BJ’s Wholesale Club to Lead Shopping Center Renovation in Seminole County
The Casselberry Exchange shopping center, an integral part of the Seminole County commercial landscape, is poised for a transformative renovation led by BJ’s Wholesale Club. The project signifies a shift in the retail scene, with significant investments aimed at modernizing and revitalizing the area.
Ownership and Transaction
In a significant transaction, New York-based RD Management LLC acquired the Casselberry Exchange property, located at 5803 S. U.S. Highway 17-92, from Apollo Global Real Estate for $13 million on October 16, 2024. Simultaneously, a portion of the 15.7-acre parcel was sold to BJ’s Wholesale Inc. for $10 million. This marks the beginning of an ambitious redevelopment plan for the site.
Renovation Plans
The shopping center will undergo extensive renovations, starting with the complete teardown of the current 94,000-square-foot former Staples building. In its place, a new anchor building will be constructed for BJ’s Wholesale Club. This structure will be strategically oriented to face a new entrance on State Road 436, enhancing accessibility and visibility for shoppers.
Existing Outparcels
While the main focus is on the new construction for BJ’s, existing outparcels will also receive attention. The three outparcels that house a Little Caesars and a Sourdough Bread House will remain intact but will undergo renovations to align with the updated aesthetic and functional plans of the center.
Timeline and Budget
With an estimated budget reaching into the tens of millions, this extensive renovation project is expected to bring BJ’s Wholesale Club to the area by the end of 2025 or the beginning of 2026. The financial commitment underscores the investment into the future of retail in the region.
RD Management’s Other Holdings
RD Management is no stranger to the area, with a portfolio that includes the Oxford Commons plaza, the former Orlando Jai Alai building, and the Lowe’s shopping center on U.S. 17-92. Their experience and holdings showcase their long-term commitment to developing thriving retail spaces in Central Florida.
BJ’s Wholesale Club Presence
Massachusetts-based BJ’s Wholesale Club is already a familiar name in Central Florida, with nine existing locations spread across Kissimmee, Davenport, Clermont, Lady Lake, Sanford, Port Orange, Merritt Island, and two in Orlando. The new location at Casselberry Exchange will further strengthen their presence in the region.
Financials
Financially, BJ’s Wholesale Club is in a strong position, reporting $6.9 billion in assets as of August. This marks a $220 million increase from the previous quarter and over a $300 million increase compared to the previous year, indicating robust growth and stability as they continue to expand their footprint.
Market Context
The retail landscape in Orlando is evolving, with significant new retail space developments underway. While 823,700 square feet were built in 2024, projections suggest the total will reach 1.1 million square feet by the year’s end. However, this figure reflects a 35% decline from the 1.8 million square feet constructed in 2023, an indication of shifting trends in the retail development sector according to CoStar Group.
The renovation of Casselberry Exchange, with BJ’s Wholesale Club as a leading partner, exemplifies the ongoing transformation of retail spaces to meet modern demands and enhance the shopping experience for the community.
