Houston-based Silvestri Investments paid $9.2 million in mid-July for its second Orlando-area retail center in the past eight months, buying an Ocoee property with growth potential on the edge of the West Oaks Mall.
Located at 9571-9693 W. Colonial Drive on a signalized corner with Clarke Road, the 9-acre West Oaks Town Center property features 66,539 square feet ofleasable area.
"This property met our Cap rates criteria for an acquisition, and we got two nice anchor tenants and a little upside in that there's about 9,000 square feet (coming available) for lease," Director of Property Management Mike Tones told GrowthSpotter.
"We now have 12 retail center assets in Greater Orlando, which is where we are strictly focused on in Central Florida," he continued. "I think the centers we have bought have been successful for us, and there is enough opportunity in Orlando so we'll continue to focus there for new investments."
West Oaks Town Center was near 90 percent leased at time of sale, and is anchored by Michaels and PetSmart with 97.5 percent of its annual base rent coming from national tenants. It also offers the potential for more outparcel development along the Colonial Drive frontage, if a 1-acre retention pond is reconfigured.
The deal closed on or near July 16, with the deed recorded Monday in Orange County.
The buyer sourced a $6.9 million mortgage from Standard Insurance Company to help close the deal, which matures in August 2043.
The seller was an affiliate of Ohio-based DDR Corp., which acquired it in 2007 as part of an acquisition of Inland Retail Real Estate Trust. Tarik Bateh of JLL's Capital Markets Group served as listing agent.
Silvestri last large acquisition locally was in late December 2017, when it paid $17 million for the secondary retail anchor site at BBX Capital's Gardens on Millenia development.