Just Sold: Sherwin-Williams in Gainesville, FL

Ground + Space today announced the sale of a Sherwin-Williams property in Gainesville, Florida. Michael Zimmerman exclusively marketed the property, which sold within two percent of the asking price in a 1031 transaction to an individual investor. This listing garnered multiple offers thanks to the property’s strong corporate guarantee and new construction within the larger Markets West master-planned development.

This property is a prime example of a stable, COVID-safe asset that requires minimal landlord maintenance. The NNN lease features a corporate guarantee and scheduled rental increases within each of the six extension periods. The Sherwin-Williams site has excellent visibility within one of Gainesville’s most densely populated residential districts. Centrally located between Newberry Road and Archer Road, the site has easy access to many nearby national retailers and restaurants, as well as busy Interstate 75.

Gainesville itself serves as the cultural, educational and commercial center of the North Central Florida region. Midway between Miami, Florida and Atlanta, Georgia, Gainesville has become a global business destination, attracting investment from around the world. As the home base for the University of Florida—one of the top research institutions in the nation—the Gainesville region offers numerous business advantages for companies both large and small.

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. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!


Just Sold: SimonMed Imaging in Winter Park, FL

Ground + Space today announced the sale of a SimonMed Imaging property in Winter Park, Florida. Michael Zimmerman exclusively marketed the property, which sold within four percent of the asking price in an all-cash transaction. This listing garnered multiple offers thanks to the property’s strong corporate guarantee and the tenant’s status as one of the fastest-growing national physician practices in the country.

This property is a prime example of a stable, COVID-safe asset that requires no landlord maintenance. The NNN lease features a corporate guarantee, multiple five-year renewal options and scheduled 10 percent rental increases. The in-line concept is adjacent to a Wendy’s location that features a drive-thru lane. (Ground + Space successfully sold this property in an all-cash 1031 transaction in November 2020.) The site is less than one mile from the popular Park Avenue shopping district, the city’s new SunRail station and the Valenica College Winter Park campus.

SimonMed Imaging benefits from its prime location less than five miles from the heart of downtown Orlando, Florida. The city has long been a popular tourist destination, attraction more than 75 million people from around the globe in 2018 alone. Major attractions within easy driving distance from the site include Walt Disney World Resort, Universal Orlando Resort, SeaWorld Orlando and LEGOLAND Florida Resort.

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. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!


Just Sold: Wendy’s in Winter Park, FL

Ground + Space today announced the sale of a Wendy’s property in Winter Park, Florida. Michael Zimmerman exclusively marketed the property, which sold within four percent of the asking price to an all-cash 1031 buyer. This listing garnered multiple offers thanks to the property’s strong corporate quick-service restaurant (QSR) tenant, the world’s third-largest hamburger fast food chain.

This property is a prime example of a stable, COVID-safe asset that requires no landlord maintenance. The Wendy’s Ground lease features a corporate guarantee, multiple five-year renewal options and scheduled 10 percent rental increases. The new in-line concept features a drive-thru lane and is adjacent to a SimonMed Imaging location. The site is less than one mile from the popular Park Avenue shopping district, the city’s new SunRail station and the Valenica College Winter Park campus.

Wendy’s benefits from its prime location less than five miles from the heart of downtown Orlando, Florida. The city has long been a popular tourist destination, attraction more than 75 million people from around the globe in 2018 alone. Major attractions within easy driving distance from the site include Walt Disney World Resort, Universal Orlando Resort, SeaWorld Orlando and LEGOLAND Florida Resort.

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. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!


Loan Relief and Delinquency in the Days of COVID-19

The effects of COVID-19 are being felt by lenders hoping to collect loan payments as government relief programs near their expiration dates. Lenders began allowing borrowers postpone billions of dollars in loan payments back in March. Many lenders adopted this practice at the request of government regulators and lawmakers who placed moratoriums on both foreclosures and evictions. As forbearance requests from government-controlled mortgage finance companies end, the mounting number of distressed loans is expected to grow.

Loan Delinquency Rates on the Rise

In mid-June, bond rating agencies reported the greatest month-to-month increase in commercial mortgage-backed security (CMBS) loan delinquencies in at least three years. The CMBS loan delinquency currently totals around $36 billion. That number is five times higher than it was before the coronavirus pandemic began sweeping through major metropolitan markets in February.

The Kroll Bond Rating Agency (KBRA) reported another $60 billion on servicers’ watchlists. These loans include those that have experienced the loss of a major tenant and loans that have near-term maturity dates on which borrowers may not have the option of refinancing. On the commercial real estate front, Fitch Ratings recently released current and April delinquency rates. Except for multi-family, all other commercial property types have seen an increase in delinquency rates. Retail property delinquency rates have increased by 3.82 percent, and mixed-use property delinquency rates have increased by just under one percent.

What Happens Next?

The effects of the massive coronavirus relief measures are expected to create operational challenges for banks. According to Fitch Ratings, the asset quality for many U.S. banks is expected to deteriorate as a result of the COVID-19 pandemic. However, it will likely take a few quarters before the true impact to materialize on bank financial statements.

The economy’s overall recovery—and the ability for borrowers to make timely loan payments—will depend on the ability of states to adequately contain COVID-19. A number of states that opted to “open early” are now seeing an increase in the number of coronavirus cases as a result of community spread. These states remained mostly unaffected during the so-called “first wave” of COVID-19. As the number of active cases begins to decline in areas like New York City, COVID-19 infections are on the rise in states like Florida, Arizona, California and the Carolinas.

Navigating These Uncertain Times

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The IRS 1031 tax deadline is fast approaching, so please contact one of our brokers for specialized guidance during this time.

Stay Healthy and Safe

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.