New Orleans-based PMAT Companies just paid $7.65 million at auction for a Publix-anchored shopping center just north of downtown Kissimmee.
The 65,853-square-foot Columbia Promenade retail center at 1251 W. Columbia Ave. sold for about $116 per square foot.
Columbia Promenade was completed in 2000 on a 9.7-acre lot. The shopping center sold about 92.7% leased to tenants, including Publix and Keke’s Breakfast Cafe. Other tenants consist of a nail salon and a Chinese take-out restaurant, among others.
The seller is a company tied to LNR Partners, which took ownership of the site in 2013 for $7 million after a commercial mortgage-backed securities trust, managed by LNR, took over the roughly $15.3 million mortgage of the previous owner, Columbia Promenade Station LLC, tied to Phillips Edison & Company.
The seller hired JLL to run an auction process on Ten-X, formerly known as Auction.com. JLL brokers involved in the deal include directors Brad Peterson and Whitaker Leonhardt, as well as analyst Tommy Isola.
There were 19 qualified groups that registered to bid for Columbia Promenade and nine that actively participated in the auction. Over 300 parties reviewed this transaction, according to a press release by JLL.
“Well-located, strong-performing retail has continued to attract investor interest during the pandemic, as evidenced by this successful transaction,” Peterson said in the release.
Data used by JLL shows the retail center has nearly 75,000 residents living within a three-mile radius, and the area has a projected population growth of 8.2% within the next four years.
LNR was bought by Starwood Property Trust, a primarily publicly-traded financial company that invests in commercial mortgages, in 2013. The trust looks to reposition properties, according to its website.
The buyer, PMAT Companies, is also in the value-add business.
The firm has acquired and renovated over 40 primarily grocery-anchored shopping centers with an aggregate transaction value of over $1 billion. According to its website, PMAT’s investment strategy is to acquire value-add shopping centers and create long term value through redevelopment and re-tenanting of the assets.
Columbia Promenade is PMAT’s 18th acquisition in Florida and second acquisition during the pandemic.