A local orthotist, his wife and brother sold an aged retail property for $1.35 million last week in the heart of Orlando's S. Orange Avenue hospital district, and want to reinvest up to $700,000 in South Orlando to fulfill a 1031 exchange opportunity.
Located at 1724 S. Orange Ave. on the corner with W. Hollenbeck Street, the half-acre site's two single-story retail buildings are within walking distance of Orlando Health's ORMC and two women and children hospitals. Built in 1955 and 1961, the small buildings total 5,515 gross square feet, with the street-front space most recently occupied by The Medicine Shoppe pharmacy.
Stephen G. Bremer of Prosthetic & Orthotic Associates, his wife Rita and brother Arthur M. Bremer have held the property in their family since 1983, but chose to sell now to allow Arthur to retire with his portion of the proceeds, Stephen told GrowthSpotter on Monday.
"That is really a cash cow part of town, and the growth has only just begun," he said. "We'll look to reinvest our portion. We closed Thursday and all the money went right to the (1031) holding agent."
Stephen Bremer said his net take from the sale was about $540,000, and his next investment will ideally be for $700,000 or less. He favors South Orlando, office or warehouse properties with block-and-metal construction, and would be open to residential real estate if he found a block of homes together at a reasonable per-unit price.
He said wife Rita will likely manage the family's investment properties in the future, but does not rule out hiring a property management firm.
DRP bought the property on behalf of a "large retailer client" that wants to lease the space after renovation, though cannot name the company at this time, said Dennis Skop, property manager for DRP.
"The location is what this client wanted for their business, they directed us to it," he said.
DRP will begin a major remodeling of the buildings on the property within the next 60 days, though could not project investment cost on Monday. The company will serve as general contractor on the job, and is currently hiring subcontractors for electrician, plumbing and air conditioning work.
Aida Martin, broker with Midtown Realty of Orlando, represented the seller in the deal.
"It was a great location near the hospitals, South Downtown, with proximity to SunRail and new roofs coming up in the area," she said.
The property lies just across the street from a three-story medical office building bought in late March by Atlanta-based commercial property investor and manager Bauman & Company for $10.68 million.