Just Sold: Orange City Shoppes in Orange City, FL

Ground + Space announced today the sale of Orange City Shoppes, a multi-tenant retail asset located in Orange City, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property. The property sold at an admirable cap rate just three percent off the original listing price in an all-cash transaction. Additionally, the listing received multiple purchase offers.

The Orange City Shoppes tenant roster includes Aspen Dental, Spectrum and Orlando Health. These service-based businesses yield an added security with Internet-proof tenancy. The new, corporate guaranteed leases for all three tenants boast built-in rent increases and multiple renewal options. Also, there are minimal landlord responsibilities within the lease for ease of investment.

Orange City Shoppes benefits from its prominent location within Orange City’s main retail sector. The property is an outparcel to Target and sits across from a 107,000-square-foot Publix-anchored shopping center. There is a growing development commitment to the area, evidenced by AdventHealth Fish Memorial’s $100 million tower expansion less that one mile from the site.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Looking to sell one of your net leased assets? Contact us today for a property evaluation or to discuss one of our current listings.


Just Sold: Palmetto Plaza in Miami Gardens, FL

Ground + Space announced today the sale of Palmetto Plaza in Miami Gardens, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property, which sold to an all-cash buyer. Michael Zimmerman secured multiple offers for Palmetto Plaza within its first 10 days on the market, as well as several back-up offers. This extremely rare retail center was offered below the average market rent for the Miami metropolitan area.

Palmetto Plaza is a grocery-anchored retail shopping center that sits in one of the densest, high-traffic retail corridors in Miami-Dade County. The shopping center currently houses 38 businesses. The varied mix includes national, franchised and local tenants. The 175,045-square-foot property includes many investment-grade tenants like ALDI, Dunkin’ Donuts, Sherwin-Williams, Dollar Tree and Regions Bank.

This shopping center is just 15 miles from the heart of downtown Miami. Miami is the cultural, economic and financial center of South Florida. Visitors to the site have easy access to Interstate 95, Florida’s Turnpike and Miami International Airport.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


Net Lease Market Outlook

After a solid 2019 performance, the net lease industry appears to be headed for continued success in 2020. A combination of low interest rates, changes in the United States tax code and the desire for greater return on investments have caused high demand within the net lease market segment.

Lower Interest Rates, Greater Yields

At the start of 2020, many investors feared interest rates might increase, which would lead to a correction. Instead, interest rates have remained fairly low. Since the cost of capital is lower, buyers are free to invest money into larger deals. With this in mind, many commercial real estate owners are taking this opportunity to sell their smaller assets at superior price points. This, in turn, has created a steady supply of properties for potential buyers.

Slight Slowdown in Retail Development

A decrease in retailer development in certain markets has led to an inevitable slowdown in new retail development since 2016. However, the properties that are being built are extremely desirable for buyers. As always, newly built assets are sold at a premium due in part to their long lease terms and low maintenance costs. In addition to these new construction projects, resale properties have become popular in many markets.

Types of Properties in High Demand

The single tenant net lease (STNL) market has long been viewed as a stable investment vehicle. Guaranteed rents and known financials are just two of the many factors that make net lease assets ideal investments. The most in-demand properties in the STNL sector have a few things in common: these assets are brand-new construction in enviable locales with credit-backed tenants. Additionally, potential buyers prefer properties with Internet-proof tenants.

These preferences have led to the rise in popularity of quick-service restaurants (QSRs) among investors. Most trophy assets in the QSR market feature strong credit tenants whose profits are not hampered by Amazon and other Internet retailers. These lower-priced properties tend to have scheduled rental increases every five years and longer lease terms. Ground + Space currently has a McDonald’s for sale in California, Maryland that is a prime example of an enviable QSR asset. Other popular tenants in the QSR space include Starbucks and Dunkin’ Donuts.

Multi-tenant properties are also in high demand, especially those created via break-up strategies. To put it simply, a break-up strategy involves dividing a property into multiple parcels which can then be independently sold to different investors. This strategy is successful in part because it caters to the needs of a larger field of buyers. More buyers are in need of properties within the $2 million to $5 million range than larger properties with price tags of more than $30 million. The team at Ground + Space have worked with several property owners to facilitate break-up strategy sales of trophy assets in major markets.

About Ground + Space

Interested in maximizing your investment opportunities? Ground + Space is a leading commercial real estate brokerage firm that specializes in single-tenant and retail NNN investments. Contact us today to receive a full evaluation of your commercial real estate assets. We can help you determine whether now is a good time for you to sell your property.


Multi-Tenant Retail Investments Attract Opportunity

Retail is constantly changing, and so is the commercial retail real estate market. Although overall transaction numbers have been slightly down from years previous during the first three quarters of 2019, quality investments are still up for grabs. Savvy retail investors are gravitating towards investments with safer outlooks and focusing on smaller transactions. Even though private investors have historically focused more on single-tenant assets, a great many of those same investors are now looking to expand their portfolios by acquiring multi-tenant properties.

Benefits of a Multi-Tenant Investment

The addition of a multi-tenant commercial real estate asset to an investment portfolio can help lead to better yields and diversification within a single investment property. A multi-tenant property can help mitigate the risk of future tenant vacancies by sometimes offering shorter rental terms that can be adjusted and replaced as needed. Also, when a suitable, complementary mix of tenants are brought together within the same center, those retailers can leverage each other to help drive sales and foot traffic. This creates retailer dedication to the site and oftentimes increases the chances of the longevity of a tenant’s presence in a market.

Finding the “Right” Multi-Tenant Property

Not all multi-tenant properties are created equally, so it’s important to consider the strength of each individual tenant when making investment decisions. A strong, varied tenant mix is vital to the success of the investment as well as the property’s long-term value.  Right now, investments that are getting the most attention feature service-based businesses that offer Internet-proof tenancy via services that can’t be purchased online. Grocery-anchored centers that feature strong brands like Publix, ALDI or Wegmans (among others) are also at the top of investors’ lists.

Ground + Space Multi-Tenant Listings

We have three multi-tenant properties currently on the market that are ideal for any investor. All our listings feature a solid mix of national and regional tenants with a focus on service-based businesses. Each property is in the state of Florida, which has no state income tax.

Orange City Shoppes: The property benefits from a prominent, signalized corner location within Orange City’s main retail sector. The multi-tenant site is an outparcel to Target and is across from a Publix-anchored shopping center. The new, corporate-guaranteed NN leases for all three tenants provide for a quality investment with minimal landlord responsibilities. Additionally, each lease features built-in base term rental increases and options to renew. View more information about this property or download an Offering Memorandum by clicking here.

Shoppes at Eustis Village: This multi-tenant site features prominent signage and shares a signalized corner intersection with the Eustis Village Publix retail center. The property is comprised of three separate buildings that feature an ideal mix of national and regional tenants. (The seller recently spent over $100,000 to separate the property into three individual parcels.) The NNN leases provide for a quality investment with no landlord responsibilities. Additionally, there is a significant investor upside potential at 100 percent occupancy. View more information about this property or download an Offering Memorandum by clicking here.

Shoppes at Solaris: The site is located along busy Gulf to Bay Boulevard and is adjacent to Clearwater Mall and other national retailers like Target and Marshalls. Shoppes at Solaris also benefits from its proximity to Solaris Key Apartments, a four-story luxury apartment community in Clearwater. The multi-tenant property is now fully leased to quality tenants: Caribou Coffee & Einstein Bros. Bagels, Tijuana Flats and Curry Leaves Express. Each NN lease features varied lease terms and multiple options to renew. View more information about this property or download an Offering Memorandum by clicking here.

Interested in learning more about our multi-tenant property offerings? Ground + Space is a leading commercial real estate brokerage firm based in North Carolina that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings or sign up for our mailing list to stay updated on the latest commercial real estate news and offerings.


Just Sold: Cary Multi-Tenant Strip in Cary, NC

Ground + Space announced today the sale of the Cary Multi-Tenant Strip in Cary, North Carolina. This property is a 9,788-square-foot multi-tenant asset that features three tenants: Sleep Number, Zoës Kitchen and PM Pediatrics. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, a Florida-based commercial real estate development company. The property sold for a superior cap rate of 6.11 percent.

This multi-tenant property is a prominent outparcel to Target and Home Depot. The site is positioned at the heart of a dynamic retail trade area in Cary, North Carolina. Each NNN lease features a corporate guaranty, two options to renew and scheduled rental increases of 10 percent. The leases also provide for ease of ownership with minimal landlord responsibilities.

With more than 40,000 cars passing the site daily, the property benefits from its highly visible location along Walnut Street. The multi-tenant site sits within an affluent community of more than 160,000 residents and has access to more than two million Triangle area residents. The site has easy access to Interstate 440 thanks to its position between the state capitol of Raleigh, North Carolina and the renowned Research Triangle Park (RTP).

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


Just Sold: Mount Dora Retail Strip in Mount Dora, FL

Ground + Space announced today the sale of the Mount Dora Retail Strip, a multi-tenant property in Mount Dora, Florida. Mount Dora Retail Strip is a 6,912-square-foot retail site that features three tenants: Hand & Stone Massage and Facial Spa, Marco’s Pizza and Kay Jewelers. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, a Florida-based development company. The property sold within one percent of the original asking price for approximately $3.26 million.

This multi-tenant property is brand-new construction along U.S. Highway 441 within a larger development that includes ALDI and Panera Bread. The three tenants all have new NN leases with a mix of corporate and franchise guarantees. All three leases feature scheduled rental increases and options to renew. In addition, the tenants reimburse the landlord for expenses relating to roof, structure and parking lot maintenance.

The property benefits from its highly visible location across from both Walmart and Target, along with high traffic counts (over 41,500 cars pass the site daily). Mount Dora itself is located within Orlando’s sprawling metropolitan area, which boasts a population of more than 2.3 million. Mount Dora is less than one hour from downtown Orlando and the area’s world-class tourist attractions, including Walt Disney World, Universal Studios and SeaWorld.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


Just Sold: Shops at Celebration in Kissimmee, FL

Ground + Space announced today the sale of Shops at Celebration, a multi-tenant property in Kissimmee, Florida. Shops at Celebration is a 5,222-square-foot retail site that features three tenants: Tijuana Flats, T-Mobile and Island Fin Poké Company. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, a family-run commercial real estate investment and development company based in Maitland, Florida. The property sold for approximately $2.9 million to a private investor in a 1031 exchange.

Built in 1998 and renovated in 2015, this multi-tenant property is anchored by a top-performing Nike Factory Store. Two tenants have leases with corporate guarantees. Each of the leases features scheduled rental increases and multiple options to renew. In addition, the tenants reimburse the landlord for expenses relating to roof and parking lot maintenance. The property benefits from prominent signage placement along U.S. Highway 192/West Irlo Bronson Memorial Highway with 56,000 vehicles passing daily.

This multi-tenant property sits at an irreplaceable location across from Florida Hospital Celebration Health and Disney’s Celebration Town Center area. The property also has direct access to the Publix-anchored Water Tower Shoppes. Shops at Celebration is within easy driving distance of the Florida Turnpike and Interstate 4. The many theme parks in the surrounding area bring high pedestrian and vehicle traffic counts to the site.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!