Located at 9537 W. Colonial Dr. in West Oaks Town Center, the 4.03-acre parcel lies within the shopping mall's general boundary. The 46,112-square-foot Best Buy building was built in 2000, and had previously sold in September 2001 for $6.9 million.
With offices in Mexico, Miami and Midland, Texas, Accretion Capital has just begun building a portfolio in the past year of office and retail assets in Florida and Texas, with this being their fourth retail center purchase in the Greater Orlando area, said Eduardo Burillo, principal with the company.
"We've done lending and some development in the past but now want to focus on income-generating properties that will offer long-term upside and stability," he said. "We see the Orlando market as a good value for our price point."
Accretion's new fund is supported by "several generations of old family money," said Burillo, describing the sources of wealth as telecommunications and real estate investments in the U.S. and Latin America.
"We're looking for triple-net properties that are stable and can offer value-add upside, ideally with solid anchors," he added.
Burillo said the Best Buy property acquisition reflected a 10 percent capitalization rate, and that his firm has not bought anything in Orlando less than a 7.5 percent cap rate. He said Accretion would consider lower cap rates on properties, depending on investment parameters and tenant stability.
The buyer assumed an existing loan on the property of $5.88 million, which is now owned by U.S. Bank National Association. The original loan of $6.5 million was written in 2006 by Merrill Lynch Mortgage Lending.