CORE Investment Properties Fund, a Miami-based real estate investment group, has purchased a 50 percent share in the Fountains at Bay Hill, an upscale retail and restaurant center on West Sand Lake Road.
CORE paid $22.75 million for its share of the property, according to a deed signed Nov. 16. The seller was Excel Bay Hill LLC, an affiliate of ShopCore Properties of Chicago.
The other half-owner of the shopping center is MDC Fountains LLC, an affiliate of Marcent Equity Group Inc. of Orlando.
Adam Greenberg, managing principal at CORE, said he and his partners had their eye on the Fountains at Bay Hill for some time. They liked the upscale Bay Hills neighborhood and the high-volume roads nearby, including Interstate 4, just to the east.
"We travel up there a lot; we own a number of assets up there," Greenberg said. "We always liked this shopping center. It's got high-performing tenants and restaurants."
Located on 10 acres near the northeast corner of West Sand Lake Road and Dr. Phillips Boulevard, the Fountains boasts 108,469 square feet of conditioned space. The property gets its name from decorative fountains surrounded by an ornamental brick courtyard.
The Fountains sits on a stretch of Sand Lake Road known as "Restaurant Row," and features eateries such as Ruth's Chris Steak House, Moon Fish and Vines Restaurant. Retail shops include a CVS drug store, AT&T Store and the Hair Cuttery.
Greenberg said the shopping center is in good shape and CORE will likely make only cosmetic changes.
"As of now it's basically, 'Don't mess with something that's not a problem,''' he said. "It's got high-performing tenants and restaurants. We don't think there is really a need to do much."
CORE also owns Vista Centre Shoppes at 8462 Palm Parkway in Orlando, Winter Garden Shopping Center at 14001 W. Colonial Drive, and Eustis Village Retail, at 15447 U.S. 441.
Greenberg said CORE will continue to look for properties in any of the submarkets surrounding Greater Orlando. The company focuses on value-add retail centers, Class B and above.
"We're willing to go into different parts of the market there. It's just got to fit our criteria," he said. "We feel like we're pretty sophisticated, so we know pretty quick if a deal doesn't make economic sense."
The seller was represented by Holliday Fenoglio Fowler, L.P. (HFF) and its investment advisory team of senior managing director Brad Peterson, senior director Whitaker Leonhardt and associate Michael Brewster.
"Fountains at Bay Hill is located in one of the most highly desirable infill retail locations in Orlando, surrounded by some of the region's top-performing restaurants, desirable Bay Hill and Dr. Phillips neighborhoods, world class Orange County Convention Center, and Orlando's prolific surrounding hotels, theme parks and attractions," Lenohardt said. "This is a tremendous property and a great addition to Core's portfolio, and is the seventh asset that HFF has sold or financed along Sand Lake Road's Restaurant Row corridor."