Key West Office & Retail Portfolio

Highlights

Description

This 40,684 SF office and retail portfolio generates in-place income today while offering a clearly defined, two-year lease-up path to stabilization. Current gross income of approximately $240,000 annually provides carry and downside protection during the lease-up period, while final underwriting supports a stabilized Year 1 Net Operating Income of approximately $691,777.

Lease-up assumptions are based on $22.50 PSF modified gross rents, which remain conservative relative to prevailing market conditions when viewed on an all-in occupancy cost basis. Upon stabilization, the property supports a projected Potential Gross Income of $970,915 and an implied stabilized value of approximately $9.9 million at a 7.0% exit cap rate, excluding any additional upside strategies.

When discounted for lease-up timing and execution risk, the lease-up alone supports a present value range of approximately $7.6 million to $7.9 million. The contract price of $7,999,999, combined with approximately $600,000 in roof replacement escrow transferring to the buyer at closing, results in a reduced effective net capital basis while removing near-term capital expenditure risk during stabilization.

Additional upside opportunities are optional and include the potential conversion of Building F into executive suites, as well as future development or partial disposition of the ±1 acre excess land, subject to survey, municipal approvals, and market conditions.

Multiple suites are available in a variety of configurations, offering flexibility for office, medical, retail, wellness, education, and professional service users. The property sits in a highly visible, fast-growing area of Fort Myers with easy access from Cape Coral, Colonial Blvd, Downtown Fort Myers, and surrounding neighborhoods. Strong traffic counts of more than 60,000 cars per day provide excellent exposure for any business.

Several suites include rear doors that open to a small shared courtyard, creating a comfortable outdoor space for breaks or customer interaction. The property’s unique and charming architectural style helps businesses stand out and creates an inviting environment for both staff and customers. As an added incentive, the owner will build and deliver a new floor of the tenant’s choosing upon signing a lease, making it easier for businesses to customize and move in quickly. With strong demand and continued growth in this corridor, this location is well-suited for tenants seeking accessibility, character, and long-term stability.

Located along one of the fastest-growing commercial corridors in Lee County, this property offers exceptional connectivity to both Cape Coral and the greater Fort Myers area. Its central position provides convenient access to major arterials, making it ideal for businesses seeking strong regional reach. The site also benefits from its proximity to significant new development activity along Colonial Boulevard, including the redevelopment area surrounding the Broadway Palm Theatre, which continues to drive growth, traffic, and long-term demand in this submarket.

Units for Lease