In one of the largest single-tenant retail investment sales in the Naples area in the past three years, an Orchard Supply hardware store has traded hands for $16.85 million, according to Collier County property records.
The 33,950-square-foot store, a former furniture showroom, was acquired by KME Orchard Naples LLC, a company headed by Ronald M. Kramer, of Virginia Beach, Va., at a 5.25% capitalization rate.
Kramer, who acquired the 3790 Tamiami Trail N. property as part of a 1031 tax-deferred exchange, could not be reached for comment on the purchase.
Seller Oppidan Investment Co., a preferred Orchard Supply developer, had acquired the property and an adjacent parcel for $7.28 million in July 2016, property records indicate.
Oppidan is also completing renovations for Orchard Supply, a Lowe's subsidiary, in Deerfield Beach and Winter Park.
Ray Romano, a CBRE Group First Vice President in the firm's Orlando office, represented Oppidan in the sale, while CBRE's Philadelphia office represented Kramer in the transaction.
Oppidan had been seeking $17.7 million for the property, according to commercial real estate marketing website LoopNet. The deal came with a 20-year lease guaranteed by Lowe's.
“That's where the real value was, in the lease commitment,” Romano says. “And the fact that it's a high-quality asset with strong demographics around it.”