August 28, 2024

CRC Executes Sale Of Nearly 140,000 Square Foot Ridge Plaza In Davie, Florida For $22.25 Million

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BALTIMORE, MD (August 28, 2024) – Continental Realty Corporation, on behalf of Continental Realty Fund IV, L.P., has completed the sale of Ridge Plaza, a nearly 140,000 square foot retail center located at 9000-9200 W State Rd 84 in Davie, Florida, for $22.25 million. After acquiring the asset in 2017, the Baltimore-based real estate investment and management company successfully parcelized and individually sold all six of the free-standing pad sites at the center for a total price of about $13.1 million. With the sale of the shopping center, CRC generated a total exit value of approximately $35.35 million, compared to the company’s purchase price of $21.3 million. JLL represented CRC in this sales transaction.

Ridge Plaza was a strategic purchase for the firm in 2017 as a Fund IV investment. Located in Broward County, Ridge Plaza was approximately 99 percent leased at the time of sale. Anchored by Paragon Theaters, Goodwill Industries and Off The Wall, the center consists of about 15 retailers, restaurants, and other specialty service providers. The center maintained high occupancy as CRC’s team completed numerous renewals of longstanding tenants during the seven-year hold period.

Positioned just south of the interchange with Pine Island Road and with strong frontage along I-595 / State Road 84, Ridge Plaza includes six leased roadside pad sites and is occupied by a variety of national and local restaurants and service providers.

Privately held and active in 11 states, with Assets Under Management (AUM) exceeding $4 billion, CRC has been a notable player in the retail space over the last decade. The firm has grown its shopping center portfolio by more than three million square feet of space since 2020, with roughly eight million square feet of retail space currently owned and managed. In addition to its retail portfolio, CRC owns and operates a multifamily portfolio containing more than 9,000 apartment homes.

“Ridge Plaza is a notable example of CRC’s innate ability to recognize and unlock value,” said Haley Donato, CRC’s Senior Vice President of Asset Management & Finance. “Our team worked over the first few years of ownership to subdivide the shopping center and create six independent outparcels. This was a lengthy and bureaucratic process, but the value creation was clear, with all six pad sites being sold at accretive cap rates.”

One of those pads sites was a vacant land parcel that was ultimately sold to a local medical office group to develop their own building. “We were initially advised this was not a developable site, but we worked closely with the local municipality on a variety of matters, and after nearly a two-year process, we obtained the necessary development approvals to sell the pad to a local operator,” added Donato. “This showcases our team’s unwavering commitment to unlocking value in ways big and small.”

More than 640,000 people reside within a 15-minute drive of Ridge Plaza, with average household incomes of about $102,000. Approximately 129,000 vehicles pass Ridge Plaza per day via I-595.

The Ridge Plaza sale follows CRC’s recent disposition, on behalf of Continental Realty Fund V, L.P., of Centre at Hagerstown, a nearly 292,000 square foot regional shopping center located in Hagerstown, Maryland, for $36.25 million. Since CRC’s acquisition of the asset in 2019, the company successfully sold nine of the 10 free-standing pad sites at the center for $16.1 million, achieving a blended cap rate of 5.4 percent on those collective pad sales. With the sale of the shopping center, CRC generated a total exit value of approximately $52.4 million, compared to the company’s purchase price of $23.5 million.

Headquartered in Baltimore, Maryland and founded in 1960, Continental Realty Corporation is a full-service commercial real estate and investment company focused on acquiring and operating retail and multifamily properties. The privately held firm owns and manages a diversified portfolio of retail centers consisting of nearly eight million square feet of commercial space and over 9,000 apartment homes across 11 states, with a portfolio value exceeding $4 billion. For additional information, visit www.crcrealty.com.