Leading private equity firm pays $23M+ for Orlando retail assets, part of portfolio sale

Investment vehicles led by New York-based Apollo Global Management, one of the world's top private equity firms, paid more than $23.756 million in June for a Publix-anchored shopping center and two triple-net outparcels in Orlando, part of a 62-asset portfolio sale by a large Canadian REIT. 

The two sales closed the first week of June, but were recorded Wednesday in Orange County.

One Apollo affiliate paid more than $20.272 million for more than 10 acres of the Publix-anchored Regency Village shopping center, which features nearly 90,000 square feet of leasable area directly across from the Vineland Premium Outlets in Orlando's tourism corridor.

Located at 8145 and 8195 Vineland Ave., the purchased assets include an Outback Steakhouse-leased outparcel. Toronto-based seller H&R REIT's affiliate previously paid a recorded $16 million in August 2012. 

The second Apollo-managed affiliate paid more than $3.483 million for a CVS-leased outparcel at 6217 Silver Star Road, based in west Orange County at the intersection with N. Powers Drive. H&R's affiliate previously paid $2.32 million there in May 2003. 

H&R announced on June 8 it had sold 62 U.S. retail properties for approximately $620.4 million, a price that it claimed equated to a 7.3 percent capitalization rate on 2018 forecasted property operating income.

H&R said it plans to reinvest nearly all of the taxable gains through 1031 exchanges to defer as much of the material income tax as possible. 

Officials with Apollo did not respond to requests for comment on Wednesday.

Apollo has several real estate investment branches, including its publicly traded REIT Apollo Commercial Real Estate Finance.

Tyler Wilkins of Crossman & Company had been the leasing agent for Regency Village under the previous owner. 

Apollo also owns timeshare resort company Diamond Resorts, which has a regional office in Orlando. The Wall Street Journal reported in April that Apollo was preparing to take that company public later this year. 

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