RPT Realty Announces Acquisition of Mary Brickell Village in Miami, FL

Rhea-AI Summary

RPT Realty has acquired Mary Brickell Village in Miami for $216 million. This grocery-anchored mixed-use center spans 200,000 square feet and offers significant vertical development potential, allowing for up to 4.1 million additional square feet. MBV is strategically located in a dense, high-traffic area with over 265,000 monthly visits and high tenant sales averaging $1,100 per square foot. Currently 78% occupied, it presents considerable upside through signed leases and contractual rent growth. This acquisition enhances RPT's portfolio and aligns with its growth strategy.

Positive

• Acquisition of Mary Brickell Village enhances portfolio diversification.
• Development potential allows for up to 4.1 million square feet.
• Strong foot traffic with 265,000 visits per month supports sales growth.
• Tenant sales average $1,100 per square foot, indicating healthy demand.
• 78% occupancy provides opportunity for revenue increase through signed leases.

Negative

• None.

• Acquired Mary Brickell Village, a generational, grocery-anchored, mixed-use center in the premier financial district of Miami, for $216 million.
  
  
• Compelling value-creation opportunity through the vertical development of the site where zoning allows for 4.1 million of additional square footage.
  
  
• Unparalleled density with a three-mile population of 232,000 and surrounded by 18.4 million square feet of office space, nearly 7,000 hotel rooms and 9,500 residential units planned or under construction.
  
  
• Strong foot traffic with over 265,000 visits per month fueling exceptional sales performance of over $1,100 per square foot.
  
  
• Stable and growing cash flows driven by occupancy upside, strong embedded contractual rent escalators and compelling mark to market opportunities.   

NEW YORK , Aug. 03, 2022 (GLOBE NEWSWIRE) -- RPT Realty (NYSE:RPT) (“RPT” or the “Company”) announced today the acquisition of Mary Brickell Village (“MBV”) in Miami, through the Company’s grocery-anchored joint venture platform, for a contract price of $216 million or $111 million at the Company’s pro-rata share. MBV is a generational three-story, 200,000 square foot, grocery anchored, mixed-use center that sits on 5.2 acres in the heart of Miami’s booming Brickell neighborhood. Located at the epicenter of Miami’s premier retail and dining destination with over 6.7 million annual visitors, it has quickly become one of the most sought-after office, residential and hospitality markets in the U.S., creating the ultimate day to night lifestyle and entertainment oasis.

Mary Brickell Village is strategically positioned on both sides of bustling South Miami Avenue, just a few blocks from Biscayne Bay, in a dense infill and high traffic location that offers world-class entertainment, luxury residences, hospitality and a thriving shopping district. MBV is anchored by a top performing Publix supermarket and features a strong lineup of food and beverage, service and necessity tenants. Tenant sales average over $1,100 per square foot with low occupancy costs. The property is currently 78% occupied with 31,700 square feet of signed leases, representing almost 16% of occupancy upside, with attractive contractual rent growth providing visible near-term earnings upside. In addition, MBV provides for compelling value-creation opportunities as the site’s zoning allows for the potential to develop up to 80 stories or 4.1 million square feet which could consist of residential, office and hospitality.

“The acquisition of Mary Brickell Village reflects the future of RPT,” said Brian Harper, President and CEO. “The value creation potential of what we believe is one of the top open-air centers in the country is unparalleled given the earnings growth potential and the material densification opportunity at the site. Our success in acquiring this generational asset is also a testament to the strategic value of our joint venture platforms, which provide RPT with unique competitive advantages that extend well beyond financial benefits, as we continue to grow and improve the quality of the portfolio.”

“Mary Brickell Village is one of the most unique and well positioned retail properties in the country,” said Danny Finkle, Senior Managing Director and Co-Head of U.S. Retail Capital Markets for JLL, who represented the seller. “The Miami Brickell district has quickly evolved into one of the most dynamic and exciting places in South Florida, and this 5.2-acre parcel with a variety of best-in-class retailers and restaurants is in the absolute epicenter.”

To take a video tour of Mary Brickell Village, click here.

For additional information about the Mary Brickell Village please visit rptrealty.com.

About JLL Capital Markets

JLL Capital Markets (“JLL”) is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

About RPT Realty

RPT Realty owns and operates a national portfolio of open-air shopping destinations principally located in top U.S. markets. The Company's shopping centers offer diverse, locally-curated consumer experiences that reflect the lifestyles of their surrounding communities and meet the modern expectations of the Company's retail partners. The Company is a fully integrated and self-administered REIT publicly traded on the New York Stock Exchange (the “NYSE”). The common shares of the Company, par value $0.01 per share (the “common shares”) are listed and traded on the NYSE under the ticker symbol “RPT”. As of June 30, 2022, the Company's property portfolio (the "aggregate portfolio") consisted of 47 wholly-owned shopping centers, 10 shopping centers owned through its grocery anchored joint venture, and 47 retail properties owned through its net lease joint venture, which together represent 14.9 million square feet of gross leasable area (“GLA”). As of June 30, 2022, the Company’s pro-rata share of the aggregate portfolio was 93.3% leased. For additional information about the Company please visit rptrealty.com.

Contact Information

Vin Chao
Managing Director - Finance and Investments
vchao@rptrealty.com
(212) 221-1752

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent our expectations, plans or beliefs concerning future events and may be identified by terminology such as “may,” “will,” “should,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” “predict” or similar terms. Although the forward-looking statements made in this document are based on our good faith beliefs, reasonable assumptions and our best judgment based upon current information, certain factors could cause actual results to differ materially from those in the forward-looking statements. Many of the factors that will determine the outcome of forward-looking statements are beyond our ability to predict or control. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our success or failure in implementing our business strategy; economic conditions generally and in the commercial real estate and finance markets; the cost and availability of capital, which depends in part on our asset quality and our relationships with lenders and other capital providers; changes in interest rates and/or other changes in the interest rate environment; the discontinuance of LIBOR; the Company's ability to consummate the acquisitions described herein on the anticipated timeline and terms, or at all; risks associated with bankruptcies or insolvencies or general downturn in the businesses of tenants; the ongoing impact of the novel coronavirus (“COVID-19”), or the impact of any future pandemic, epidemic or outbreak of any other highly infectious disease, on the U.S., regional and global economies and on the Company’s business, financial condition and results of operations and that of its tenants; the potential adverse impact from tenant defaults generally or from the unpredictability of the business plans and financial condition of the Company's tenants; the execution of rent deferral or concession agreements on the agreed-upon terms; our business prospects and outlook; changes in governmental regulations, tax rates and similar matters; our continuing to qualify as a REIT; and other factors detailed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including in particular those set forth under “Risk Factors” in our latest annual report on Form 10-K and quarterly report on Form 10-Q. Given these uncertainties, you should not place undue reliance on any forward-looking statements. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future.

FAQ

What is the significance of RPT's acquisition of Mary Brickell Village?

The acquisition presents a strategic opportunity for RPT to enhance its portfolio with a high-traffic, grocery-anchored center, allowing for future development.

How much did RPT pay for Mary Brickell Village?

RPT acquired Mary Brickell Village for $216 million, with a pro-rata share of $111 million.

What are the expected benefits of the Mary Brickell Village acquisition for RPT?

The acquisition is expected to generate stable cash flows, provide occupancy upside, and present significant value-creation opportunities due to its development potential.

What is the current occupancy rate of Mary Brickell Village?

Mary Brickell Village is currently 78% occupied, with opportunities for lease growth.

Where is Mary Brickell Village located?

Mary Brickell Village is located in Miami's Brickell neighborhood, a premier retail and dining destination.