Redfearn Capital Pays $42.2M for Delray Beach Atlantic Avenue Retail

Redfearn Capital, the Delray Beach investment firm led by Alex Redfearn, has paid a combined $42.2 million for two commercial buildings on East Atlantic Avenue, one of the largest retail trades in the city’s history. The firm paid $38.2 million at a court-ordered auction for the 22,800-square-foot office and retail building at 105-111 East Atlantic Avenue, then closed a separate $4 million purchase of the retail building next door at 123 East Atlantic Avenue.

Why it matters

Capital moving into a litigation-driven auction for occupied small-format retail, rather than waiting for an off-market listing, is a signal for South Florida developers and owners watching this asset class. The anchor building was tied up in a dispute among its former owners, whose interests included the late David Hosokawa, the former TMP Worldwide chief executive whose company owned Monster.com, and Delray Beach business partner Billy Himmelrich. The two sides settled by selling the property jointly and splitting the proceeds. Redfearn’s willingness to bid at auction for that asset, fully leased to local operators, suggests institutional-grade money sees a discount worth taking in downtown Delray retail even when the sale comes forced.

The numbers

The 105-111 East Atlantic Avenue building spans 22,800 square feet and counts Sloan’s Ice Cream and Geronimo Tequila Bar and Southwest Grill among its tenants. Cushman & Wakefield’s Ron Granite and Jason Hochman arranged financing for Redfearn on the deal. The separate $4 million purchase of 123 East Atlantic Avenue brings Redfearn’s combined spend on the two buildings to $42.2 million. It follows Redfearn’s sale last month of a Palm Beach office building for more than double what the firm paid a year earlier, another sign the firm is actively recycling capital along the coast.

What’s next

Palm Beach County’s property appraiser had not yet updated its ownership record for 105-111 East Atlantic Avenue as of this report, still showing title entity DHBH Atlantic LLC, tied to Hosokawa and Himmelrich, as owner. A deed reflecting Redfearn’s purchase had not posted publicly. With both buildings now under one owner, Redfearn controls a contiguous stretch of ground-floor retail on one of Delray Beach’s most trafficked blocks.