Lehigh retail center sells for $4.9 million

BUYER: Freedom Holdings Lehigh LLC (principals: Eric Howell), Bradenton

SELLER: JLM Financial Investments 3 LLC

PROPERTY: 1209-1239 Homestead Road, Lehigh Acres

PRICE: $4.9 million

PREVIOUS PRICE: $3.1 million, August 2002

LAW FIRM ON DEED: Steward Title Co., Bonita Springs

PLANS, DESCRIPTION: Freedom Holdings Lehigh LLC, an investment group, purchased a 74,315-square-foot retail center for $4.9 million.

The price equated to $66 per square foot and a payoff ratio based on income (capitalization rate) of 9.89%.

James Medefind and Michael Jaworski of Marcus & Millichap's Tampa office handled the transaction.

The center, anchored by a Beall's Outlet, Save-A-Lot Center and Color Tyme Rent-To-Own, was 93% occupied at the time of the sale. It was originally built in 1982.

“It was an older center, but without a lot of deferred maintenance,” says Eric Howell, president of Sarasota's Lancaster Realty Inc. and managing member of the investment group. “The tenant mix is performing really well there and is perfectly situated for Lehigh Acres. We plan to continue it as is with a few improvements to the façade and leasing up the vacant space.”

Howell says Freedom Holdings, which features local and national investors, is currently looking for more retail properties along the West Coast to acquire. Earlier this year an affiliated purchase entity, Freedom Holdings Manatee LLC, purchased the 15,470-square-foot Shoppes at North Port and two vacant outparcel lots for $1.45 million.

Investor interest has grown for Southwest Florida retail recently, according to Medefind.

“I think we're seeing more transactions now because of the attractive financing,” he says. “Most leased commercial is finding that attractive commercial financing is available. This buyer was able to find financing below 5% fixed.”

Freedom Holdings Lehigh mortgaged the property to USAmeriBank for $3.68 million.