A South Florida-based investment company just scooped up the Lake Calvert Square retail center near the S.R. 408 and Colonial Drive interchange for $2.5 million.
Built in 2006, the Lake Calvert Square retail center at 12100 E. Colonial Dr. features roughly 10,000 square feet of retail space — meaning the deal breaks down to about $250 per square foot.
The buyer, Max Fogiel LLC, is an entity led by Oren Hon, co-founder and managing partner at Blue Arch Capital. The investment company mainly keeps its focus in the Southeastern U.S. region, and has deployed $3 billion worth of capital in properties since 2008, with its preferred assets having some value add opputunity.
The seller, Farhad Dhanani, bought the 1.26-acre lot in 2004 for $497,000. The shopping center was built two years later. According to online marketing material, Lake Calvert Square generates a net operating income of about $201,328.
Marcus & Millichap’s Ledvora Brokerage Investment Team, consisting of Nick Ledvora, Bradford Lineberry and Jack O'Leary, represented the seller. Jason Glaser of TCII Capital Group brought the buyer. The company will also manage the property.
Lake Calvert Square sits just two miles south from the University of Central Florida. Ledvora said the retail center sold fully leased with the opportunity to rent to market in the future.
“Should a tenant leave, the average $19 a square foot, triple net, could be improved substantially,” Ledvora said.
Any retail property built in the 2000's and up in the UCF submarket should be demanding about $33 a square foot as a base rent, he said.
Helping boost property values and rents is a surge of new development in the area.
More recently, Key Hotel & Property Management engaged Boyd Civil Engineering to submit construction plans for an 8-story, 142-room Staybridge Suites on Challenger Parkway, about a 1.5 miles south of the University of Central Florida
This would be the company’s second hotel site after entering the Orlando market in late 2018.