Herndon Village Shoppes at OEA (4900 E. Colonial Drive, Orlando, Florida 32803) is a circa 1987 shopping center with a ground lease attaching the property owner, Greater Orlando Aviation Authority to its tenant, BR3 of Orlando LTD, LLLP.
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The lease is set to expire Halloween 2025.
In 1987, when it was first built, it was 80% leased and contained Pier One Imports, Sound Warehouse, The Door Store, Movie Gallery, San Antonio Shoes, Hair Event, Dream Quarters, Hub's Pub and Jumbo Magic Photo according to Orlando Sentinel.
GOAA claims the center is constrained by size and "not conducive to redevelopment." However Total Commercial (Website), who is handling leasing out the individual spaces, describes the center as "highly visible" in a "dense retail corridor."
The tenant made two claims:
- It "encountered difficulties in attracting new subtenants as a result of the limited lease term remaining (10 years).
- It had a hard time refinancing its leasehold because of the length of time left on its lease.
So, the tenant asked for a 40 year extension.
Also, because the market for shopping center rental space has done down over the last 7 years, the tenant wanted a decrease in rent.
GOAA gave the tenant a 10 year extension with an option to extend another 10 years and only pay 10% of fair market value (a 2% decrease) during both extensions so long as the following actions are taken:
- The tenant resurfaces the parking lot by June 30, 2016
- The tenant updates the landscaping once the city updates the landscaping requirements for the area.
