$300M Atlantic Crossing, Delray Underway

Oct 15, 2019 No Comments by

Spanning two city blocks, the $300 million Atlantic Crossing mixed-use destination designed to transform the east end of Downtown Delray Beach’s nationally recognized Atlantic Avenue is on track to begin vertical construction by year-end, according to owner, The Edwards Companies. With the western block’s underground parking garage and infrastructure well underway, the Company announced the start of active leasing with three lead tenants signed for retail and office space that is projected to open beginning in fourth quarter 2020.

Representing the largest private investment in the City’s history, the venture by Columbus, Ohio-based Edwards Companies is bringing first-of-its kind high quality retail and restaurant space (73,000 sf), Downtown’s first Class A office quarters (83,000 sf), and new luxury residences to the heart of the City.

 

“Atlantic Avenue is nationally known and demand is strong. Our timetable allows us to be selective and to identify “best of class” commercial tenants for the project,” said Edward Companies Vice President Don DeVere. Lead tenant Merrill Lynch will occupy the entire 20,000-sf third floor – half the available office space in the first building – and Chico’s has signed for a 3,150 sf shop fronting Atlantic Ave. The first restaurant tenant, Chicago-based The Hampton Social, an East Coast lifestyle concept, has leased 8,677 square feet. A number of additional tenant prospects are in active negotiations, DeVere said.

Atlantic Crossing’s nine-acre site has 560 feet of frontage along Atlantic Avenue, and is bounded by Federal Highway (US1) to the west and the City’s Veterans Park along the Intracoastal Waterway to the east. The western block is fully financed with a $110 million construction loan and a $45 million preferred equity investment.

 

“The Delray market is highly desirable, but has lacked new, high quality retail and restaurant space with associated parking.  As a new hub of city life scaled to Delray Beach, Atlantic Crossing will be on a par with South Florida’s iconic retail streets such as Miami’s Lincoln Road, Fort Lauderdale’s Las Olas Boulevard and Palm Beach’s Worth Avenue,” DeVere said. Plus, for the first time, mid- to large companies can locate in Downtown Delray Beach as Atlantic Crossing introduces 20,000 sf floorplates.

 

“Atlantic Crossing is coming on line at an exciting turning point,” according to Drew M. Barkett of Strategic Retail Advisors, exclusive retail leasing agent. “Retailers and restaurateurs are looking to ‘High Street’ opportunities, rather than enclosed malls or lifestyle centers.  Atlantic Crossing delivers the authentic sense of place to draw today’s shoppers and diners, and to become the ‘must-see’ spot for out of towners.”

 Commitments elsewhere in the Downtown by national retailers are validating the market’s appeal, and three new downtown hotels, the state’s largest food hall, and new residential developments are slated for the area.

Downtown Delray Beach offers “one of the strongest retail scenarios in the country,” according to Robert Gibbs, nationally known retail consultant and author whose 2017 Shopabilility study found the primary market area can support 434,000 sf of new retail, generating $221 million in retail sales. The study pegged Delray Beach as one of the nation’s Top 10 Downtowns, with the potential to become a Carmel by the Sea or Nantucket. USA Today listed Delray Beach’s Atlantic Avenue among 10 Great American Shopping Streets (5-5-17), noting that 20,000 people can visit its hundreds of shops and restaurants in a day.

For retailers, Atlantic Crossing’s demographics are compelling. Total population within five miles is 150,752, and within one mile, average household income tops $100,000. In addition, Downtown draws hundreds of thousands of visitors each year, and Atlantic Crossing’s new residents alone are projected to generate more than $6 million in new spending annually

In line with Downtown Delray’s eclectic feel and walkability, each of Atlantic Crossing’s six buildings of three to five stories has a different architectural design. All parking is hidden, below ground or in a garage wrapped by residences, and convenient valet service is provided. Completion of the first luxury residential residences is anticipated for ­­­­­­­­­2021, with additional park-side residential units added in 2023.

 

 

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Industry News, Multifamily, NA, Office, Palm Beach County Multifamily, Palm Beach County Office, Palm Beach County Retail, Retail
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