A California real estate investment and management firm is looking at a nearly $2 million profit on a retail property it paid $4.3 million for as Florida was climbing out of the recession.
Ira Capital Inc. of Newport Beach sold the parcel on E. Colonial Drive to real estate private equity investor DJM Capital Partners of San Jose, California, last week for $6.13 million, property records show.
Ira Capital purchased the site, which contains a MattressFirm store and a Verizon Wireless outlet, in June 2012, when economic conditions in Florida were still tentative.
The property investment firm, whose own state was also among the last to come out of the great recession, felt that still-soft areas, like California and Florida, would soon start following the rest of the country into recovery and it was time to invest in these areas, said Amer Malas of Ira Capital. Malas is the land scout who brought the Orlando property to his employer and recommended its purchase.
“We didn’t want anything too big, so we were sticking with one and two tenant properties," Malas said. “The other criteria was the sites had to have quality tenants.”
As for the sale, “We think it was a good time to exit given the value we were able to generate,” Malas said.
The parcel in fact has a bit of a track record for doing well by its owners. Ira Capital’s $4.3 million purchase was from Brett Oubre LLC, which paid $2 million for it in December 2007, property records show.
The parcel’s new owner, DJM Capital Partners, has a core focus in retail sites and a specialty in undervalued assets, the company’s website says.
Phone calls and emails to executives at DJM were not returned.
The property at 3770 E Colonial Drive, just west of Herndon Avenue, has 10,732 square feet of store space and was built in 2008.
The stores sit on 1.6 acres and are in a very visible area. There are 140,000 households in a five mile radius, US census figures show, while transportation data indicate an average of 60,500 vehicles travel on East Colonial daily.