Orlando Shopping Center Trades To Canadian Buyer

Capping a marketing process marked by intense interest from a number of potential buyers, Parkwood Plaza has traded hands. The multi-tenant shopping center sold for $10.2 million. Agents at Colliers International Central Florida are pointing to the transaction as a prime example of how demand for retail investments is increasing in Orlando. Grocery-anchored shopping centers are still drawing an extremely high level of interest. Cynthia Shelton and Kane Morris-Webster of Colliers represented the seller, which had owned the asset for more than 20 years. The buyer wasHighyon Assets Corp, based in Canada. “The primary appeal of this center was the creditworthiness of the outparcel users,” says Morris-Webster. “Despite there being what some may consider drawbacks, such as a challenging configuration and major tenant’s size and term, this center received a lot of interest. This is indicative of the decreasing supply of retail investments in Orlando, as well of the high demand for grocery-anchored centers.” Parkwood Plaza  is located 3191 West Colonial Drive in Orlando. Winn-Dixie is the anchor tenant. Outparcel users include Bank of America, McDonald’s, Valvoline, and a KFC/Taco Bell combination store. The 148,232-square-foot property sits on 28 acres. It includes 12.91 acres of undeveloped land that could be used either for more retail or for multifamily development of between 30 to 100 dwelling units per acre. “There are a lot of options for upside with this property,” says Shelton. “Retenanting, redevelopment or selling off a part of the property are all possibilities, which made this property attractive.” The buyer, which owns another asset in the Orlando market, used a mix of financing to purchase the shopping center. The deal was part owner-financed and part traditional bank-financed. Says Morris-Webster, “Even though rates are favorable, banks are continuing to be conservative in their lending, which means some buyers have to be creative.”