Two of Orlando's leading gastroenterologists, who happen to be brothers, recently paid $2.3 million for a 9,240-square-foot retail strip center in Kissimmee.
Doctors Srinivas Seela and Harinath Sheela are both Yale Medical School graduates who opened a family practice, Digestive and Liver Center Florida, with a third brother, Seela Ramesh.
Seela and Sheela are also managing members of Cancala Associates LLC, which has been investing in real estate since 2014. In November they sold Shoppes at Waterford Place in Orange County for $3.4 million. That property was fully leased and comprised two buildings totaling 14,000 square feet.
The Kissimmee property at 4477 W. Vine St. was a true turnaround, according to seller Mohamed Diab, principal of SunDev Properties.
Diab told GrowthSpotter he bought the shopping center in 2014 for $750,000. It had been vacant for years.
"Even the Salvation Army couldn't make it there," he said.
After he completed extensive renovations, Diab was able to get the property fully leased with a mix of local and national tenants, including Dunkin Donuts, Boost Mobile and Subway.
"We spent a lot of money - about $700,000 - on improvements to the property," he said. "I owned the shopping center next door with the Radio Shack. I sold that in 2015. I added an easement access between the two shopping centers."
Diab listed the property last November and it sold in less than four months, generating a 6.7-percent cap rate. "There was a lot of interest," he said. "We had higher offers - up to $3 million. Buyers want to invest in real estate that has been stabilized. Generally speaking, those national tenants are unlikely to go out of business."
The Vine Center property was the third Dunkin Donuts in Osceola to sell in the last two months. The new store in Shops at Bellalago sold Dec. 28 for $2 million. On Feb. 10, Brian Capo with Marcus & Millichap brokered the sale of a newly constructed Dunkin Donuts and Dollar Tree on U.S. 192 in St. Cloud for just under $4 million.