River Oaks pays $26 million for Delray Beach mall

Gerald Rubin, Founder and President of River Oaks, and Shop Delray at 8918 Atlantic Avenue in Delray Beach (River Oaks Properties El Paso)

Count River Oaks Properties among retail real estate investors feasting on grocery store-anchored malls in South Florida.

The El Paso-based company, led by founder and chairman Gerald Rubin, paid $25.5 million for Shop Delray at 8918 Atlantic Avenue in Delray Beach, according to a press release. Anchored by Joseph’s Classic Market, the 33,000 square foot mall is the latest retail site to feature a grocer to trade in recent months.

David Chasi of Pegasus Investments Real Estate Advisory brokered the off-market deal, and a subsidiary of Pegasus will continue to manage Shop Delray, the statement said.

A subsidiary of Boca Raton-based Banyan Development bought the property for $1.8 million in 2017 and completed Shop Delray two years later, records show. The mall is 100% leased, with tenants including Warren American Whiskey Kitchen, Club Pilates, Nekter, Ripe and Mattress Xperts, the statement said.

Founded in 1959, River Oaks has a portfolio of nearly 200 shopping centers and retail assets totaling more than 6 million square feet, the statement said.
This year, Banyan Development, led by directors Ross Feurring and Jason Sher, and joint venture partner Pebb Enterprises, toured offices and retail locations in South Florida.

In May, the partnership purchased Florida Atlantic University’s technology and innovation-focused research park in Boca Raton for $37.5 million. That same month, Banyan and Pebb sold an outdoor plot leased to Wawa in Boynton Beach for $9.5 million. The outer plot is part of Mainstreet at Boynton, a mixed-use project anchored in Sprouts developed by the joint venture.

In January, Pebb and Banyan sold another parcel outside Mainstreet in Boynton leased to Synovus Bank for $5.1 million.

Other real estate investors taking on the tri-county area’s grocery-anchored mall sector include Barron Real Estate and the Ferreira family.

Last month, a subsidiary of Barron paid $38.4 million for Plantation Marketplace, a mall anchored in the Food Fair at Plantation. And an entity run by brothers Antonio and Nelson Ferreira bought Shoppes at the City Center mall in North Palm Beach for $36 million. The property’s anchor tenants are Doris Italian Market & Bakery and West Marine.

Edwin S. Wolfe