As a part of a large effort to reposition our client’s holdings, while decreasing the inherent risk and increasing the intrinsic value of the exchange investments, we were able to source an off-market investment in the Winter Park area of Orlando. The property was a perfect fit for the client due to the long term lease, annual escalations and the high barriers to entry for a daycare tenant. In addition, the tenant is paying below market rent, securing the downside for the client in the long-term. The property is situated in the path of growth with new tenants such as Whole Foods, Trader Joe’s, Wawa etc. all finding a new home on the same street. With this deal, we were able to increase the client’s cash flow in the exchange while decreasing risk and setting them up for future equity growth.

The deal was sourced through a long-time relationship with TCII Capital’s John Strzalka and Jason Glaser, who continue to deliver deals with high intrinsic values and very high downside protection.

Investment Highlights

• New 20-year lease with 10% escalations every 5 years
• Flagship location for the tenant
• Brand new building remodel to accommodate the tenant
• The only daycare in this neighborhood
• Rapidly expanding neighborhood with substantial redevelopment
• Nearby retailers include Whole Foods, Trader Joe’s, Walgreens, Wawa, Chipotle, McDonalds etc.