West Colonial Oaks Sale

Newport Fund III acquired West Colonial Oaks, a 94% occupied, 161,310 sf grocery-anchored shopping center in Orlando, FL for $17.0 million in July 2021. The center is in a dense, infill corridor 6.0 miles from downtown Orlando and benefits from exposure to approximately 169,000 vehicles per day. Major tenants at the center include Ollie’s Bargain Outlot, Family Dollar and Florida’s first TesoLife, a mid-priced department store with 30 U.S. locations featuring Japanese and Asian products.

During the hold period, Newport executed a value-creation strategy focused on marking legacy leases to market, re-leasing vacant space, enhancing the property's tenant mix, and developing an unutilized pad site. These initiatives drove occupancy to 95% and significant improvements in rental income and overall asset performance, culminating in a sale price of $25.1 million in May 2026.

Value Creation since Acquisition

• Mark-to-Market Leasing: 83% of GLA was set to expire during the hold. During the hold period, 16 renewals totaling 124,589 sf were done at an average positive rent spread of 8%. The renew/relet ratio for the property was 98% (excluding defaulting tenants).

• Pad Site Development: Signed a ground lease with 7Brew Coffee for $105,000/yr, achieving a 19.3% yield on cost and enhancing both the property's value and income profile. An amendment was executed with Olive Garden to lift their “no build” clause on the parking area and the deal was approved by the Orange County development review committee.

• Lease-Up of Existing Vacancy: 10 new leases totaling 41,360 sf (25.6% of GLA) were done during the hold period. The most notable new leases include TesoLife, which backfilled a former Office Depot at a positive rent spread of 66%, Revo Health, which backfilled a former American Beds at a positive rent spread of 60% and New Orleans Cajun Seafood, which backfilled a former bar and grill at a positive rent spread of 50%.