Miami-based Saglo Development bought its second Orlando-area shopping center property, paying $15.8 million last week for the Walmart-adjacent Gateway Station plaza on Osceola Parkway in Kissimmee.
“We love the property,” analyst Carson Dowd told GrowthSpotter. “We plan on holding it for a long time.”
Dowd said the company was drawn to the site because of its extraordinary traffic counts -- it’s just west of the Florida’s Turnpike interchange -- and the new Orlando Health Tupperware medical campus a block away. The shopping center, which has 86,500 square feet of inline retail space, was 95-percent occupied at the time of the sale.
“We’re at the same intersection with Walmart, so we benefit tremendously from that traffic,” Dowd said. “There’s some residential going in in the area, and the new emergency care center will draw a good amount of traffic and employment to the area. We’re already seeing a lot of medical uses in the center.”
Last year Saglo entered the Orlando market with the $23.6 million acquisition of Goldenrod Marketplace in Southeast Orlando.
“We try to get two or three centers per year. This was our first for the year,” Dowd said. “There was no broker involved, so that was a first for me. We’ve offered on a good amount of properties this year, but we tend to be conservative so we’ve missed out on a lot. We’d rather get one good investment than to overpay.”
BB&T provided $10.52 million in lender financing for the acquisition.
The seller was Louisiana-based PMAT, which had acquired the property in 2016 for $10.65 million. PMAT improved the landscaping and replatted the shopping center to create a separate 2.4-acre parcel, where a 12,000-square-foot plasma center is under construction. That lot was not included in the sale to Saglo.