Keith O’Donnell and Gary Gottlieb represent buyer in 1031 exchange following development site sale in Palm Beach County, Florida
Ormond Beach, Fla. — Avison Young represented the buyer, Fulbright Holdings, LLC, in the $3.2 million acquisition of a supermarket ground lease within Shoppes on Granada in Ormond Beach, Florida. Part of a 1031 exchange, the purchase was a fee simple, land condominium interest in an absolute triple net (NNN), freestanding, newly constructed ALDI grocery store at 1260 W. Granada Blvd. The seller was 2017 Granada II Ormond, LLC.
Avison Young Principals Keith O’Donnell and Gary Gottlieb facilitated the transaction in collaboration with Maenner Properties, Inc. The buyer pursued the deal as part of a 1031 exchange following the sale of a 38-acre development site, which Avison Young also closed, located in Palm Beach County, Florida.
“Following the successful sale of our client’s development site, we were asked to identify suitable income-generating real estate investments from a portion of the sale proceeds,” said O’Donnell. “The brand-new freestanding ALDI supermarket in Ormond Beach met the criteria of providing a long-term, stable return on investment in a strong Volusia County submarket.”
The tenant on the ground lease, ALDI (Florida) LLC, executed a new 20-year lease at the Ormond Beach location with several options to extend. ALDI constructed the 21,885-square-foot building and opened in September 2019.
“The grocery sector, and ALDI in particular, was a key component in our client’s interest in acquiring the ground lease, especially during these turbulent times,” said Gottlieb. “The asset is corporately guaranteed by ALDI and absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment.”
Ormond Beach is the northern neighbor of Daytona Beach, and therefore, a principal city of the vibrant Deltona–Daytona Beach–Ormond Beach metropolitan area. The property is along W. Granada Boulevard (State Highway 40), which sees approximately 37,500 vehicles per day, and within one mile east of Interstate 95.
ALDI is an anchor tenant in Shoppes on Granada, a recently developed shopping center featuring other national tenants such as Petco, Mattress Firm, Panera Bread, TD Bank, AT&T, and Chipotle Mexican Grill, as well as room for future office or more retail development.
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, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 108 offices in 14 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
Avison Young is a 2019 winner of the Canada’s Best Managed Companies Platinum Club designation, having retained its Best Managed designation for eight consecutive years.
Maenner Properties, Inc., is a Minneapolis-based advisory firm focused on providing strategic real estate counsel to high net worth investors, family offices and wealth management advisors whose clientele oftentimes possess complex real estate holdings. The sale highlighted here was the result of counseling services which commenced in 2014.