An International Drive building that previously housed laser tag attraction Zombie Outbreak is under contract to sell to a new ownership group.
Owner BJ Singh Inc. is under contract to sell the roughly 9,200-square-foot 7364 International Drive property to an entity related to Miami-based real estate firm Core, said Amy Calandrino, founding principal/broker of Maitland-based real estate firm Beyond Commercial, which is representing the seller.
A price wasn't disclosed, but the transaction may occur in mid-May. Representatives with Core weren't available for comment.
Sources tell Orlando Business Journal the new tenant is Quincy-based medical marijuana firm Trulieve Cannabis Corp., but a company representative declined to comment.
Brandon Lumish, principal of Palmetto Bay-based ABL Real Estate Partners LLC, also is involved in the deal but wasn't available for comment. ABL Real Estate Partners "continues to help Trulieve grow across the state," according to a post on the company's LinkedIn page.
The market value of the 27-year-old building, which sits on 0.91 acre, is $1.8 million, according to the Orange County Property Appraiser.
Positive sign
The owner initially struggled to sell 7364 International Drive after the pandemic essentially wiped out tourism travel to Central Florida, Calandrino said.
However, later in 2020, interest in the property picked up again and a seller was located. Still, much of the attraction's decorations remained in the building during its marketing, and Calandrino said she gave flashlight tours of the property through its laser tag maze.
"It was really creepy," she said. "You're going through a pandemic and you're showing a property full of zombies. The irony was not lost."
The building's pending sale is good news for International Drive retail, which initially struggled during the pandemic's early days as tourism dried up.
That said, the I-Drive retail market typically has been strong due to its proximity to Orlando's theme parks, hotels, residential properties and major employers in the area.
Retail sales on International Drive have been improving in recent months as the pandemic's grip loosens on Orlando's tourism market, said John Krzyminski, senior vice president at JLL and an active retail broker along International Drive, who wasn't involved in the pending building sale. Krzyminski said new tenants are signing leases at "aggressive rates" despite the pandemic's impact as shops, restaurants and more see brighter days ahead for Orlando's tourism heart.
"Tourism is always going to be there," Krzyminski said. "Even if it's a down time, it's going to return."
Marijuana boom
Meanwhile, the medical marijuana dispensary would not be the first to open on I-Drive. California-based MedMen opened one in 2019 at 6600 International Drive, but it has been closed temporarily since May 2020 because of the pandemic.
In addition, Sanctuary Medicinals Florida — a partnership between Apopka's Dewar Nurseries and Littleton, Massachusetts-based Sanctuary Medicinals — opened a dispensary this month at 5381 International Drive.
Seattle-based cannabis information company Leafly in its "2021 Jobs" report said Florida was the third-best state — behind only California and Colorado — when it comes to jobs in the cannabis industry, with 31,444 in 2020, up 103% from 15,498 the prior year.
Further, Florida had $1.23 billion in medical marijuana-related sales in 2020, up 54% from $800 million in 2019.
According to the most recent data from the state's Office of Medical Marijuana Use, Florida has 533,755 qualified patients and 330 approved dispensaries as of April 16.
Retail stats
The tourist corridor retail submarket, features a 4.2% vacancy rate, which is lower than the Orlando-area average of 4.6%, CoStar Group reported. Meanwhile, the submarket's average asking retail rental rate is $30.28 per square foot, which is higher than the Orlando-area average of $23.25 per square foot. Both metrics show demand for retail on I-Drive.
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Rentable building area (SF)
| Rank | Prior Rank | Retail center |
|---|---|---|
1 | 1 | The Florida Mall |
2 | 2 | Altamonte Mall |
3 | 3 | Orlando Fashion Square |