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Closed Transactions, Completed Transactions, Industry News, RJ Realty In The News

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps GCDC LLC In The Purchase Of Naranja Property

muv_medical cannabis dispensary rendering_26655 s dixie highway naranja_Image Courtesy of RJ Realty 800x315

Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, represented the Buyer, GCDC LLC, a foreign investor, in the purchase of a 1,730-square-foot retail property located at 26655 S. Dixie Highway in Naranja.

The deal closed August 30.

GCDC, LLC purchased the property from POR Naranja, LLC for $2,769,230.

The seller was represented by Barry Wolfe and Alan Lipsky of Marcus & Millichap.

This is the sixth transaction Ron Osborne has completed with this buyer and his second purchase of a property with a cannabis tenant. The investor likes the higher returns with annual rent increases as well as the true NNN leases that all tenant improvements are handled by the tenant.

Osborne believes the upside in these transactions is the future full legalization for statewide recreational use and decriminalization. At that time, the cap rates will decrease dramatically, and the valuation will increase. While this may take several years, the investor is receiving a better than average return.

Osborne has represented GCDC, LLC for the last year and they are looking to acquire additional properties this coming year. Due to the higher cost of capital and the cost of windstorm insurance, they will be seeking higher returns.

September 7, 2023/by ADMIN

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

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

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.

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.

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.

July 20, 2023/by ADMIN

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

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.

The 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.

“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.”

April 18, 2023/by RJ Realty Admin

Closed Transactions, Industry News, RJ Realty In The News

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Davie Retail Building

Metro-by-T-Mobile-Pine-Island-Plaza-in-Davie-FL-800x533

Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, represented GCDC4 LLC, a foreign investor, in the purchase of a 3,200-square-foot, free-standing retail building outparcel located at 9180 W. State Road 84 in Davie, Florida.

The buyer purchased the property from CR Ridge Plaza LLC for $2,400,000.00, representing a 6.2% cap rate.

The deal closed December 16.

The property is currently occupied by Metro By T-Mobile on a corporate lease with 4+ years remaining. Metro has occupied the property for 20 years.

The transaction marks the fifth in which Osborne has represented the investor in the last 12 months. They will continue to acquire prime real estate in which they find strong financial fundamentals. The last two transactions have shown the trend in adjusting capitalization rate increases as interest rates increase.

In October, Osborne represented GCDC LLC in the purchase of a 5,300-square-foot retail automotive repair facility in the same retail plaza. GCDC, LLC purchased the property from CR Ridge Plaza LLC for $2,967,9335, representing a 6.2% cap rate.

“We expect the rates to continue to increase over the next several months,” commented Osborne. “This will be in both single and multi-tenant properties. Properties that are not in prime locations will see even a greater increase in rates. We are in a shifting market from a seller’s market to a stabilized market. With the lack of liquidity, a cash buyer that does not need a loan will be able to move quickly and close on transactions at better returns than those seeking financing.”

“I also believe the additional cost of windstorm insurance here in South Florida will drive cap rates upward,” Osborne continued. “Buyers that pay cash or those that have a good relationship with their lenders that can waive the windstorm insurance requirement will be critical in the sale of property this coming year. We looked at several STNL properties over the last four months and could not find one in the South Florida market that would offer a reasonable return and future upside. This property offers both and the client hopes to purchase another property in the first Quarter of next year. They will be looking at both single and multi-tenant properties in 2023.”

The property was listed by Stan Johnson Company.

December 30, 2022/by RJ Realty Admin

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Ridge Plaza Auto & Tire Center

Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, represented the Buyer, GCDC LLC, a foreign Investor, in the purchase of a 5,300-square-foot retail automotive repair facility located at 9190 W. State Road 84 in Davie Florida.

The deal closed October 28.

GCDC, LLC purchased the property from CR Ridge Plaza LLC for $2,967,9335, representing a 6.2% cap rate.

The property is currently occupied by Ridge Plaza Auto & Tire Center. The operator has occupied the property for 38 years and has 8+ years remaining on the lease with an annual 2% rent increase.

This is the fourth transaction in which Mr. Osborne has represented this investor in the last 12 months and the first transaction in which the buyer secured financing. Osborne has a fifth purchase under contract and is scheduled to close before the end of the year on an all cash abasis with a cap rat of 6.2%.

“As a foreign investor without a US residence, it was extremely difficult to find a lender willing to make the loan even with 50% down,” explained Osborne. “Ultimately, we were able to obtain a first mortgage with the assistance of Manuel Huerta of Interamerican Bank.”

Osborne has represented GCDC, LLC for the last year and they are looking to acquire additional properties this coming year. Due to the higher cost of capital and the cost of Windstorm Insurance, they will be seeking higher returns.

“With the current cap rates lower than in other parts of the country, we believe market will see higher cap rates in the near future, especially here in South Florida, as interest rates increase and the additional cost of Windstorm Insurance,” Osborne added. “Buyers that can pay all cash or have a good relationship with the lender that will waive the windstorm insurance will be critical in the sale of property within the coming year. We looked at several STNL properties over the last 4 months and could not find one in the South Florida market that would offer a reasonable return and future upside. This property offers both and we hope to purchase another property from the same group shortly.”

The property was listed by Stan Johnson Company.

November 17, 2022/by RJ Realty Admin

Closed Transactions, Completed Transactions, Industry News, RJ Realty In The News

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps The Strachman Family In The Purchase Of Fort Lauderdale Retail Property

Chops & Hops-702-706 NE 1 Ave. -Ft Lauderdale 800x533

Ron Osborne, Managing Director/Broker of SperryCGA | RJ Realty, represented The Strachman Family in the purchase of a 8,864-square-foot retail property located at 702-706 NE 1 Ave. in Ft. Lauderdale, Florida.

The deal closed September 12.

The buyer, Judith Strachman Rev. Living Trust, purchased the property from Barkan Investments for $4,250,000

The property is currently occupied by Chops & Hops Axe Throwing Lodge, a one-of-a-kind bar that pairs the ultra-fun activity of axe throwing with world-class cocktails and live music, Ft. Liquordale Entertainment, and Crossed Keys Society, a quirky, feel-good tattoo studio and creative space.

Judith Strachman Rev. Living Trust purchased the property to complete the exchange of the sale of the Boulevard Center, a retail plaza located at 1504-1538 E Commercial Blvd. in Oakland Park, Florida, earlier this year. Osborne represented Judith Strachman Rev. Living Trust in that transaction. After an extensive search for a single tenant, NNN leased property that would offer a strong return, the trust elected to purchase the subject property which has two tenants, Chops & Hops and Ft. Liquordale, on the main floor and Crossed Keys Society on the second floor.

“With the current rents lower than what we believe market rents could be, this property has nowhere to go but increase in value,” commented Osborne. “We looked at several STNL properties over the last 4 months and could not find one in the south Florida market that would offer a reasonable return and future upside.”

The Buyer was interested in the property due to its location within Flagler Village in Ft. Lauderdale. With the redevelopment of the old SearsTown property only a short distance from the subject property’s location, the Buyer believes that the area is only going to increase in value over time.

“We had no problem obtaining financing for the property thru Locality Bank and both the Buyer and lender agree that the location is one of the hottest markets in Ft. Lauderdale,” added Osborne.

Osborne has represented The Strachman Family as trust advisor over the last 20+ years and, in the last 5 years, helped in repositioning its portfolio of management-intense multi-tenant retail properties. The family is repositioning its portfolio for the future.

The property was listed by Native Realty.

September 21, 2022/by RJ Realty Admin

Closed Transactions, Completed Transactions, Industry News, RJ Realty In The News

Sperry CGA | RJ Realty’s Ron Osborne Negotiates Sale Of Oakland Park Retail Plaza

Ron Osborne, Managing Director/Broker of Sperry CGA | RJ Realty, negotiated the sale of a retail plaza located at 1504-1538 E Commercial Blvd in Oakland Park.

The deal closed March 14.

Boulevard Center is a retail strip center consisting of 5 buildings developed in the 1960s and early 1970s totaling 21,510 square feet situated on a 80,111-square-foot lot with 435 feet of frontage on East Commercial Blvd.

The property was listed at $4,950,000 and within days, multiple full price offers were received – some over list price. The property closed within 0.5% of list price and a sub 5% capitalization rate.

“Even after the property went non-contingent and buyers were told that the property was sold, we had numerous buyers wanting to put up a backup contract,” explained Osborne. “We are still working with those buyers looking for retail properties with long term upside.”

Bahr Investments, represented by Jonathan De LaRosa with Marcus and Millichap, purchased the asset.

Osborne added, “This trade illustrates the continued, frenzied demand for small retail properties throughout Broward County Florida. The lack of well-located retail properties for sale throughout South Florida has driven the price points higher and the return investor will to accept lower.”

March 29, 2022/by RJ Realty Admin

Posts

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps GCDC LLC In The Purchase Of Naranja Property

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps Buyer In Purchase Of Davie Retail Building

Sperry Commercial Global Affiliates | RJ Realty’s Ron Osborne Reps The Strachman Family In The Purchase Of Fort Lauderdale Retail Property

Sperry CGA | RJ Realty’s Ron Osborne Negotiates Sale Of Oakland Park Retail Plaza

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