Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, GCDC Fort Myers LLC, in the purchase of a retail property located at 2952 Cleveland Ave (State Road 41) in Fort Myers, Florida.
TERPS ACQUISITIONS FM LLC sold the property for $1.5 million.
The acquisition closed May 22.
The property is currently occupied by AYR Wellness, a cannabis dispensary.
“The investor not only gets a strong tenant, renovated properties, top rents and annual rent increases, but also a better than average cap rate,” explained Osborne. “In this case, the return is close to a 7.5% return with the first rent increase in July. The lease is 100% triple net with no landlord responsibility.”
Osborne is confident that the high visibility of the location on Cleveland Ave. will Increase in value over the next 10 years. He also believes that with the coming changes in both Florida Law in regard to the proposed amendment that will pass the legalization of recreational use of cannabis as well as the Federal Government’s change in the status of cannabis, the values of these properties will Increase dramatically over time.
“They must be in a major MSA with a cap rate over 7.5%+ or approaching it with annual rent increases,” Osborne explained. “With the more normalized interest rates of 7 to 8%, developers of STNL properties are adjusting their offerings prices to meet the buyer’s expectations of being able to purchase a property and obtain a reasonable amount of leverage,” he added. “The days of 4 to 5% cap rates are coming to an end. Developers need to develop in order to stay in business and recognize that as their construction loans are coming due, they will need to meet the market demands.”
The deal marks the investor’s third acquisition of these types of investments in the last year.
The property was listed by Jake Lurie of Mathews Real Estate Investment Services.
About Sperry – RJ Realty: Sperry – RJ Realty provides landlord and tenant representation for some of the largest global owners and operators of real estate, as well as local and entrepreneurial owners and developers throughout Florida. With clients ranging from large, private investors to institutional owner advisors to local investors,
Sperry – RJ Realty prides itself on providing best-in-class marketing and a full suite of research capabilities to support the efforts of its professionals. Sperry – RJ Realty aligns its interests with those of its clients to facilitate results and the ultimate success of each asset.
