An entity tied to Devon Self Storage just invested in an Opportunity Zone near Pine Hills with plans to redevelop the old warehouse property into a self-storage facility.
The California-based private real estate company paid about $3.12 million for the 110,203-square-foot structure at 4815 West Colonial Drive, according to a deed recorded in Orange County last week.
The roughly 3.3-acre site sits in an Opportunity Zone, meaning the new owner can qualify for significant tax benefits if it substantially redevelops the property — which is exactly what it intends to do, broker James Garner of Marcus & Millichap told GrowthSpotter.
The deal drew in about a dozen offers, Garner said. He along with Marcus & Millichap’s James Medefind and Jim Shiebler represented both sides of the deal. The seller, Pearlman Entreprises Inc., is led by attorney Craig S. Pearlman.
“We closed at 97 percent of list price with a national self-storage developer who has a comprehensive plan to improve the property and leverage the current opportunity zone status," Garner said in a statement.
Devon owns and manages self-storage facilities in the United States and Europe. Garner said the company is actively looking to pursue more properties in opportunity zones.
“Part of the attractiveness was the Opportunity Zone, Garner said. “The buyer has been looking at this site for a number of years, and [the seller] felt it was a good opportunity to access their equity.”
The building currently operates as a furniture store with a month-to-month lease contract in place. The front portion of the facility is a showroom with a second story mezzanine. The back of the building features warehouse space for storage. Devon will gut the building and repurpose it as a self-storage facility.
The property sits along West Colonial Drive, adjacent to the 87-acre Central Florida Fairgrounds, which averages 250,000 people in attendance each year during its Annual Central Florida Fair, according to a study used by Marcus & Millichap.
Other developers active in the area include Related Group’s affordable housing arm, Related Urban Development Group, which recently broke ground on the second phase of their very first project in the Orlando submarket, Emerald Villas.