In the latest sign of intense demand for stable, well-positioned assets in Doral, Terra’s Doral Commons retail plaza has traded hands to Jamestown, L.P.
The 140,000-square-foot center is 95 percent leased, with a tenant roster anchored by Publix Supermarket alongside TJ Maxx, Citibank, GNC, AT&T Wireless, McDonald’s, and others. According to public record, Miami-based Terra sold the shopping center to Jamestown for $72 million – turning a nice profit off a property that’s 95 percent leased.
Situated at the high-volume intersection of northwest 74th St. and 107th Ave., the Doral Commons property was initially part of a 100-acre tract acquired by Terra co-founders David and Pedro Martin in 2012. Terra subdivided the land into commercial and residential uses and completed the construction of Doral Commons in 2015. The firm’s 319-home Modern Doral development is located directly next-door to the retail center.
“The commercial growth underway in Doral is one of the most exciting stories playing out in South Florida’s real estate landscape,” says David Martin, president and co-founder of Terra. “Rising demand for retail, office and industrial real estate is being fueled by a growing residential population, the City’s desirable lifestyle, and improving infrastructure and transit options. Terra developed Doral Commons with the goal of attracting a tenant mix that would meet the everyday needs of nearby residents, and the success of that formula ultimately led to this sale.”
The Doral Commons sale coincides with a surge of retail leasing activity in Doral which is creating heightened demand among sophisticated investors such as Jamestown.
“This is a case of Terra taking a forward-looking approach to acquiring a site, recognizing a void in the market, and creating value through execution and leasing,” says Mark Gilbert, Executive Managing Director of Cushman & Wakefield’s South Florida capital markets team, who represented Terra in the transaction. “Doral’s retail occupancy rate is in the 98 percent range, according to our firm’s latest retail report, and that number should hold given Doral has become a live-work-play community and remains one of the most dynamic markets in the Southeast. The fact that Doral is one of the fastest-growing cities in the Southeast is special, but it’s the quality of residential and employment growth that makes it a must-own market for institutional investors.”
With a residential population approaching 60,000, an average daytime population that eclipses 100,000, 250 corporate headquarters, and more than 100 multi-national companies doing business within City limits, Doral is among Florida’s fastest-growing communities.