ORLANDO—Orlando has seen plenty of mega multifamily deals lately, but what's going on in the net lease sector? Plenty, if you ask Doug Kinson, director of Calkain Companies.
For starters, the restaurant chain Bennigan's is looking to open 19 stores in the US and Orlando and Tampa are on the list. Calkain is doing business in Central Florida, recently closing a $6 million sale of Concorde Career Institute of Tampa, and securing full price on a Daytona Beach 7-11.
Kinson will be at RealShare Central Florida June 11, serving on the Deal-Flow Discussion panel. In the meantime, we sat down with Kinson to discuss net lease deal flow and more in this exclusive interview series.
GlobeSt.com: Let's talk about deal flow. Do you expect deal flow to increase or decrease in 2015 in Central Florida?
Kinson: If new construction keeps up with demand, net lease investment deal flow will increase. And if cap rates continue to compress, this may incent sellers to release more of their properties to the market, in anticipation of rising interest rates in the near term. Lack of quality supply of net lease investment continues to be the determining factor with deal flow today.
GlobeSt.com: What do you see as the hottest sectors for investors in the region?
Kinson: In the net lease world, drug stores, new gas and convenience, and dollar stores have been the most active in Central Florida. Drug stores with greater than 10 years remaining on term, new Wawa and 7-Eleven gas and convenience stores and newly constructed dollar stores are certainly driving the net lease market today.
GlobeSt.com: What cities or markets in the region have the advantage?
Kinson: In Central Florida, tourist areas have the greatest advantage with respect to net lease properties. High disposable income, in conjunction with a captive audience makes any net lease property in the tourist areas more valuable.
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