An affiliate of Delray Beach-based Harvest Holdings paid $9 million on Monday for a three-building, mixed-use commerce center in northwest Orlando, which the seller spun off a year after acquiring it in a national portfolio deal.
Located at 6325 N. Orange Blossom Trail, this 9.77-acre property lies at the intersection with Clarcona Ocoee Road. It features the Northpark Commerce Center, a 148,822-square-foot complex with manufacturing/distribution, retail and office/showroom tenants that was near 94 percent occupancy at time of sale.
Staggered lease terms, a diverse tenant base and below-market rents were key marketing points by CBRE Orlando's team of Chip Wooten, Ron Rogg and Daniel Baker.
The seller was an affiliate of New York-based DRA Advisors, which acquired the asset just 13 months ago in January 2017 as part of a 20 million-square-foot portfolio buy from Cabot Properties, Inc. for more than $1 billion.
DRA allocated a $9.45 million value as paid for this asset in January 2017 when it recorded the deed in Orange County. But that price doesn't necessarily reflect a loss taken with this week's sale.
"DRA acquired this asset last year ... and decided to spin this one off," Wooten told GrowthSpotter. "We mass-marketed the property and had good interest from the capital markets, given the strong historical occupancy and recent leasing momentum at the property."
Officials with DRA did not respond to requests for comment on Tuesday.
Family Dollar recently signed a 10-year lease at the center, and Cash America Pawn renewed for another five years. Average annual rollover of 7.8 percent over the next three years should be minimal, providing predictable cash flow and minimal leasing expenses, according to Wooten.
The property was initially marketed at $9.9 million in August with an 8.5 percent Cap rate.
Harvest Holdings' founder John Evasius declined to comment Tuesday on details of the purchase.
He did confirm that this is now only the second asset for the company in Greater Orlando, following a retail center in Longwood. Harvest has sold off four other local retail center properties in recent years.