The Jaxson

Jacksonville by Neighborhood => The Burbs => Southside => Topic started by: thelakelander on May 09, 2019, 10:52:23 AM

Title: Sleiman moves fast...buys Lakewood shopping center
Post by: thelakelander on May 09, 2019, 10:52:23 AM
Fresh off of being a better negotiator than COJ, Sleiman has set his eyes on a major Lakewood retail intersection:

(https://www.jaxdailyrecord.com/sites/default/files/241894_standard.jpeg)

Full article: https://www.jaxdailyrecord.com/article/sleiman-enterprises-buys-lakewood-promenade-shopping-center
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: KenFSU on May 09, 2019, 11:18:31 AM
This Sleiman guy sounds good.

I wonder if the city has ever thought about partnering with him on something downtown?
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Captain Zissou on May 09, 2019, 11:35:30 AM
This is a great property with great potential.  Looking at the site plan it seems that it will take some creativity to optimize the space.  Some of the building orientations and parking placements seem very odd.
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: realestatejax on May 09, 2019, 12:12:45 PM
Great real estate with a lot of upside.  The biggest problem for this shopping center is having Winn Dixie as the anchor tenant.  If they can get them out I would expect an organic grocery store (Sprouts, Earth Fare, Lucky's, etc.) to jump all over this. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Jagsdrew on May 09, 2019, 08:55:01 PM
Great real estate with a lot of upside.  The biggest problem for this shopping center is having Winn Dixie as the anchor tenant.  If they can get them out I would expect an organic grocery store (Sprouts, Earth Fare, Lucky's, etc.) to jump all over this.

How is Winn-Dixie a problem tenant?
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: blizz01 on May 09, 2019, 10:39:57 PM
Maybe he can repurpose some of the scrap from the Landing demo.... :o
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: tufsu1 on May 09, 2019, 10:49:31 PM
Great real estate with a lot of upside.  The biggest problem for this shopping center is having Winn Dixie as the anchor tenant.  If they can get them out I would expect an organic grocery store (Sprouts, Earth Fare, Lucky's, etc.) to jump all over this. 

have you been inside that Winn Dixie? It's hardly a detriment to the area
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Snaketoz on May 10, 2019, 07:32:27 AM
As many said earlier, how could Sleiman lose?
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Jagsdrew on May 10, 2019, 08:12:19 AM
Great real estate with a lot of upside.  The biggest problem for this shopping center is having Winn Dixie as the anchor tenant.  If they can get them out I would expect an organic grocery store (Sprouts, Earth Fare, Lucky's, etc.) to jump all over this. 

have you been inside that Winn Dixie? It's hardly a detriment to the area

I'm still trying to understand the logic of just kicking out a local company because they are "the biggest problem" in the shopping center.
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: sandyshoes on May 10, 2019, 08:50:36 AM
Tufsu, begging your pardon, but have you been inside that Winn-Dixie in Lakewood recently...it's hardly the WD it used to be.  All the warning signs of it turning into a Harvey's are there.  And 'customer service' has gone by the wayside.  When I'm on that side of town I used to pop in to pick up a few non-perishables when needed, but I can't stand it in there anymore.  Something else could be an improvement, imho. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: MusicMan on May 10, 2019, 08:51:56 AM
The Winn-Dixie is fine, one of the nicest you'll see. However swapping it out for a Trader Joe's would be an improvement IMO.

I see (from the above comments)  it must suck. I'll go today and do a walk through.......

ALSO, does anyone know what the asking price was? I cannot find it on Loopnet.com
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: realestatejax on May 10, 2019, 09:09:39 AM
It is a tired Winn Dixie that is a shell of its former self.  They have reinvested little into the store over the last few years and it shows.  If they reformatted it like the CR 210 or Baymeadows and I-295 store that would help.
From the landlord's perspective it is tough to invest any real money into updating theshopping center with WD as the anchor.  Their solvency is always in question and potential co-tenants are not all that excited about being next to WD as opposed to a new fresh user like a Sprouts, Earth Fare, Greenwise, etc. 
My guess is Sleiman's ultimate goal is to redevelop this center with a new anchor. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Captain Zissou on May 10, 2019, 09:17:59 AM
It is a tired Winn Dixie that is a shell of its former self.  They have reinvested little into the store over the last few years and it shows.  If they reformatted it like the CR 210 or Baymeadows and I-295 store that would help.

Back in 2013-2014 this was going to be remodeled into their flagship store.  It was the closest store to the CEO at that time's house and close to headquarters.  It was a pet project of the CEO, but struggled to get through the capital approval process.  When that CEO was replaced and the headquarters was moved to Baymeadows, they dropped any remodel plans at University and reopened the dormant store at Baymeadows and 295 and turned it into their flagship store with a number of test concepts built in. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Jagsdrew on May 10, 2019, 09:39:53 AM
Sleiman isn't kicking out Winn-Dixie just because he bought a shopping center. That would be foolish considering they are a tenant at many other shopping center locations in his portfolio.

Does the store need remodeling? Perhaps. If the landlord makes improvements to the shopping center and parking lot, I'm sure Winn-Dixie will consider remodeling their store concurrently with the landlord improvements.

As a matter of fact, Winn-Dixie just remodeled two stores in the Jacksonville market. One is a Sleiman property on Normandy Blvd.
https://www.jaxdailyrecord.com/article/winn-dixie-reopens-remodeled-stores-in-middleburg-west-jacksonville (https://www.jaxdailyrecord.com/article/winn-dixie-reopens-remodeled-stores-in-middleburg-west-jacksonville)
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: realestatejax on May 10, 2019, 11:03:19 AM
I didn't say they were kicking them out I said they would like to get them out.  WD's credit sucks and if you could replace WD with a Greenwise for example the value of the shopping center increases dramatically.
Trust me everyone that looked at buying this center was trying to figure out how to replace WD as the anchor. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: MusicMan on May 10, 2019, 04:30:37 PM
I went to that store out of curiosity this morning. It was looking pretty damn good. It's huge, has some features the Publix at St Aug does not (i.e. olive bar, ...), and the employees appeared to be taking pride in it. It IN NO WAY looked liked the Harvey's over in Downtown. I recommend folks saying how awful it is to go check it out. I was pleasantly surprised.   
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Snaketoz on May 10, 2019, 05:09:41 PM
I happen to like Winn-Dixie.  We often drive by the closest Publix to go to Winn-Dixie.  The Publix has a slight edge in the produce department, and has a better deli, but everything else is better at W-D.  I would love to have a Trader Joes nearby.
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: jaxlongtimer on May 10, 2019, 09:27:07 PM
FYI, Lakewood use to host two other grocery stores.  A&P used to be in the old Cruisers (now Anytime Fitness) location decades ago and a Clarks/Banner store was at the eastern most end of the stores along the north side of University Blvd.

Rosenblums, French Novelty, Walgreens, McCrory's, Dipper Dans, Toy Parade, Dobb's House, American Federal Savings & Loan, Jax Liquors, Lakewood Pharmacy, Edwards Men's Shop are just a few of the stores past that used to inhabit this shopping center.

Pictures below mostly circa 1959 from the Florida State archives.

(https://www.floridamemory.com/fpc/rfisher/RF00319.jpg)

(http://fpc.dos.state.fl.us/rfisher/RF00324.jpg)

(https://www.floridamemory.com/fpc/rfisher/RF00494.jpg)

(https://www.floridamemory.com/fpc/rfisher/RF00495.jpg)

(https://www.floridamemory.com/fpc/rfisher/RF00323.jpg)

(https://www.floridamemory.com/fpc/rfisher/RF00321.jpg)

(https://www.floridamemory.com/fpc/rfisher/RF00322.jpg)
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: billy on May 11, 2019, 11:31:31 AM
There was a barber shop near the pharmacy,
and maybe a Greyhound stop for a while at the southeast intersection?
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: jaxlongtimer on May 12, 2019, 12:35:52 PM
There was a barber shop near the pharmacy,
and maybe a Greyhound stop for a while at the southeast intersection?
Billy, I recall both as you do.  There actually was a gas station on the southeast corner of University and San Jose that I believe may have doubled as the Greyhound stop.  That spot is now partially a turn lane from San Jose to University Blvd. and a patch of green behind the bagel store.  It's the Sunoco station in the far left of the last picture in my 5/10/19 post above.
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: bl8jaxnative on May 27, 2019, 12:01:28 PM
I'm not sure why this is a great deal.  Households in the catchment area for these properties is sliding down, not moving up.    You already have stretches of St. Augustine that don't look all that dissimilar from Durkeeville.   There isn't going to be an meaningful increase in the area anytime soon.



The seller is a big REIT, Kite, whose portfolio the Lakewood Center no longer fits.   It's not as big nor new.   They've made their money and were looking to move on. 

From what I've seen of Sleiman, this type of development is their bread and butter.    It's a gradation down from the top notch shopping centers.   That's not a slam, just an observation.  I'd be willing to bet it's a great market as long as one doesn't swing for the fences.

Which is why I'm curious about all the talk about potential.  Not only is the property in a built-out area with large swaths in decline, but it's all disjointed.   There are 2 large pieces that could be redeveloped but they don't half the potential of what they've have as one piece.
Sleiman's MO seems to be ride the cash of these so-so retail developments.   I'm not aware of them of having a history of doing anything more than a facelift with these.   They were a complete failure with The Landing.    And I don't recall them  tearing down half the mall and buildling condos or things like that with their other properties.   

Am I overlooking something?

If I'm not, I wouldn't expect anything to change until WinnDixie or Steinmart - or both given the state of retail and grocery home delivery these days - shut their doors.   If I'm not missing anything major, Sleiman's there to ride the cash flow.  And they'll ride it unitl it's starting to resemble the Dupont Station mall just to the west of this one.
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Steve on May 28, 2019, 09:17:50 AM
I'm not sure why this is a great deal.  Households in the catchment area for these properties is sliding down, not moving up.    You already have stretches of St. Augustine that don't look all that dissimilar from Durkeeville.   There isn't going to be an meaningful increase in the area anytime soon.



The seller is a big REIT, Kite, whose portfolio the Lakewood Center no longer fits.   It's not as big nor new.   They've made their money and were looking to move on. 

From what I've seen of Sleiman, this type of development is their bread and butter.    It's a gradation down from the top notch shopping centers.   That's not a slam, just an observation.  I'd be willing to bet it's a great market as long as one doesn't swing for the fences.

Which is why I'm curious about all the talk about potential.  Not only is the property in a built-out area with large swaths in decline, but it's all disjointed.   There are 2 large pieces that could be redeveloped but they don't half the potential of what they've have as one piece.
Sleiman's MO seems to be ride the cash of these so-so retail developments.   I'm not aware of them of having a history of doing anything more than a facelift with these.   They were a complete failure with The Landing.    And I don't recall them  tearing down half the mall and buildling condos or things like that with their other properties.   

Am I overlooking something?

If I'm not, I wouldn't expect anything to change until WinnDixie or Steinmart - or both given the state of retail and grocery home delivery these days - shut their doors.   If I'm not missing anything major, Sleiman's there to ride the cash flow.  And they'll ride it unitl it's starting to resemble the Dupont Station mall just to the west of this one.

You may be right about Sleiman (as I think it do that center "right", it would be a large investment).

In terms of the area, I think you're off base however. Yes, St Augustine between University and Philips isn't amazing. But, know a few things:

 - It's the closest suburban style shopping center to San Marco
 - You have plenty of money West of San Jose, and most of the neighborhoods east of San Jose are nice too
 - Until the San Marco Publix is built (not exactly counting the days), the San Marco folks drive through this intersection for groceries (whether they shop at Publix or Winn-Dixie

Personally, I think this could be redone in a similar way to Roosevelt Square/Ortega Park.

(related, I'm not going to get into this here as this touches on my day job, but Winn-Dixie and Stein Mart aren't in danger of closing due to online shopping/grocery delivery thing. They may close, sure, but that's related to their own issue.)
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: MusicMan on May 29, 2019, 02:52:12 PM
If you read through the whole thread, you will see a coupe of bloggers trashing the Winn-Dixie.  Problem is, they have not actually been in it in the last few months. It's pretty damn nice. If someone would go and take some pics and post them you would see what I mean.

Also, San Jose is one of the best, most efficient pieces of infrastructure in Jacksonville /Duval County, from San Marco Square to Mandarin. Smooth pavement, not a lot of traffic signals. So this purchase has a lot of upside as the average daily traffic count there (intersection of University and San Jose) must be extraordinary. 
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: Jagsdrew on May 29, 2019, 03:10:29 PM
If you read through the whole thread, you will see a coupe of bloggers trashing the Winn-Dixie.  Problem is, they have not actually been in it in the last few months. It's pretty damn nice. If someone would go and take some pics and post them you would see what I mean.

Also, San Jose is one of the best, most efficient pieces of infrastructure in Jacksonville /Duval County, from San Marco Square to Mandarin. Smooth pavement, not a lot of traffic signals. So this purchase has a lot of upside as the average daily traffic count there (intersection of University and San Jose) must be extraordinary.

I'll take photos next time I'm there.  That is my primary store I shop at. 

Also, I get my haircut at Cliff's across the street. Was in there yesterday and he seemed to not be too worried with the recent transaction.  Hopefully all the local shops won't get run out because the rent goes up. There are alot of good ones in there. Noura Cafe is a great lunch spot!
Title: Re: Sleiman moves fast...buys Lakewood shopping center
Post by: MusicMan on May 29, 2019, 03:22:48 PM
I went right away after all the negative comments. To see for myself. (I'm funny that way...)  It's damn nice, a huge store. As I stated before, the employees seemed to take pride in it.