A trio of Miami Beach-based investors recently paid $21.225 million through Auction.com for Vista Centre Shoppes, a 103,000-square-foot shopping center on Palm Parkway less than a mile from the Hotel Plaza Boulevard entrance to Walt Disney World.
It's the group's first Orlando acquisition in their favored retail niche, and they're now actively seeking similar properties to buy in the market, investor Adam Greenberg told GrowthSpotter.
"We've been looking at Orlando for some time, tracked this asset before the auction and tried to buy it for two months," said Greenberg, a principal in the group Miami Core Investments. "This property is well-located with tenant stability, but we thought we could lease up the remaining space by investing in better signage, parking and lighting to drive more traffic there in the future."
Located in the 8400 and 8500 blocks of Palm Parkway and built in 1989 on 13.9 acres, the main tenants of Vista Centre Shoppes include Kobe Japanese Steakhouse, Sea Dog Brewing Company, Hooters restaurant, Black Fire Bull Steakhouse and Backstage Billiards.
All restaurant lots were acquired in the deal except for Kobe Steakhouse, which is a separately owned outparcel.
Of its 103,000 square feet of usable retail space, four lots totaling 15,836 square feet are still available for lease, per recent marketing materials from Altamonte Springs-based Quest Company, the property's leasing agent.
The Miami Beach trio Greenberg, Abbey Berkowitz and James Resnick are long-time friends and investment partners who own a handful of retail and office properties in New Jersey, Miami and other Florida submarkets.
Capital improvements worth several hundred thousand dollars should be made on Vista Centre Shoppes' signage and parking in the next six to 24 months, Greenberg said.
The group is now looking for similar strong retail centers in Greater Orlando for sale in the $5 million-to-$15 million range that offer value-add potential.
"We don't want to have the most expensive property in the area or the least expensive, but we want something where we can clearly add value," Greenberg said.
The buyers took out a mortgage and security agreement for $13.75 million from TD Bank out of Coral Gables for the acquisition. Sale of the property closed Nov. 9.