Pompano Beach Retail Plaza Trades For $16.4M
Vision Real Estate Advisors announced the successful closing of Planet Fitness Plaza, a 46,034-square-foot retail center located at 1400-1450 S. Powerline Road in Pompano Beach. Representing both the seller and the buyer in the transaction, the firm achieved a sale price of $16,400,000, or approximately $356 per square foot, at a 6.35% cap rate.
“Planet Fitness Plaza traded at one of the highest prices per square foot we have seen achieved in this submarket, at a cap rate well below the cost of debt,” said Elon Gerberg, Managing Director at Vision Real Estate Advisors. “Buyers recognized that in-place rents are well below what is being achieved at The Pomp, so as leases roll there is significant rent upside. This center is perfectly positioned to draft off the growth of The Pomp for years to come.”
“Fitness-anchored retail with a fresh 10-year lease extension and historically minimal vacancy is exactly what sophisticated capital is hunting for in Broward County,” added Adam H. Klein, Managing Director at Vision Real Estate Advisors. “Representing both sides allowed us to keep the process efficient and certain from the first call to the closing table.”
The property was acquired by Phillips Edison & Company from an entity controlled by Michael Cosculluela and Dan Marzano.
Planet Fitness Plaza sits on a 5.34 acre site with approximately 450 feet of frontage on S. Powerline Road and more than 40,000 vehicles per day. The center is anchored by Planet Fitness, which recently signed a 10-year lease extension, and features a strong mix of national and neighborhood tenants including Enterprise Rent-A-Car, Little Caesars and Cora Health Services, along with an Aroma Joe’s drive-thru outparcel.
The property has historically maintained minimal vacancy, and with in-place rents well below those achieved at The Pomp, incoming ownership has a clear path to rent growth as leases expire. The plaza is located less than one mile from The Pomp, the 223-acre master-planned development by The Cordish Companies and Caesars Entertainment that is planned to include 1.3 million square feet of retail and entertainment space and 4,000 luxury residential units.
Key Facts
Property: Planet Fitness Plaza
Location: 1400-1450 S. Powerline Road, Pompano Beach, FL
Asset Type: Fitness-anchored retail center
Transaction Type: Sale
Buyer: Phillips Edison & Company
Seller: Entity controlled by Michael Cosculluela and Dan Marzano
Size: 46,034 SF on 5.34 acres
Price: $16.4 million
Price Per SF: Approximately $356
Cap Rate: 6.35%
Anchor Tenant: Planet Fitness (recent 10-year lease extension)
Brokers: Vision Real Estate Advisors represented both parties; Elon Gerberg and Adam H. Klein, Managing Directors
Other Notable Details: Approximately 450 feet of Powerline Road frontage; less than one mile from The Pomp redevelopment.
