A Kissimmee-based developer of small shopping centers bought a 35-year-old strip mall last week next to Florida Hospital East in Orlando, aiming to renovate the site and capitalize on a growing medical sub-market nearby, the company's vice president told GrowthSpotter.
Osceola Enterprises of Kissimmee, a family-owned company with strip mall properties in Kissimmee and Ocala, acquired the 1.5-acre Rena's Plaza directly west of Florida Hospital East Orlando for $1.9 million. It was previously owned by Vn Property Management, which bought the site for $600,000 in October 2013.
The parcel includes a 24,173-square-foot strip mall with 12 retail spaces, currently filled by local family businesses. It lies at the intersection of Lake Underhill and S. Goldenrod roads, with frontage on the 408 East-West Expressway.
"We think Florida Hospital East is growing and has a strong medical sub-market growing around it. A lot of medical practices are opening up in the area," said Rizwan Saferali, vice president. "The plaza is doing fine, but we think it can do better. Our short-term plan is to renovate the facade and improve the curb appeal. As vacancies occur, we think this can be an attractive building for medical users."
The developer is now working with Orlando-based Hosanna Building Contractors to develop a renovation plan, with Hosanna serving as general contractor, architect and engineer. Saferali expects to invest around $200,000 in property improvements through his family firm's own equity.
Saferali's company bought this property and a seven-acre site on Highway 27 in Davenport for a future strip mall development within the past week. The acquisitions closed a 1031 exchange that started in April with a sale of the company's Super 8 Motel Kissimmee Suites on US 192, for $3.25 million.
Saferali said he will research the history of the property's name, Rena's Plaza, before he potentially renames the shopping center with a more localized moniker.