Retail Dining Developments

McKinley pays $8.3M+ for UNO Pizzeria site on I-Drive, first retail in submarket

A view of the Pizzeria Uno-anchored property at 8250 International Dr. in Orlando.

UPDATED: January 30, 2018 11:57 AM — National commercial property investors McKinley, Inc. paid $8.325 million on Friday for its first trophy retail property in Orlando's tourism corridor, seeking new synergies in a market where it has ample apartment holdings.

Located at 8250 International Dr., the 2.16-acre parcel features more than 150 feet of frontage on the main thoroughfare, and a triple net-leased UNO Pizzeria & Grill as its lone tenant with a 9,589-square-foot standalone restaurant.


The property was marketed at a 5 percent Cap rate, with a corporate guaranteed lease that runs through September 2025, 5 percent rent bump options, and a building that dates to 1983 but was last renovated in 2010.

"We have a lot of assets in the theme park market, and this triple-net was a natural compliment to the more than 25 apartment communities we (own or manage) nearby," McKinley CEO Albert Berriz told GrowthSpotter. The company owns one other retail asset in the region, a Fifth Third Bank site in Windermere.


The seller was 8250 Realty LLC, an investment vehicle of private commercial real estate investor Anthony C. Conte out of New York, who previously paid $3 million in 2014. He has a typical hold period of seven to 10 years on assets, but had been marketing this I-Drive property for sale himself since 2016.

John Krzyminski with Cite Partners took over the listing in June 2017, and brought McKinley under contract by October. The seller will now reinvest the proceeds in South Florida via a 1031 exchange.

This transaction was unique, in that the seller carried it out by way of an IRS-designated 170 Bargain Sale, Krzyminski said.

That allows a donor to sell a piece of property to a charity for below fair market value, then write off the total amount less than fair market value as a charitable donation for tax purposes. The seller will receive capital for a property, along with a charitable contribution tax deduction.

The charity, Acts Community Development Corp. based in New York City, bought the property for $8 million then turned and sold the site immediately to McKinley for $8.325 million, Krzyminski said.

Deeds for the two transactions had not been recorded in Orange County as of Monday morning.

McKinley sourced acquisition financing from Comerica Bank, a lender out of Michigan that has financed many of its asset purchases in Orlando. That mortgage's value also had not been recorded on Monday morning.

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