The joint venture partners also sold the neighboring Cinque Terre shopping center, on the south side of Osceola Parkway, for $23 million. The transactions, which both closed on Aug. 5, total 76 acres and approximately 530,000 square feet of retail space.
"This was our plan," Tupperware VP Tom Roelk told GrowthSpotter on Tuesday. "We entered into the joint venture with O'Conner Capital Partners. It was always our intention to sell the center after it was complete."
The Hampshire Companies, a real estate investment firm based in Morristown, New Jersey, acquired both properties through its HUH foreign investment fund. Hampshire manages private funds with more than $1 billion in assets, owning and operating portfolios comprising hundreds of properties in multiple states – a total of more than 20 million square feet.
Hampshire took out a combined $49 million in loans from Principal Real Estate Investors' U.S. Commercial Mortgage Loan Portfolio.
The Crosslands is home to Osceola County's first Fresh Market, which opened this summer. Other retailers include Marshall's, Haverty's, HomeGoods and Hobby Lobby. The shopping center also has numerous restaurants, including Outback Steakhouse, Cheddar's, Burger-Fi and Pollo Tropical.
The 8-acre Cinque Terre center was developed as a response to overflow big-box demand at Crosslands. It's home to the much anticipated 4 Rivers Smokehouse, which opens this Wednesday, as well as a 55,000-square-foot Burlington store and a 40,000-square-foot 24 Hour Fitness.
Roelk said revenue from the sale would go into Tupperware's general corporate fund. "We can't count these proceeds as operating revenue because it's not our primary business," he said. "It will be reported as sale of excess property. Still, it's a nice bit of cash."
Tupperware paid $5 million back in 1953 for roughly 1,300 acres in south Orange and Osceola counties - home to its world headquarters. The current development plan for the land has been in place since 2002.
The joint venture with O'Connor was a first for the company. The developer invested at least $65 million to build The Crosslands and was projected to spend another $20 million on Cinque Terre.
"We were not experienced in participating in joint ventures, so it was a bit of a risk for us," Roelk said. "But it turned out well."
The Planned Development extends east to encompass the Tupperware SunRail station and its immediate vicinity. The company still has entitlements for more than 1.5 million square feet of office space and about 1,500 multifamily units near the station.
Roelk said the sale does not include 8-plus acres on the west side of OBT. A portion of that property was sold recently for a new Culver's franchise, and another 3.5-acres is under contract to Winter Park-based Daniel Corporation.
The site has an approved plan and building permit for a five-story, 120-room hotel and 5,500-square-foot restaurant. Roelk said the developer plans to build a Hampton Inn.