Sperry Commercial Global Affiliates – Flint Brokers & Associates facilitated the acquisition of two retail investments in Florida after their client disposed of a multi-family asset in NYC.
Melbourne, Fla. – January 3, 2022: Founding Principal, James Flint, CCIM of Sperry Commercial Global Affiliates – Flint Brokers & Associates, a commercial real estate firm headquartered in Melbourne, Florida, represented the investment group in the 4.2 million-dollar acquisition of two net-lease properties in Central Florida.
“Our clients first approached us with a desire to locate and acquire a low-maintenance, stable property that didn’t require intensive management,” said Flint. “The group wanted an ‘inflation and Amazon-proof’ investment, in a good location, that would be easy to re-lease if a tenant eventually vacated.”
The properties were acquired through the process of a 1031 exchange, after the buyer group sold a single multi-family asset in New York City in late October.
According to Flint, “We had a very tight window, since our clients were reluctant to begin the search process in earnest prior to selling their relinquished property. A 1031 exchange requires the exchanger to identify his or her potential replacement properties within 45 days of closing of their relinquished property, and then to close on one or more of the identified properties with 6 months.”
The buyer group’s principal, Joe Hogan, remarked, “I found Mr. Flint to be helpful and instructive. He listened to our needs, and although there was a lot of competition from other buyers, he helped make the process easy."
“The competition for net-lease commercial properties in Florida is fierce,” said Flint. “The Florida economy has performed very well throughout the pandemic, and combined with our business-friendly and low-tax environment, investment dollars are pouring-in from around the country. As a result, we’ve seen prices rise, and cap-rates compress. One broker actually remarked that all of his 15 inquiries had come from other 1031 exchange buyers who didn’t need any additional financing.”
Ultimately, it was decided to divide the investment between two free-standing net lease properties in order to spread the risk, and increase the returns. Among several finalists, a Verizon Wireless store in Apopka, and a Gerber Collision in Tampa were eventually selected.
Verizon Wireless is a free-standing 2400 square foot retail store on .83 acres, constructed in 2015. It has been occupied by a corporate-owned cellular service retailer since construction. The seller of the property was a private entity represented by Patrick Nutt of SRS National Net Lease in Fort Lauderdale.
Gerber Collision in Tampa is a 7126 square foot auto-body service center on .85 acres. It has been occupied by an international corporate auto-body group since 2012. The seller of the property was also a private entity that owned several auto-body locations throughout Central Florida, and was represented by Scott Gould of Marcus and Millichap in Orlando.
“I was happy to be working with Mr. Flint and Sperry Commercial,” said Hogan. There were lots of challenges throughout the process, and he was able to connect us with the right people, and continued pushing until we closed successfully. Ultimately, we were pleased with all of our interactions with Flint, as well as the final results.”
If you are considering the acquisition or disposition of an asset, and you need assistance with your 1031 exchange, along with the process of locating and acquiring a replacement property, please call Sperry Commercial – Flint Brokers & Associates for a consultation.
Founded in by James Flint, CCIM, Sperry Commercial – Flint Brokers' team serves as expert commercial real estate advisors to owners and investors across a wide spectrum of industries. By combining their in-depth local market knowledge and connections, with the extensive reach of their global affiliate network, and their utilization of the latest technologies, they are able to deliver strategic, targeted solutions to their clients, with integrity and professionalism. For more information, visit www.flintbrokers.com.