Retail commercial properties at three busy locations in Central Florida have sold of late, led by a pair of purchases at the corner of Narcoossee Road and Goldenrod Road in southeast Orlando totaling $23,600,000 for several buildings.
An affiliate of South Florida-based Saglo Development Corp. bought the two properties with Goldenrod addresses, picking up more than 120,000 square feet of conditioned space built around the site of a Walmart Supercenter.
It's Saglo's first purchase in Central Florida, and Saglo President Hue Chen said the company is searching for additional properties.
"We're looking to buy more shopping centers, $10 million to $30 million, in size of at least 100,000 square feet," Chen said.
Saglo looks at neighborhoods and typically a radius of approximately 3 miles around a particular intersection. In this case, the draw was working-class consumers who work in the growing Lake Nona area nearby -- as well as 100 percent tenancy, though a possible vacancy looms with the Mattress Firm bankruptcy pending.
"We're able to reconcile that by feeling pretty confident that if we got that space back, it's on an end cap, and we can find an even better user who would bring more traffic to the property," Chen said. "... I think the Walmart Supercenter that's adjacent creates a draw as a shadow anchor to the property."
Cushman and Wakefield represented Saglo and arranged financing; a mortgage was recorded in the amount of $15,340,000 with TD Bank in the Oct. 31 transactions. An affiliate of Illinois-based IRC Retail Centers was the lone seller of 5921 S. Goldenrod Road and its 31,242 square feet of space. Another IRC affiliate also was a partner with affiliate Inland Goldenrod Marketplace LLC in the sale of 88,942 square feet built from 2008 to 2013 on approximately 12.8 acres on nine parcels at the site.
Two other deals reflected that grocery anchors aren’t always necessary for current activity, said Mike Milano, an executive managing director of retail at Colliers International.
“Multi-tenant shopping centers are the most sought-after retail property in the marketplace,” said Milano, who was recently involved with two other retail-property sales in Central Florida. “These types of properties have become hugely popular, and that’s a shift in the market from grocery-anchored centers. Well-run multi-tenant centers offer a combination of predictable income and quality tenants that’s very attractive for investors.”
In Sanford, Milano and Colliers colleague Sean Glickman represented seller GBR Properties Inc. in the $8.95 million sale of Westwood Village, with 38,000 square feet of fully occupied space, according to Colliers. Tenants include Orlando Health and Orangetheory Fitness.
Located just west of Interstate 4 on State Road 46, the property went under contract to a Brazilian investment fund after seven days on the market, Colliers representatives said. Brokers find the predictable income generated by such centers and the annual rental increases they can carry are creating demand based on low-risk income growth and high occupancy, the company said in a statement.
In central Orlando, Herndon Village Shoppes on East Colonial Drive with 64,153 square feet sold for $6.2 million. The center built in 1987 is 90 percent occupied with tenants including Chamberlin’s Natural Foods and SAS Shoes. Glickman represented seller Great American Land Management Inc., with Canada-based investment firm Quantum Management purchasing the property.