Move Over, Spielberg
August 16, 2011
July 2011.
“Hollywood doesn’t have a corner on drama,” says Sean Glickman. He was referring to the recent sale of Crystal Lake Plaza near downtown Orlando, which he brokered. It seems the only thing lacking in the $4 million sale was a car chase. “It had everything else – high stakes, heartbreak, suspense, and ultimately – a happy ending,” says Glickman, Vice President of Investments Advisory Group at Coldwell Banker Commercial in Orlando.
Here’s a synopsis: Glickman listed the 52,000-square-foot property for sale in August, 2010. It was fully leased, but two of the tenants had been promised $200,000 in improvements to be paid for by the owner, who was unable to make them. (High Stakes!) The property was in gridlock, with the owner loosing $223,000 in gross income and unable to lease to another tenant.
That wasn’t all. The property had two loans that had matured and were in default. Orange Bank of Florida was owed $4.1 million, and a second private lender was owed $430,000. The lenders couldn’t come to terms, the property was foreclosed by Orange Bank, in January, 2011, and the second lender was wiped out. (Heartbreak!) To add further interest and keep all parties on the edge of their seats, “the anchor store, Winn Dixie, had only a year left on its lease,” said Glickman. Five months later, following plenty of nail-biting and persuasion on both sides (Suspense!) Winn-Dixie signed a new five-year lease on 31,900 square feet a week before the closing.
The buyer, who was procured by Glickman after the foreclosure, was Robert Zarin, who paid about $76 a square foot. The center, at 2950-3084 Curry Ford Rd., was built in 1987, and is 88 percent leased. The property traded at a cap rate of 8.5 percent. (Happy Ending!)
“This,” said Glickman, “is a deal I will not forget.”
Sean Glickman is a real estate investment advisor who is first and foremost a retail expert. Sean works with many of the top retail owners in the Orlando area. In his approach he offers clients a chance to determine how market conditions and other challenges affect their properties and the ramifications of these challenges on their future goals. Once this is clear, he helps clients determine a strategy that is appropriate to their specific situation and needs. He can be reached at 407-571-5532 or: seanglickman@gmail.com.
