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

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Ronald Osborne_blue shirt 480x480Ron 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.

 

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

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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.

Ronald Osborne“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.

 

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

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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.

 

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