An investment group led by Davenport dermatologist K. Wade Foster paid $6.8 million this week for two commercial buildings on the hot State Road 50 - Plaza Collina corridor.
“It’s a good sale for Clermont. It’s such a visible corner,” said Hooman Hamzehloui of Masters Realty International. He brought the buyer, Ostercappelan Land LLC, which several investments in Polk, Highlands and Lake counties and is looking for more.
Magnolia Center is at the intersection of S.R. 50 and Magnolia Pointe Boulevard, directly across from Hyundai of Central Florida. Don Mealey Chevrolet and the new FiftyWest Class A office building also occupy the Plaza Collina development. A new 2-story office building is under construction next door.
Orlando-based SunDev Realty recently completed the nearly 16,000-square-foot commercial building in Magnolia Center. It was fully leaded at the time of the sale to “recession-proof” tenants, among them personal injury attorney Dan Newlan, Paradise Grills, Bankers Life Insurance and Sherwin Williams. The sale also included a former Mattress One store that will be converted into a Pacific Dental franchise.
“This was a no-brainer for my client with the quality of the tenants and length of the leases,” Hamzehloui said.
SunDev Principal Mohammed Diab has owned the Clermont shopping center since 2003. In 2013 he built dual-tenant retail building with a Dunkin Donuts and nail salon and sold it last year for $1.6 million.
In 2016, he built a Mattress One store in the shopping center. Diab said he evicted the retailer earlier this year for nonpayment of rent and began negotiating the lease with Pacific Dental. Meanwhile his son, broker Ameer Diab, was marketing the two-story multi-tenant building.
“There were four offers for the building, all within $150,000 of each other,” Diab said. He told GrowthSpotter he accepted the Ostercappelan bid because the doctor offered to buy the old Mattress One store. That way, Diab wouldn’t have to go through a lot-split with the city.
“He went hard on his money before the Pacific Dental lease was signed,” Diab said. He said Foster now assumes the obligation to pay for $50,000 in upgrades to the electrical, plumbing and HV/AC for the dental office conversion.