Continental Realty Makes Bold $87.5 Million Entry Into South Florida's Red-Hot Retail Market

In a strategic move that signals confidence in South Florida's resilient commercial real estate landscape, Continental Realty Corporation has made its inaugural investment in the region with the acquisition of CityPlace Doral's retail component for $87.5 million. This transaction represents more than just a property purchase—it's a calculated entry into one of the nation's most dynamic retail markets at a time when retail enters 2025 with the lowest vacancy rate of any commercial real estate sector.

The Baltimore-based investment firm, under the leadership of CEO JM Shapiro, has secured a 235,000-square-foot lifestyle shopping center that exemplifies the evolution of modern retail real estate. Located at 8300 Northwest 36th Street in Doral, this acquisition breaks down to approximately $372 per square foot—a figure that reflects both the premium nature of the asset and the competitive dynamics of South Florida's commercial market.

Strategic Positioning in a Thriving Market Ecosystem

Continental Realty's decision to enter the South Florida market comes at a particularly opportune moment. Experts are expecting at least a 10% rise in sales, driven by a perfect storm of demographic shifts, economic factors, and lifestyle changes across the region. The company's acquisition of CityPlace Doral positions them at the intersection of several favorable market trends that are reshaping retail real estate investment strategies.

The CityPlace Doral retail center operates with an impressive 80% occupancy rate, anchored by Fresh Market and featuring a diverse tenant mix that includes CMX CineBistro, Anatomy Fitness, Carrot Express, Cooper's Hawk, and Copper Blues Rock Pub & Kitchen. This tenant composition reflects the modern consumer's preference for experiential retail destinations that combine dining, entertainment, and lifestyle services under one roof.

JLL brokers Danny Finkle and Jorge Portela facilitated this transaction, highlighting the continued strength of institutional-grade retail properties in premium markets. The deal structure and pricing indicate strong investor confidence in the stability and growth potential of well-positioned retail assets in South Florida's expanding metropolitan areas.

Understanding the Seller's Strategic Exit

The seller, PGIM Real Estate based in Newark, New Jersey, originally acquired the retail center as part of the comprehensive 18-acre CityPlace Doral development when it was completed in 2017. At that time, PGIM executed a strategic buyout of the original developers—Coconut Grove-based Related Group and Coral Gables-based Shoma Group—for an undisclosed amount, having previously served as an equity investor in the project.

PGIM's investment strategy demonstrated the long-term value creation potential of mixed-use developments in high-growth markets. The firm's decision to retain the retail component while selling the 394-unit Manor at CityPlace apartment building to TA Realty for $135 million in 2017 reflected a nuanced approach to asset optimization within the broader development.

The timing of PGIM's exit aligns with broader institutional investment patterns, as direct transaction activity totalled US$185 billion in the first quarter of 2025, rising 34% year-over-year, indicating increased liquidity and competitive bidding in the commercial real estate market.

Continental Realty's Growth Strategy and Market Expansion

With more than $4 billion in commercial real estate assets under management, Continental Realty has demonstrated a systematic approach to retail property acquisition. The firm has acquired 15 retail properties since 2021 through a dedicated $323 million fund, indicating a focused strategy on the retail sector during a period of significant market transformation.

Senior Vice President Josh Dinstein emphasized the company's confidence in the acquisition, stating that CityPlace Doral represents "an excellent entry into the growing South Florida retail market." The firm's approach goes beyond simple property acquisition—they're implementing a comprehensive value-add strategy that includes immediate property improvements and strategic leasing initiatives.

Continental Realty's plans include substantial upgrades to the parking garage and on-site amenities, recognizing that modern retail success depends heavily on the overall customer experience. The company's in-house leasing team plans to leverage existing vacancies to strengthen and diversify the tenant mix, potentially increasing both occupancy rates and rental income.

Market Dynamics Driving Investment Demand

The South Florida retail market has demonstrated remarkable resilience and growth potential, particularly in the mixed-use development sector. Mixed-use developments combining residential, commercial, and retail components are gaining investor interest, reflecting a broader shift in how consumers interact with retail spaces.

Current market conditions suggest continued strength in the retail sector, with retail space availability remaining limited in 2025 despite various economic headwinds. This scarcity of quality retail space creates opportunities for well-positioned properties like CityPlace Doral to command premium rents and maintain high occupancy levels.

The broader South Florida real estate market continues to attract significant institutional and private investment, driven by population growth, economic diversification, and lifestyle preferences. Projections indicate a 6.9% increase in median sales prices across the region, reflecting underlying demand fundamentals that support both residential and commercial real estate values.

Future Outlook and Investment Implications

Continental Realty's entry into the South Florida market represents more than a single transaction—it signals the beginning of what could be a broader regional expansion strategy. The company's focus on entertainment-oriented lifestyle centers aligns with evolving consumer preferences and the ongoing transformation of retail real estate.

The CityPlace Doral acquisition provides Continental Realty with a platform to capitalize on several key trends shaping the retail landscape. The property's mixed-use environment, combined with its strategic Doral location, positions the company to benefit from continued population growth and economic expansion in Miami-Dade County.

Looking ahead, the 2025 commercial real estate outlook is largely optimistic, with robust performance in the industrial sector and steady retail growth. This positive outlook, combined with Continental Realty's proven track record and substantial capital resources, suggests potential for additional South Florida acquisitions and continued portfolio expansion.

The success of this initial investment will likely influence Continental Realty's future expansion plans in the region, potentially establishing the company as a significant player in South Florida's competitive commercial real estate market.

Insights

What makes CityPlace Doral an attractive investment for Continental Realty?

CityPlace Doral offers a compelling combination of factors including an 80% occupancy rate, diverse tenant mix anchored by Fresh Market, strategic location in growing Doral, and immediate opportunities for value creation through property improvements and leasing optimization. The mixed-use environment and entertainment-oriented tenant base align with current consumer preferences.

How does this acquisition fit into Continental Realty's broader investment strategy?

This $87.5 million acquisition represents Continental Realty's strategic entry into the South Florida market, complementing their existing portfolio of 15 retail properties acquired since 2021. With over $4 billion in assets under management, the company is leveraging a dedicated $323 million retail fund to target high-quality lifestyle centers in growth markets.

What are the current trends driving retail real estate investment in South Florida?

South Florida's retail market benefits from limited space availability, strong demographic growth, and evolving consumer preferences for experiential retail destinations. Mixed-use developments are particularly attractive, with experts projecting at least 10% sales growth driven by demographic shifts and lifestyle changes across the region.

What improvements does Continental Realty plan for the property?

Continental Realty has announced plans to fund significant property improvements including parking garage upgrades and enhanced on-site amenities. Their in-house leasing team will also focus on optimizing the tenant mix by strategically filling existing vacancies to strengthen the center's overall appeal and revenue potential.

How does the $372 per square foot price compare to market standards?

The $372 per square foot acquisition price reflects the premium nature of the CityPlace Doral asset and competitive market conditions in South Florida. This pricing is consistent with institutional-grade retail properties in prime locations, particularly those with strong anchor tenants and mixed-use development characteristics.

What role did the previous ownership structure play in this transaction?

PGIM Real Estate's ownership since 2017, following their buyout of original developers Related Group and Shoma Group, provided stability and professional management. Their strategic decision to sell the retail component while having previously divested the residential portion demonstrates sophisticated asset management and optimal timing for market exit.