The property includes the long-term commitment of Hilton Resorts Corporation (lessee) with 5 years of remaining lease term with attractive rent escalations that provide stable, inflation-protected cash flows backed by a credit-rated tenant. The property has been home to HGV dating back to 1992 (30 years) with a long history of renewals, expansions and investment in the buildings. This acquisition is consistent with Sentinel’s strategy to acquire attractive real estate secured by long-term net leases with financially stable tenants that generate above-average risk-adjusted returns.
Strategically located in Orlando’s hub for leisure, hospitality and conventions in South Orlando, the campus is surrounded by growth in the industry with more than $5 billion of capital investment currently underway.
Our business plan is to generate strong monthly cash flow from the existing in-place lease and “blend and extend” the lease into a longer-term commitment from HGV once they are near the end of their lease term in 2026. Sentinel plans to offer a combination of financial concessions as an incentive for HGV to extend the current lease for 10 years in lieu of the 5-year extension option currently in place. Assuming HGV agrees to a new lease, Sentinel would seek to sell the property if market conditions are favorable.
Publicly-traded, credit-rated tenant with a market cap of $5.8 billion
Long-term lease and annual rent increases provide predictable income
High quality buildings with substantial tenant paid improvements
Located in the one of the most desirable sub-markets in Orlando
Proximate to numerous commercial and recreational amenities
625 parking spaces on-site + 200 off-site (6.2 parking ratio)
1800 MetroCenter Blvd, Orlando, FL 32835