An affiliate of New York-based real estate investment group Clarion Partners paid $58 million on Wednesday for more than half of the 53-acre Lake Nona Landing retail center.
Located in the 11900 block of Narcoossee Road, just south of S.R. 417, the property has been developed by Tavistock Development Companysince 2015, with about half of the anchor and secondary tenants opening within the past 12 months.
JLL's Orlando office represented Tavistock in the sale, and began working with the local developer more than a year ago on how to prepare the property and its leases to eventually be taken to market.
The retail center was listed in August and sold roughly four months later, with eight competitive offers for an asset in which 14 of the 28 tenants had not yet opened for business, said Carson Good, managing director for JLL's Capital Markets Group.
"Almost half of the tenants weren't open for business yet, and that created an interesting approach to closing," he told GrowthSpotter on Thursday.
JLL clarified on Saturday the area bought as 35 acres and total price as $58 million, up from the $52.4 million reflected via deed doc stamp taxes paid on Thursday.
"The opportunity to acquire a large, newly constructed shopping center with high-quality tenancy was very attractive to Clarion Partners," vice president Kevin Murphy said. "Further understanding Tavistock's ambitious plans and vision for the growth of the market gave Clarion confidence that the area will continue to be a dynamic and densifying environment. We are excited by both the investment and the opportunity to be a part of the Lake Nona community going forward."
Lake Nona Landing has approximately 596,000 square feet of retail and restaurants in varied stages of development. Clarion Partners' purchase of 35 acres included the Walmart Supercenter-anchored parcel with TJ Maxx, PetSmart and Crunch Fitness, the Vickory Place multi-tenant building with Starbucks, Chipotle and others, as well as some inline retail buildings and outparcels for Pollo Tropical and Chili's.
It did not include the Lowe's home improvement store parcel, which is still owned by Tavistock, or two Sam's Club-anchored lots totaling 15.81 acres, which were sold in July to a Connecticut-based investor for $9.77 million.
Clarion has an option with Tavistock to buy more outparcels in the coming year as those tenant buildings are built and occupied.
Long-term lease commitments that Clarion Partners benefits from with with the acquisition include Walmart's ground lease signed in March 2016 for 20 years with up to 16 five-year extension options, PetSmart's commitment this past May for 10 years with up to five extension periods of five years, and similar 10- or 20-year leases for a variety of smaller tenants.
The company invests in a variety of commercial real estate for institutional investor clients in the United States, United Kingdom and Brazil.
The sale was spread across multiple deeds. No mortgage was recorded Thursday in relation to the acquistion.
The deal does not include some retail outparcels that front Narcoossee Road and were already sold by Tavistock to individual investors, or the sites under contract for a new Nona Smiles dental office (1.12 acres) and an XL Soccer World facility (1.72 acres).
Editor's Note: This story was updated Saturday to correct the total acquisition price to $58 million, recognizing two additional outparcels that were purchased.