Demetree Global Pays $55M for Mixed-Use Metro Orlando Asset
Demetree Global has purchased Hannibal Square, a nine-building, 168,741-square-foot mixed-use asset in Winter Park, Fla., for $55.3 million. CommercialEdge identified the seller as Owens Realty Services. The property encompasses 92,034 square feet of retail and office space, as well as 76,707 square feet of residential space across 103 units.
Demetree had also acquired The Plaza at Hannibal Square last year, from the same seller. The two-building asset, which totals 103,493 square feet, sold for $20.6 million.
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Completed between 1953 and 2009, the 100 percent-leased commercial space includes boutiques, salons, restaurants and office spaces. Demetree plans to enhance the properties by performing selective renovations and operational upgrades. Moreover, the company will transition all commercial leases to triple net.
Located at multiple addresses along West New England Avenue, the buildings are within walking distance of downtown Winter Park, where an Amtrak station and an 11-acre park can be found. Downtown Orlando, Fla., is some 4 miles southwest.
Metro Orlando’s retail market shows little growth
At the end of the first quarter, Orlando’s retail advertised rates spiked by 6.2 percent year-over-year, according to a report by Cushman & Wakefield. Despite this robust growth, the demand was lackluster; roughly 451,000 square feet were leased during the same period, marking a 44.7 percent decrease over the year, the report also shows.
Cushman & Wakefield pinned this absorption decline on a lack of quality retail space in the area. Such space is in high demand for luxury retail brands that are bolstering their nationwide brick-and-mortar presence.
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