A Kissimmee shopping center that has been tangled up in two separate foreclosures sold on June 16 to a Tampa investor, just weeks before it was scheduled for public auction.
The Kissimmee Commons shopping center is a 15,385-square-foot strip center adjacent to the city's Vine Street Walmart Supercenter. It was built in 2008, but less than half of the retail spaces were leased at time of the sale.
Tenants include FedEx Office, Cricket Wireless, Gold Buyers and a barber shop.
Orlando-based Trax Capital Managment, which specialized in acquiring non-performing debt, had previously acquired the shopping center through a foreclosure suit in 2011.
Trax Manager Bryan Brewer has since been sued for fraud, as the Orlando Sentinel reported in March. The Kissimmee shopping center went into foreclosure in January after Trax affiliate TCM Florida defaulted on a $1.2 million loan.
Orange-Osceola Circuit Judge Kevin Weiss signed an order April 20 setting public a auction date of July 19 for the property to be sold on the court house steps. The final judgment included the $1.2 million loan plus another $216,534 in fees and interest.
LandQwest Commercial brokers Kane Morris-Webster and Cynthia Shelton represented Trax. Morris-Webster told GrowthSpotter the pending auction date was looming over the seller. The property was listed in January at $2.1 million -- $500,000 above the final sale price.
Morris-Webster said there was a lot of interest in the property, but prospective buyers who could have paid a higher price needed more due diligence time.
"It was a tight time frame, from the day of signing the contract to close was only 30 days," she said. "We had to work hard and fast to make sure they had all their documents in place, to get the estoppels and to make sure there were no liens on the property."
They put a rush on building inspections and appraisals to make the closing. "We had to be really flexible and amenable to getting people in and out and quickly as possible," Morris-Webster said.
She said the buyer, Tampa investor Sudhir Vemuri, ended up getting a good deal because he was able to close quickly. The proximity to Walmart and the high traffic counts on Vine will generate a lot of tenant interest, she said.
JP Morgan Chase provided $960,000 in financing to Vemuri.
"These properties are very desirable in the market right now," she added. "Anything that's at replacement cost or below is what buyers are looking for, and there's not a lot of supply. They'll get that leased up pretty quickly. The previous owner wasn't as actively participating in that stuff. This buyer has the patience, time and money to put into the property."
Vemuri could not be reached for comment on Friday.