Where Have All the Value-Add Opportunities Gone?

ORLANDO, FL—With fewer distressed properties on the market, some investors may be asking, “Where have all the value-add opportunities gone?” Well, there are still deals to be had in Florida's commercial real estate market. You just have to know where to look.

One example is in Central Florida. In area where available retail space is limited—other than in the Altamonte Mall. PWL REO, LLC purchased The Village Shoppes, a 34,000-square-foot retail center in Altamonte Springs, FL, for $2.9 million.

Sitting 6.6 acres of land at 249 State Road 436, the retail center was previously taken back in foreclosure from a developer, then experienced delays in leasing and selling for about one year due to Department of Transportation roadwork near the property. The retail asset was 35% occupied at the time of the sale.

Cynthia Shelton, Kane Morris-Webster, and Jorge Rodriguez, of Colliers International Central Florida, represented the seller. The buyer was not disclosed. Following the completion of the roadwork in the area, The Village Shoppes will be located at the first traffic light off Interstate 4 on State Road 436.

“Many investors are looking for value-add properties,” says Shelton. “This property fits that category due to the low occupancy and high demand from retailers in the high-density population of upscale Altamonte Springs.”

When the seller was ready to put the property on the market to sell, Colliers contacted a select group of investors who had previously shown interest in the property. “The seller wanted to sell quickly, especially given the previous delays,” says Morris-Webster. “The property was only on the market about three months before the sale closed.”