A retired New York auto dealership owner has bought Darden Restaurants' flagship Olive Garden parcel on International Drive for an estimated $12 million, and is currently seeking more investment properties in Greater Orlando, the buyer told GrowthSpotter.
Located at 8984 I-Drive, the 3.61-acre parcel was acquired by Mark Herrmann of Chappaqua, NY, via a newly created affiliate LLC. It lies just a few blocks north of Pointe Orlando, the Hyatt Regency Hotel and the Orange County Convention Center.
"Having been to the (I-Drive) area many times for conventions, I've always been impressed with the business and tourist traffic there," said Herrmann, age 76. "I had a career as an automobile dealership owner for many years in Yonkers, NY. This is my first investment in Orlando."
The land will remain occupied by a 10,800-square-foot Olive Garden restaurant, as Darden has a 20-year lease remaining on the property.
Herrmann declined to confirm an acquisition price for the property, which is estimated at $12 million, based on deed doc taxes paid. That's just below the $12.2 million list price for the property on commercial real estate sites back in April.
The property was one of nearly 50 that Darden listed for sale earlier this year, part of a new strategy to sell real estate assets and refocus on its core business of running restaurants, as the Orlando Sentinel has reported in recent months.
With the new Olive Garden parcel, Herrmann is acquiring a property lease that features 1 percent annual rental escalations, and a tenant Cap Rate estimated at 4.25 percent.
Herrmann currently has a Letter of Intent (LOI) out on another property for purchase in an Orlando suburb, but declined to comment on the location or tenant type.
Marcus & Millichap represented Herrmann on the purchase, while listing brokerages for Darden Restaurants were The Boulder Group and Lee & Associates. Listing agents declined to comment on the deal, citing confidentiality agreements with Darden.
In the property's sale listing, agents touted the property as strategically located along International Drive with frontage to Interstate 4, with I-Drive traffic volumes in excess of 30,000 vehicles per day and I-4 traffic counts in excess of 167,000 vehicles per day.