Orlando Submarket Sees Interest in Non-Grocery-Anchored Retail

ORLANDO-Grocery-anchored shopping centers are a hot commodity, but a recent sale in Orlando’s Sanford suburb shows that investors are willing to acquire non-grocery-anchored properties in strategic locations. Case in point: Town Center Plaza just traded for $4.95 million, according to public records.

Plaza Advisors co-managing partners Anthony Blanco and Jim Michalak, together with senior associate Lenard Williams, brokered the deal on behalf of the seller, a private partnership entity. The buyer was a private investment group based in North Miami.

“The property was on the market for about 30 days when we called for offers,” Blanco tells GlobeSt.com. “Although it is not a grocery-anchored center, we received a very strong interest due to the property’s irreplaceable location adjacent to a major mall and the low price per square foot.”

Towne Center Plaza is located right next to the Seminole Towne Center Mall. The shopping center spans 82,098 square feet of gross leasable area and is anchored by Jo-Ann Superstore, Books-A-Million and West Marine. The asset was constructed in 1998 and was fully leased at the time of sale.

Grocery anchored centers are still the retail product of choice among investors, since they fall under the necessity-retail arena. However, the property’s location and the fact that it was fully leased were pluses for the seller. Beyond its anchors, new leases include Tuesday Morning and Maru Sushi and Grill.

Blanco says Towne Center Plaza is the only 100% leased shopping center in the immediate market. The seller realized this goal, which defies local market trends, because it was in a position to adjust rents to the current market value, Blanco says, offering an ideal option for new tenants looking to enter Seminole County.

“Orlando’s occupancy rate stands at approximately 88% and market rents average approximately $15.39 per square foot, based on the 2011 ICSC Florida Retail Report prepared by Crossman & Company,” Blanco says. “However, the Orlando market as a whole has a sizeable amount of retail properties that have traded or about to trade.”