Frankin, Tenn.-based UP Development sold its partnership stake this week for roughly $25 million in The Shoppes at Alafaya Trail in Waterford Lakes, paying off $24 million in debt that it had shouldered in recent years to free the property of millions of dollars in liens, and develop its two phases.
The sale of UP's stake frees up roughly $25 million in borrowing capacity on the company's credit line, which will be put to use in the coming week on multiple property closings in Florida, including nearly $16 million already spent on 23 acres west of Mall at Millenia.
Located at 1250 N. Alafaya Trail, The Shoppes at Alafaya feature 216,000 square feet of retail development, with anchor tenants being Toys 'R Us, Babies 'R Us, Dicks Sporting Goods and Bahama Breeze, along with a strip center leased by Mattress One, Batteries Plus and Aspen Dental.
UP Development saved the struggling Shoppes at Alafaya project in 2012, when construction on the property was tied up in lien-related litigation between vendors and then-developer WSG Coral Springs LP, out of Miami Beach.
HM Eight LLC, registered with a Miami attorney but owned by a small group of New York-based investors, bought the 10.91 acres making up The Shoppes' Phase 1 from WSG Coral for $11.1 million in August 2011.
HM Eight then brought on UP Development in April 2012 to develop the property. They took joint ownership of it together under a new entity, and bought the neighboring 5.5 acres from WSG Coral for $4.4 million, land that has since been developed into Dick's and the strip center.
BB&T had foreclosed on previous developer WSG Coral Springs, and UP Development brought in The Bancorp Bank with financing in 2012 to stop the foreclosure.
The $24 million in construction loans taken out from Bancorp have now been paid back, and full ownership of the development is back in the hands of HM Eight through its affiliate, UP Development principal Scott Fish told GrowthSpotter on Friday.
"We were brought in by (HM Eight) to develop this project and make it successful," he said. "Bancorp is now paid back, and our goal is accomplished."
Following The Shoppes at Alafaya sale, UP Development's first new closing came on Feb. 18, with 23 acres owned by Adventist Health System at 4891 and 4751 Vineland Road acquired for $15.5 million. The two-parcel property lies directly west of the Mall at Millenia, located between the Audi South Orlando dealership and Millenia Park One office building that sold in late December for $28 million.
About half of the southernmost parcel (10 acres) was sold the same day for $4.6 million to Clearwater-based CCFM Properties LLC, an affiliate of Ferrari/Maserati of Central Florida.
A four-acre lot within that southern parcel is being developed for a Ferrari/Maserati dealership, with a 33,000-square-foot showroom and 12,000-square-foot vehicle service center. Civil engineer on the project is Lochrane Engineering. Plans were approved for the Ferrari/Maserati project on Jan. 25 by Orlando's City Council.