Treasure Island Plaza sells for over $5M

The 20,000-square-foot Treasure Island Plaza has a new owner who plans to flip the shopping center into a mixed-use destination. 

The plaza at 118 107th Ave., located on the north side of Treasure Island Causeway, sold in a $5.85 million deal, according to an announcement from commercial real estate brokerage firm Marcus and Millichap. 

The buying entity is connected to Florida investor Shlomo Melloul. 

“Beachside retail properties along the barrier islands are extremely sought after in today’s market,” Evan Cannan, senior associate at the firm, said in a statement. “We were able to source an opportunistic Miami-based investor with plans to redevelop the parcel into a large mixed-use property with 12,000 square feet of retail on the bottom floor and 40 residential dwellings above.” 

Cannan and Reid Thedford, investment specialists at Marcus and Millichap’s Tampa office, closed the transaction.

Cannan, who has an existing business relationship with the buyer, told the St. Pete Catalyst Melloul inquired about the property within two weeks of it coming online. 

Melloul is interested in acquiring commercial real estate along the beach and waterfront, Cannan said, explaining they went through a due diligence process in working with architects, and met with city staff. 

“If the development moves forward, the first two floors will be transient [with hotel rooms], and the other two floors will have condominiums,” Cannan said. The first floor of the future five-story building will be designated for retailers. 

There may also be a rooftop pool and parking garage behind the mixed-use building, according to the conceptual plans. 

The one-story building is fully occupied with 11 tenants. The shopping strip houses offices for a real estate firm, a bait and tackle shop, a bookstore, a flower shop, a jeweler and an Italian restaurant, among other businesses. 

Cannan said the existing tenants have one to three years remaining on their leases. 

The property was initially listed via LinkedIn with an asking price of $6.9 million. 

The property is zoned Mixed Use Core (PR-MU), which permits redevelopment of the site. 

“As the highest and best use of the property may be redevelopment, it is not being marketed based upon current or past income and expense history nor capitalization rates,” the previous listing read. 

This sale marks Marcus and Millichap’s fourth beachside retail sale within the last year. Cannan said the group continues to break pricing records when it comes to the sale of retail properties along the barrier islands.