ORLANDO-In one of what is likely to be many more REO retail deals over in Orlando over the next two years, Washington Shores Plaza has traded for $1.8 million. At 45,370 rentable square feet, the sales price equals less than $40 per square foot.

CBRE marketed the REO asset for sale on behalf of Berkadia, the special servicer to the underlying bondholders. The buyer is CRP II - Washington Shores LLC, an entity affiliated with Community Reinvestment Partners II, a Tampa-based private equity fund sponsored by Forge Capitol Partners and DeBartalo Development.

“Of the 14 shopping center sales in the Greater Orlando area thus far in 2011, half were sold by a lender or special servicer,” CBE first vice president Daniel Baker, with the CBRE Orlando office, tells GlobeSt.com. “This is up substantially from 2010 when only four of 12 sales were lender-driven transactions.”

The deal comes with some interesting value ads. During the due diligence period, the purchaser secured a 22,500-square-foot lease with Save-A-Lot. The discount grocery store is expected to open before the end of the year. Capital improvements are planned for the center to improve the exterior and complete deferred maintenance projects.

“By bringing in Save-A-Lot and carrying out the planned improvements, the center will likely see a dramatic increase in customer traffic,” Baker says. “This will help bring additional users to the project. The surrounding neighborhood has been without a grocer for far too long and the reaction to Save-a-Lot has been extremely positive.”

Built in 1998, Washington Shores Plaza is located at 2100 Bruton Boulevard. The shopping center offers two, single-story retail buildings totaling. Current tenants include Family Dollar, Domino's, H&R Block and Metro PCS. The shopping center was 39.3% occupied at the time of closing, not inclusive of the new Save-A-Lot lease.

“We expect the lender-driven transaction trend to continue throughout 2012 and 2013 as $100 billion worth of CMBS loans mature throughout the U.S.,” Baker says. “These loans must be either re-financed or paid off. This will result in many more distressed assets making their way through the disposition pipeline.”