Related Ross has acquired a development site adjacent to a planned Publix grocery store in West Palm Beach.
The company, headed by billionaire and Miami Dolphins owner Stephen Ross, purchased nearly 3 acres at 209 and 210 North Sapodilla Avenue and 755 Second Street from Florida Public Utilities Company for $7.5 million.
According to the South Florida Business Journal, Related Ross also owns 605 and 621 Banyan Boulevard, which are expected to be included in the Publix development.
The newly acquired site is located just north of the proposed Publix, which is slated to cover more than 47,200 square feet. In November, West Palm Beach officials declared the 1.7-acre property intended for Publix as “surplus property” and approved negotiations to sell the vacant land to the supermarket chain.
The design for the Publix store is by Miami-based Alleguez Architecture.
It remains unclear what Related Ross plans to do with the parcels it just purchased near the future Publix, though Stephen Ross has previously advocated for more economic development in West Palm Beach.
The South Florida market for grocery-anchored retail centers continues to attract investors, propelled by strong demand and historically low retail vacancy rates.
Notable recent transactions include Boston-based Longpoint’s $34 million acquisition of Miramar Parkway Plaza in July, anchored by Presidente Supermarket.
Additionally, Atlanta-based Invesco bought the Marketplace at the Outlets at 1821 Palm Beach Lakes Boulevard in West Palm Beach from Barry Sternlicht’s Starwood for $133.2 million this summer.
Retail vacancy rates in South Florida have remained at historic lows, resulting in limited supply and high prices for well-positioned centers.
Grocery-anchored centers are particularly appealing because they generate steady foot traffic and stable rental income, making them resilient assets in a changing retail environment.
Meanwhile, Publix has been expanding its own real estate holdings by acquiring Publix-anchored shopping centers. Since May, the Lakeland-based grocer has spent a combined $248.5 million for six Publix-anchored centers across the tri-county region.
— Mary Diduch
