Shopping Center, Orlando, FL

Millenia Plaza, Orlando, FL

Property Type
Retail, Strip Center



Investment Structure
Joint Venture

4Q 2015 Square


Number of Tenants

Tenant Sector
Restaurants, Furniture, Consumer Electronics

Type of Lease

Disposition Price

Orlando (Millenia), FL

Investment Summary

We acquired this asset through a preferred long-term relationship with Target Stores. The asset was 3.1 acres of vacant outparcels to a Super Target anchored center, known as Millenia Plaza. We constructed 3 buildings on 3 parcels with long-term, corporately backed leases. Located in the 23rd largest U.S. metro, the asset draws from a retail trade area that consists of 1.5 million people with a potential for retail expenditures north of $5 billion. The asset is situated at the gateway to Millenia Plaza benefiting from excellent visibility along Millenia Blvd and has a signalized entrance to the larger center. The asset is near the Mall at Millenia, the #1 mall in the state of Florida and top-ten in the US (anchored by Neiman Marcus, Bloomingdale’s, and Macy’s, including Chanel, Gucci, Prada, Louis Vuitton, Tiffany & Co, Burberry, and Jimmy Choo). We closed the acquisition with executed leases, approved permits, a guaranteed-maximum construction contract, and financing in place. We employed a Develop-to-Core asset investment strategy, thus we planned to sell the asset soon after the tenant opens.

Value Creation

Acquired the asset below full-market price while competing against 20 prospective buyers due to a preferred long-term relationship with Target Stores. Executed 10-year net leases with creditworthy national tenants, including average rent psf of $51. Constructed three new buildings under budget and tenants opened for business on schedule. Subdivided the acquired acreage into 3 assets, increasing the buyer pool and commanding a higher price, exceeding the targeted sales price by 20%.


Going-in cap rate 8.2%

Loan to value 54%

Net IRR 43%

Disposition date 3Q 2017

Term held (quarters) 7

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