Dockerty Romer Closes $33 Million Shopping Center Loan
Concorde Group Holdings LLC bought the Dellagio, an upscale shopping center near Orlando.
March 20, 2018 at 11:17 AM
4 minute read
A Dockerty Romer & Co. team closed a $33 million loan for the purchase of an upscale retail center near Orlando.
Commercial real estate developer Concorde Group Holdings LLC bought the Dellagio shopping center at 7924 – 8075 Via Dellagio Way from the New York-based Blackstone Group investment firm for $40.05 million, according to Dockerty Romer.
Dockerty Romer is a Delray Beach-based commercial mortgage broker formed by principals Bob Dockerty and Craig Romer in 2000.
Bob Dockerty and firm director Nancy Dockerty, who are siblings, represented Concorde Group to secure the loan, which covered 82.4 percent of the Dellagio price tag. The purchase and financing deals closed March 7.
Citi Markets, part of Citigroup Inc., issued the bigger chunk of the loan at $28 million. Oregon-based Morrison Street Capital LLC issued the other $5 million.
The sale of the 109,890-square-feet Dellagio breaks down to $364 a square foot, and the loan breaks down to $300 a square foot.
The sale and loan for this center closed despite a weakening retail market that's been losing out to e-commerce. The Dellagio, in a way, is immune to online shoppers.
“This lifestyle center is predominantly restaurants and services. So you could almost kind of say (it's) Amazon-proof because it's not your typical big-box retailer where people are going to purchase goods,” Nancy Dockerty said. “They are going to dinner. They are going to a spa. They are going to the ballet school.”
“It's predominantly lifestyle-oriented,” Bob Dockerty added. “It's restaurants, dining, spas.”
All are services that can't be replaced with e-commerce.
The Dellagio also is a high-end destination.
It's on the northwest corner of Sand Lake Road and Della Drive along Sand Lake Road's Restaurant Row. The mile-long stretch between Interstate 4 and Apopka Vineland Road is known for its upscale shopping and dining options.
“Every major restaurant that exists in the United States has a location here in about a one-mile stretch. All of the large ones, all the large steakhouses,” Bob Dockerty said.
Some of the tenants are restaurants Fleming's Prime Steakhouse & Wine Bar, Bravo Cucina Italiana, Dragonfly Robata Grill & Sushi and Urbain 40.
The Dellagio drew a lot of potential buyers, making for a competitive acquisition process, Nancy Dockerty said.
In turn, this put more pressure on the brokers to close their part of the deal.
There was a hard March 7 deadline for Concorde to obtain the financing and equity for the asset, Bob Dockerty said.
That meant that if the Dockertys hadn't closed the financing on time, their client could have lost its bid to scoop up the asset to another buyer.
“You could lose the deal. You could also lose some deposit money. When you sign a contract, you put in a certain amount of deposit money, and that money is at risk. You definitely want to be able to perform,” Bob Dockerty said.
Concorde and Blackstone put the property under contract in December.
“That's a tough time of the year to be going through (due) diligence and getting something closed,” Nancy Dockerty said.
The Dockertys had more than 60 days to close the financing. While that's a typical time frame, there still was a lot to be done, Bob Dockerty said.
“You have to get the property appraised. You have to get other due diligence performed … have an engineer go out and inspect the property,” he said. ”The pressure is on.”
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