Benderson Development, which for 10 years has owned a vacant restaurant building off U.S. 41 in south Fort Myers, just paid $40.35 million for its next-door neighbor, Cypress Trace shopping center.

For more than a decade, Benderson has been unwilling and unable to lease what, until 2008, used to be the 5,600-square-foot Lone Star Steakhouse and Saloon at 13186 S. Cleveland Ave., in south Fort Myers at the corner of U.S. 41 and Cypress Trace Drive.

Just to the west of the abandoned building stands the 280,000-square-foot Cypress Trace shopping center at 13300 S. Cleveland Ave. The center is 99% leased, with anchor tenants comprising 83% of the tenant base, according to Cushman & Wakefield, which represented the seller, an affiliate of Nuveen Real Estate.

Winn-Dixie, Ross, Five Below, pOpshelf, Burlington, Bealls Florida, Bealls and Skillets are among the tenants.

Mark Gilbert, Adam Feinstein and Mitchell Halpern of Cushman & Wakefield worked on the deal.

“This offering received strong investor interest based on its location at Fort Myers’ dominant retail intersection and diverse and expansive anchor lineup,” Gilbert, vice chair and retail capital markets leader for Cushman & Wakefield, said. “Nuveen’s leasing agent has done an excellent job backfilling anchor vacancies in the past few years…”

The recently filled vacancies include Burlington, pOpshelf and Five Below.

“These new anchors are stronger operators than their predecessors and will increase customer traffic to the center,” Gilbert said.

Cypress Trace has just one available vacancy, said Doug Olson, a partner with Trinity Commercial Group and leasing agent.

“We are confident that Benderson will continue the excellent stewardship of the asset, enhancing the performance and contribution to the surrounding retail landscape,” he said.

The sale price amounts to $144 per square foot, said Matt Simmons, a property appraiser with Maxwell, Hendry & Simmons.

“That’s pretty in line with what I would expect for a property like that,” Simmons said. “It’s a large shopping center, obviously. And there’s been a mix of tenants. But you’ve got it anchored with a couple of larger retailers. I know Burlington just opened. Bealls is there. The biggest thing to a buyer like that, is you’ve got some larger tenants, and you’ve got a mix of other places like Skillets.”

Benderson Development Managing Director Randy Benderson declined an interview request, as did Nuveen. But Benderson said in a news release: “Cypress Trace represents an exciting opportunity for us to further invest in Fort Myers and enhance the shopping experience for residents. This acquisition aligns with our expertise in revitalizing shopping centers and creating vibrant places to shop, dine and gather.”

Gary Tasman, CEO of Cushman & Wakefield Southwest Florida, was not involved in the deal. But he said Benderson now owning almost the entire corner—the adjacent Blaze Pizza has different ownership—now raises the likelihood of the vacant Lone Star restaurant finally being redeveloped.

“I would expect that now that Benderson owns the entire property, it should be able to be much easier for Benderson to now redevelop that hard corner and the old Lone Star Steakhouse,” Tasman said. “I think the market would like to see a new and innovative concept on that site. My hope is that will help facilitate that redevelopment.”

Simmons concurred and said a new concept at that location probably would warrant a new building.

“That’s a great site,” Simmons said. “I think it will attract a group that’s going to want their own format.”

Just across U.S. 41 at Bell Tower, the new Capitol Grille took shape on the site of a preexisting Mimi’s Cafe. That same type of redevelopment could take place at the vacant Lone Star building, Simmons said.

“A larger restaurant chain is not inclined to take an existing building and try to make that work,” Simmons said. “It’s not worthwhile for those groups with the economy of scale they have. They have a format for a restaurant.

“I don’t think we’ll see that building there too much longer.”

Acquiring Cypress Trace looks like a great investment for Benderson for multiple reasons, Simmons said.

“What would be interesting to me, and I have no idea if this is part of the buyer’s plan,” he said. “But that is an enormous site for a shopping center. Sites like this, more and more, we’re going to see the addition of multifamily. It makes sense from the standpoint of the owner, because multifamily units are in demand. Sites like this that are extremely well located, they’re going to have interest from prospective tenants.”

Apartments at that site in the future would be a win-win, Simmons said.

“If you’re buying a site like this, you’re looking beyond just what the plaza is today,” he said. “That’s what shopping centers need. It’s not just a benefit for the property owner. It’s a benefit for the tenants. It creates internal capture for the retailers. If you can be in a project where you’ve got built-in shoppers in place, it’s a nice benefit. There’s additional upside value.”