A Boca Raton-based commercial investment group paid more than $40.05 million earlier this month to enter the Orlando market, buying the Dellagio Shopping Center and offices in Dr. Phillips.
Located at 7924-8075 Via Dellagio Way along W. Sand Lake Road, the property has 109,000 square feet of retail, dining and office space spread across 13 buildings.
Concorde Group Holdings owns commercial real estate throughout Florida, Atlanta and Puerto Rico, but has been seeking a foothold in Central Florida and saw this stabilized neighborhood retail center as an easy start, founder and managing director Joseph LeBas told GrowthSpotter.
"We see Dellagio on the higher end of that (neighborhood center) spectrum," he added. "If you look at the segment of Sand Lake Road going (west) to Isleworth the income range already shows there is an established residence pattern, but there's also great upside from the tourist and conventioneer client bases that we think we can bring to the center."
The sale closed March 7, and was recorded Monday afternoon in Orange County.
Built over three levels, the Dellagio Shopping Center features fountains and architecture inspired by classic Italian design. It was 99 percent leased at time of sale, said LeBas, with upscale restaurant tenants that include Fleming's Prime Steakhouse, BRAVO! Cucina Italiana and Big Fin Seafood Kitchen.
The seller was an affiliate of San Diego-based ShopCore Properties, which previously operated under the name Excel Trust and had paid $38.25 million in October 2012. Brad Peterson of HFF Orlando marketed the property on behalf of ShopCore.
Office tenants at the complex include financial service companies, a dance studio and Unicorp National Developments, which originally developed Dellagio and bought its own commercial condo unit there from Excel Trust in August 2015.
Concorde now operates the condo board and does not plan to allow further condo unit sales, LeBas said.
Joe LeBas and brother Will LeBas described themselves Monday as more "hands-on operators" than Dellagio's previous owner, and anticipate working closely with their tenants to market the retail center as a destination to new client profiles.
Concorde's buyer affiliates sourced a $28 million mortgage from Citi Real Estate Funding that matures in April 2028 to help finance the acquisition.
Looking forward, LeBas anticipates Concorde Group to pursue more commercial properties in Greater Orlando to build scale in the market, likely starting in the latter half of this year after the Dellagio investment begins providing its anticipated return.