Retail Brokers Are Making Smaller Deals

TAMPA, FL-Locally based Plaza Advisors is finding success on the lower end of the retail spectrum, completing several transactions under the $10-million range. The firm most recently closed on the 95,320-square-foot, grocery-anchored Plaza 66 shopping center in Kenneth City, near St. Petersburg, for $6.5 million or $68 per square foot.

Centro Properties Group sold the shopping center to Plaza 66 LLC, a private equity group. Jim Michalak, managing principal of Plaza Advisors, worked with colleagues Anthony Blanco in Miami and Lenard Williams in Tampa on the transaction.

Michalak says a key component to making retail deals lately is working with property owners to determine the right value of their asset and the most compelling reason to sell. This often involves researching recent leases in the local market and sharing that information with clients, he says.

“You have to reach an understanding of what an asset is worth realistically,” Michalak tells GlobeSt.com. “There is no sense in going to market with an asset that isn’t going to sell.” He adds that seven-figure deals are easier to accomplish lately given ongoing capital restraints.

Plaza 66 features a 55,320-square-foot Sweetbay Supermarket that underwent substantial renovation three years ago. Other recognizable tenants include Family Dollar, Cici’s Pizza and Rent A Center.

Earlier this year, Plaza Advisors were involved in the sale of Plant City Crossing and Regency Village, two grocery-anchored centers in Central Florida; Village Shopping Center in Orange Park; Belleair Bazaar in the Clearwater area; and Palafox Square in Pensacola.