Advertisement

Artegon owner engages CBRE to market North I-Drive mall for potential sale

Artegon owner engages CBRE to market North I-Drive mall for potential sale
Highlighted in blue are the 100-plus acres marketed for sale by a Lightstone Group affiliate, which makes up the bulk of Artegon Marketplace. The property lies at the southeast corner of N. International Drive and Oak Ridge Road. (Orange County Property Appraiser)

New York-based Lightstone Group, owner of Artegon Marketplace on N. International Drive, has hired the land services team of CBRE Orlando to begin marketing the 100-acre property for prospective sale, the company told GrowthSpotter on Tuesday.

Lightstone said it considers Artegon "a tremendous success" and a model for innovative retail properties in Central Florida. Because of this, the owner has received "unsolicited interest from numerous investors, and decided to engage a brokerage to formalize the process of gauging wider interest."

Advertisement

A company spokesman said Lightstone will consider all options, and looks forward to continuing to own and manage the property.

Lightstone confirmed the new marketing effort after sources told GrowthSpotter on Monday about the relationship at ICSC's Florida Conference & Deal Making. Land services brokers with CBRE declined to comment.

The investment group could pursue disposition of Artegon, on which it recouped its 2011 purchase price last year when it subdivided two single-tenant anchors and sold their combined 23 acres for $30 million.

Or it may be yet another tourism corridor land owner simply floating property to gauge market response, following two years packed with investment buys and redevelopment plans along I-Drive.

Lightstone owns the majority of Artegon and its parking lot (64.47 acres) through an affiliate, as well as nearly 40 additional contiguous acres comprised of easements and stormwater retention area.

Located at 5200 International Dr., the shopping center stands to gain next year from the I-4 Ultimate project's new flyover bridge, which will link adjacent Oak Ridge Road to Caravan Court across the interstate, a block from one of the main entrances of Universal Orlando.

Expected to open in Summer 2017, the bridge will give Universal patrons a direct route to the northern end of I-Drive. That promise of future traffic prompted Cincinnati-based North American Properties to buy 16.5 acres in July on Oak Ridge Road and plan a large mixed-use complex.

It helped motivate Fun Spot America to accelerate expansion plans for its theme park, and Simon Property Group to study its 77 acres at Orlando International Premium Outlets for potential expansion and a parking garage.

Lightstone subdivided Artegon and sold off single-tenant chunks in the past year. It sold a 6.27-acre lot with a long-term lease by Cinemark Theater last October for $13 million to an affiliate of Arizona-based STORE Capital, a REIT focused on single tenant operational real estate.

Last December, it sold the 16.74-acre parcel occupied by Bass Pro Shops for $17 million to New York investor Michael Aviles and a partner, who called it the brand's no. 1 store in the nation. Those sales, totaling $30 million, surpassed the $25 million Lightstone paid for the mall in 2011.

And on Dec. 30, the owner sold two undeveloped outparcels totaling 4.14 acres for $3.8 million to an affiliate of Orlando-based Millenia Partners, which is planning three restaurant lot leases, one signed for a Pollo Tropical.

In early May, Kissimmee-based tour company Leading Edge Helicopters filed plans with the city to install a vertiport/helipad location on the southwest corner of the Artegon parking lot. The project would result in a land lease covering more than 40,000 square feet.

Baltimore-based Paragon Outlets is an affiliate of Lightstone, and manages the company's retail properties and development.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

Advertisement
Advertisement