New Jersey-based ARC Property Trust spent an estimated $18 million last week to buy 11 dining and retail properties in Greater Orlando and Ocala from a local fund that was liquidated, and it is looking for more real estate in Orlando, the trust president told GrowthSpotter.
"We're still looking for good opportunities in Orlando with similar high-profile corner locations to acquire, or develop with national tenants," said James Steuterman.
A private REIT, ARC Property Trust is advised by ARC Properties, a national developer and manager of commercial real estate. The trust has investments along the East Coast and in many Florida cities, but this is its first in the Orlando region.
Properties acquired include seven in Orange County, with an Einstein Bros. Bagels and Boston Market on Kirkman Road, and on University Boulevard in Winter Park, a Chick-Fil-A, Perkins Restaurant, Pollo Tropical, Dunkin' Donuts/Baskin Robbins and Burger King.
The others include two properties in Sanford on Towne Center Boulevard housing a Mattress Firm and Don Pablo's; a Mobil/7-Eleven parcel in Sanford; and an Ocala parcel with a Boston Market.
"Our trust often develops corner real estate like pharmacies, bank branches, restaurants and gas stations," Steuterman said. "This portfolio we acquired offered good value relative to the tenants, as well as the particular corner locations. It is a good value for our shareholders."
ARC cited the properties' favorable locations, a strong history of tenant performance and Orlando's favorable market for rent increases as key factors in the investment. Orlando-based Aci Income Funds sold the properties by liquidating two of its funds.
The 11-parcel acquisition, estimated at roughly $18 million based on taxes paid in Orange and Seminole counties, was funded by a combination of equity and debt. ARC financed part of the deal through a local loan from Bank United, which was chosen based on the bank's existing relationship with ARC as a tenant in Tampa.
Steuterman doesn't expect ARC to make any investments in the properties through at least the next 12 months, as they are fully leased with tenants that control the maintenance and development of their parcels.