Raton through February transactions. The portfolio's largest component was the Boardwalk shopping center, acquired for $43 million. This 130,350-square-foot center, built in 1986 on 10 acres, accommodates tenants including BurgerFi, Dunkin', Rafina Greek Taverna, Holloway's Irish Pub and Quest Diagnostics at $330 per square foot.
Luxury retail also attracted premium pricing, exemplified by White Plains-based Acadia Realty Trust's $43 million purchase of the 9,900-square-foot Gucci storefront at 225 Worth Avenue. At $4,300 per square foot, the transaction exceeded the property's 2021 sale price by 138.4 percent, when Miami Beach-based JSB Capital Group acquired it for $18 million.
Berritto Family Office's portfolio expansion continued with the $33.7 million acquisition of Grove Centre in Boca Raton, a 51,800-square-foot center built in 1983 on 3.5 acres at $572 per square foot. The center houses diverse tenants including Kabbalah Centre and the Crohn's & Colitis Foundation.
Boca Raton-based Carlyle Management rounded out major transactions by purchasing the Sprouts-anchored Delray Landing shopping center for $30 million in January. The 70,000-square-foot complex, constructed in 1981 on seven acres, features tenants such as Keke's Breakfast Cafe and CJ's Sports Bar and Grill.
The transaction activity demonstrates sustained investor confidence in South Florida's retail market, particularly in Palm Beach County's luxury corridor and suburban shopping centers with strong anchor tenants across the tri-county region.
