Shopping centers sold to a Miami firm

Literal Translation of a news article that was published in today’s Business” section of “El Nuevo Dia” newspaper about the sale of Plaza Rexville and Oeste to Gator Investments.

– By Marian Diaz

Focused on their purpose of selling some of investments in Puerto Rico, DDR recently concluded the sale of two commercial centers: Rexville Plaza in Bayamon and Plaza del Oeste in San German to Gator Investments from Florida.

DDR is owners of the largest group of shopping centers in Puerto Rico. That among others include: Plaza del Sol and Rio Hondo in Bayamon, Plaza del Norte in Hatillo, Señorial Plaza in San Juan, Plaza Escorial in Carolina, Plaza WalMart in Guayama and Plaza Palma Real in Humacao.

The recent transaction for an undisclosed amount, represents the entry of a new investment firm (Gator) to the island’s commercial real estate market. Founded in 1986 and dedicated to the purchase, development, management and rental of commercial properties in the US. With a portfolio of over 200 properties in 23 states that consists of shopping centers, multi family apartment complex, office buildings and industrial properties.

Gator currently manages more than 10 million square feet of commercial space and is actively searching for new properties to expand its real estate portfolio.

A confidential source close to the island’s real estate industry, claims that Gator is testing the market’s performance to possibly acquire more properties.

Rexville Plaza along PR 167 in Bayamon consists of 131,000 square feet and anchored by Marshall’s, CVS, Shoe Carnival, Capri and Advance Auto Parts. While Plaza del Oeste in San German has (among other establishments) a Big Kmart, Capri and Econo.

In February, Thomas August, principal executive officer (CEO) for DDR indicated in a conference call with shareholders his intentions to reduce DDR’s exposure in PR due to the island’s fiscal situation and uncertainties in the investment market. At that time he mentioned he had various buyers interested in some but not all centers. The potential buyers, according to August recognized that PR was a great place to invest. Reason why he felt he would be closing on some within four months, as it occurred.

DDR has more than 300 shopping centers totaling 106 million square feet of which 76 million is retail space. Their PR portfolio consisted of 14 properties and 5 million square feet of GLA, now reduced to 12 centers with more than 700 stores.

Gator Investments
7850 NW 146th Street, 4th Floor
Miami Lakes, FL 33016
Toll free: (877)459-9605
Local: (305)949-9049
Fax: (305)948-6478

James A. Goldsmith, Lic. Real Estate Broker
William Goldsmith, Salesman