ORLANDO—Savvy investors are starting to see the fruits of their distressed asset investments. A Continental Properties Acquisition Corporation (CPAC) entity just sold a once-distressed 25,000-square-foot shopping center.

Located in the heart of Clermont just outside Orlando, the CPAC affiliate sold Hancock Village Shopping Center for $4.25 million. The firm acquired the retail asset in May of 2011 for $2.1 million.

“This transaction validates our investment strategy of acquiring distressed assets and creating value through strong, hands-on management and a sound retail leasing strategy,” says David Moret, principal of CPAC. The sale price represents a 98% gain over the acquisition price in just over three years.

Built in 2004 and located at the recently-expanded intersection of North Hancock Road and State Road 50, the retail property's tenants include Tijuana Flats, Anytime Fitness, Little Caesars, Ritter's Frozen Custard, and Direct Auto Insurance. CPAC tapped CREC to lease and manage the shopping center and was able to improve occupancy from 50% to nearly 90% over a three-year period.

“At the time of the acquisition, the property was only 50% leased coming out of a receivership and a protracted foreclosure process,” says Peter Mekras, a senior vice president of CREC, who brokered the sale on behalf of CPAC. “There is tremendous demand for well-located strip centers offering strong cash flow among private investors. We had multiple interested parties due to Hancock Village's location at Clermont's primary intersections and its close proximity to a number of residential demand drivers.”

Clermont is one of the fastest growing cities within the Orlando metropolitan area, with more than 1,000 multifamily units planned within a one-mile radius. Hancock Village is close to Lake Sumter Community College and South Lake Hospital.