Two Orlando Shopping Centers Change Hands

ORLANDO, FL—In separate deals, real estate investment firms from Los Angeles and Atlanta have acquired shopping centers here each totaling in excess of 100,000 square feet.

In the first deal, recently formed LBX Investments of Los Angeles has purchased Alfaya Commons, a 130,811-square-foot shopping center at 11792-11970 East Colonial Drive from Regency Centers in a deal valued at $19.8 million.

Alafaya Commons is anchored by Academy Sports + Outdoors and Youfit Health Clubs. HFF, which marketed the property on behalf of the seller, says LBX Investments purchased the property free of debt. The brokerage firm also worked on behalf of the new owner to place a five-year, $13.65 million fixed-rate loan with First Florida Integrity Bank. The HFF investment advisory and debt teams representing the seller included senior managing director Brad Peterson and senior director Whitaker Leonhardt. The HFF debt placement team representing the borrower consisted of managing directors Rebecca Van Reken and Gregg Shapiro.

“Alafaya Commons is located at one of the most vibrant intersections in all of Orlando with 94,500 cars per day,” Peterson says. “The area has seen explosive growth driven by the University of Central Florida, STEM employment and residential development, and is a ‘must have’ for national retailers.”

The shopping center, which sits on 18.8 acres, is 89.7% leased and is also home to H&R Block, GNC, Goodfellas Pizza, Orange County Health and Family, Sunset Christian Preparatory and Junior Colombian Burger along with outparcels occupied by Taco Bell, Amscot, and Chuan Lu Garden.

In the second recent retail sales transaction in Orlando, Preferred Apartment Communities, Inc, of Atlanta, through its New Market Properties, LLC subsidiary, purchased Conway Plaza, a 117,705-square-foot shopping center anchored by a nearly 38,000-square-foot Publix grocery story.

PAC financed the acquisition utilizing a non-recourse first mortgage loan from The Prudential Insurance Company of America. The first mortgage loan is approximately $9.8 million, bears interest at fixed rate of 4.45% per annum and has a term of 10 years. Published reports state that New Market acquired the shopping center from an affiliate of DDR Corp. of Beachwood, OH.

Joel T. Murphy, president and CEO of New Market said, “We are pleased to continue to expand our portfolio in the state of Florida. Conway Plaza marks our third asset in the Orlando MSA anchored by market leading Publix Super Market and our sixth grocery anchored center in the state. We believe Conway Plaza, with its strong performing Publix with over 50 years of operating history will continue to thrive near and long term.”

He adds that the purchase increases its portfolio to 43 grocery-anchored shopping centers across seven states in the Sunbelt.