Germany-based Union Investment has purchased the Fountains of Boynton, a grocery anchored retail center in Florida. The purchase price was not disclosed.
The property, which consists of five buildings, is located in Boynton Beach, a centrally located suburban community in northern Palm Beach County, 18 miles south of West Palm Beach International Airport.
This investment follows Union Investment’s recent acquisition of a trophy urban retail asset in Chicago’s Gold Coast luxury submarket.
“We are delighted to have secured a high-quality property with a grocery anchor in this competitive environment. The grocery anchored sector has always been a highly desirable and liquid asset class in the US, and the stable performance during the Covid-19 Pandemic has further strengthened investor interest. Additionally, due to the continued population growth in Florida, demand is increasing across all asset classes in the state,” said Matthew Scholl, Executive Director and Head of Investment Management Americas at Union Investment.
“The Florida purchase serves to diversify our global portfolio and thus hedge against future crises. Our overseas real estate holdings are set to grow further”, added Henrike Waldburg, Head of Investment Management Global at Union Investment.
Highly trafficked and densifying Boynton Beach suburban trade area is located in the Miami-Fort Lauderdale-West Palm Beach metropolitan region, which is home to around 6 million people. It is the seventh most populous region in the United States and the largest population and employment center in Florida.
“Built in 1994, the five-building retail center was extensively modernized in 2017. The center consists of 174,996 sq. ft. and is currently fully leased to a diverse and internet-resistant tenant mix, including a well-known grocery store, a national fitness operator, restaurants, and a wide range of services, such as beauty, medical, and pet care. It is well positioned to serve the needs of the local community and its residents”, said Kseniya Merritt, Head of Retail Investments North America in Union Investment’s New York office.
The primary tenant is Publix, the #1 grocery operator in Florida, and LA Fitness Signature Club, one of the brand’s top performing locations in the nation.
