Dundas Real Estate Buys One Of Orlando's Most Popular Shopping Centers for $69M

Dundas Real Estate Investments is purchasing a shopping center that attracts millions of customers per year for $68.5 million.

The property is located on 74.2 acres and takes up over 313,000 square feet. First constructed in 2016, the shopping center, Lee Vista Promenade, hosts major brands including Five Below, Famous Footwear, Academy Sports, Epic Theaters, Ross Dress for Less, HomeGoods, Michaels, Bealls Outlet, Petco, and Ulta.

At the time of the sale, the property in the North Airport submarket sat at a 95.5 percent occupancy rate. According to Colliers, which represented both Dundas and the seller, SITE Centers, more than 35 percent of the revenue of Lee Vista is generated by  ”high-performing restaurant tenants.” They average $600 per square foot in sales.

Overall, the shopping center gets 4.4 million visits annually. That’s good for being among the top 5 percent of shopping centers in Orlando, Colliers said.

Its location benefits from being close to the Orlando International Airport; 80,000 vehicles pass by Lee Vista each day, according to Colliers. Plus, 5,000 hotels are within a mile of the shopping center, and 10,000 residential units (within five miles) are either under construction or will be.

“Lee Vista Promenade attracted significant investor interest due to its prime location at the doorstep to the Orlando Airport, which recently opened a new $2.8 billion terminal expansion, boosting future capacity,” said Brad Peterson, vice chairman of Colliers.

“With strong tenant performance and lower rents compared to newly built centers, Lee Vista Promenade offered a compelling long-term investment basis and opportunity.”

Orlando, in general, is benefiting from the popular Sunbelt market. The city was rated among the top 10 most desirable places to live, according to a Clever Real Estate survey. Florida was also well represented, with Tampa Bay securing the top spot, and Miami making the top 10 cut as well.

South Florida, particularly, has seen a big boom in retail demand. Asking rents have jumped by nearly five percent this year, with vacancy sitting at just 2.8 percent, according to CoStar data.

“Despite interest rate volatility, investor demand for high-quality retail remains robust, fueled by strong population growth and solid retail fundamentals in the region,” Peterson said.

According to Colliers, Peterson’s team has represented the sellers in two of the three biggest Florida retail deals this year. In the Southeast, the team has sold a total of $240 million in retail properties, with another $250 million either in agreement or on the market.