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Sperry – RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Retail Property In Hallandale

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Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, a major investor within the Hallandale Blvd. market, in the purchase of a former used-car dealership located at 3901 W. Hallandale Beach Blvd, in West Park, Florida.

The deal closed  August 19.

While the property is currently a used car dealership, it is a non-conforming use, and the city will not permit the use in the future.

Sperry – RJ Realty was one of several brokerages vying for the listing, however, the ownership decided to move forward with another brokerage due to a personal relationship.

Within a day of his initial meeting with the Seller, Osborne brought in a contract at 95% of list price of $895,000 with a non-contingent, 30-day closing other than clear and marketable title with the full contract price placed in escrow. The transaction was scheldued to close in less than 30 days, however, the only thing that delayed the closing was the seller’s inability to deliver the property with clean title due to several code violations which needed to be resolved before closing.  The Seller was unable to resolve one of the code issues and Osborne was able to persuade his client to purchase the property with the code issue and negotiated a discounted price.

“We always recommend that a seller considers ordering a code, lien and open permit search when they list a property,” explained Osborne. “If the owner has owned the property for many years, we also may recommend doing a title search to ensure clean title can be conveyed.  This way, if there are any issues, they can be addressed before a contract is negotiated.”

Osborne has represented the investor previously. They own the properties that border the subject property on both sides and have plans to redevelop them.

“It is all about knowing the right buyer for a property, and knowing what can be done with it in the future,” added Osborne. “This area has gone through and is continuing to go through major changes.”

Osborne has been working the Broward County Market since 1978 and is a top producer in the Sperry Commercial Global Affiliates (SPERRY).  When thinking of selling, hire the best broker for the job, not the one that you’re friends with.

The property was listed by Gus Martinez of KW Commercial.

 

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Single-Tenant Net Lease Cap Rates Rise

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While 2023 was not kind to net lease, things have been improving so far in 2024, particularly for single-tenant.

A new report from the Boulder Group says that in the second quarter of 2024, single-tenant net lease saw cap rates increase for the ninth consecutive quarter. That was for all three sectors, with retail hitting 6.47% (up five basis points), office up 7.67% (an increase of seven basis points), and industrial at 7.10% (eight basis points up).

Things have been improving since the middle of Q2. In May, Marcus & Millichap said single-tenant net lease was in good shape. They pointed to the continued strength of the labor market and says that has supported increases in retail spending beyond inflation for real growth. Real increases in wages also helped by giving people on average more money to spend after price inflation.

The Boulder Group also noted that property supply had increased by 8.7% over the first quarter. Q2 also saw the largest number of properties on the market since 2021 Q4. For retail, the amount of inventory increased quarter over quarter by 8.1%. Office was up 11.4% and industrial, 9.5%.

Investors have shifted their positions. They largely think that the market currently favors buyers, which would fit with the ongoing increases in cap rates. That is particularly true for commoditized properties. Buyers have little competition and, as a result, are largely focused on either tax-free states or regions with strong demographic drivers. They’re also looking for CRE fundamentals and tenants with good credits. Stronger brands — Olive Garden and Texas Roadhouse, Boulder gave as examples — haven’t seen increases in cap rates.

Breaking results down even further, the auto sector has seen a five-point increase in cap rate. Median asking cap rates vary by lease term remaining. So, an auto service location with 16 to 20 years left has a 5.50% cap rate, but a 7.15% one for five years or less.

Casual dining saw an eight-basis point increase in general. But the rates varied from 5.25% for a Texas Roadhouse ground lease to 7.25% for either a Buffalo Wild Wings or an iHOP. Median asking cap rates ran from 6.05% for 16 to 20 years left on the lease to 7.30% for five years or less.

Dollar stores ran from 6.75% for Dollar General to 7.80% for Family Dollar. Net lease drug stores have seen some tough times for Walmart, Ride Aid, and Walgreens. The overall sector saw asking cap rates of 6.67%. But even if particular locations are threatened, the quality of the real estate that drug stores have accumulated is good, meaning owners should be in good shape, even if a store pulled out, as there will be plenty of other opportunities.

 

Source: GlobeSt.

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Sperry – RJ Realty’s Ron Osborne Reps Seller And Buyer In Purchase Of Automotive Facility In Ft. Lauderdale

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Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Seller, Repair Business Holdings LLC, and the  Buyer, 1543 S STATE RD 7 LLC, in the sale and purchase of 1543 S. State Road 7 in Ft. Lauderdale, Florida.

The Seller was looking for a long-term sale-leaseback, however, the ultimate buyer is an end-user. The parties agreed to a one-year lease to allow the seller time to relocate his business.

The property is currently being utilized as a transmission shop.

Sperry – RJ Realty has represented both parties previously in unrelated transactions.

The buyer will ultimately use the property as an automotive repair business that will serve both the public as well as the vehicles from his own independent car dealership located on Oakland Park Blvd.

The property sold for $1,575,000. The buyer obtained a loan of approximately $1,100,000 from American National Bank, which was represented by loan officer Jeffrey Martin.

Osborne has been working the Broward County Market since 1978 and is a top producer in the Sperry Commercial Global Affiliates (SPERRY) network.

 

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2-Story Porsche Dealership Proposed In Pompano Beach

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A local automotive dealership is proposing a new Porsche complex in Pompano Beach.

Copans Motors, Inc. wants to build a two-story Champion Porsche dealership with a four-story parking garage at 300 N.W. 24th St., about 300 feet south of Copans Road.

If approved, it will be built on the same 11-acre property where Copans Motors, doing business as Champion Porsche, operates a converted 116,733-square-foot retail building as a maintenance and parts facility.

The new complex will also be next door to Champion Porsche’s current dealership complex at 300 W. Copans Road.

 

Source:  SFBJ

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Used Car Dealership Off Lease Only Files Chapter 11, Winds Down Business Operations

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Florida used car dealership chain Off Lease Only filed for Chapter 11 bankruptcy reorganization on Sept. 7, and announced plans to “orderly wind down” its business.

The Palm Springs-based company, along with affiliates Off Lease Only Parent and Colo Real Estate Holdings, filed Chapter 11 petitions signed by CEO Leland Wilson in U.S. Bankruptcy Court in Delaware.

The companies listed between $100 million and $500 million in both assets and debts.

The company — which has five Florida dealerships, one near Orlando International Airport and the others in West Palm Beach, North Lauderdale, Opa-locka and Bradenton— is closed to the public, according to its website. All of its locations are leased; the Orlando property’s landlord is Dallas-based Spirit Realty LP.

Off Lease Only made this decision because of “significant challenges and competitive pressures resulting from unprecedented changes to the automotive retail landscape,” it said in a news release. “The industry has been impacted by inventory scarcity, and vehicle price inflation stemming from supply chain disruptions and multiyear declines in new vehicle production. Elevated pricing and rising interest rates have further deteriorated conditions in the automotive retail market, weakening consumer demand and affordability.”

 

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Plantation Auto Dealership Changes Hands

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A net-leased automotive dealership property located in Plantation sold for $5,750,000.

The Ride4U dealership, located at 747 N State Rd 7,  is just 1.2 miles away from Florida’s Turnpike on a major auto dealership corridor.  The lot size is 1.7 acres and can accommodate approximately 250 cars between the showroom and service department. The building measures approximately 9,000 square feet which includes a showroom and back office.

The buyer, a limited liability company, obtained a $5,175,000 million loan in acquisition financing.

RJ Realty was not involved in the transaction.

 

Source:  CityBiz

 

 

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Sperry CGA | RJ Realty’s Ron Osborne Closes Three Sale Transactions Totaling $8 Million

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Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, has completed three significant transaction in the 2nd quarter of the year.

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The most recent transaction involved the sale of both the real estate and business located at 5360 S. State Road 7 in Tamarac. The transaction was handled as an exclusive listing but completed off market in order to protect the business from interruptions.  Hi-Tech Collision, a well-known paint and body business for over 38 years, was purchased by Gerber Collision or subsidiaries, In addition, the Buyer leased an additional 2,500 square feet from the Seller, who owns the adjacent multi-tenant property. While the amount of the combined sale is confidential, the sale price of the real estate transaction, which is comprised of 9,747 square feet of buildings situated on 23,756 square feet of land, was $2,750,000.

Osborne stated, ”Due to the current financing condition in the lending market and higher interest rates, it was decided to reach out only to the national body shop companies as they have the ability to pay cash or execute a long-term lease.” 

Gerber Collision was ultimately selected from several major buyers to purchase the property rather than lease it, which was preferable to the Seller. Gerber also agreed to retain all employees in order to keep the quality of work consistent. This was important to the seller as most of them had been long-term employees.

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The second transaction, which closed in June, involved the sale of a former bank building located at 6001 N University Dr., also in Tamarac. The building was leased to Sunnyside Cannabis Dispensary, which is scheduled to open at the end of this year. The tenant executed a 10-year NNN lease. The property closed at $4,520,000 in an all-cash transaction. The Buyer, GCDC 5, LLC, an entity managed by Osborne, purchased the property as it offered a much higher yield than other STNL (single net tenant lease) properties in South Florida by more than two percentage points. Osborne stated that since this type of tenant is very hard to obtain financing for, especially in the current increasing interest rate climate, the all-cash offer with proof of the available funds to purchase made GCDC 5, LLC offer very attractive to the Seller. Barry Wolff and Alan Lipsky of Marcus and Millichap represented the Seller in the transaction.

1030 N Federal Highway-Pompano Beach FL_Photo Courtesy of Ronald Osborne

The third transaction completed by Osborne, which closed in May, involved the sale of 1030 N Federal Highway in Pompano Beach, FL. The property was leased to Hertz Car Rental for more than 10 years. When Hertz declined to renew its lease at market rates, GCDC, LLC decided to market the property for sale or lease. The property totals approximately ±800 square feet of office space, situated on 8,000 square feet of land. While numerous full list price offers of $795,000 were received from used car dealerships, the zoning did not allow for that use, so the offers were ultimately declined. Numerous list price offers were subject to financing, which, in the current market climate, were questionable. An offer was ultimately accepted from Autobuy/WePayTheMax.com for $750,000 with a very short contingency period only to confirm that the city would permit an auto appraisal office.

Osborne is now representing GCDC, LLC in its 1031 exchange and has identified several properties of interest for purchase and expects to close on another cannabis dispensary in Homestead in August.

 

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Broward County Auto Dealerships To Be Demolished To Build New Ones

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King Motors filed plans to demolish its dealership buildings at 1345 to 1399 S. Federal Highway in Deerfield Beach in order to construct larger buildings for both Hyundai and Genesis

King Motor Company of South Florida currently has 40,896 square feet of automotive space in three buildings situated on 1.94 acres. They were built in 2006.

King Motors previously operated Mitsubishi and Suzuki dealerships there. However, it recently changed to Hyundai and Genesis

 

Source:  SFBJ

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Swedish Electric Vehicle Company To Open 2 New South Florida Dealerships

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As part of its expansion in the Southeast U.S., a Swedish electric vehicle company will open two new locations in South Florida.

Polestar will open a dealership in Fort Lauderdale at 301 E. Las Olas Blvd. within the Plaza at Las Olas later this month, said Steven Radt, Polestar’s head of network development. A Coral Gables dealership is expected to open in July, Radt added.

At present, Polestar’s sole location in South Florida is in the Tree of Life Plaza at 4047 Okeechobee Blvd. in West Palm Beach.

Besides West Palm Beach, Polestar recently opened locations in Tampa and Atlanta. A Polestar dealership will open in Charlotte, North Carolina, in June while a Naples location is “coming soon,” a company release stated.

Polestar is expanding in the Southeast because it’s the fastest growing region for electric vehicle sales in the U.S.

“In fact, recent data shows Florida, Georgia, and the Carolinas account for more than 11% of EV registrations nationwide, with Florida being the second in the nation for EV ownership, behind California and ahead of Texas,” Radt said. “It’s a very important market for our brand.”

 

Source:  SFBJ

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Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Closes Two Property Sales Totaling $7.55 Million

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Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, negotiated the sales of two properties – an office property and a boat/auto dealership – totaling $7,550,000

The first transaction included the sale of the 911 Building (pictured above), a 25,000-square-foot office building located at 911 E Atlantic Blvd in Pompano Beach. The property was in contract numerous times with potential owner/users and investors, but the ultimate buyer was JSA 911 POMPANO LLC, a group affiliated with Architect Yuri Gurfel who is well known for his multifamily projects in Pompano Beach. The new owners’ 2–3-year plan is to build approximately 60 multifamily units on the site. JSA 911 POMPANO LLC paid $3.6 million for the property. The seller, 911 Atlantic LLC, or an affiliated company held a short-term 50% mortgage. The transaction closed March 30.

1771 S State Road 7The second transactions included the sale of 1771 S State Road 7 in Ft. Lauderdale, a closed boat/auto dealership, for $3,950,000, marking a 38% gain in less than two years. The property last sold in June 2021 for $2.65 million to 1771 HOLDINGS LLC, which Osborne also negotiated. The seller never moved into the building due to internal issues. Osborne sourced a buyer at full asking price within days of putting the property on the market, going under contract with ELEVATOR CONSTRUCTORS LOCAL 71 HOLDING CO INC and closing in under 45 days. The transaction closed March 24. The buyer was represented by Gus Bergamini of The Keyes Company.

Ronald Osborne-SperryCGA RJ Realty“The market is a shifting from a Seller’s market to a market-in-equilibrium and depending on future interest rate increases, it could shift to a Buyer’s market,” commented Osborne. “Demand is high for all asset classes and certain property types that are harder to locate and in demand and are trading quickly at top values like the 1771 S State Road 7 property.”

Osborne also commented that properties that have loans coming due in the next 12 to 18 months will have a harder time refinancing as interest rates have increased dramatically since March of 2022 and lenders are being more conservative with higher debt coverage ratios and lower loan-to-value ratios.

“Many property owners do not have the required funds to pay down their loans and will need to consider all options including selling,” explained Osborne. “It is better to sell now than later if this becomes a Buyers’ market as it did during the savings and loan crises or the last recession from 2007 to 2009. The properties values will adjust accordingly.”

 

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