An affiliate of New York-based commercial real estate investor United Properties Corp. paid $14.5 million last week to enter the Orlando market, buying part of a retail center that neighbors Simon Property Group's The Florida Mall.
Located at 700 and 730 W. Sand Lake Road, the 29-year-old "Terrace at the Florida Mall" retail center has been subdivided into portions and sold off to investors in recent years.
But the majority -- more than 28.3 acres with 146,717 square feet of conditioned area -- was included in the United Properties deal, anchored by Bed Bath & Beyond (25,385 SF), the Orange County Tax Collector (25,321 SF) and Marshalls (35,000 SF).
The sale closed Dec. 26 and was recorded Friday in Orange County.
United Properties is a family-run CRE investment group that owns small and mid-sized retail centers primarily across Long Island, New York, as well as 10 other states in the eastern U.S.
The company has limited holdings as well in mixed-use buildings that feature apartments or office above retail. It is currently marketing those assets for sale to focus on new retail-only acquisitions, and is pursuing more value-add retail assets in Florida, a spokeswoman said Tuesday.
United Properties claimed 95 percent occupancy for the Terrace center at time of sale, with 5,400 square feet currently being marketed as available on its website.
The deal did not include portions of the shopping center totaling 17.78 acres that feature Target, American Signature Furniture, a restaurant parcel fronting the main road and a secondary anchor box in the rear.
The property had been listed initially at more than $17.69 million by Colliers International Central Florida, and was marketed for most of 2017 before United Properties brought it under contract on Oct. 4.
Value-add potential was highlighted for two outparcels available of more than an acre each for future sale or ground lease, and nine tenants with below market rents.
The buyer sourced a $12.4 million balloon mortgage from Tennessee-based Commercial Bank to help finance the acquisition.