A New York firm that specializes in asset-oriented distressed debt has sold an office and retail plaza on S.R. 535, right across from the new Embassy Suites in Kissimmee.
Stabilis Capital Management acquired the 13,250-square-foot building at 2960 Vineland Road in late 2012 after buying the debt from Regions Bank. The previous owner had paid $2.2 million for the property in 2005 before defaulting on the loan.
BishopBeal Executive Vice President Kyle Wood represented Stabilis on the $1.3 million sale. "They're not long-term owners or operators," he said.
Wood said the fund buys non-performing notes in bulk from lenders and goes through the various legal hoops to get clean title to the properties and resell them. In this case, it took nearly two years.
"That process really didn't finalize until the foreclosure sale at the courthouse," Wood said. "That happened in late October."
They initially listed it for $1.7 million but later dropped the price to $1.5 million.
The buyer is a Port Orange investor, B.P. Sodhi, who owns multiple properties in Orlando, including the Floridian Hotel Suites. Wood said the new owner will be looking for tenants for the available office space on the second floor and the entire first floor.
Wood said there's no way to know exactly how much the fund profited from the sale because they typically buy multiple notes at one time.
"There's nothing recorded. There are no doc stamps paid," he said. "They don't even like their brokers to know what they paid because of potential conflicts."
Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407)420-6261, or tweet me at @LKinslerOGrowth. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.