Planet Fitness Inks 16,400 SF Deal

One of the most dramatic turnaround stories playing out in South Florida’s sizzling retail landscape is unfolding in Pembroke Pines, where the owners of Palm Johnson Plaza have finalized leases with two anchor tenants in less than a year and are undertaking a capital improvements program.
The 90,000-square-foot retail center, located at 701 NW 99th Ave., recently renewed a 31,000-square-foot lease with Winn-Dixie supermarket and finalized a new 16,401-square-foot lease with Planet Fitness.
The progress underway at Palm Johnson Plaza is a case study for how investors are using in-house expertise to maximize value at formerly-distressed properties in what was one of the country’s hardest-hit real estate markets during the recession. Occupancy at the center has risen by 20 percent over the past year, with two marquee anchors helping to fuel additional leasing activity while stabilizing rental rates.
Palm Johnson Plaza’s ownership group, a joint venture comprised of Miami-based private investment firm Continental Properties Acquisition Corporation and New York Opportunity Fund Atalaya Capital, purchased the property’s note in March 2012 and received title in the summer of 2012. Since then, an aggressive repositioning program has seen the owners invest in a series of improvements while undertaking a strategic leasing campaign.
“The rebound we’ve experienced at Palm Johnson Plaza over the past year is an example of how proactive investments in a formerly troubled asset can yield results,” said David Moret, principal of Continental Properties Acquisition Corporation. “The shopping center is now income-producing, home to a variety of new shops and eateries, and on its way to reaching full stabilization in a short period of time. Retail properties like these lend themselves to creating new value through in-house capabilities and market intelligence, so we see value in partnering with key clients to assume an ownership position in similar assets.”
Continental Properties Acquisition Corporation engaged CREC as the shopping center’s exclusive leasing agent and property management firm. In this role, CREC oversaw the property’s capital improvements, which included new lighting fixtures, landscaping features and parking lot upgrades.
“The transformation taking place at Palm Johnson Plaza is a result of ownership’s commitment to the property, coupled with the innovative strategies we have employed to reposition the asset,” said Ruben Suarez, senior leasing associate with CREC. “Continental Properties Acquisition Corporation’s investments are sending a signal to the market that the new ownership is committed to growing occupancy, strengthening tenant relations, and maximizing asset value. We’re seeing this materialize in the form of new retail leases and renewals.”