Atlanta-based value-add retail investors RCG Ventures paid $7.8 million on June 13 to enter the Orlando market, with 4.6 acres on N. International Drive and an eye on long-term redevelopment, the company's president and COO told GrowthSpotter.
"I-Drive has been a hot corridor for years, and we see a lot of room for growth there," said Mark Worley early Monday evening, after the property sale deed recorded that afternoon. "Our vision is redevelopment of the site, but at this point we're unsure what that will look like."
The properties, which include 7024, 7052, 7004 and 7060 International Drive, lie directly north of the Heart of I Drive Hotel, and west of the Magical Midway adventure park.
The four parcels are currently leased by the Edwin Watts Golf Clearance Center which fronts Interstate 4, a handful of small bars and restaurants in a strip center, and a Pizza Hut and Buffalo Wild Wings that front I-Drive.
The parcels total 38,364 square feet of leasable space. RCG is already marketing the "Orlando Retail Center" on its website, with the 13,295-square-foot Edwin Watts building listed as the lone "available" space.
RCG sourced a $5.7 million loan from Hamilton State Bank out of Atlanta to help finance the purchase. The properties were fully leased at time of sale.
The company is an owner-operator of multi-tenant value add retail property, with more than 9 million square feet in 90 shopping centers across 20-plus states, Worley said.
Worley declined to confirm when RCG may pursue redevelopment of the site, but said the company has discussed zoning and entitlement allowances with Orange County.
As for current entitlements, the property has Commercial Future Land Use and is zoned C-1 (Retail Commercial District), which would allow retail and office uses up to a maximum of 3.0 floor-area ratio, according to county planning staff.
The site is included in the upcoming I-Drive District Overlay, which designates the frontage on International Drive as T-6 I-Drive, and the remaining property in the rear as T-6 General.
Looking forward, RCG is open to more value-add retail acquisitions in Greater Orlando, and has $250 million in investment capital it plans to place within the next 12 to 18 months nationwide, Worley said.
The seller was Harvey Blatt, labeled as trustee of the property out of Boca Raton, originally from Montreal, Canada. Blatt appears to have acquired the property for $850,000 in July 1976, based on deed records, though subdivisions that followed made it difficult to confirm on Monday night.