The Northtowne Square in Lakeland, a well-located shopping hub in Polk County, has been acquired by local investors for $15.5 million, confirmed in a recent announcement by Marcus & Millichap. This transaction was facilitated through a local LLC, highlighting a significant investment in the regional retail market.
Northtowne Square, a sprawling 96,009-square-foot retail property, has been notably popular among shoppers due to its strategic location on Highway 98 North, merely two miles away from Interstate 4. This accessible retail corridor is a bustling area in Lakeland, ensuring high traffic and occupancy rates. At the time of sale, the center was completely leased, housing 20 tenants that range from national chains to local businesses, including recognized names such as Harbor Freight Tools, Fancy Fruit & Produce, and Brewlands Bar & Billiards.
The purchasing LLC secured partial financing for this significant acquisition through a $6.5 million loan from Suncoast Federal Credit Union. The mortgage terms include a ten-year period with a 6.25% fixed interest rate and a 30-year amortization schedule. Notably, the financing deal comes with no prepayment penalty, offering flexibility to the investors. This strategic financial maneuver indicates a confident investment outlook by the acquiring party.
Marcus & Millichap played a crucial role in the facilitation of this transaction. Tarek Chbeir, a senior associate with the firm’s Orlando office, represented the buyers, highlighting his expertise in bridging local investors with valuable commercial opportunities. Garrett Fierstein of Marcus & Millichap Capital Corp. was instrumental in arranging the financing aspects, ensuring the deal’s financial viability.
From the seller’s perspective, Lakeland’s Sons, an LLC based in Sunny Isles Beach, saw a profitable return on their earlier investment. Having purchased the property in 2019 for $8 million, this sale reflects a substantial increase in value over five years. This marks a well-timed exit strategy amidst a competitive real estate market.
The sale of Northtowne Square to local investors marks a significant event in the Polk County commercial real estate scene. The strategic acquisition, backed by smart financing moves, underscores the ongoing interest and confidence in the region’s retail market potential. It also reflects the dynamic nature of real estate investments and the opportunities for profit within well-positioned assets.
Source: Businessobserverfl
