CTO Realty, Seritage sell Hialeah shopping center to RK Centers

Seritage Growth Properties (NYSE SRG) made over $6 million by purchasing and flipping the Westland Gateway Plaza shopping center in a single day.

Daytona Beach-based CTO Realty Growth (NYSE: CTO) and three affiliates sold the 117,021-square-foot retail center at 1460 49th St., Hialeah for $22.15 million to Seritage KMT Finance, an affiliate of New York-based Seritage, which was formed to own the real estate of Sears and Kmart stores.

Seritage actually sold the shopping center to CTO Realty Growth for $21 million in 2020, but Seritage continued managing the property through a 25-year land lease.

According to a press release from CTO Realty Growth, Seritage held an option to purchase the property as part of that land lease.

Seritage didn’t own the shopping center for long. It immediately sold it for $28.3 million to RK Hialeah LLC, led by Miami Heat part-owner Raanan Katz, the head of Sunny Isles Beach-based RK Centers.

"This deal was an opportunity to buy a fully leased center in what is a consistently strong performing retail market," said Andrew Zidar, VP of acquisitions and development at RK Centers. "The location of the property, coupled with the credit tenants attracted us to the site."

Situated on 8.5 acres near the Westland Mall, the property formerly had Kmart as an anchor, but that store closed in early 2020. Seritage renovated the building and attracted new tenants, including grocer Aldi, Ross Dress for Less, Bed Bath & Beyond, and dd’s Discount.

RK Centers is one of the largest owners of retail properties in South Florida, and it has been active over the past year in acquiring properties anchored by big national tenants.

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