Michigan-based real estate owner-operator McKinley paid $6.955 million on Tuesday for two small, fully-leased retail out-parcels in Winter Garden and Orlando, which it will manage after buying on behalf of a private client that fulfilled a 1031 exchange opportunity.
Via affiliate Castleton Exchange II LLC, McKinley paid $5.03 million for 1.3 acres at 3337 Daniels Road in Winter Garden, an out-parcel on the corner of S.R. 535 and the 429 Western Beltway, which lies outside the Winter Garden Village at Fowler Groves.
The parcel features a one-story, 7,500-square-foot retail outparcel built in 2015 that's currently leased by Mattress One and Pei Wei.
The property was sold by Sembler Winter Garden Partnership #1 LTD, affiliate of The Sembler Company in St. Petersburg, which previously bought it in March 2006 for $884,700.
McKinley manages approximately 2.5 million square feet throughout greater Central Florida, according to Ken Polsinelli, chief real estate officer based in Winter Park. The company declined to name its client the properties were purchased for, citing a confidentiality agreement.
In a separate purchase the same day, McKinley paid $1.925 million for a 1.06-acre parcel at 5960 Central Florida Parkway, which has been leased for a Taco Bell restaurant since 2012. That was bought via Castleton Exchange III LLC.
Joint sellers The Miyagi Bascom LLC and E Uchiyama Bascom LLC previously paid $1.778 million for the site in May 2013, affiliates of the Miyagi family in Yorba Linda, California.
McKinley's affiliate LLCs acquired two loans totaling $7.3 million from KeyBank, N.A., to finance the acquisitions. Two other retail properties in the Tampa area were also acquired with the financing.
The retail acquisitions follow McKinley's purchase of three small apartment communities in downtown Orlando in late January for $3.375 million. The company owns and operates apartment properties in 39 states, including 22 in Metro Orlando with 6,000 units overall.