In an apparent referendum on the desirability of big-box retail, a bustling shopping center on Southern Boulevard just changed hands for 25 percent less than its previous price.
The Shoppes at Southern Palms, a 200,888-square-foot center west of West Palm Beach, sold this week for $23.55 million, according to commercial real estate brokerage Marcus & Millichap. It previously traded for $31.4 million in 2012, according to property records.
The seller was Garrison Investment Group of New York. After paying $31.4 million for the property, it sold two outparcels for prices totaling nearly $3.9 million, according to property records.
The Shoppes at Southern Palms is 100 percent occupied. Kohl’s has a 93,396-square-foot building on a ground lease, and Dick’s occupies 80,000 square feet.
Both anchor tenants face difficult retail environments. Kohl’s operates department stores in an era when shoppers prefer Amazon and hunting bargains at Marshall’s, Ross and T.J. Maxx. Kohl’s rivals J.C. Penney, Sears and Macy’s have been closing stores.
Dick’s likewise is battling Amazon. Sports Authority, its major competitor in South Florida, shut down in 2016.
Other tenants include Dollar Tree, Hard Exercise Works, GNC, Phenix Salon Suites and Experimac.
The property’s new owner is a South American investment group, Marcus & Millichap said.
The plaza was built in 2009 on 22 acres near the South Florida Fairgrounds.