Saggio Realty is highlighting a significant financial milestone following the recent sale of Island Plaza, a prominent CVS-anchored retail center on Marco Island. The property, which closed in late 2025 for $26.6 million, represents a substantial success story in commercial real estate investment, particularly given its history.
Key Takeaways
- Island Plaza, a 79,000-square-foot retail center anchored by CVS Pharmacy, was sold for $26.6 million in late 2025.
- Saggio Realty facilitated the original off-market acquisition in 2013 for $12.5 million.
- Over a 12-year holding period, the property generated an equity multiple of approximately 2.5x and an estimated 9%-13% Internal Rate of Return (IRR).
- The sale underscores the value of strategic ownership, tenant management, and patient capital in high-demand coastal markets.
A Decade of Exceptional Performance
Island Plaza, located at 3058-3078 Bald Eagle Drive, has a history of strong performance. Saggio Realty was instrumental in the property’s original acquisition in 2013, brokering a private, off-market deal for $12.5 million. At the time, this transaction was notable as the largest real estate deal during the Great Recession.
The center, anchored by CVS Pharmacy and Bealls, along with other national and regional retailers, consistently provided strong cash flow. Upon acquisition, the first-year Net Operating Income (NOI) was just under $995,000, positioning the asset as a top performer on Marco Island.
Investment Success Story
During the 12-year ownership by Hendricks Commercial Properties, the plaza maintained high occupancy rates, benefiting from sustained tourism and strategic property improvements. This disciplined approach resulted in impressive investment returns:
- Acquisition Price (July 2013): $12,500,000 (off-market)
- First-Year Cap Rate: 7.9%
- Exit Sale Price (Late 2025): $26,600,000
- Equity Multiple: Approximately 2.5x the initial investment
- Estimated 12-Year IRR: 9% – 13%
This performance profile surpasses the average returns for U.S. retail investments held through various market cycles, including the recovery from the 2008 recession and post-pandemic normalization.
Saggio Realty’s Perspective
Mike Rivera, Commercial Broker at Saggio Realty, expressed pride in facilitating the initial transaction and witnessing the outstanding results achieved by Hendricks Commercial Properties. He noted Island Plaza’s resilience and consistent performance, attributing the extraordinary outcome to Hendricks’ stewardship.
Sources
- Saggio Realty Announces Milestone Linked to Sale of Marco Island’s CVS-Anchored Plaza, markets.businessinsider.com.