South Florida firms buy Orlando retail center amid “fear of the death of brick-and-mortar retail”

April 21, 2019 03:00PM

Century Plaza in Orlando

Two South Florida firms acquired a fully leased shopping center in Orlando for $12.25 million, or $92 per square foot, with a loan from Miami Lakes-based BankUnited.

Palm Beach-based M Street Holdings and Miami-based Highline Real Estate Capital bought Century Plaza, a 132,725-square-foot shopping center about five miles north of Orlando International Airport.

The $12.25 million purchase price is less than half of the estimated cost of replacing the shopping center, according to David Moret, president of Highline.

“As fear of the death of brick-and-mortar retail grows in the market, M Street expects to capitalize on this climate to identify assets, such as Century Plaza, that are well located with below-market rents or vacancy,” David Milgram, founder of M Street, said in a prepared statement.

Century Plaza, a 13.52-acre property on Semoran Boulevard, was built in 1973 and renovated in 2008. The location is within a 10-minute drive of 160,000 Orlando residents in an area where annual household income averages $62,000.

Tenants of the shopping center include ALDI, Ross Dress for Less, dd’s Discounts, Big Lots, Shoe Land, Sprint, Gamestop and Amscot.

Chris Drew, senior managing director of HFF, and Rebecca VanReken, managing director, arranged the BankUnited loan on behalf of the buyers.

The Orlando office of Atlanta-based TSCG will handle leasing and property management at Century Plaza.

Started in 2016, Highline has acquired six commercial assets valued at about $100 million. M Street Holdings is a real estate investment firm focused on retail and mixed-use properties in densely populated markets. – Mike Seemuth