Arizona-based REIT pays $13M for movie theater lot within North I-Drive mall

Bob Moser

A lot leased by Cinemark Theater in the northeast corner of Artegon Marketplace on N. International Drive was bought Friday for $13 million by an affiliate of Arizona-based STORE Capital, a REIT focused on single tenant operational real estate.

STORE Capital's affiliate LLC signed a 10-year lease renewal with Cinemark, effective from Oct. 16, according to county records.

The company paid cash for the asset, but because STORE has its own private asset-backed securities (ABS) conduit used at times to obtain long-term debt on newly-acquired properties, a mortgage was placed on this property, with Citibank listed as collateral agent for future securitization under the conduit. 

Designated as Lot 3 within the replat of Artegon (formerly known as Festival Bay Mall), the property was sold by FB Orlando Acquisition Company, LLC, an affiliate of New York-based Lightstone Group. STORE also acquired an easement, giving it access to Lot 3 via Tract D on the replat. 

Plano, Texas-based Cinemark USA, owner and operator of the theater, is starting a $1 million renovation to bring in luxury seating to the 20-screen theater, as GrowthSpotter reported June 23

STORE Capital declined to comment Monday on the acquisition. 

Real estate assets near the northern end of International Drive are expected to draw fresh development interest over the next two years, as I-4 Ultimate construction brings an overpass to connect visitors directly between Universal Studios and Orlando Premium Outlets, as GrowthSpotter reported in mid-July

Directly south of Artegon Marketplace lies a 77-acre tract of undeveloped land on North International Drive, vacant for a decade and once destined for an amusement park, that could draw renewed interest for mixed-use development as demand heats up the tourism corridor. 

Farther south, a 3.45-acre vacant commercial property was bought for $2.575 million on June 26 directly east of Divers Direct and across the street from Sonic Drive-In, by an affiliate of New York-based Whitestone Realty Capital. It broke ground in July on a 175-room Hyatt House hotel, a $28 million project that's introducing the extended-stay brand to Orlando, as GrowthSpotter reported June 30

Editor's Note: The third paragraph was updated on Oct. 22 to clarify that STORE's affiliate acquired this parcel with cash, and named Citibank in a mortgage document that was not related to a loan for this acquisition.

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