Newly built South Tampa strip center on the market
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: Jan 26, 2017

The brand-new South Tampa strip center that's home to Tijuana Flats, Jeremiah's Italian Ice and Crunch Fitness is on the market.

A team of brokers from Medefind Retail at Marcus & Millichap's Tampa office has listed the Shoppes of South Dale for sale at $12.6 million, according to marketing materials for the property.

The developer, Palm Harbor-based Paradise Ventures, paid $4.15 million for the nearly 5-acre site in 2014.

"There remains a very solid demand for premium, newly constructed assets and The Shoppes of South Dale certainly meets those standards," said Chris Zimmermann, acquisitions/development for Paradise Ventures. "We're excited to take it to market and to see how it's received."

The asking price breaks down to $370 per square foot and a capitalization rate of 6 percent. Cap rates represent the return an investment property is expected to produce - equal to the property's net operating income for the first year divided by the total investment. The more a property costs, the lower its cap rate will be.

James Medefind, vice president with Marcus & Millichap, was not immediately available for comment Wednesday evening. Shoppes of South Dale, which is 34,100 square feet, wrapped up construction in 2016. Another Broken Egg Cafe will open there in the coming weeks, and Smashburger has committed to the strip center for its first Tampa location.

Other tenants include Pizza Hut and Hair Cuttery.

The property is one of few new retail developments to be delivered in Tampa in recent years. While brokers say there is pent-up demand for retail space, especially from restaurants. But with only moderate rent growth, developers have been reluctant to pursue new projects.

If there's strong investor demand for the Shoppes of South Dale - and offers meet or exceed the listing price - it could encourage other developers to consider retail projects. It would also bode well for the projects under way nearby, including a Sprouts Farmers Market Inc. anchored center at West Estrella Street and South Dale Mabry Highway.

Ashley Gurbal Kritzer is senior reporter for the Tampa Bay Business Journal.