SITE Centers sells Millenia Plaza for $56.4M to Canadian real estate firm

A Canadian real estate firm just bought the Millenia Plaza shopping center in Orlando for $56.4 million.

Beachwood, Ohio-based SITE Centers Corp. sold the roughly 411,500-square-foot property at 4403-4697 Millenia Plaza Way to an entity tied to North American Development Group, according to a deed recorded Friday in Orange County. 

Millenia Plaza sits on about 38 acres of land, immediately north of the luxury Mall at Millenia retail center.

It sold 100 percent occupied to several big-box tenants including Home Depot, BJ's Wholesale, DICK'S Sporting Goods, Total Wine & More and Ross Dress for Less. 

Ashley Furniture also recently filled a former Toys “R” Us store at Millenia, as the bankrupt retailer continues to sell off its entire real estate portfolio. The home furnishing store's lease extends through January 2026, according to online marketing material. 

Holliday Fenoglio Fowler's Brad Peterson, Whitaker Leonhardt, Michael Brewster and Thomas Isola represented the seller in the deal. The property hit the market in early last year without a price. 

The deal breaks down to about $137 per square foot, which is below replacement cost, Peterson said. This is the third time HFF sold the property — the first time being in late 2011 to an entity tied to Sun Life Financial, which is another Canadian-based company.  

SITE, previously doing operations as DDR Corp., bought the Millenia Plaza shopping center in late 2015 for about $58 million. 

The deal comes at a time when many retailers have filed for bankruptcy and announced they will shutter their stores, including Sports Authority, HH Gregg, Sears and more recently, Mattress Firm.

When asked how the Millenia submarket compares to the national retail outlook, Peterson said there's room for potential rent appreciation at Millenia Plaza, particularly with the ground leases for Home Depot and BJ's Wholesale. 

"They're both longterm ground leases and there's comfort in that because they're currently far below market rents," Peterson said. "A long-term lease and the opportunity to rent to market in the future in a well located trade area [provides the buyer] a lot of security." 

Millenia Plaza is positioned along I-4 in Orlando, which has a traffic -count of more than 161,000 cars per day, marketing material shows. The property is north of major attractions like Disney World, Universal Studios and Sea World. 

SITE was incorporated in 1992 as Developers Diversified Realty Corp., before changing its name to DDR in 2011. At the time, the name change reflected its shift away from ground-up development and toward management and leasing of big-box shopping centers.

Today the publicly-listed real estate investment trust owns 78 shopping centers, with 80 percent of their portfolio anchored by a grocer or discount retailer. 

North American Development Group, owns a number of retail properties in Florida, including the open-air Loop West shopping center along Osceola Parkway and University Plaza in Winter Park. 

The development, acquisition and management firm is also behind the new Shoppes at Nona Place development project at the intersection of Narcoossee Road and Tyson Road. 

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on FacebookTwitter and LinkedIn.

Copyright © 2019, GrowthSpotter
61°