Federal Realty Investment Trust (NYSE: FRT) today announced its acquisition of an 85% interest in The Shops at Sunset Place, a 515,000-square-foot, mixed-use center in South Miami, Florida based on a gross value of $110.2 million. The transaction includes the assumption of an existing $70.8 million mortgage with an interest rate of 5.6 percent and maturity date of September 2020. The Trust has acquired the property with local market partners Grass River Property and The Comras Company. With its recent acquisition of CocoWalk in nearby Coconut Grove, the Trust and its partners have invested approximately $200 million within a three mile area that is home to some of South Florida's strongest year-round demographics, high barriers to entry, and demand drivers including universities, hospitals and corporate headquarters.
Situated on approximately ten acres at the intersection of US1, Red Road and Sunset, The Shops at Sunset Place lies at 'main and main' within the thriving South Miami commercial district. The neighborhood sits amongst some of Florida's most affluent residential areas including Coral Gables, Pinecrest, and Coconut Grove. Approximately 100,000 people reside within three miles of the property, with an average household income of $120,000.
"As Miami becomes an increasingly urban and dense market, walkable, authentic neighborhoods like Coconut Grove and South Miami are becoming increasingly attractive destinations to live, work, shop, dine and be entertained," said Dawn Becker, Executive Vice President –Mixed Use Division, Federal Realty Investment Trust. "Like Cocowalk, Sunset Place presents a compelling opportunity to create value through integrating it with the vibrant streets that border the property, adding new tenants and delivering a mix of uses that meet the demand of the affluent, year round communities it serves."
The Shops at Sunset Place comprises 408,000 square feet of retail space, 107,000 square feet of office space and a 1,700-space parking garage. Tenants include AMC Theatres, LA Fitness, Barnes & Noble, Forever 21, Splitsville and Z-Gallerie. The Shops at Sunset Place benefits from close proximity to the University of Miami's main campus, South Miami Hospital, some of Miami's most prestigious private schools, and a number of corporate offices. The South Miami Metrorail station is one block away, providing direct access to public transit. The property enjoys a 96% walk score according towww.walkscore.com.
"The Shops at Sunset Place was always envisioned to provide a pedestrian friendly, streetscape environment, as an extension of South Miami's "Main Street" Sunset Drive," said Michael Comras, CEO of the Comras Company. "With the right vision, balanced approach and creative thinking, The Shops will complement the area's popular restaurants, cafes and boutiques, while becoming a vital retail anchor that caters to the locals and surrounding communities. We are looking forward to working closely with all to improve and evolve this vision together.”
"Looking at the demand drivers in place and the demographics in the surrounding residential community, it's easy to understand why we see tremendous unlocked potential in The Shops at Sunset Place," Tom Roth, Principal at Grass River Property added. "South Miami is one of the best urban nodes in Miami-Dade County – it is walkable, with transit at its doorstep and has a well balanced mix of commercial and residential uses. Knowing this, it will be central to our plan to better integrate with South Miami's street grid, connect back to the community and improve the Sunset experience for those that want to shop, live, visit or work there."
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