UPDATED: December 27, 2017 5:42 PM — An affiliate of Houston-based family real estate firm Silvestri Investments paid $17 million on Friday for the secondary retail anchor site at BBX Capital's Gardens on Millenia development.
Located at 3525 Gardens Ridge Way in the 3700 block of Millenia Boulevard, the 8.62-acre parcel lies within the 87-acre Gardens on Millenia project that has been developed over the past three years by South Florida-based Stiles Corporation, BBX Capital Real Estate, and multifamily partner ContraVest. 30 acres of the total property are Lake Amanda.
Silvestri's acquired parcel includes a 65,234-square-foot Academy Sports & Outdoor store, and a 55,000-square-foot Hobby Lobby. The company now owns 11 retail centers in Greater Orlando.
"We've been in the Orlando market several years with other shopping centers, and saw this as an opportunity to purchase what we thought was a decent property with two national tenants at the right price," director of property management Mike Tones told GrowthSpotter.
"We're looking for B or B-plus (retail) properties with upside, even though this was an A-plus center," he continued. "Cap rate is important too in our considerations, we typically like to stay above a 7 Cap."
The deed was signed Friday and recorded Wednesday in Orange County. Bob Sullivan of RJS Realty Group has marketed the remaining retail portions of Gardens on Millenia for sale since August for client BBX Capital.
The Hobby Lobby and Academy Sports were initially marketed by Sullivan at a combined $19.66 million price and average Cap rate of 6.5 percent.
Two adjacent retail inline buildings fronting Millenia Boulevard that total 2.8 acres are still being marketed at $14 million and a 6.25 percent Cap rate, and were not part of this deal.
Silvestri sourced a $12.7 millon loan from Standard Insurance Company to help finance the deal, which will mature in January 2043.
Silvestri Investments maintains offices in Texas, Canada and has a market representative in New Smyrna Beach for Florida.
Costco Wholesale bought its 15.46-acre anchor parcel of Gardens on Millenia from the developers in December 2015 for $9.25 million, prior to construction.
The final two undeveloped outparcels in the southeast corner of the project are separately owned, and earmarked for a future Meson Sandwiches and Culver's restaurant.