Miami — Avison Young’s Florida Capital Markets Group today announces it recently completed a $7.7 million financing transaction of Tri-Cities Shopping Plaza at 16900 U.S. Highway 441 in Mount Dora, Florida.
Avison Young Principal George Vail secured the non-recourse loan with $7.7 million financed through BankUnited. The loan, which is 70 percent loan-to-value, is a 7-year fixed rate first mortgage with a 30-year amortization.
“Despite the numerous stories about the demise of retail, there remains a large number of opportunities for investors who seek assets providing positive cash flow and upside,” said Vail. “High-quality assets with notable tenants such the Tri-Cities Shopping Plaza have plenty of capital available to them. The property’s investors were able to make an advantageous deal at a favorable capitalization rate and close within 30 days after a short due diligence period.”
Tri-Cities Shopping Plaza, comprised of 78,452 square feet of retail space, is situated on 13 acres. Constructed in 1988, the property underwent a significant $6.5 million capital improvement plan in 2016. Currently 94 percent occupied with notable tenants such as Ross Dress For Less, TJ Maxx, and DollarTree, the multi-tenanted and diverse tenant roster poses limited market and rollover risk to the lender.
“The buyer will focus on leasing the remaining vacancies, and potentially market for sale the two current outparcels as well as potentially construct another outparcel. Given the strong demographic profile of the surrounding area, the property is poised for continuous rental rate growth,” concluded Vail.
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 2,600 real estate professionals in 84 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.