MIAMI—A single-tenant net leased Pep Boys in the Orlando suburb of Oviedo has a new owner. Phoenix-based Cole Capital acquired the net leased retail asset from Alafaya and Carrigan, LLC for $3.45 million.
CBRE's Net Lease Property Group represented the seller. The net leased property is located at 2994 Alafaya Trail in Oviedo, Florida.
“Timing of the exit is critical to developers” says CBRE senior vice president Mark Drazek. “Locking in a transaction early in the development process allowed our client to defray market risk and achieve their goal. It was a tremendous success for everyone involved.”
The net leased retail property was a build-to-suit for Pep Boys. The auto parts retailer signed a 15-year lease for the new 14,380-square-foot building that sits on 1.5 acres. This was a strategic location in Pep Boys' Central Florida expansion program. The property is located just north of the University of Central Florida on one of the most heavily traveled north/south arterials in the East Orlando market.
According to CBRE, single-tenant properties under $5 million command the greatest amount of attention from 1031 exchange buyers and investors looking for an alternative to their stock/bond portfolios with most either paying all cash or using low leverage. The brokerage predicts continued strong demand for this product type into the foreseeable future with values remaining solid.
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