South Florida investor Claudio Maggi paid $5.5 million last week for a pair of inline retail strip centers at the northwest corner of Kissimmee's John Young Parkway and Pleasant Hill Road.
Shoppes at Pleasant Hill was built in 2003 and 2004 and contains 34,200 square feet divided among 21 tenant spaces.
Marcus & Millichap's Brian Capo and Luke Watson represented the original developer, Reich Properties, in the sale. President John Reich told GrowthSpotter the asset was a family investment with his parents.
"We just decided with cap rates near 8 percent it was a good time to get out," Reich said.
Capo said Maggi was represented by a South Florida broker who deals exclusively with foreign investors. He sourced a $3.9 million loan from BAC Florida Bank.
"What attracted this particular investor was the area -- and the traffic counts are insane," he said. "They get 106,000 cars a day at that intersection."
The buildings had also been extremely well maintained and were fully leased. "We had a tenant who vacated very close to closing, but we also had new tenants come in and some who renewed at increased rates," Capo said.
One thing that made Shoppes at Pleasant Hill unique was that it was designed to include golf cart access from the neighboring Good Samaritan Village and North Gate subdivision. It's also directly across from the Oaks National Golf Course community.
The Capo team sold a shopping center at the southwest corner of the same busy intersection in May.
The Florida Department of Transportation is planning a $91 million intersection improvement that involves building an elevated, two-way turn lane.
FDOT will also add one travel lane in each direction, bike lanes and signalization improvements. The project is funded for right-of-way acquisition in FY2019 but not funded yet for construction.
Reich said he would be open to investing the proceeds as part of a 1031 exchange, if he could find the right property. But for now, he's focused on expansions at two retail centers -- Nona Marketplace and Narcoossee Retail Center -- that are slated for construction in 2018.
"I'm looking to make additional acquisitions in 2018," Reich said. "I'm focused on the Narcoossee corridor -- that's where our offices are. I would love to find an improved property that has some upside, but that's hard to find right now so I'd be open to something with good developability."