Bayshore Capital has acquired the Osceola Square Mall, Orlando, Florida
- 420,000 SF community mall, will be repositioned to become “the” retail, service and leisure destination for the burgeoning local Hispanic community.
- Will achieve first mover advantage capitalizing on the strong surrounding Hispanic demographic.
- Positive cash flow, present occupancy of 67% (leases in hand to bring occupancy to 89%), “upside” by transforming remaining vacancy a “Village Mercado”, a proven retail concept.
- Property acquired for $16.5 million or $41.04 per SF, current lender appraisal by CBRE “as is” for $29.3 million.
- No additional capital expenditure funding expected with original capital investment expected to be returned within 36 months.
- Projected IRR on a sale scenario of 67.4% and on a refinancing scenario of 49.9% over 4.5 years.
- Major tenants: Burlington Coat Factory, Grand Mart, Ross Dress For Less, Fallas Stores, Planet Fitness, Foot Locker, Florida Technical College.
Long-term Investment Strategy
- To acquire a portfolio of U.S. retail properties focused in heavily Hispanic populated areas and targeted to provide an authentic Hispanic-focused shopping and leisure experience.
- Targeted portfolio would comprise 10 to 15 properties including a mixture of income producing, “greenfield” development and redevelopment or re-positioning opportunities.
- The acquisition of properties would initially be focused in the most heavily concentrated Hispanic populated states including Florida, Texas, California, Arizona and Illinois.
- Individual properties targeted would include community and regional malls between 300,000 to 1 million square feet and large convenience strip centers over 200,000 square feet.
- Ideal property characteristics include: significant vacancy for re-tenanting, land parcels or unused density for additional development and re-positioning of tenants to increase rental rate.
- Investments would be made in projects by way of equity participation, joint venture, mezzanine debt or convertible debt arrangements.
“Catch the Biggest Demographic Wave Since the Baby Boom!”
Chiqui Cartagena, Leading Hispanic Marketing Expert