An affiliate of Kite Realty Group (NYSE: KRG) paid $35.75 million for the Palms Plaza shopping center in west Boca Raton.
CH Realty VIII/R Boca Raton Palms Plaza LLC, managed by executives at Crow Holdings in Dallas, sold the 68,983-square-foot retail center at 22161 and 22191 Powerline Road to KRG Boca Raton Palms Plaza LLC, an affiliate of Indianapolis-based Kite Realty Group. The price equated to $518 a square foot.
The property last traded for $30.2 million in 2018, so it gained in value.
Palms Plaza was built on the 7.6-acre site just south of Palmetto Park Road in 1988. Tenants include Party City, Olive Garden, Grove Kosher Market, Brooklyn Water Bagel, and Boca Veterinary Clinic.
It’s right next to a Publix-anchored shopping center.
According to its first quarter earnings release, Kite Realty Group owns 181 retail centers of mixed-use projects in the U.S. Its recent acquisition strategy has been centered on properties in Sunbelt states, including Florida. The other South Florida retail centers listed as part of its portfolio are Cobblestone Plaza in Pembroke Pines, Delray Marketplace and Miramar Square.
According to the second quarter report from Colliers International, the vacancy rate for Palm Beach County retail space was 4%, down from 5.1% in the same quarter a year ago. The average asking rent increased to $27.74 a square foot, from $23.90 a square foot. However, the Boca Raton West submarket had a lower vacancy rate at 1.8%.
Sign up here for the Business Journal’s free morning and afternoon daily newsletters to receive the latest business news impacting South Florida. For more business intelligence, follow us on LinkedIn, Facebook, Twitter and Instagram.
Total leaseable square footage
| Rank | Prior Rank | Mall / Prior (*Not ranked in 2021) / URL |
|---|---|---|
1 | 1 | Aventura Mall |
2 | 2 | Sawgrass Mills |
3 | 3 | Town Center at Boca Raton |
