This Orlando Retail Sale is Truly Unique

ORLANDO—Orlando's retail market is gaining momentum, with tightening vacancy and growing investor interest. The latest example is the $37.3 million sale of Colonial Landing, a leasehold interest in a 259,024-square-foot retail power center there.

HFF senior managing director Brad Peterson, associate director Whitaker Leonhardt and real estate analyst Anthony Frogameni marketed the retail property on behalf of the seller, a joint venture between Weingarten Realty Investors and other private investors. Retail Centers of America, advised by Lincoln Retail REIT Services, a division of Lincoln Property Company, purchased the asset free and clear of existing debt.

"This transaction was one of the larger trades in Orlando retail this year and unique because the sale was for the leasehold interest in the shopping center,” Peterson, HFF tells GlobeSt.com. “With cap rates continuing to compress on strong retail centers, the sale of the leasehold interest provided slightly more yield to investors than a fee simple deal which was well received in today's aggressive environment.”

Located 2.2 miles from Downtown Orlando at the 15-lane signalized intersection of East Colonial Drive and Maguire Boulevard, Colonial Landing sits directly across from the Orlando Fashion Square Mall. The East Colonial retail trade area is the closest retail trade area to Downtown Orlando and has had significant recent leasing and redevelopment activity, including the current major overhaul of the Orlando Fashion Square Mall. 

Sitting on 23.2 acres at 3225 East Colonial Drive, Colonial Landing is 100% leased to national anchor tenants such as Bed Bath & Beyond, Buy Buy Baby, PetSmart, Sports Authority, Jo-Ann Fabrics & Crafts, hhgregg, and Party City.  The sale also included outparcel pads leased to Red Lobster, Smokey Bones, Fifth Third Bank, and Pollo Tropical.

“Colonial Landing is one of the premier power center assets in Orlando and has the right balance of high-quality national anchor tenants, outparcels and shops,” Peterson says. “Its infill location within such close proximity to Downtown Orlando, Winter Park and Baldwin Park, provides a rare opportunity to have both high density and high income demographics within its trade area, permitting tenants to outperform.”