Orion Sells Restaurant-Anchored Property in St. Petersburg, Fla., by Christopher Sanz, JD, LLM

Posted on July 14, 2021

Orion Real Estate Group today announced it sold a 23,138-square foot fully leased commercial building in St. Petersburg, Fla., for $5.3 million. The buyer was an undisclosed private investor.

The property, located at 1900-1908 4th Street North, borders the 54-acre Crescent Lake Park in Downtown St. Pete and sits across the street from local attractions that include Sunken Garden and the Great Exploration’s Children’s museum. After purchasing the property for $3 million in 2016, Orion negotiated long-term leases with anchor tenants Outback Steakhouse and Panera Bread.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

Orion Sells Miami Retail Center for $19 Million by Kevin Sanz, CCIM, MSIRE

Posted on July 06, 2021

Orion Real Estate Group today announced it has sold Coral Park, a 49,134-square-foot strip shopping center in Miami, to a private investor for $19 million.

The property, at 9720-9806 SW 8th St., is one mile from Florida International University (FIU) and includes recently extended, long-term, triple-net leases with name-brand tenants that include CVS, AutoZone and Goodwill. Orion originally purchased the property at 9720-9806 SW 8th St. in 2014 for $13.4 million, yielding investors both seven years of passive rental income and an eventual gain on their initial investment.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

What Are Co-Tenancy Clauses in Commercial Real Estate Leases? by Kevin Sanz, CCIM, MSIRE

Posted on June 15, 2021

The way in which many commercial real estate properties are set up, there is often an anchor tenant(s), such as a grocery store or gym, that generates a steady stream of daily foot traffic, which then helps to support the business of their neighboring tenants. Based on this model, it is not uncommon for commercial leases to include co-tenancy clauses that allow these smaller tenants to receive rent reductions and other lease concessions in the event one or more anchor tenants close.

While beneficial to tenants, these co-tenancy clauses can obviously have negative implications for property owners and their net income, making it imperative for prospective investors to carefully review the finer details of each tenant’s existing lease agreement. Under certain circumstances, these provisions may offer landlords some flexibility especially when they have deep relationships with their tenants. As we’ve seen during the COVID-19 crisis, tenants and landlords can work together to negotiate mutually beneficial terms of co-tenancy triggering defaults, the time period the landlord has to cure the default and the rental relief remedies available to tenants.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

What You Need to Know about Estoppel Certificates in Commercial Real Estate? by Christopher Sanz, JD, LLM

Posted on June 09, 2021

In the world of commercial real estate investing, an estoppel letter is one of the many documents investors may request as part of their acquisition due diligence to verify the economics of tenant leases and proof of cash flow. They essentially help investors determine whether the price paid for real estate is reasonable, given the property’s capacity to generate income. In addition to confirming that a seller’s claims of a property’s financial performance are accurate, they also provide reassurance that tenants cannot make claims at a later date that are contrary to the information contained in the estoppel letter.

While not all leases require tenants to provide landlords with estoppel certificates, they can be a helpful tool for prospective buyers to consider within the scope of their own investment goals while also helping to reduce the risk of future litigation with tenants.

With offices in Miami, Orlando, New York City and Geneva, the team at Orion works with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.

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