Florida’s waterfront commercial development boom is being driven by migration, demographic shifts and evolving tenant preferences, creating a surge in demand for mixed-use, lifestyle-driven spaces.

According to Ryan Shaw, first vice president of investments at Marcus & Millichap, “waterfront development in Florida is shifting away from traditional, single-use zoning, instead evolving into multi-functional destinations where people can live, work, relax and socialize in one integrated space.”

These waterfront developments in Florida are attracting both residents and tourists by offering vibrant, sustainable communities that cater to modern lifestyles. The appeal of these waterfront spaces has grown in the post-pandemic era, with tenants prioritizing amenities like food, beverage and entertainment as key features of new projects, Shaw added further.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

Florida continues to attract a significant number of residents, especially from the Northeastern U.S. Many newcomers are downsizing from single-family homes and seeking access to resort-style amenities without the burden of maintenance, elaborates Dominic Pickering, executive director at BTI Partners. This trend, coupled with growing demand for waterfront living in Florida, has led to a shift in the types of commercial developments that are taking root along Florida’s shores.

The natural human connection to water also plays a critical role in driving demand for Florida’s waterfront development.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place, making them ideal for dining, leisure and community interaction,” said Andrew Hellinger, principal at URBAN-X. However, in areas like Miami-Dade County, limited available waterfront land has increased competition and demand among developers.

Despite a recent slowdown in demand due to rising construction costs, increased supply and the impacts of natural events, the overall outlook for Florida waterfront commercial developments remains strong. Mika Mattingly, executive vice president at Colliers, emphasizes that Florida’s business-friendly environment and high livability ratings continue to support demand for premium waterfront properties, particularly in South Florida, where luxurious new projects remain highly sought after.

In response, developers are adapting to these market shifts by creating Florida waterfront developments that blend convenience, walkability and vibrant amenities, while prioritizing long-term sustainability in the face of climate challenges.

Florida’s transformative waterfront developments

This adaptability is evident in Florida’s waterfront commercial developments. The state’s coastline is undergoing a remarkable transformation, with an influx of commercial waterfront developments that blend office, retail, hospitality and entertainment spaces with scenic waterfront access. From Miami to Tampa, these waterfront developments are harnessing the state’s natural beauty and booming growth to create vibrant, mixed-use destinations that appeal to both businesses and residents alike.

In Miami, the Miami River Landing project exemplifies this shift, offering a dynamic combination of office, retail and residential spaces along the river. Its proximity to key urban amenities and waterfront views makes it a highly desirable location for businesses looking to establish a presence in Miami’s growing commercial waterfront development district.

READ ALSO: How Coral Gables Is Cementing Its Status as a Top Office Market

Similarly, the $2 billion Bahia Mar redevelopment in Fort Lauderdale is positioning itself as a commercial waterfront hotspot, offering luxury amenities, a marina and retail outlets. This ambitious project aims to transform the area into a “Mini Monaco,” further enhancing its appeal as a waterfront commercial development destination, while hosting events like the Fort Lauderdale International Boat Show, which draws millions annually.

On Tampa’s waterfront, the Water Street Tampa project stands out as a major Florida commercial waterfront development. This mixed-use project combines office spaces, retail, hospitality and public areas with a walkable design, aiming to become the city’s new economic hub. Nearby, 401 East Jackson is an office tower offering sweeping views of the waterfront and proximity to downtown amenities, reflecting Tampa’s increasing appeal as a commercial waterfront center along the Gulf Coast.

The Westshore Marina District in Tampa also blends commercial and luxury waterfront living, featuring high-end retail, dining and office spaces. This 52-acre development is anchored by the exclusive Marina Pointe, with a private marina offering access to the Gulf of Mexico, making it a prime location for businesses that value both luxury and waterfront accessibility.

North Bay Village, situated between Miami and Miami Beach, is another area drawing significant commercial waterfront development interest. MG Developer’s revitalization of this location includes a variety of new office, hotel and restaurant concepts that cater to the area’s growing demand for Florida waterfront commercial spaces.

Tackling challenges, seizing waterfront opportunities

Florida’s waterfront development is a balancing act, with developers navigating a complex landscape of rising costs, environmental concerns and evolving regulations. According to Alex Zylberglait, executive managing director of investments at Marcus & Millichap’s Miami office, Florida’s waterfront development faces significant challenges due to escalating land prices, rising construction costs and higher insurance premiums.

Additionally, the demand for infrastructure improvements—such as upgraded transportation and water systems—adds complexity to projects, often resulting in impact fees. Stricter building codes, implemented after the Surfside building collapse, are also reshaping how developers approach planning and execution, further influencing the development landscape.

Environmental sustainability is a critical factor influencing Florida waterfront projects. Developers must protect fragile ecosystems like mangroves and coral reefs, which play vital roles in biodiversity and storm protection.

Shoreline stabilization and sea-level rise adaptation are now standard considerations in project planning. MG Developer emphasizes the importance of incorporating eco-conscious features, while also ensuring compliance with stringent environmental regulations. Pollution control is another pressing issue, with initiatives to maintain clean waterways becoming a priority for long-term project viability.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place.”

—Andrew Hellinger, Principal, URBAN-X

At the same time, waterfront commercial projects are evolving to meet growing demand for vibrant, multi-use destinations. Developments like Tampa’s Water Street and Riverwalk are setting new standards by integrating retail, dining and entertainment into dynamic urban spaces. Miami River projects similarly combine hospitality, nightlife and marina access, offering both functionality and luxury.

The focus is expanding beyond traditional oceanfront locations to include riverfronts and bayfronts, as seen in Jacksonville and Fort Lauderdale, which offer untapped potential for innovative Florida commercial waterfront hubs.

Looking ahead, resiliency will shape Florida’s waterfront developments. Elevated construction, stormproof designs and sustainable materials are becoming the norm, ensuring projects can withstand rising sea levels and extreme weather. As Shaw notes, emerging markets like Cocoa Beach and North Bay Village are poised for growth, driven by improved infrastructure and accessibility. According to Hellinger, “rising sea levels and extreme weather events are reshaping development strategies, with a focus on resiliency and long-term viability.”

Florida’s waterfronts are not just about scenic views—they are evolving into dynamic commercial waterfront centers that balance economic opportunity with environmental responsibility, setting the stage for sustainable growth over the next decade.

Read the February 2025 issue of CPE.

Wave are images by Magnilion/iStockphoto.com

The post What’s Propelling Florida’s Waterfront Development Rush? appeared first on Commercial Property Executive.

This marks the second acquisition for the $300 million joined venture focused on acquiring open-air, grocery-anchored shopping centers. The REIT holds an 80 percent stake, while PECO owns the remaining 20 percent in the partnership.

Kitson & Partners previously owned the asset, according to CommercialEdge data. The company had acquired Oak Grove Shoppes for $9 million back in 2019.

Built in 1983 and redeveloped in 2023, Oak Grove Shoppes encompasses 11 buildings on some 20 acres. Ameris Bank provided a $27.2 million construction loan for the redevelopment of the open-air shopping center, the same source shows.

READ ALSO: What’s in Store for Retail in 2025?

Anchored by Marshalls and a 48,000-square-foot Publix store, Oak Grove Shoppes also features a diverse mix of regional and national tenants such as Subway, BurgerFi, Metro Diner and O2B Kids, among others. At the time of the sale, the retail center was 91 percent leased.

Located at 995 N. State Road 434, the shopping center is within Orlando’s Altamonte Springs submarket. The property is near Interstate 4, which provides access to downtown Orlando.

At the end of last year, the Cohen & Steers REIT owned four grocery-anchored and community shopping centers across the U.S. One of the properties is Marketplace at Highland Village, an approximately 451,000-square-foot open-air retail asset in Dallas that the investment trust acquired through a joint venture with Sterling Organization.

Orlando’s thriving retail market

Orlando’s retail market has been thriving due to its rapidly growing population and robust economy. Last year, the transaction volume amounted to nearly $1.1 billion, a 14.7 percent increase from the previous year, according to a recent Cushman & Wakefield report.

Meanwhile, more than 855,000 square feet of new retail space was delivered throughout 2024, with an additional 1 million square feet under construction by the end of the fourth quarter.

Demand remained strong, with leases totaling 492,000 square feet in the last quarter alone. The average asking rate for retail space in the metro rose to $29.89 per square foot by the end of the fourth quarter, reflecting a 4.4 percent year-over-year increase.

The post Cohen & Steers, Phillips Edison Buy Orlando Shopping Center appeared first on Commercial Property Executive.

Advanced therapy initiation and patient solutions provider AssistRx signed a 54,664-square-foot lease at Maitland Promenade II, a 230,366-square-foot office building in Maitland, Fla., an Orlando submarket. KBS Realty Advisors owns the building, according to CommercialEdge.

HLI Partners arranged the long-term deal on behalf of the tenant, while CBRE represented the landlord. AssistRx is expected to move in starting in the second quarter of 2025.

KBS Realty Advisors acquired the asset in December 2013 for $31.2 million from Flagler, CommercialEdge shows. The property traded for some 40 percent less than in 2008.

READ ALSO: Why AI Firms Are Taking a Measured Approach to Office Leasing

Orlando’s vacancy rate at the end of October decreased 40 basis point year-over-year, reaching 16.1 percent, according to the latest CommercialEdge office report. The metro’s listing rate during the same month was $28.16, slightly below the $32.79 national figure.

CBRE Senior Vice President Jay Dixon and First Vice President Colin Morrison represented the landlord. HLI Partners Principal Joe Hills worked on behalf of the tenant.

A two-building Orlando office campus

The five-story, Class A building came online in 2001 and features a cafe, a three-story parking garage, a fitness center, a conference center and about 1,140 parking spaces. Additionally, the facility has 2,000 square feet of retail space and is part of a two-building campus. The other property measures 241,659 square feet and was completed two years earlier.

Located at 495 N. Keller Road on more than 9 acres, Maitland Promenade II has access to Interstate 4. Downtown Orlando is 9 miles away, while Orlando Executive Airport is some 10 miles southeast.

In another Orlando lease this year, Travel + Leisure signed a 15-year, 182,000-square-foot deal at the 501 West Church building. Piedmont Office Realty Trust owns the five-story property that came online in 2003.

The post KBS Realty Lands 55 KSF Tenant Near Orlando appeared first on Commercial Property Executive.

The new owner will take on the responsibility of a $164 million mortgage. CommercialEdge data shows that back in 2019, WPG secured a $180 million CMBS loan originated by Bank of America through Wells Fargo Bank, with a 10-year term and a fixed interest rate of 4.86 percent.

Built in 1999, Waterford Lakes Town Center comprises nine buildings across 79 acres. The property has potential for increased revenue as current leases, which have below-market rates, expire. The growing demand for space from high-end retailers could also help the new owner improve the tenant mix and boost long-term rent growth.

At the time of the deal, Waterford Lakes Town Center was 99 percent leased. The retail center boasts a high-quality mix of national and regional retailers such as Super Target, TJ Maxx, Victoria’s Secret, Ross Dress for Less, Best Buy, Panera Bread, Bath & Body Works, Starbucks, Lululemon, Nike, Shake Shack, Barnes & Noble, Sephora and Ulta Beauty, among others.

Located at 331 North Alafaya Trail, Waterford Lakes Town Center is within Orlando’s West University submarket. The shopping center serves approximately 228,000 individuals within a 50-mile radius, with an average household income of $111,000, according to Kimco. Due to its location in one of the fastest-growing metro areas, the property recorded around 13.6 million annual visits.

READ ALSO: Unlocking the Sun Belt’s Retail Potential

 At the beginning of this year, Kimco acquired New York-based RPT Realty in an all-stock deal worth $2 billion. The acquisition added 56 open-air centers totaling 13.3 million square feet of leasable space, to Kimco’s existing portfolio.

Kimco’s acquisition of Waterford Lakes Town Center brings the company’s total investment for the year to over $560 million. This addition enhances Kimco’s stronghold in the Orlando market, expanding their portfolio to 18 centers with more than 4 million square feet of leasable space as of the end of the second quarter of 2024.

Orlando’s steady retail demand

Orlando’s retail demand has been strong due to its growing population and economy. In the second quarter of this year, around 8,784 square feet of new retail space was completed and approximately 913,594 square feet of retail space was under construction, according to a recent Cushman & Wakefield report.

Despite economic challenges and evolving retail trends, the vacancy rate clocked in at 3.4 percent. The average asking rent reached $28.92 per square foot, a 4.8 percent increase from the previous year, the same report shows. Tight market conditions have led to rental rate growth in Orlando that is double the national average.

The post Kimco Pays $322M for Orlando Lifestyle Center appeared first on Commercial Property Executive.

Demetree Global has purchased Hannibal Square, a nine-building, 168,741-square-foot mixed-use asset in Winter Park, Fla., for $55.3 million. CommercialEdge identified the seller as Owens Realty Services. The property encompasses 92,034 square feet of retail and office space, as well as 76,707 square feet of residential space across 103 units.

Demetree had also acquired The Plaza at Hannibal Square last year, from the same seller. The two-building asset, which totals 103,493 square feet, sold for $20.6 million.

READ ALSO: Coffee, Auto, Discount Retailers in Growth Mode

Completed between 1953 and 2009, the 100 percent-leased commercial space includes boutiques, salons, restaurants and office spaces. Demetree plans to enhance the properties by performing selective renovations and operational upgrades. Moreover, the company will transition all commercial leases to triple net.

Located at multiple addresses along West New England Avenue, the buildings are within walking distance of downtown Winter Park, where an Amtrak station and an 11-acre park can be found. Downtown Orlando, Fla., is some 4 miles southwest.

Metro Orlando’s retail market shows little growth

At the end of the first quarter, Orlando’s retail advertised rates spiked by 6.2 percent year-over-year, according to a report by Cushman & Wakefield. Despite this robust growth, the demand was lackluster; roughly 451,000 square feet were leased during the same period, marking a 44.7 percent decrease over the year, the report also shows.

Cushman & Wakefield pinned this absorption decline on a lack of quality retail space in the area. Such space is in high demand for luxury retail brands that are bolstering their nationwide brick-and-mortar presence.

The post Demetree Global Pays $55M for Mixed-Use Metro Orlando Asset appeared first on Commercial Property Executive.

Piedmont Office Realty Trust has secured a leasing agreement for 182,000 square feet at the 501 West Church building in Orlando, Fla. Travel + Leisure will fully occupy the property through 2040, starting in 2025 when its current lease at 6277 Sea Harbor Drive is set to expire.

The deal marks the largest office lease in downtown Orlando since 2019, according to Piermont. Stream Realty Partners and Newmark brokered the deal on behalf of the tenant, while the landlord had both in-house and CBRE representation.

Travel + Leisure plans to employ more than 900 individuals at the property. The City approved more than $6 million in incentives for the headquarters relocation, with the company set to receive up to $2.3 million through the targeted international headquarters relocation incentive and some $4 million through the community redevelopment agency’s High Wage/High Value Job Creation Program, as reported by the Orlando Business Journal.

READ ALSO: How Tech Tenants Grapple With Return-to-Office, Costs

Completed in 2003, the building rises five stories. Piedmont picked it up from Equis Hospitality Management in 2018 for $28 million in an all-cash transaction, according to CommercialEdge data. Ownership plans to implement upgrades such as new signage and amenities including a fitness center and conference center ahead of the relocation. The tenant is also slated to spend $29.5 million for the build-out, Orlando Sentinel reported.

Located in downtown Orlando, the building at 501 W. Church St. is next to the Kia Center and near Interstate 5. It is also close to the Church Street train station and within walking distance of various entertainment and retail options.

Executive Vice President Alex Valente and Vice President Ben Mullenix represented Piedmont internally, along with CBRE Senior Vice President Michael Phipps and Vice President Colin Morrison. Stream Realty Partners Head of Strategy and Analytics Jason Warren and Executive Managing Director Greg Katz, along with Newmark Senior Managing Director Mike Hopper represented the tenant.

Orlando’s office market performance

As of March, the listing rate in Orlando was $24.44, having dropped by 60 basis points year-over-year, according to a recent CommercialEdge office report. The vacancy rate in the metro clocked in at 17 percent, increasing by 0.7 percent over 12 months but still below the national figure of 18.2 percent.

Piedmont Office Realty Trust operates a $5 billion portfolio located mainly across Sun Belt markets. Of the company’s total 16 million-square-foot footprint, roughly 1.5 million square feet are in downtown Orlando.

The post Piedmont Inks 182 KSF Lease in Orlando appeared first on Commercial Property Executive.

Harbert Management Corp. has acquired a five-building industrial park in Orlando, Fla., for $40.5 million. Cypress Park totals 256,838 square feet.

According to CommercialEdge data, the seller was Investcorp. The company acquired the industrial park in 2021 for $28 million. The fully occupied buildings were completed in three phases between 1987 and 1997.

Cypress Park is situated at 9500-9901 Satellite Blvd., on a 23-acre lot. Downtown Orlando is within approximately 11 miles. The Orlando International Airport is less than 10 miles from the industrial park.

READ ALSO: The Expansion of Flex Warehousing Solutions

Cypress Park includes 230 car parking spaces, a 100- by 100-foot truck court, loading doors, dock levelers and dock bumpers. The rear-loading buildings feature 20- to 24-foot clear heights.

Tenants include Think Simple, Centi Orlando, Redox Transport, BSG, ATI Restoration, CFL Roofing, Gallery Furniture, Airstar, Sherwin-Williams, Safety Shoe Distributors, Big City Catering, Concentra and Randstad, according to the same data.

JLL represented the seller in the deal and procured the buyer. The JLL Capital Markets team was led by Managing Director Luis Castillo, Senior Director Cody Brais and Analyst Taylor Osborne.

Also taking place on the industrial scene in Orlando, Stonemont Financial Group is currently developing a 259,000-square-foot campus that will include seven buildings. Scheduled for delivery in the fourth quarter of this year, the campus will serve small- to mid-size tenants.

The post Investcorp Sells Orlando Industrial Park for $40M appeared first on Commercial Property Executive.

The joint venture of The Hampshire Cos., Federated Hermes and O’Connor Capital Partners has obtained $47.1 million for the refinancing of The Crosslands, a nine-building, 529,212-square-foot power center in Kissimmee, Fla. TD Bank provided the new three-year, non-recourse loan in a deal arranged by JLL.

Proceeds repay a $49 million loan that Hampshire took out when it purchased the retail property for $121 million back in 2016. That note, provided by Principal Financial Group, was set to mature in 2026, according to CommercialEdge information.

An Orlando-area power center

Built over a two-year period from 2014 to 2016, The Crosslands was a joint development between its first owners, O’Connor and Tupperware Brands Corp. The former still handles leasing at the property, CommercialEdge data shows.

The 63-acre power center is currently anchored by several off-price clothing retailers, including Burlington, Marshalls and Ross. Additional anchors include The Fresh Market, alongside Academy Sports and HomeGoods. Sephora, Boot Barn, Forever 21, Dollar Tree, Five Below, GNC and Haverty’s are also on the roster, among others.

READ ALSO:  What 99 Cents Only’s Demise Means for CRE

Located at 751 Centerview Blvd., The Crosslands is at the intersection of Osceola Parkway and Orange Blossom Trail, where the daily car traffic reaches 90,000. The power center serves a population of 250,000 living within a 5-mile radius and has some 4.4 million visitors annually. Disney World is some 7 miles west, while downtown Orlando, Fla., is 18 miles north.

JLL Senior Managing Directors Jon Mikula and Michael Klein and Managing Director Brian Gaswirth, alongside Analysts Michael Kavaler and Val McWilliams, led the Capital Markets Debt Advisory team who arranged the financing.

Retail properties continue to perform strongly across Orlando, mirroring the metro’s strong employment numbers and GDP growth. A Colliers retail market report from the fourth quarter of 2023 found that The City Beautiful had 50,400 square feet of positive net absorption, while rents increased year-over-year to $33.80 per square foot.

The post Orlando Power Center’s Checkout: $47M Refi appeared first on Commercial Property Executive.

CTO Realty Growth has put the lid on its $68.7 million purchase of the Marketplace at Seminole Towne Center, a 318,000-square-foot retail power center in Sanford, Fla., a submarket of Orlando, Fla.

The buyer bought the property as part of a 1031 like-kind exchange with CBRE Investment Management, which CommercialEdge lists as its previous owner. Some of the funding for the purchase came from CTO’s recent release of $24.1 million in previously restricted cash garnered from property sales, as well as an unsecured revolving credit facility.

According to CTO, part of the acquisition was completed through a reverse like-kind exchange, in anticipation of future dispositions. The purchase of Seminole Towne Center makes Orlando CTO’s fourth-largest area of ownership; the firm, partially headquartered in Winter Park, now has the keys to four retail properties across North and Central Florida.

Powering the power center

Marketplace at Seminole Towne Center was built in 2005 on 41 acres. CommercialEdge information shows that a Colliers team oversees leasing at the property, led by Executive Vice President Jorge Rodriguez, Senior Vice President Alexie Fonseca and Vice President Christopher Alders.

Marketplace at Seminole Towne Center is located near a Target store, which serves as a “shadow anchor.” The complex is itself anchored by a collection of off-price clothing retailers including Marshalls, Burlington and Ross Dress for Less, alongside Old Navy, Petco, Ulta Beauty and Five Below. The mall also includes a Massage Envy location, as well as a nail salon and allergy clinic. Dining options include Evoo, Chipotle, Panera Bread and Firehouse Subs.

READ ALSO: Why Those Big Store Closings Aren’t the Whole Story

Located at 1771 WP Ball Blvd., Marketplace at Seminole Towne Center sits within a major retail corridor, about 18 miles north of Orlando’s central business district. A a population of more than 60,000 residents is within a 3-mile radius of the property. The Seminole Towne Center, a 1.1 million-square-foot enclosed mall, lies roughly half a mile to the northwest.

Retail growth in Orlando

Retail remains a sound prospect across The City Beautiful, with more than 1.8 million square feet of space coming online through 2023, according to an analysis from Marcus & Millichap. This is the largest series of additions in six years, according to the report.

Last month, Forge Equity Partners V, a private equity fund sponsored by Forge Capital Partners at The Sembler Co. purchased Palm Plaza, a 133,491-square-foot shopping center anchored by Publix.

The post CTO Realty Pays $69M for Orlando-Area Power Center appeared first on Commercial Property Executive.

The developer hired HGR Construction as the general contractor, partnered with JLL for leasing services and brought onboard SCOA Real Estate as equity partner.

Built on two sites fronting Ocoee Apopka Road, 429 Business Center could house users who supply goods to Walt Disney World, the entertainment destination located less than 20 miles away. But it could also serve e-commerce distributors and accommodate users within a smaller size range.

To find out more about the particularities of this project and how it will serve the area’s industrial needs when completed in the fourth quarter of this year, we reached out to Stonemont Financial Group Vice President of Development and Acquisitions Avery Dorr.

What features will set 429 Business Center apart from similar projects in the vicinity?

Dorr: The development will be a mix of grade-level and dock-high buildings and will attract a wide range of users. As developers struggle to capitalize projects in today’s interest rate environment, there is limited future competition for a new project of this scale in this highly sought-after submarket. We are confident that demand for this product will continue to outpace supply.

In designing 429 Business Center, we thoughtfully incorporated the needs of our past and present clients and are certain that future tenants will see the competitive advantage of growing their business here. In addition, the project will include move-in ready offices for prospective users and ample power in the base buildings.

Many industrial projects today also incorporate recreational facilities for employees such as basketball courts, outdoor parks etc. Does the 429 Business Center project include similar features, and is this a direction Stonemont Financial Group intends to explore in future projects, as well?

Dorr: 429 Business Center is located adjacent to Palm Park, an amenity that will provide future tenants and their employees with walking trails around a scenic lake, just steps from the property.

We know that amenities like this are a huge driver for prospective users, as attracting and maintaining talent and employees is a key component to their business. In each new project we plan, we seek out nearby amenities that will resonate with our intended users and will make the property an enjoyable place to work.

READ ALSO: How Reshoring Is Driving Industrial Real Estate Demand

429 Business Center will be fairly close to Walt Disney World. What does this mean for the overall success of the project?

Dorr: Our project provides direct access via Florida State Road 429 to one of the largest economic drivers in Central Florida, Walt Disney World. As one of the largest consumer bases in the country, many of our future users could include providers and suppliers of Walt Disney World. For example, this could be a tenant that supplies roller coaster components, hotel towels to resorts, or plastic utensils to restaurants. All of these goods can be delivered to Walt Disney World in a timely manner from 429 Business Center given the close proximity and convenient transportation access.

Can you provide insight into any ongoing discussions with prospective tenants for the space?

Dorr: We’ve already had great conversations with a number of top-tier prospective tenants. These include retailers and e-commerce distributors, building supply and construction companies—such as a local roofing, cabinetry or flooring contractor—home product suppliers such as a kitchen appliance suppliers or furniture distributors, components distributors including auto parts, roller coaster parts or HVAC components as well as food distributors, from dry foods to restaurant equipment. With the range of industries that are prominent in Central Florida, the door is wide open for any of these user types to find success at a project of this caliber in this location.

According to CommercialEdge data, there are currently 83 industrial projects in Ocoee, Fl., in the same size range as your project. What is driving demand for industrial projects of this size in the area? How will 429 Business Center accommodate this demand?

Dorr: The demand is driven primarily by population growth and an increase in Central Florida’s consumer base. However, in order to accurately measure demand, you also have to assess supply. Most of the competing projects are bulk industrial projects. These buildings are not attractive to the average-size user and will not lease to those looking for less than 50,000 square feet.

429 Business Center… is an infill, shallow-bay project and future competition is very limited. Infill, industrial-zoned land is hard to come by today. Most of the easy-to-develop ‘shovel-ready’ sites have already been developed.

In many locations, we struggle to achieve the proper zoning and entitlements. In the few cases in which we do find proper zoning and entitlements, there are many site-specific issues that must be resolved, such as protected wetlands—which must go through the mitigation process that takes 12 to 24 months—environmental remediation; protected species including sandhill cranes, gopher tortoises and bald eagles; availability of adequate off-site utilities including water, sewer and power; and access—turn lanes and roadway infrastructure. With 429 Business Center, we are fortunate to have received permits in a timely manner and to have already broken ground.

READ ALSO: Industrial Sector Set for 2024 Transformation

Tell us more about the value of working with the right team to ensure the success of an industrial development.

Dorr: Having a team you trust and share mutual respect with is integral to the success of a project, because this allows a continued stream of transparent communication, effective collaboration and overall optimism toward the outcome of the project. A team without communication and trust will result in miscommunication, which could lead to delays in the schedule, budget errors or even safety concerns.

What are Stonemont Financial Group’s plans for 2024?

Dorr: Stonemont is seeking more infill land to develop shallow-bay industrial product in high barrier-to-entry markets across the state of Florida. Our key target markets include South Florida—Fort Lauderdale and Miami—Fort Myers, Sarasota, Tampa, Lakeland, Orlando and Jacksonville. Tenants under 50,000 square feet remain very active in these markets and the available inventory in this size range remains limited.

With capital becoming more expensive over the past two years, a slowdown of new construction has settled in. To what extent do you expect the current economic conditions to impact your plans?

Dorr: Stonemont is a large institution with a strong track record of success in industrial development. While deals are more difficult to finance and the underwriting has changed, we have found that our financing partners understand the lack of supply and remain bullish on our asset class, specifically infill industrial. So, as long as we continue our proven recipe of finding infill locations in high-demand locations, we will continue our path of growth despite unfavorable market conditions.

The post Meeting the Needs of Industrial Users of Various Sizes: An Orlando Story appeared first on Commercial Property Executive.

Forge Real Estate Partners V, a private equity fund jointly sponsored by Forge Capital Partners and The Sembler Co., has purchased Palm Plaza, a 133,419-square-foot Publix-anchored shopping center in Leesburg, Fla. The joint venture between Crosspoint and Long Wharf Capital sold the asset for $17.8 million.

Colliers Vice Chair Brad Peterson, Senior Vice President Whitaker Leonhardt and Associate Tommy Isola represented the seller. The shopping center was 93 percent leased at the time the transaction closed.

The property previously traded in 2022, when Crosspoint purchased it from Wallington Enterprises for $14 million, according to CommercialEdge data.

Built in 1960, the retail center underwent a cosmetic renovation in 2002. Publix has been anchoring the property since it came online; the tenant roster also includes a diverse mix of national and regional retailers such as Planet Fitness, Popeyes, Quest Diagnostics, Rent-A-Center, Firehouse Subs, Core Health, OneMain Financial, T-Mobile and The UPS Store.

Strong demand for grocery-anchored retail

The sale of Palm Plaza highlights the investor demand for well-located grocery-anchored shopping centers, specifically in outsized residential growth markets in the Southeast U.S., Leonhardt said in a prepared remark. Grocery-anchored retail center performed well both during and after the COVID-19 pandemic.

Orlando’s retail inventory gained 1.8 million square feet by the end of last year, according to a Marcus & Millichap fourth quarter 2023 report, the greatest growth since 2017. Meanwhile, the vacancy rate reached 4.5 percent at the end of December; however, the value was 140 basis points below the trailing 16-year average.

The post Crosspoint JV Sells Publix-Anchored Shopping Center appeared first on Commercial Property Executive.

On Friday, developers broke ground on Wyld Oaks, a 215-acre mixed-use project in Apopka, Fla., in northwest metro Orlando.

The master developer is Kelly Park VB Development LLC, a subsidiary of Vero Beach-based Evans Properties. Joseph Beninati serves as development coordinator.

The project reportedly represents an approximately $1.2 billion total investment.

Sited at 4105 Golden Gem Road, the development is just off the newly completed 429 Beltway and W. Kelly Park Road Interchange, about 27 miles from downtown Orlando.

At full build-out, Wyld Oaks will include:

•  Up to 200,000 square feet of retail and 11 outparcels

•  Two hotels, possibly one each of budget-friendly and boutique options

•  3,000 to 4,000 multifamily and condominium residences

•  Up to 200,000 square feet of office space at two sites

•  An “expansive outdoor entertainment venue,” according to the developer

•  Two green spaces: Yonder, a 10-acre park and preserve with a dog park, and Wyld Green, which will include an extensive multi-use trail network.

READ ALSO: Here Comes the Neighborhood: Mixed-Use Projects’ Bid to Fit In

A Wyld Oaks spokesperson told Commercial Property Executive that under the current timeline, initial construction on the retail and multifamily components will begin in the fourth quarter, while roads, water, electric, communications, sidewalks and water retention areas are scheduled to be complete in the first quarter of 2025.

Currently, Colliers is slated to handle retail and multifamily leasing, and CBRE will handle office leasing.

Beninati is formerly of the Bauhouse Group and more recently backed a stillborn project at 3 Sutton Place in Manhattan.

Employment growth helps

Leasing activity in the Orlando office market slowed a bit at the end of this past year, leaving overall vacancy at 15.5 percent, according to a fourth-quarter report from Cushman & Wakefield. “Prolonged negotiations between landlords and tenants have extended duration of deal closures, which has contributed to the slowdown in leasing volume, especially in larger spaces,” the report stated.

Metro Orlando’s retail space market, according to Cushman & Wakefield’s research, is doing comparatively better, driven by tourism and ongoing regional job growth. There was 1.9 million square feet of net absorption in the first nine months of 2023, pushing overall vacancy down to 3.3 percent.

In December 2022, CP Group brought its Resource Square I and III, two Class A office buildings in Orlando, to 90 percent occupancy by securing three tenants for a total of 23,000 square feet at the 245,111-square-foot campus. JLL Managing Director Darryl Hoffman represented CP Group in all leases.

The post $1.2B Mixed-Use Development Breaks Ground Near Orlando appeared first on Commercial Property Executive.

Winter Garden Business Park is less than 15 miles from downtown Orlando, Fla. Image courtesy of Basis Industrial

Basis Industrial has acquired and refinanced a six-property portfolio totaling 1.3 million square feet. The $220 million transaction included the purchase of four shallow bay industrial assets in Florida and Texas, as well as the refinancing of two additional Florida properties.

According to Basis Industrial President Anthony Scavo, the complex transaction involved multiple lenders. Bank United, Banesco and Thorofare Capital provided $105 million in loan proceeds. Beach Point Capital Management provided a $70 million preferred equity/mezzanine loan, while sponsors Basis Industrial and NexPoint funded the balance. The four properties traded for a combined $160 million, while $60 million were allocated for the refinancing.

The company purchased Winter Garden Business Park, a 91,727-square-foot property in Winter Garden, Fla. Westminster Capital, represented by CBRE Executive Vice President Ron Rogg, sold the asset for $25 million. According to CommercialEdge data, the eight-building property last changed hands in 2016 for $8.5 million. Completed in 2005 on 7 acres, the business park includes a first-floor retail component, controlled access and 287 car parking spaces. DaVita, Orlando Health, APTIM Government Solutions and Budget Insurance Offices are among the property’s tenants. Winter Garden Business Park is at 1218-1232 Winter Garden Vineland Road and has access to several U.S Routes, including the 429, 50 and 408, with downtown Orlando less than 15 miles away.

READ ALSO: E-commerce Continues to Fuel Industrial Expansion

The 271,988-square-foot North Lake Business Park traded for $49.6 million. Taurus Investment Holdings sold the asset and was represented in the transaction by Senior Director Robbie McEwan and Director Cody Brais with JLL Capital Markets. The previous owner purchased the property in 2020 for $28.5 million, CommercialEdge shows. The 15-building business park was completed in 1981 and offers 35,667-square-foot floorplates, controlled access and 1,082 car parking spaces. The property is 84 percent occupied with a tenant roster that includes BioPlus, Miller Electric Co., Research America and Owen Electric Co., among others.

North Lake Business Park sits on 28.7 acres at 370-774 Northlake Blvd., next to Interstate 4 and some 10 miles from downtown Orlando, Fla.

The Blue Smoke property has access to Interstate 30 and is 3.5 miles from downtown Fort Worth. Image courtesy of Basis Industrial

The Texas properties are both in Fort Worth. Basis Industrial paid $57.2 million to Tillar/LanCarte for the 421,721-square-foot Blue Smoke property. Vice Chairman Stephen Bailey and Managing Director Zach Riebe with Newmark represented the seller. ARCO Contractors Supply, King Street Productions, Innovative Environmental Technologies and Liyu Optoelectronic are among its tenants. The property is at 2301-2759 Ludelle St., near Interstate 30 and 3.5 miles from downtown Fort Worth.

The other asset in the portfolio is Blue Smoke 2, a 161,418-square-foot property that traded for $24 million. Davoil was represented in by the same Bailey and Riebe in the sale. The 10-building industrial campus came online in 1973. Lone Star Bingo, MSG Distributors, BELFOR and Pan American Wire are among its tenants. The 10.5-acre property is at 2301-2367 Blue Smoke Court, 2424 Blue Smoke Court South and 2400 Ludelle Building.

Basis Industrial intends to renovate all four properties. Plans call for interior upgrades, roof maintenance and exterior improvements, including the addition of CCTV camera, access control and lighting, signage, as well as marking and striping.

The refinancing component

One of the assets Basis Industrial refinanced is Crystal Pointe, a 96,888-square-foot industrial property in Deerfield Beach, Fla. The company received an $11.9 million loan from Banesco USA when the $22 million purchase closed earlier this year, CommercialEdge data shows.

Originally completed in 1988, the seven-building property underwent cosmetic renovations in 2006. The one- and two-story facilities are climate-controlled and offer 334 car parking spaces. The fully leased asset is located at 4500-4870 N. Powerline Road, near Interstate 95 and some 10 miles from downtown Pompano Beach, Fla.

Basis Industrial also refinanced the 253,701-square-foot Gateway and Commerce Point in Orlando. According to CommercialEdge, the company bought the seven-building complex in 2022. The property came online in 1983, is currently 97.6 percent occupied and offers 30,000-square-foot floorplates, controlled access and 424 car parking spaces. The asset is located at 7550-7800 Southland Blvd. on 10.4 acres, near U.S. Route 441 and 6.8 miles from downtown Orlando.

The post Basis Industrial Buys 4, Refinances 2 for $220M appeared first on Commercial Property Executive.

The Class A Trinity Medical Arts Building came online in 2011. Image courtesy of CommercialEdge

Onicx Group has secured a $29 million refinancing loan for two medical office buildings totaling 132,000 square feet in Trinity, Fla., and Kissimmee, Fla. First Citizens Bank‘s Healthcare Finance business, part of the CIT division, provided the loan.

Both medical offices were subject to previous financing in 2020. Trinity Medical Arts Building received a five-year, $21.8 million cash-out refinancing from ServisFirst Bank, while Poinciana Medical Arts Building was subject to a $7.9 million loan, due in 2025, originated by Ameris Bank, CommercialEdge data shows.

The properties are part of Florida Trinity Hospital and Poinciana Hospital campuses. The 90,000-square-foot Trinity Medical Arts Building came online in 2011 on 0.6 acres. The four-story, Class A facility features 23,000-square-foot floorplates, controlled access, four passenger elevators and offers 540 parking spaces.

Located at 9332 State Road 54, the property is within the Tampa St. Petersburg Clearwater market, some 30 miles Northwest of downtown Tampa. Its tenant roster includes Fresenius Kidney Care Seven Springs, New Port Richey Surgery Center and Women’s Care Center.

Delivered in 2013, Poinciana Medical Arts Building encompasses 42,000 square feet on 10.2 acres. The two-story, Class B building features a passenger elevator, controlled access and shares parking space with the hospital campus. The property at 339 Cypress Parkway has access to State Route 580 and is 35 miles South of downtown Orlando, Fla.

First Citizens Bank recently provided a $14.5 million refinancing loan for Holly Pond Plaza, a 73,060-square-foot medical facility in Stamford, Conn.

The post Onicx Secures $29M Refi for Florida MOBs appeared first on Commercial Property Executive.

The Promenade at Sunset Walk in Kissimmee, Fla., is nearly 100 percent leased. Image courtesy of Encore Capital Management

Encore Capital Management has secured a $42 million bridge loan for The Promenade at Sunset Walk – Margaritaville Resort, a 192,659-square-foot retail center in Kissimmee, Fla., in the Orlando area. Concord Summit Capital sourced the financing, which was provided by BridgeInvest, and advised the borrower. The funds will repay the construction loan and provide the developer with cash out at closing.

Completed in 2019 and 2020, the property comprises 14 buildings on an 11-acre lot, part of the 325-acre Sunset Walk master-planned mixed-use entertainment community. The property is nearly 100 percent leased, with only one vacant pad space. Tenants include Studio Movie Grill, Ford’s Garage, Cold Stone Creamery and BurgerFi.

Located at 3280 Margaritaville Blvd., The Promenade at Sunset Park is near highways 192 and 429 and is roughly 25 miles southeast of Orlando. It is also less than 3 miles from the Walt Disney World Resort, as well as near the Orange Lake Golf Course.

A long-standing financing collaboration

Concord Summit Capital Chairman Kevin O’Grady and Managing Director Justin Neelis represented the borrower and arranged the financing. The two firms have long collaborated, Concord providing financing for all aspects of the Sunset Walk community’s development. That included $54 million for a 300-unit condominium hotel, $98.4 million for the Margaritaville Resort, the project’s centerpiece, and $60.3 million for the Sunset Walk Apartments.

In prepared remarks, Neelis praised the thoughtful design of Sunset Walk as an entertainment destination. Recently, entertainment and experiential retail concepts have been registering great interest, with regional mixed-use venues proving the most attractive, as detailed by Transwestern Managing Director Steve Williamson in a recent interview with Commercial Property Executive.

While retail has historically relied a lot on CMBS, and the source is now effectively frozen, BridgeInvest is able to provide flexible capital that meets sponsors’ needs, Alex Horn, managing partner with the company, told CPE. Horn also noted that BridgeInvest is keen on retail, which has evolved over the past half decade from the outdated malls of the 90s and early 2000s toward open air lifestyle centers, which are resilient to the effects of e-commerce.

The post Encore Capital Lands $42M for Orlando Retail Center appeared first on Commercial Property Executive.

One Eleven. Image courtesy of CommercialEdge

Lincoln Property Co., has received $40.7 million for One Eleven, a 348,884-square-foot mixed-use property in Orlando, Fla. Morgan Stanley provided the five-year, full-term interest-only loan. Berkadia arranged the deal, working on behalf of the borrower.

In 2013, the property became subject to a $46.9 million CMBS loan originated by Ladder Capital, with Wells Fargo acting as master servicer, according to CommercialEdge information. The note was due to mature in July.

A mixed-use building in Orlando’s CBD

Completed in 2008, the 30-story property encompasses 152,360 square feet of office space, along with 11,076 square feet of ground-floor retail and 164 luxury apartments. The tower’s residential portion, branded as Aspire, is kept distinct from its commercial segment via separate lobbies.

The office component of the LEED Gold-certified building features 21,500-square-foot floorplates. Tenants include Ocean Bank, McDonald Toole Wiggins PA, Atwell Engineers, Skanska and Huitt-Zollars, among others.

READ ALSO: Florida Offers Net Lease Investors More Than Population Growth

Located at 111 E. Washington St. near Interstate 4, the high-rise is within Orlando’s central building district. The property is adjacent to Lake Eola and some 4 miles from Orlando Executive Airport.

The Berkadia South Florida team which secured the financing included Senior Managing Director Charles Foschini and Managing Director Chris Apone, along with Associate Director Shannon Wilson. In prepared remarks, Foschini mentioned the difficulty of sourcing loans for assets that include office components in the current economic landscape.

Recently, Foschini and Apone were involved in arranging a $113 million refinancing for a 220,000-square foot office and retail building in Miami. A10 Capital provided the three-year loan.

The post Lincoln Property Lands $41M for Orlando Tower appeared first on Commercial Property Executive.

Parkway Property Investments LLC, of Orlando, Fla., and Midway Holdings LP, of Houston, have entered into a definitive agreement under which they will form a new, fully diversified real estate investment, operations and management firm.

In a prepared statement, the two privately owned companies stated that they will together ramp up investment, ownership and operations across the Sun Belt and beyond.

Given that Midway is concentrated in Texas, while Parkway has been operating widely across the Sun Belt, the new firm will function under “a refreshed Parkway brand.” Midway reportedly will continue to operate as a separate development entity under its own name and current management and will act as the combined company’s development partner.

Expanded services

The new company will have a total of 45 million square feet of assets under management, including developments in progress, and will offer a wide range of commercial real estate services, including acquisitions and dispositions, asset management, investment and development—in partnership with Midway—property operations and management, construction management, REIT compliance and governance, strategic leasing and advisory, as well as portfolio repositioning.

Between them, Parkway and Midway have more than 100 years of experience. The newly combined firm will employ about 300 personnel and will be headquartered in Houston. The full integration of the Parkway and Midway teams is being targeted for the third quarter.

Midway Chairman & CEO Bradley Freels and Parkway Chairman James Heistand will serve as co-executive chairmen of the new firm’s board, while Parkway CEO Jayson Lipsey and Midway President Jamie Bryant will serve as co-CEOs. The remainder of the leadership team will include executives from both entities. A. Noni Holmes-Kidd will serve as chief legal officer, Matt Mooney as COO, John Kosciulek as CFO and Pam Jesse as chief people officer.

Midway’s mixed-use makeover

Last October, Midway unveiled plans to redevelop the 70-acre former ConocoPhillips corporate headquarters in Houston into a 1.3 million-square-foot mixed-use project called Watermark District at Woodcreek.

The site, along Interstate 10 in the Katy Freeway West submarket, will eventually encompass luxury multifamily residences, high-end retail space, a boutique hotel and 650,000 square feet of premier office space.

The post Parkway, Midway to Merge appeared first on Commercial Property Executive.

Image by Simone Hutsch via Unsplash.com

McCraney Property Co. has received $45.1 million in construction financing for the development of Commerce 429, an industrial park totaling 485,813 square feet in Ocoee, Fla. JLL Capital Markets worked on behalf of the borrower and secured the four-year loan. CommercialEdge data shows that Truist Bank provided the financing.

According to the Orlando Business Journal, McCraney announced plans to build the speculative project in early 2021. At that time, the company was still waiting for approvals from the city, just two months after it acquired the site, a total of 40 acres, for a combined $5.5 million.

Central Florida CRE News also reported that the plans for Commerce 429 were announced just as McCraney delivered Distribution 429 in Ocoee, a three-building industrial facility totaling 652,696 square feet. The project was a joint venture with Clarion Partners and broke ground in 2018.

More recently, the company secured $62.8 million in construction financing for the first phase of Logistics 16 at Ottawa Farms in Bloomingdale, Ga., near the Port of Savannah.

A news industrial campus in metro Olando

The Class A park Commerce 429 will comprise eight buildings. The first phase will consist of six rear-load buildings, ranging from approximately 27,000 to 131,000 square feet, while the second phase will include two rear-load buildings, of 76,000 square feet and 95,000 square feet.

The property will take shape at 1290 Ocoee Apopka Road, in Orange County, only 15 miles from downtown Orlando. The site has access to the Florida Turnpike through State Road 429 and is located within four hours of every major MSA in Florida. Orlando International Airport is 26 miles away.

The JLL Capital Markets team included Managing Director Melissa Rose, Director Michael DiCosimo and Analyst Mateo Bolivar.

The post Orlando Industrial Project Secures $45M appeared first on Commercial Property Executive.

Resource Square I

CP Group has secured a total of 23,000 square feet with three tenants at Resource Square I and III, a pair of Class A office buildings in Orlando, Fla. The commitments brought the 245,111-square-foot office campus’ occupancy to 90 percent.

JLL Managing Director Darryl Hoffman, who served as leasing agent for the property, represented the landlord in all lease signings.

Government services company Ke’Aki Technologies expanded its existing lease to 10,946 square feet, while training readiness and organizational resilience solutions provider 4C Strategies renewed and extended its commitment to 9,331 square feet.

Lastly, computer software development and marketing company Rocket Technology signed a 2,654-square-foot lease agreement with the landlord. Anti-Defamation League and Laser Institute of America are on the current list of tenants at the property, as revealed by CommercialEdge.

Located at 13501 Ingenuity Drive within the Central Florida Research Park and adjacent to the University of Central Florida, the property offer access to Florida State Road 408 and East Colonial Drive, while Orlando International Airport is less than 20 miles away.

Resource Square I was among the winners at the 2022 Outstanding Building of the Year Awards, issued by the Building Owners and Managers Association. On-site amenities at the campus include fitness centers, a lakefront gazebo, walking trails and food trucks.

In September, CP Group also secured two leases totaling 46,000 square feet at One Biscayne Tower in downtown Miami. The company acquired the 38-story asset in 2021, along with with funds managed by Rialto Capital Management and Sabal Capital Partners. The partners paid $225 million for the LEED Gold-certified asset.

The post CP Group Inks 3 Office Leases in Orlando appeared first on Commercial Property Executive.

2292 W. Sand Lake Road

A joint venture between Banner Property Group and an institutional investor has purchased 2292 W. Sand Lake Road, a 150,000-square-foot cold storage warehouse in Orlando, Fla. The partners acquired the asset from Quirch Foods, a subsidiary of Palladium Equity Partners, in a transaction that also involved a short-term leaseback.

CommercialEdge data shows that the buyers paid $26.1 million for the Class B property, financing the purchase with a $22.8 million loan from Synovus Bank. JLL represented the seller and procured the floating-rate acquisition financing for the buyer.

JLL also advised Quirch Foods in another similar transaction. In September, the firm sold two cold storage facilities located in Miami and in metro New Orleans.

READ ALSO: Where to Find Opportunities as Economy Slows 

Completed in 1972 on 8.9 acres, 2292 W. Sand Lake Road previously traded in 2014 for $7.1 million, according to CommercialEdge information. The multi-tenant facility is an entirely refrigerated food grade warehouse with 105- to 125-foot truck courts, rail doors and insulated ceilings.

Served by a CSX-operated railroad, the asset is roughly 8 miles from downtown Orlando and 10 miles from Orlando International Airport. Additionally, the property is located between the Florida Turnpike and U.S. Highway 441, providing easy access to much of Central and South Florida.

The JLL Capital Markets Investment Sales and Advisory Team representing the seller was led by Managing Director Luis Castillo, Directors Max La Cava and Cody Brais as well as Analyst Taylor Osborne. The Debt Advisory team that secured the loan for the buyer consisted of Managing Director Melissa Rose, Director Michael DiCosimo, Vice President Christopher Gathman and Analyst Nicole Barba.

Cold storage comes in hot

Rising alongside e-commerce-related space and bolstered by the prevalence of online shopping for groceries, cold storage space has seen a significant upswing in investment and development activity, becoming one of the most lucrative subsectors of industrial real estate.

According to a CBRE report, cold storage development rose over tenfold to 3.3 million square feet nationwide at the end of this year’s second quarter, up from just 300,000 square feet in 2019. Many of the largest markets in the U.S. are in the South and Midwest, with the Sunshine State having a 10.1 million-square-foot cold storage inventory, the report shows.

The post Banner Property Group JV Buys Orlando Cold Storage Facility appeared first on Commercial Property Executive.

Image courtesy of borevina via pixabay

Venture One Real Estate has acquired a 16.7-acre development site in Orlando, Fla. The purchase marks the company’s entry into the Florida market.

Venture Park Beachline, a Class A industrial building with 220,871 square feet of space, is planned to be developed on the site. Construction is set to begin in the third quarter of 2023.

The land is located at 7650 Amsterdam Drive, off of the Beachline Expressway. The Orlando International Airport is accessible to the west of the property, while Interstate 95 is to the east. Downtown Orlando is some 30 minutes northwest of Venture Park Beachline.

READ ALSO: What’s Next For Industrial Development: Savills

The purchased site is in a well-located and expanding area. Industrial demand in Orlando continues to be greater than the supply, according to a recent Cushman & Wakefield report. In the third quarter of this year, some 650,000 square feet of industrial space hit the market, 27.4 percent of which was preleased. The overall average for rental rates hit a historic high at $9.47 per square foot.

Venture One plans to open a new office in South Florida. It has promoted Kyle Grant to head up the area. The company plans to continue its expansion in the Midwest and Northeast as well, recently breaking ground on Venture Park 47 in Chicago.

Cushman & Wakefield’s Jared Bonshire, David Perez, Taylor Zambito and Sara Bravo will market Venture Park Beachline for lease.

The post Venture One Expands Into Florida appeared first on Commercial Property Executive.

International Corporate Park. Image courtesy of JLL

Whitley Capital has sold International Corporate Park, a 262,200-square-foot two-building asset in Orlando, Fla., for $30.1 million. JLL Capital Markets worked on behalf of the seller. Oaktree Capital Management is the new owner.

International Corporate Park is located at 8695 Transport Drive and includes two Class A industrial buildings. The property consists of a 143,000-square-foot, rear-load building, which is fully leased and offers 35 dock doors and 184 parking spots, as well as a 119,200-square-foot, front-load building with 22 dock doors and 140 parking spots. Both buildings feature 32-foot clear heights and share a truck court and parking.

Recently completed in 2022, International Corporate Park is situated on a 16.5-acre lot, across Beachline Expressway, providing access to Interstates 4 and 95. The property is also close to Florida’s Turnpike, Orlando Beltway and State Route 417, which place it within a 90-minute drive of 23 percent of the state’s 21.6 million residents. The two-building asset is also situated within 12.3 miles from Orlando International Airport, 21.2 miles from downtown Orlando, 21.6 miles from SeaWorld Orlando and Orange County Convention Center, and within 26 miles of Universal Studios Florida.

JLL Capital Markets’ team working on behalf of the seller was led by Managing Directors Luis Castillo and Joe Hills, Senior Managing Director Britton Burdette, Executive Vice President Josh Lipoff and Director Cody Brais.

Earlier this year, another industrial building portfolio changed hands. Sealy & Co. purchased two Class A logistics facilities, representing 841,849 square feet.

The post Oaktree Capital Pays $30M for Orlando Industrial Asset appeared first on Commercial Property Executive.

Image by falco via Pixabay.com

Hillwood and NASCAR will develop more than 200 acres of land adjacent to NASCAR’s home base at Daytona International Speedway in Daytona Beach, Fla.

The project, called Commerce 500, will be developed in phases, with the possibility of eventually building out about 2 million square feet of industrial space, as well as new roads and infrastructure for the surrounding community.

The location, at the intersection of I-4 and I-95, is within a half-mile of the Daytona International Airport and its air cargo capacity.

Hillwood is underway on the first phase of Commerce 500, with a roughly 635,000-square-foot industrial building for an undisclosed e-commerce tenant.

READ ALSO: Investors Ride the Wave of a Cyclical CRE Market

Last year, Hillwood and NASCAR announced a partnership to evaluate surplus land at 13 NASCAR motorsports facilities across the U.S. The Daytona Beach development is joining projects in the Kansas City, Mo., Miami, Southern California and Richmond, Va., markets.

The project in metro Miami is the 150-acre Speedway Commerce Center in Homestead, Fla., adjacent to NASCAR’s Homestead-Miami Speedway. The development has Amazon as an anchor tenant.

Steady growth

September 2020 saw the completion of Volusia County’s largest distribution center, a 1.1 million-square-foot facility developed by Seefried Industrial Properties and Clarion Partners, reportedly for Amazon.

Ongoing demand is keeping vacancy and availability steady in the metro Orlando industrial market, despite more than 3 million square feet of deliveries in 2021, according to a fourth-quarter report from JLL. Asking rents continue to rise and currently average $7.32 per square foot.

The submarket in Seminole County, immediately south of Volusia County, had an overall 5.5 percent vacancy in warehouse/distribution space, on an inventory of 6.5 million square feet, also according to JLL.

The post Hillwood, NASCAR Hit the Gas on Daytona Logistics Campus appeared first on Commercial Property Executive.

Infinity Park. Image courtesy of JLL

McCraney Property Co. and Tavistock Development Co. have refinanced Infinity Park, a newly constructed, 1.3 million-square-foot nine-building, Class A logistics park in Orlando, Fla., with a $120 million loan.

JLL Capital Markets secured the 10-year, fixed-rate loan with Lincoln Financial Group on behalf of the borrowers. The JLL Capital Markets Debt Placement team was led by Managing Director Melissa Rose, Director Maxx Carney, Associate Reid Carleton and Analyst Maddy McMillen.

READ ALSO: Top 5 Florida Markets for Industrial Development

Rose said in a prepared statement the sponsorship, location and tenant mix of the asset resulted in a highly competitive process with a wide array of capital sources eager to provide financing.

Infinity Park was constructed in phases between 2019 and 2021 and is 92 percent leased to 17 premium credit tenants including Pepsi. The properties are located at 2500, 2505, 2559, 2583, 2598, 2612, 2613, 2619 and 2622 Consulate Drive.

Tavistock partnered with McCraney in September 2018 to expand its Infinity Park project, a mixed-use business park in Orlando. The partners worked together to develop the logistics properties in addition the property’s office, retail and hospitality offerings. Tavistock officials noted at the time that market demand for a variety of uses at Infinity Park made the partnership and addition of logistics assets a natural progression for the park.

Infinity Park is situated in an area with multi-expressway access, with the Beachline Expressway (State Route 528) intersecting with the Florida Turnpike and John Young Parkway. Due to its location, tenants can reach more than 20 million residents—or 95 percent of the Florida population—within a four-hour drive and nearly 3.7 million customers within a one-hour drive. The park also provides convenient access to top employers including Lockheed Martin, Universal Studios, Darden Restaurants and Starwood. It is 3 miles from the Orange County Convention Center and Orlando theme parks, 8 miles from Orlando International Airport and 10 miles from downtown Orlando.

Market pulse

Orlando is one of the fastest-growing metro areas in the country. The population is booming and anticipated to outpace state and national averages over the next five years.

JLL Research’s third-quarter report for the Orlando industrial market noted new deliveries can’t keep up with the demand, leading vacancy to dip to 3.1 percent. The third quarter saw more than 900,000 square feet of deliveries, yet both vacancy and availability dropped from the second quarter. A little more than 1.6 million square feet of new construction was set to deliver by the end of this month. JLL Research reports absorption grows as tenants fill big boxes.

One of the largest new properties completed in the third quarter was Prologis Airport Park 200 in the Southeast Orange submarket, the biggest industrial submarket in Orlando. It is already fully leased.

JLL Research states the outlook for the Orlando industrial market is strong, with the pandemic spurring a massive increase in demand for e-commerce grocery delivery and other logistics-based services. The growth in e-commerce demand combined with the increase in tourism and opening of the economy in central Florida will likely enable growth for many quarters to come, according to the report.

The post Orlando Industrial Park Lands $120M Refi appeared first on Commercial Property Executive.

SouthPark Center, a nearly 1.3 million-square-foot leading suburban office park in Orlando, has come under new ownership, courtesy of a $315 million deal that marks the largest office transaction in Central Florida’s history.

Cushman & Wakefield represented the seller, AEW Capital Management, and arranged $233 million in acquisition financing on behalf of the buyer, PPF Real Estate, the Prague-based property subsidiary of Amsterdam-based international investment company PPF Group.

“The property received good interest from a variety of capital sources,” Rick Colon, director with Cushman & Wakefield, told Commercial Property Executive.

Spanning 162 acres near Orlando International Airport and the Orange County Convention Center in the Tourist Corridor submarket, SouthPark encompasses 10 Class A buildings and 31 acres of developable land. AEW had owned the asset since 2014, when it acquired the campus—which then consisted of 1.5 million square feet and 13 buildings—from Florida East Coast Industries for approximately $274 million.

READ ALSO: Why Office Absorption Will Turn Around in 2022: NAIOP

Presently, the campus, boasting a history of robust absorption that did not fail through the pandemic, counts the likes of Booking.com, Accenture, Lockheed Martin, CVS Caremark, Diamond Resorts, Jet Blue and Marriott among its tenants.

SouthPark has managed to maintain its sheen and occupancy through strong institutional ownership and amenity upgrades. “SouthPark is uniquely positioned as one of the most successful business parks in the Southeast and has outperformed the broader Orlando market as a whole, particularly post-pandemic where rents have continued to grow, and new vacancies have quickly been leased,” noted Colon.

Sunny forecast in the Sunshine State

Orlando’s office market continues to recover from the consequences of the pandemic; however, the positive indicators make for a bright outlook. At the close of the third quarter, office leasing demand totaled approximately 1.5 million square feet year-to-date, nearing 90 percent of the level of activity at the same period in 2019, according to a report by Cushman & Wakefield. Additionally, overall asking rents climbed 3.1 percent year-over-year to a historic high of $25.19 per square foot. In the Tourist Corridor, average asking rents skyrocketed 9.1 percent to $29.30 per square foot.

Colon added, “Despite the impact of COVID-19, fundamentals are expected to continue to improve as population and job growth, specifically office dependent jobs, outperform national trends due to Florida’s broad-based appeal.”

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From such turbulent times, concepts and initiatives rise to the surface, proposing solutions and setting out plans for navigating out of the rising seas of threats. From Miami, local entrepreneur Tony Cho has set up a mission-driven organization and consortium dedicated to transforming communities worldwide through sustainable development. He named it Future of Cities.

Building on precedents

The vision for the platform stems out of his upbringing—growing up in an ashram, a place where Yoga, meditation and other spiritual practices are part of the daily routine—and his professional career, which was guided by placemaking and sustainability in projects like Wynwood and the Magic City Innovation District in Little Haiti.

The Wynwood Business Improvement District—an initiative established in 2013 to transform a run-down midcentury warehouse district through the expression of street art—stands as a successful project that tells the story of when the community and the public and private sectors accomplish great things if aligned around a set of common values and principles.

Tony Cho, CEO & Founder, Future of Cities. Image courtesy of Future of Cities

“With Wynwood and the neighborhood revitalization district, that was a result of the business improvement district’s efforts to create a progressive zoning overlay in this vibrant arts and cultural district. I believe also that more can be done to include creatives and artists that helped to co-create this neighborhood and more can be done to mitigate the environmental impacts that developments will have on our city,” Cho told Commercial Property Executive.

At the Magic City Innovation District – Little Haiti project, the pandemic’s impacts were lighter than in other areas.

“Most of our tenants stayed in business and are now reopening. We have witnessed a flurry of leasing activity and interest in our event park, which we signed a deal with Space + Live Nation to provide content and events outside, in a more pandemic-resilient manner,” Cho said.

Additionally, as part of a $40 million community benefits program agreed to by the Magic City Innovation District and the City of Miami, $3 million were set aside for the Little Haiti Trust, a fund that will finance affordable housing projects, job trainings and cultural preservation across the district, as well as a scholarship at Florida Memorial University, South Florida’s only historically Black university.

READ ALSO: Lessons for Cities, Companies Worldwide From ULI

Co-creation and placemaking

Future of Cities started gaining form about two years ago as a start-up organization. Following the onset of the pandemic, the social climate and equity issues targeted by the platform became more prevalent and dire, and the launching process was accelerated. The platform will function as a globally distributed network of innovators and experts with a management team that has already collectively stewarded more than $2 billion in development projects across more than 20 cities around the world. Notable Future of Cities strategic partner organizations include the Chopra Foundation by Deepak Chopra and the Buckminster Fuller Institute.

“Future of Cities is looking to reach 1 billion people and create ESG standards at scale through our three-pronged platform, inclusive of demonstrative real estate projects, convening best practices and creating policy change through our think tank of global advisers and partners, and helping accelerate PropTech, CleanTech, HealthTech and Smart City Technology through our venture ecosystem,” said Cho.

Future of Cities’ “secret sauce” will be co-creating with local communities to find solutions and share these lessons globally. “What works in Miami, might not work in Atlanta, but what it can do is inform a starting point. We will not work in a silo,” he added.

Chris Castro, Director of Sustainability & Resilience, City of Orlando. Image courtesy of Future of Cities

To make Future of Cities a tangible reality requires a massive orchestration effort, with support from a variety of organizations, governments, NGOs, foundations and subject matter experts on different components of the ESG spectrum. “Big goals require big action,” stated Cho. “Co-creation aims to not only achieve buy-in and ownership but also bring the brightest minds to the table.”

And co-creation is what was used to engage local leaders in his project. Miami Mayor Francis Suarez is one of the vocal supporters of the vision behind Future of Cities.

“Cross-sector collaboration like this is exactly what will drive Miami towards becoming one of the premier cities of the 21st century,” Suarez said. “Both the City of Miami and the Future of Cities understand the importance of an all-encompassing approach to effective leadership in order to improve every Miamian’s quality of life.”

READ ALSO: Florida’s Take on the Climate Crisis

One of the advisers at Future of Cities, City of Orlando Director of Sustainability & Resilience Chris Castro, pointed out that over the next three decades, the world is expected to experience significant urbanization, with cities anticipated to double by 2050.

“This growth will create new urban challenges in our ability to sustain our quality of life and the environment we depend on. So how might we rethink the way we grow to ensure responsible and regenerative development of existing and future cities, and ensure we realize the triple bottom line—thriving people, planet and prosperity?” Castro wondered.

Dr. Dominique Hes, another Future of Cities adviser, who is chair of the board of directors at Greenfleet and adjunct fellow at the Cities Research Institute of Griffith University in Melbourne, also believes in Future of Cities’ potential to play a positive role in the earth’s future.

She joined the consortium because she feels that the platform has the ability to show that creating projects that aim to give back socially, ecologically and economically to all stakeholders is possible. “At a high level, we can step up and contribute to a thriving, abundant future. This isn’t an easy path, though. It will challenge all the ways of doing business that is ‘normal'”.

Dr. Dominique Hes, Chair of the Board of Directors at Greenfleet & Adjunct Fellow at the Cities Research Institute of Griffith University in Melbourne. Image courtesy of Future of Cities

Dr. Hes and Bill Reed from Regenesis are the ones serving as advisors to the regenerative placemaking concept, a new design logic the team at Future of Cities has been interested in for more than a year. Alongside other thought leaders in regenerative development, they are making sure the Future of Cities organization is incorporating the best practices and latest thinking into its projects, investments and policy advocacy.

“We will champion this approach that protects existing neighborhoods by co-creating eco-friendly, inclusive and sustainable projects, emphasizing collaboration, innovation and financial vitality. Going into cities, we will work in Opportunity Zones and leverage other public-private partnerships to apply this approach which fosters a more participatory approach and aims to mitigate gentrification and displacement. Future of Cities will also embrace the use and development of sustainable building materials and biophilic design,” assured Cho.

READ ALSO: Where Investment Strategy Meets ESG

ESG standards serve as an inspiration and hold developers and companies accountable for their actions. Yet one of the barriers of a wider adoption of ESG strategies is that it is not executed at scale, believes Cho.

“Right now, a building can be built and classified as LEED-certified, but that doesn’t address other issues that impact communities. ESG also takes commitment,” he said. Moreover, he mentioned Opportunity Zones as an example of a vehicle that conditions investors to only expect long-term returns because of the financing structure they require. “Those are the types of situations that naturally lend themselves to ESG strategies.”

Future of Cities projects will go beyond that, according to Dr. Hes, reaching and overstretching these standards. “Because it is the right thing to do, because it enables the thriving of all and the creation of places that are resilient, connected and abundant, where everyone has a place, feels connected, belongs and is deeply attached. To be clear though, this isn’t Utopia, it is creating the conditions for life to thrive. How people choose to take up this potential is part of their inner journey,” Dr. Hes concluded.

The post Looking Into the Future of Cities appeared first on Commercial Property Executive.

6272 Lee Vista Blvd. Image courtesy of Mohr Capital

Mohr Capital has established a Florida footprint with the purchase of a 78,449-square-foot medical office building in Orlando. Accredo Health Group Inc., an Express Scripts company and subsidiary of Cigna Corp., fully occupies the property under a long-term lease. The seller was Wells Real Estate, according to CommercialEdge. The asset previously traded in 2005 for $12.5 million.

The two-story building occupies more than 8 acres at 6272 Lee Vista Blvd., within the master-planned Lee Vista Business Park. The property came online in 2004 as a build-to-suit for CuraScript Inc., a company that merged with Accredo in 2012. The facility includes both medical and corporate office spaces, a pharmacy with clean rooms and a distribution component.

The property is some 10 miles southeast of downtown Orlando and 1 mile north of Florida’s 528 Expressway. Orlando International Airport is roughly 3 miles south.

Mohr Capital Managing Director Rodrigo Godoi represented the buyer in the deal, while CBRE Executive Vice President Ron Rogg negotiated on behalf of Wells Real Estate. Godoi was also instrumental in Mohr’s purchase of a 200,000-square-foot Dallas office building last March.

The post Mohr Capital Enters Florida Market With MOB Acquisition appeared first on Commercial Property Executive.

Florida’s industrial developers have taken note: CommercialEdge shows nearly 14.9 million square feet underway, or roughly 2.3 percent of completed inventory, with close to one-third slated for delivery by year-end. That’s on top of the 17.6 million square feet already delivered through mid-November. Last year’s completions, by comparison, totaled 16.6 million square feet.

The table below uses CommercialEdge data to highlight the five Florida markets with the highest levels of industrial development.

5. Jacksonville

JAXPORT. Image courtesy of Jacksonville Port Authority

Jacksonville’s industrial market has long been a strong performer, bolstered by its major shipping port and further augmented this year by the rapid growth of e-commerce. Although only a handful of major projects are underway, industrial completions this year have hit a record high. Through mid-November, 2.9 million square feet delivered, the highest level since 2009.

The largest project underway was VanTrust Real Estate’s 1.1 million-square-foot Building E at Imeson Park. Located at 10501 Cold Storage Road in the North Jacksonville industrial corridor, the asset is fully leased to Amazon with delivery slated for late 2021.

4. Fort Lauderdale

Bridge Point 595. Image courtesy of Bridge Development Partners

Development has picked up in Broward County this year, with industrial deliveries topping 1.5 million square feet and 11 projects underway totaling an additional 1.7 million square feet. Even though passenger cruises have completely halted at the county’s Port Everglades, the facility remains one of the U.S.’s busiest shipping ports, with a volume of more than 1 million TEUs (20-foot equivalent units) per year.

Bridge Point 595 was the largest industrial development underway. Bridge Development Partners broke ground on the three-building, 677,310-square-foot park in October 2019, with delivery expected in the first quarter of 2021. The structures will have 32-foot clear heights, ESFR sprinkler systems and a combined 132 dock-high loading doors. Wells Fargo provided the developer with $60.3 million in construction financing.

3. Orlando

Infinity Park. Rendering courtesy of McCraney Property Co.

Although Orlando’s economy has taken a substantial hit this year, the industrial sector has come back to life. Area employers added 11,500 trade and transportation jobs between April and September, according to the Bureau of Labor Statistics, reflected by growing demand for modern distribution space. Developers are moving forward with projects totaling 2.6 million, more than 80 percent of which is speculative.

Building 800 at Infinity Park is the largest property underway. McCraney Property Co. and Tavistock Development Co. broke ground on the 433,404-square-foot speculative project in August at 2500 Consulate Drive, with completion set for early 2021. The building is one of four within the 206-acre park’s second phase.

2. Tampa Bay

Port Tampa Bay. Image courtesy of Tampa Port Authority

Florida’s largest industrial market continued to expand, with 3.8 million square feet underway across 16 projects. Deliveries through mid-November totaled 6.1 million square feet and may finish the year beyond the 2016 peak of 6.3 million square feet. In addition to a diversified port, shifts from retailers toward e-commerce operations have driven much of the market’s activity, with Ace Hardware and The Home Depot moving forward with distribution centers.

Brennan Investment Group’s 1 million-square-foot Building 400 at CenterState Logistics Park East in Lakeland broke ground in August, becoming the market’s largest development underway. Upon completion, the cross-dock spec facility will have 40-foot clear heights, 238 loading doors, 190-foot truck courts and 70-foot speed bays. Citizens Financial Group provided $42.6 million in financing.

1. Miami

PortMiami. Image by zopalic via Pixabay.com

Topping our list, Miami has some 4.2 million square feet underway, equal to 3.3 percent of inventory. The metro’s role as a major international trade hub remains intact even amidst the backdrop of economic uncertainty: In the 2020 fiscal year, PortMiami reported only a slight decrease in sea cargo volume from the previous year to 1.1 million TEUs. In addition to port traffic, e-commerce growth is also pushing industrial demand higher, particularly for well-located, last-mile distribution centers.

Nearly 90 percent of the metro’s industrial development activity was concentrated in Hialeah, northwest of Miami. The largest project underway is a two-building, 1 million-square-foot build-to-suit facility for The Home Depot. Florida East Coast Industries began construction in January with an anticipated delivery this winter.

The post Top 5 Florida Markets for Industrial Development appeared first on Commercial Property Executive.

3102 Shelby Industrial Drive. Image courtesy of JLL

Realty Income Corp., a San Diego-based REIT that invests in single-tenant commercial properties, has acquired a newly built 289,839-square-foot Class A industrial property near Orlando in Apopka, Fla., for little over $71.4 million from BlueScope Properties Group. Completed in July, the building at 3102 Shelby Industrial Drive is fully leased by The Coca-Cola Co.

READ ALSO: Orlando Commercial Real Estate Wrap-Up – November 2020

JLL marketed the property on behalf of BlueScope and brokered the long-term, net-lease build-to-suit agreement with the tenant.

The distribution center is situated on 21.2 acres within the 180-acre Mid-Florida Logistics Park, which is home to several other corporate users. The property is on the arterial State Route 429, which provides alternative access to the entire Orlando MSA. When the nearby Beltway project is completed, connectivity to the region from the site will increase. The North Orange County industrial submarket is one of the fastest-growing markets in Florida and has a deep labor pool. BlueScope also owns The Park @429, a 613,400-square-foot industrial development in the Ocoee/Winter Green submarket of Orlando.

The Apopka building includes 10 dry-dock doors with full equipment, 36-foot clear heights, ESFR sprinklers, LED lighting, cold storage space with capacity for 6,200 pallets, five cold dock doors to allow minimal temperature loss during handling and ample parking. The sale included an adjacent land parcel that would allow for future expansion of as much as 90,000 square feet.

JLL Capital Markets Managing Director Sean Devaney said in a prepared statement the asset drew attention from both foreign and domestic investors. He said interest in the property was extremely strong because of the long-term investment-grade tenant with an iconic brand name and growing demand for cold storage space. Devaney added that the favorable debt markets helped drive the market-leading pricing.

In addition to Devaney, the JLL Capital Markets team was led by Senior Managing Director John Huguenard and Managing Directors Julia Silva and Luis Castillo. Senior Director Brian Walsh and Senior Managing Director Keith Largay provided debt support. The JLL Agency Leasing team that secured the tenant for BlueScope was led by Managing Directors Wilson McDowell, Matt Sullivan and Bobby Isola.

Realty Income deals

Also in recent weeks, Realty Income paid more than $40 million to purchase the 132,449-square-foot McDonalds’ Distribution Center in Garner, N.C., according to the Triangle Business Journal. Most of Realty Income’s portfolio—84.6 percent—is retail assets. As of Sept. 30, the REIT owned 119 industrial properties, representing 10.4 percent of the portfolio. For non-retail properties, the REIT targets primarily industrial and distribution properties leased to Fortune 1000, investment-grade companies.

In September, Realty Income acquired a 103,000-square-foot, single-tenant retail property occupied by a Wegmans supermarket in Cary, N.C., for $34.8 million from Leyland Twin Lakes LLC, an affiliate of LeylandAlliance. JLL Capital Markets marketed that property on behalf of the seller. The Wegmans parcel is within the Twin Lakes Center, a 35-acre mixed-use project.

The post Realty Income Corp. Buys Orlando Industrial Building for $71M appeared first on Commercial Property Executive.

Whispering Pines. Image courtesy of Capital Square 1031

Capital Square 1031 has acquired Whispering Pines, an over 55 manufactured housing community in Kissimmee, Fla. According to public records, Kurtell Growth Industries sold the 301-homesite property for $45.6 million.

Walker & Dunlop financed the acquisition through a $26 million Fannie Mae loan. According to Whitson Huffman, chief strategy & investment officer at Capital Square 1031, the 10-year, fixed-rate debt features a low-to-mid 2.0 percent range interest.

READ ALSO: Manufactured Housing Sparks Investor Interest

Located at 4658 Whispering Pines Blvd., the four- and five-star property is less than 20 miles from several entertainment options, including Planet Hollywood, Universal Studios and Walt Disney World. Additionally, the gated community is 23 miles from Orlando International Airport and 26 miles from the metro’s downtown.

Spread across some 61 acres, the community was 99 percent occupied at the time of sale and includes additional land for possible expansion of 50 new homesites, which the new owner intends to utilize. Common area amenities include outdoor heated pool, jacuzzi, barbecue area, shaded gazebo and shuffleboard courts.    

Whispering Pines is Capital Square 1031’s fourth four- and five-star, age-restricted, manufactured housing community acquisition this year, according to Louis Rogers, the company’s founder & chief executive officer. The company is bullish on this asset type in Florida due to strong demand from retirees and limited supply of affordable senior housing.   

The post Capital Square 1031 Buys Orlando MHC for $46M appeared first on Commercial Property Executive.

Orlando Health Jewett Orthopedic Institute. Image courtesy of Hammes Healthcare

Commercial real estate activity hummed along in Orlando last month, despite economic uncertainty, with noteworthy retail and industrial deals closing. November also saw the opening of a new hotel, while news of several vaccines making strides raised up hopes for the area’s tourism in general and theme parks in particular. Catch up with our November selection of Orlando must-knows:  

1. DEAL – Kissimmee retail center trades for $26 million.

East Coast Acquisitions bought Osceola Village, a 122,845-square-foot, Publix-anchored property from an affiliate of Glenborough LLC. JLL Capital Markets brokered the $26.3 million transaction, which included three adjacent retail pad sites. Built in 2008, the shopping center was 82.4 percent leased at the time of the transaction. The tenant roster includes DaVita, Orlando Health and Visionworks. Located at 3040 Dyer Blvd. on 20 acres, the asset is 17 miles south of central Orlando. 

2. DEVELOPMENT – Orlando Health breaks ground on $341 million campus.

Jewett Orthopedic Institute is a 370,000-square-foot project, set to include a 197,000-square-foot inpatient hospital, a 173,000-square-foot pavilion and an attached parking garage. Upon completion, the eight-story hospital will have 75 beds, 10 virtually connected operating rooms, a bio-skills laboratory for research and conference space. Hammes Healthcare is the hospital’s project manager. The site is located on 3 acres at the intersection of Lucerne Terrace and Columbia Street. Completion is scheduled for 2023.

3. DEAL – Realty Income acquires new industrial asset for $71.5 million.

The REIT purchased the recently completed 289,839-square-foot property occupied by Coca-Cola from an entity related to BlueScope Properties Group. According to Orlando Business Journal, JLL’s Sean Devaney, Wilson McDowell and Matt Sullivan brokered the deal. The facility also includes 21.6 acres which can accommodate an additional 90,000 square feet of industrial space. The property is located at 3102 Shelby Industrial Drive in Apopka.

4. DEVELOPMENT – TRYP by Wyndham hotel opens.

The hospitality asset comprises 98 guest rooms and 22 family rooms. Located on Orlando’s I-Drive, the property is situated 13 miles from downtown. The hotel is 8 miles south of Universal Studios Florida and just 1 mile from SeaWorld Orlando. The TRYP by Wyndham is owned by an affiliate of Riviera Pointe Invest + Develop. C&W Hotel Management Co. acts as property manager. 

The post Orlando Commercial Real Estate Wrap-Up – November 2020 appeared first on Commercial Property Executive.

Osceola Village. Image via Google Street View

East Coast Acquisitions has acquired Osceola Village, a 122,845-square-foot, Publix-anchored retail center in Kissimmee, Fla., from an affiliate of Glenborough LLC. JLL Capital Markets brokered the $26.3 million transaction, which included three adjacent retail pad sites.

The property is located at 3040 Dyer Blvd. in northern Kissimmee, 17 miles south of central Orlando. The 20.3-acre site is part of a prominent retail cluster adjacent to U.S. Route 17, 6 miles east of Disney World. More than 87,000 people reside within 3 miles of the asset.

Built in 2008, the shopping center was 82.4 percent leased at the time of the transaction. In addition to the anchor, the property’s tenants include DaVita, Orlando Health and Visionworks.

Senior Managing Director Brad Peterson, Senior Director Whitaker Leonhardt and Associate Tommy Isola made up the JLL team representing the seller.

Earlier this year, another Publix-anchored shopping center changed hands for nearly $10 million. The 67,000-square-foot Tampa Bay property sold in a 1031 exchange.

The post Suburban Orlando Retail Center Trades for $26M appeared first on Commercial Property Executive.

Orlando Health Jewett Orthopedic Institute. Image courtesy of Hammes Healthcare 

Orlando Health has broken ground on the Orlando Health Jewett Orthopedic Institute, a planned 370,000-square-foot medical campus in downtown Orlando, Fla. The $341 million project encompasses a 197,000-square-foot inpatient hospital, a 173,000-square-foot pavilion and an attached parking garage. Delivery is slated for the second quarter of 2023.

The orthopedic institute will take shape on a 3-acre site at the intersection of Lucerne Terrace and Columbia Street. Orlando Health announced the project soon after the acquisition of Jewett Orthopaedic at the end of 2019.

Upon completion, the eight-story hospital will have 75 beds, 10 virtually connected operating rooms, a bio-skills laboratory for research/education and conference space. Hammes Healthcare is the hospital’s project manager. Hammes also manages the $400 million expansion of Moffitt Cancer Center in Tampa, Fla.

The seven-story pavilion will consist of an ambulatory surgery center with 12 operating rooms and a 108,600-square-foot medical office building. The facility will comprise 63 orthopedic examination rooms, two procedure rooms, four outpatient rehabilitation examination rooms and an outpatient rehabilitation gymnasium. Amenities will include a retail pharmacy and a café.

The project site is located 1 mile south of the city center, east of Interstate 4 and adjacent to the northern side of Orlando Health’s campus.

The post Orlando Health Breaks Ground on $341M Orthopedic Campus appeared first on Commercial Property Executive.

Orlando International Business Center. Image courtesy of TerraCap Management

Over the past month, Orlando’s commercial real estate sector showed some notable activity, despite economic headwinds. Investment and leasing transactions closed across several asset types, including the office sector. Despite work-from-home policies being the norm, at least one major office lease closed this month. Lenders continued to back deals, financing acquisitions of in-demand industrial and manufactured housing assets. Catch up on our October selection of Orlando must-knows:  

1. DEAL – TerraCap Management pays $24.1 million for office park.

Real Capital Solutions sold Orlando International Business Center, a six-building complex encompassing 196,000 square feet. Prime Finance Partners provided an $18.2 million acquisition loan, according to Yardi Matrix data. Located on 17 acres at 5730 S. Semoran Blvd., the property was built in 1983 and 1985. CBRE assisted the seller and secured the financing. Harvard Pacific will take over property management and Foundry Commercial will oversee leasing efforts.

2. LEASING – Tower Realty Partners lands 85,117-square-foot office lease.

Northrop Grumman Corp. signed the 10-year commitment for space at Discovery Point, a 364,000-square-foot office property, according to Orlando Business Journal. The tenant will consolidate multiple local offices to contiguous space at 2300 Discovery Drive. The six-story building was completed in 1999. JLL’s David Chapin negotiated on behalf of the tenant, while Shipley Hall represented the owner in-house.

3. DEAL – Clark Properties acquires 785-unit self storage property.

PREFERRED Realty & Development sold the facility for $9 million. The new owner financed the purchase with a 10-year, $8 million financing package from Valley National Bank, Seminole County records show. Completed in 2017, the two-story building sits on 7 acres at 2728 W. 25th St. The 70,900-square-foot property has climate-controlled and drive-up access units ranging from 25 to 540 square feet. Cushman & Wakefield’s Mike Mele and Luke Elliott negotiated on behalf of the seller.

4. DEAL – ATCAP Partners buys 562,758-square-foot warehouse for $30 million.

A joint venture between IP Capital Partners and Blue Vista Capital Management sold Innovation Center at Lake Mary, REBusiness Online reported. Reinsurance Group of America financed the acquisition with a 10-year, $21.6 million loan, Yardi Matrix data shows. Located on 33 acres at 2452 Lake Emma Road, the facility was built in 1995 and expanded in 1998. Cushman & Wakefield assisted the seller and facilitated the financing for the buyer.

5. DEAL – Manufactured housing community trades for $36 million.

Capital Square 1031 purchased Maplewood Estates, a 412-site property in Port Orange, Fla., from All Aboard Properties. Walker & Dunlop originated a 10-year, $27.9 million Fannie Mae acquisition loan. The community occupies a 77-acre site at 1000 Chamberlin Blvd., nearly 60 miles from downtown Orlando. Maplewood Estates is aimed at tenants over 55 and had an occupancy rate of 94.4 percent at the time of the deal.

The post Orlando Commercial Real Estate Wrap-Up – October 2020 appeared first on Commercial Property Executive.

2728 W. 25th St. Image courtesy of Cushman & Wakefield

Clark Properties/All Aboard Storage has completed the $9 million acquisition of a Class A, 70,900-square-foot self storage facility in Sanford, Fla. The new owner financed the purchase with a 10-year, $8 million loan from Valley National Bank, according to Seminole County records. PREFERRED Realty & Development sold the property in a 1031 exchange.

The seller and developer acquired the 7-acre parcel at 2728 W. 25th St. for $1.1 million from a private investor in 2016. Truist Bank provided a $5.5 million development loan for the project, Yardi Matrix data shows.

The two-story facility was delivered in 2017 and encompasses 770 climate-controlled units and 15 drive-up units with sizes between 25 square feet and 540 square feet, as well as 13 boat and RV parking spaces. At the time of closing, the property was 70 percent occupied.

The store is 5 miles east of Orlando Sanford International Airport and 22 miles north of downtown Orlando. Additionally, there are at least 14 other self storage facilities totaling 760,468 square feet within a 3-mile radius, according to Yardi Matrix.

Cushman & Wakefield Vice Chairman Mike Mele and Executive Managing Director Luke Elliott assisted the seller. Earlier this month, the same brokerage team arranged the $14 million disposition of a 78,521-square-foot self storage property in Palm City, Fla.

The post Suburban Orlando Storage Facility Trades for $9M appeared first on Commercial Property Executive.

851 E. Maple St.

CBRE has facilitated the $6.5 million sale of a 208,419-square-foot industrial property in Winter Garden, Fla. Executive Vice President David Murphy, First Vice President Monica Wonus and Associate Cameron Thomas assisted both parties in the all-cash transaction and the team was retained by the buyer to market and lease the property upon closing.

Located on 19 acres at 851 E. Maple St., the single-story facility was built in 1954 and expanded in 1997. Ultimate Realty acquired the asset from Crown Cork & Seal, which had owned the building since 1990, according to Yardi Matrix data. The property has an 8,000-square-foot office component, three grade-level and 10 dock-high doors.

The site is a short distance from State Road 429, which provides access to the Florida Turnpike. Other companies with a presence in the SR-429 industrial corridor include UPS and food importer Sysco. The facility is 15 miles west of downtown Orlando and 25 miles from Orlando International Airport.

In April, Ultimate Realty announced plans to convert Westgate Shopping Center, a 411,200-square-foot retail property in Macon, Ga., into an industrial park. The company will invest $12 million in the adaptive reuse project. Upon completion, the 395,000-square-foot development will consist of six buildings ranging from 19,000 to 106,000 square feet.

The post CBRE Spearheads Orlando Industrial Sale appeared first on Commercial Property Executive.

Maplewood Estates. Image courtesy of Capital Square 1031

Less than one month since the purchase of Harbor View in Port Charlotte, Fla., Capital Square 1031 has expanded its presence in the Sunshine State with the acquisition of Maplewood Estates. Located in Port Orange, the 412-site manufactured housing community is aimed at residents over 55 and is the company’s third purchase in Florida this year.

According to public records, All Aboard Properties sold the four- and five-star asset for $36 million. Walker & Dunlop originated $27.9 million in Fannie Mae acquisition financing for the new owner. The loan is set to mature in 2030.    

The community is located at 1000 Chamberlin Blvd. on 77 acres, less than 2 miles from several dining and retail choices, some 4 miles from Interstate 95 and almost 60 miles from downtown Orlando. Common-area amenities include a pool with hot tub, computer lab and activity hall. The new owner intends to implement an improvement program for the property.

Maplewood Estates was 94.4 percent occupied at the time of sale, according to Whitson Huffman, chief strategy and investment officer at Capital Square 1031. The average occupancy rate for four- and five-star manufactured communities in Florida aimed at residents over 55 was 96 percent in May—a 5.2 percent increase year-over-year and up 4.9 percent since 2014, according to Capital Square.

The post Capital Square Pays $36M for Orlando-Area MHC appeared first on Commercial Property Executive.

TRU by Hilton Orlando Convention Center. Image courtesy of Hilton

Over the past month, Florida experienced a slight downward trend in new COVID-19 cases, which led to the state moving into its final phase of reopening. Governor DeSantis lifted all capacity limitations for businesses, rolling back most local measures.

At the local level, Orlando’s real estate sector moved forward with a steady stream of activity across a diverse mix of asset types. On the investment side, companies expanded their portfolios with in-demand assets, while several build-to-suit projects delivered for national companies. Read our September selection of Orlando must-knows:

1. DEVELOPMENT – Seefried completes 1.1 million-square-foot Amazon property.

The industrial facility is the largest distribution center in Volusia County and was developed in joint venture with Clarion Partners. The developer financed the project with a $68.5 million loan from Wells Fargo, according to Yardi Matrix. Located on 85 acres at 2600 N. Normandy Blvd. in Deltona, the warehouse delivered in nine months. The Conlan Co. was the general contractor for the Ford & Associates-designed building.

2. DEAL – Taurus pays $28.5 million for suburban office park.

Real Capital Solutions sold North Lake Business Park, a 270,555-square-foot campus in Altamonte Springs. The new owner financed the deal with a $20.8 million loan from MetLife Investment Management, public records show. Delivered in three phases between 1981 and 1987, the campus encompasses 15 buildings at 370 Northlake Blvd. The asset was 86 percent leased at the time of the sale.

3. LEASING – Two government agencies sign downtown leases.

The Internal Revenue Service signed a 29,000-square-foot lease at Seaside Plaza, a 280,407-square-foot property owned by Highwoods Properties, according to Orlando Business Journal. The IRS’ new space is located at 228 S. Magnolia Ave. Additionally, an unnamed government agency inked a 114,000-square-foot, full-building lease at 500 N. Orange Ave. Yardi Matrix shows that owner West Second Street Associates planned to begin a multimillion dollar renovation once the long-vacant building landed a tenant.

4. FINANCING – Joint venture gets $73 million for mixed-use high-rise.

A partnership between Mason Capital, Lincoln Property Co. and Pope & Land Co. landed the five-year bridge loan from CIM Group. Berkadia secured the note, which is the metro’s largest single-property mortgage and the state’s third largest this year. The mortgage encumbers the 18-story office component and a nine-level parking structure in the recently delivered SunTrust Plaza at Church Street Station. Located at 333 S. Garland Ave., the 28-story property has 200,000 square feet of office space and a 180-key Marriott AC Hotel.

5. DEAL – TA Realty sells seven-building industrial complex near Orlando International.

Richland Capital Holdings paid $43 million for Airport Commerce Center, the 319,386-square-foot logistics park. The buyer received a $25 million acquisition loan from Ameris Bank, according to Yardi Matrix. Cushman & Wakefield negotiated on behalf of the seller. The property has multiple addresses on Parkline Boulevard and Prime Court. At the time of the deal, the asset was fully leased to tenants such as Tesla, Chrysler and Panera Bread.

6. DEVELOPMENT – Largest Tru by Hilton hotel opens in Orlando.

Epelboim Development Group delivered the 259-key building, the first under the value-oriented flag to debut in the city and the largest Tru property to date. In 2018, BridgeInvest provided a $21.5 million construction loan for the project, according to Orange County records. Highgate oversees property management for the hotel. Amenities include a gym, an outdoor pool, a business center and pet-friendly suites. The property is located at 6461 Westwood Blvd.

The post Orlando Commercial Real Estate Wrap-Up – September 2020 appeared first on Commercial Property Executive.

SunTrust Plaza at Church Street Station. Image courtesy of Berkadia

A joint venture comprising Mason Capital Partners, Lincoln Property Co. and Pope & Land Co., have obtained a five-year $72.9 million bridge loan for the newly constructed SunTrust Plaza at Church Street Station in Orlando, Fla., from CIM Group. Berkadia arranged the financing, which marks the largest loan for a single asset in Orlando and the third largest in Florida this year.

READ ALSO: Seefried JV Delivers 1 MSF Orlando-Area Amazon Warehouse

Located at 333 S. Garland Ave., the 28-story, mixed-use SunTrust Plaza at Church Street Station was completed earlier this year. The office portion of the building is approximately 84 percent leased with Truist Bank, formerly known as SunTrust Bank, as the major tenant. Truist will occupy 43 percent of the building through 2030. It is the first office tower to be delivered in downtown Orlando in nearly a decade. The property has the largest high-rise floorplates in the Orlando central business district at 29,000 square feet.

Property details

The loan is secured by the 18 stories of Class A office space and the nine-level parking deck. The financing does not include the soon-to-open 180-key Marriott AC Hotel. The hotel, which tops the tower, is slated to open later this year. In addition to the guestrooms, the building has about 200,000 square feet of office space, 10,000 square feet of meeting space and 7,000 square feet of ground-floor retail. It also has an urban courtyard and integrated access to the Church Street SunRail station. The property features a façade of reflective glass and polished steel, showcasing its modern, geometric architecture.

The property is accessible from Interstate 4 and SR 408. It is within walking distance of City Hall, the Regional History Center and public library. The neighborhood has restaurants and entertainment venues including the Doctor Phillips Center for the Performing Arts and the Amway Center as well as retail, residential and hotel offerings. The Creative Village and Bob Carr Theater are a short free bus ride away via Lymmo.

The property is the preeminent asset in downtown Orlando because of its quality, location, amenities and superior rent roll, according to Michael Weinberg, a Berkadia managing director who helped arrange the financing. The Orlando Berkadia team included Managing Director Rebecca Van Reken and Associate Director Alex Fox. This is the second Orlando CBD office building financing transaction the Berkadia team has secured since the pandemic began. In May, Weinberg, Van Reken and Fox arranged financing for Fulcrum, a four-story, mixed-use property at 150 N. Orange, which is undergoing a transformative renovation as creative office and retail space.

CIM has also been an active lender during the COVID-19 crisis. The Los Angeles-based firm provided a $190 million bridge loan secured by International Plaza I & II in Dallas, a $95.6 million mortgage loan secured by Galleria Corporate Center in Scottsdale, Ariz., and a $100 million short-term liquidity facility secured by a portfolio of real estate assets in the Los Angeles area.

The post JV Lands $73M Bridge Financing for Orlando Tower appeared first on Commercial Property Executive.

2600 N. Normandy Blvd. Image courtesy of Seefried Industrial Partners

A partnership between Seefried Industrial Properties and Clarion Partners has completed a 1.1 million-square-foot industrial property near Orlando, Fla. Though the developer declined to reveal the identity of the building’s tenant, previous coverage indicates Amazon will occupy the facility.

The structure is the largest distribution center in Volusia County and is expected to create 500 jobs. The partnership funded the development with a $68.5 million construction loan from Wells Fargo, according to Yardi Matrix data.

The property occupies an 85-acre site at 2600 N. Normandy Blvd. in Deltona, Fla., and delivered after nine months of construction. The facility has a 34,275-square-foot office component, 350 trailer stalls and 1,034 auto parking spaces. The Conlan Co. served as general contractor for the Ford & Associates-designed project, and Kimley-Horn was the civil engineer. Situated a short distance from Interstate 4, the distribution center is 34 miles northeast of downtown Orlando.

Earlier this month, Seefried completed a $237 million robotic distribution center in Stone Mountain, Ga. The 640,000-square-foot building is also leased to the e-commerce giant. Last year, the company delivered three build-to-suit projects for Amazon: a 2.6 million-square-foot facility in Bakersfield, Calif.; a 2.3 million-square-foot warehouse in Birmingham, Ala.; and a 1 million-square-foot property in Greensboro, N.C. 

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Shoppes of South Semoran. Image courtesy of TSCG

TSCG has brokered the $18 million sale of The Shoppes of South Semoran, a 102,000-square-foot retail property in Orlando, Fla. Anthony Blanco, Lenard Williams, Mallory Silva and Gavin Walsh negotiated on behalf of the seller, Weingarten Realty.

A private entity affiliated with Core Investment Management acquired the Walmart-anchored shopping center, which was 97 percent leased at the time of closing. Professional Bank originated a $10.8 million acquisition loan, according to public records. The asset last traded in 2007, when Stoltz Real Estate Partners sold it for $14.5 million.

Located on 11 acres at 4520 S. Semoran Blvd., the property opened its doors in 1986 and was renovated in 2013, when Walmart Neighborhood Market started operating at the site. More than 75 percent of the gross leasable area is occupied by Walmart, Chase Bank, Dollar Tree and Wendy’s.

The shopping destination is situated along South Semoran Boulevard, which has a daily traffic of 65,000 vehicles, according to TSCG’s Blanco. There are at least 2 other Walmart stores within 3 miles of the property. Additionally, the site is 8 miles southeast of downtown Orlando.

In June, Blanco led another TSCG team which arranged the $7.1 million sale of The Shops at Christenbury, an 11,350-square-foot retail property in Concord, N.C. The brokerage company represented the seller, Thompson Thrift Development, while Marcus & Millichap assisted the buyer, Deville Developments.

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Tru by Hilton Orlando Convention Center. Image courtesy of Hilton

Hilton has opened a 259-key Tru by Hilton hotel in Orlando, its largest property under the value-oriented brand to date and its first in the central Florida city. Located on Westwood Boulevard, Tru by Hilton Orlando Convention Center is owned by Epelboim Development Group and managed by Highgate.

The eight-story, mid-scale hotel features free parking, an outdoor swimming pool, a fitness center and business center and pet-friendly rooms. In line with health and safety guidance from the local government, the property participates in the Hilton CleanStay Program with Lysol Protection to ensure a high standard of cleanliness and disinfection. Serves and amenities include the Hilton CleanStay Room Seal, which indicates that a room has not been accessed since being completely cleaned and disinfected, flexible housekeeping options and “knock and go” dropped-off room service.

The property also offers mobile check-in, Digital Key, free Wi-Fi, remote printing, social media wall and accessibility to outlets throughout the hotel. Tablets are available in the 2,880-square-foot lobby. Located at 6461 Westwood Blvd., the hotel is just south of the Convention Center Area and offers access to various dining, entertainment and shopping venues at Pointe Orlando, The Florida Mall and to Orlando’s theme parks.

The hotelier’s Tru by Hilton portfolio is designed for affordability and cross-generational appeal, with more than 130 locations open in North America.

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Ganesh Industrial Park. Image courtesy of Colliers International

After a massive spike in new cases earlier this summer, Florida saw its caseload moderate in August. In the meantime, state authorities took efforts to minimize the economic disruption of the pandemic. The state received approval to utilize federal money for unemployment benefits at the end of the month, which could offer Orlando’s residents a critical lifeline, following the pandemic’s sizable impact on the metro’s leisure and hospitality industry. 

Even though Orlando’s restaurants and theme parks have reopened with social distancing measures in place, activity in the metro’s commercial real estate sectors was muted in August. Though investment remained slow in most sectors, several key projects moved forward on the development side. Here’s our August selection of Orlando must-reads:

1. DEVELOPMENT – Unicorp National Developments breaks ground on O-Town West.

Plans for the $1 billion development call for office and retail space, as well as apartments and a hotel, according to Orlando Business Journal. The 250,000-square-foot retail component is 92 percent preleased. Marriott Vacations Worldwide Corp. has leased 300,000-square-foot for its new headquarters, slated to deliver in 2022. O-Town West is located near Interstate 4 along Palm Parkway. The project’s 1,000 apartments are expected to open in 2021 and 2022.

2. DEAL – Three-building logistics property sells for $22 million in Oviedo.

Ganesh Holdings sold the 198,000-square-foot Ganesh Industrial Park, which was 96.7 percent leased at the time of the sale. Allied Commercial Partners negotiated on behalf of the seller, and Marcus & Millichap assisted the buyer. Located on 9 acres at 5700, 5707 and 5712 Dot Com Court, the buildings delivered in 2003, 2006 and 2008. The tenant roster includes ELITE Simulation Solutions, ProActive Technologies and Siemens.

3. DEVELOPMENT – McCraney Property Co. kicks off industrial park’s second phase.

The company partnered with Tavistock Group to begin the 733,000-square-foot project within the 1.3 million-square-foot Infinity Park, according to Orlando Business Journal. The development, located near Orange County Convention Center, is home to a range of tenants including Pitney Bowes, which signed a 116,000-square-foot lease at the park earlier in the month. CBRE is marketing the property, slated for completion in 2021.

4. DEAL – JLL arranges $5.9 million sale of office property.

Executive Vice President Darryl Hoffman represented the seller, CDLP Properties LLC. Baldwin Oak LLC acquired the 20,600-square-foot, Class A asset. Built in 2006, the two-story building is occupied by Cuhaci & Peterson Architects and Engineers. Located at 1925 Prospect Ave., the asset is within 2 miles of Orlando Executive Airport.

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North Lake Business Park

Taurus Investment Holdings has acquired North Lake Business Park in Altamonte Springs, Fla., for $28.5 million. Public records show MetLife Investment Management originated a $20.8 million acquisition loan for the new owner. 

Yardi Matrix data shows Real Capital Solutions sold the 270,555-square-foot campus. The company acquired the asset in 2016 for $17.2 million from Teachers’ Retirement System of the State of Illinois.

Located at 370 Northlake Blvd., the property has a half-mile frontage on Interstate 4. It is situated less than 2 miles from Altamonte Springs Florida Hospital and some 10 miles north of downtown Orlando. Completed in phases between 1981 and 1987, the office park comprises 15 one-story buildings spread across a 29-acre site. 

North Lake Business Park was 86 percent leased at the time of sale, with the tenant roster including 39 national and international companies such as BioPlus Specialty Pharmacy, Eizo Rugged Solutions and Wood Group. Executive Managing Director Douglas Mandel from Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer.  

In April, Taurus spent $74.5 million for 300 Baker Ave. in Concord, Mass. The 410,300-square-foot property is situated on approximately 75 acres and is home to electronics manufacturer GenRad.

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McDonald’s Flagship in Orlando, Fla. Image courtesy of McDonald’s

The net-zero concept is gaining traction across the U.S. One of the most recent adopters of the trend is McDonald’s, which earlier this summer, announced it had completed construction of the first-of-its-kind quick-service restaurant designed to generate all the power it needs from renewable energy.

The flagship restaurant is located in Orlando, Fla., on the west side of Disney’s property on Buena Vista Drive, near the All-Stars Resorts. The facility creates enough on-site energy to fully cover its needs on a net annual basis and will serve as a learning hub for the company’s attempts to reduce energy and water use. Due to the COVID-19 pandemic, the facility is only open for drive-thru and delivery services.

The 8,024-square-foot restaurant features:

• A photovoltaic solar panel array with 1,066 solar panels able to generate 600,000 kilowatt-hours per year
• 1,500 square feet of photovoltaic glass panels integrated throughout the building able to generate nearly 70,000 kilowatt-hours per year
• More than 600 square feet of louver windows that open and close automatically, bringing cool air in and warm air out
• More than 1,700 square feet of green, plant-covered walls absorbing carbon dioxide, promoting biodiversity and retaining water
• Solar-powered poles placed in the parking lot offset more than 9,000 kilowatt-hours annually
• Low-flow plumbing fixtures, water draining pavers and native Florida plants reduce water usage and waste
• Stationary bikes used by customers to power the McDonald’s golden arch string lights

In the coming year, McDonald’s will pursue the International Living Future Institute’s Zero Energy Certification. The energy data from the restaurant will be used by McDonald’s to achieve its global sustainability goals, including sustained progress toward the company’s target to reduce greenhouse gas emissions by 36 percent in restaurants and offices by 2030 compared to 2015 as the base year.

READ ALSO: Net Zero as the New Standard

The flagship restaurant announcement comes after McDonald’s last year’s investment in two virtual power purchase agreements for 380 megawatts of solar and wind power. Once these begin commercial operation, they are estimated to produce enough energy to power more than 2,500 restaurants, while offsetting more than 700,000 metric tons of carbon dioxide emissions annually.

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Ganesh Industrial Park. Image courtesy of Colliers International

Ganesh Holdings Inc. has completed the $22.2 million sale of Ganesh Industrial Park, a three-property complex encompassing 198,000 square feet in the Orlando suburb of Oviedo, Fla. Allied Commercial Partners negotiated on behalf of the seller, while Marcus & Millichap assisted the buyer, a private investor.

Located on 9 acres at 5700, 5707, and 5712 Dot Com Court, the three facilities were completed in 2003, 2006 and 2008, respectively. The park was 96.7 percent occupied at the time of closing. The tenant roster includes ELITE Simulation Solutions, ProActive Technologies, Siemens, UnitedHealthcare and the University of Central Florida.

The complex is the largest industrial/flex park owned by a private investor in Seminole County and one of the few industrial investment properties to change hands in Florida since the onset of the pandemic, according to Colliers. The site is 16 miles northeast of the city center and 19 miles from Orlando International Airport. Other companies with facilities in the vicinity include Nutrex Research and FSF Manufacturing.

Nick Ledvora, first vice president at Marcus & Millichap, represented the buyer in the transaction. Managing Partner Sher Tolan of Allied Commercial Partners assisted the seller.

Colliers International Executive Managing Director Joe Rossi and Managing Director Nick Hanson served as transactional brokers. Hanson joined Colliers in May, after serving as vice president of investments at Marcus & Millichap’s Orlando office and director of the firm’s National Office and Industrial Properties for six years.

The post Northeast Orlando Industrial Park Trades for $22M appeared first on Commercial Property Executive.

1925 Prospect Ave., Orlando, Fla. Image via Google Street View

JLL has closed the sale of 1925 Prospect Ave., a more than 20,600-square-foot Class A office property in Orlando, Fla. Baldwin Oak LLC acquired the asset for $5.9 million. Executive Vice President Darryl Hoffman represented the seller, CDLP Properties LLC, in the transaction. The company purchased the office building in 2005 for $566,900, according to Yardi Matrix data.

Located on one of the only 100 percent fee simple parcels in Baldwin Park, the two-story building is occupied by Cuhaci & Peterson Architects and Engineers. Built in 2006, 1925 Prospect Ave., provides convenient access to various shopping, entertainment and dining venues including Lake Baldwin, Baldwin Park, Five Guys, Publix Supermarket and Leu House Museum.

According to Commercial Café, there are six office spaces for lease in the Baldwin Park neighborhood, of which two are Class A office buildings with an average office rate of $24.5 per square feet per year, while the average asking office rent per square feet in Baldwin Park is $24.67 per square feet per year.

The closing comes a few days after JLL finalized the $46.2 million disposition of a two-property portfolio totaling 223,249 square feet of office space in Scottsdale, Ariz.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

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400 International Parkway. Image courtesy of Colliers International

Several months into the pandemic, Orlando’s tourism and hospitality industries remained in turmoil through July. The 54 event cancellations at the Orange County Convention Center alone will have an economic impact estimated by the county at nearly $1.1 billion. Even the metro’s industrial properties took a hit, barely avoiding negative absorption, a situation not seen since 2011. Although Orlando’s major theme parks have reopened with social distancing measures in place, investors and developers remained wary. Here’s our July selection of must-reads:

1. DEVELOPMENT – South Terminal Complex gets delayed, downsized.

Greater Orlando Aviation Authority cut more than $200 million and removed four gates from the $1.8 billion Terminal C project due to economic challenges posed by COVID-19, according to FOX 35 Orlando. In 2017, construction started on the 2.7 million-square-foot development which is nearly 60 percent complete. The modified plans move the completion date out from late 2021 to February 2022 at the earliest.

2. LEASING – GCR inks 37,000-square-foot lease at Lake Mary office park.

The public sector software and services firm will open a Center of Excellence at 400 International Parkway within Heathrow International Business Center. Starwood Capital Group purchased the six-building campus in 2017 for $151.1 million, Yardi Matrix shows. The 100,821-square-foot, four-story building housing GCR features 28,000-square-foot floorplates and a parking ratio of four spaces per 1,000 square feet. Colliers International represented the tenant.

3. DEVELOPMENT – Orlando Health-anchored MOB debuts in St. Cloud.

Catalyst Healthcare Real Estate delivered the 50,000-square-foot building on the campus of Orlando Health St. Cloud Hospital. Located at 1330 Budinger Ave., the 84-bed facility serves both as a patient access point for the hospital and as a walk-in clinic. Outpatient services include cardiology, diagnostic imaging, gastroenterology, urology and primary care. Celebration Orthopaedic, Sports Medicine Institute and Eye Florida are also on the building’s roster.

4. DEVELOPMENT – StorQuest opens first Kissimmee facility.

The William Warren Group completed the 64,361-square-foot StorQuest Express at 161 Oakwood Drive. The company financed the development with a $4.1 million construction loan from CAMPUS USA Credit Union. The property consists of five single-story buildings. The facility offers climate-controlled and drive-up access units ranging from 25 to 400 square feet.

The post Orlando Commercial Real Estate Wrap-Up – July 2020 appeared first on Commercial Property Executive.

7-ELeven at 9725 Universal Blvd. Image courtesy of JLL

JLL Capital Markets has brokered the $7.5 million sale of a 3,010-square-foot building leased to 7-Eleven in Orlando, Fla. A private investor purchased the recently delivered property from Comterra Development Group, public records show. Senior Director John Krzyminski and Analyst Max Krzyminski assisted the seller and procured the buyer.

Located on a 1-acre site at 9725 Universal Blvd., the single-story building was delivered earlier this year and features gasoline pumps. Convenience store 7-Eleven has 15 years left on its lease. The seller and developer acquired the land for $1.5 million from Southwood Development Co. in 2016, according to Orange County records.

Situated within Orlando’s tourist corridor, the property is across the street from a Walgreens store and close to two residential communities totaling 780 units. Downtown Orlando is 11 miles away. More than 36,600 people live within 3 miles of the store, according to JLL data.

Earlier this month, a different JLL team completed the $11.5 million disposition of Bensalem Crossing, a 67,215-square-foot retail property in Bensalem, Pa. The company represented the seller and secured the acquisition financing for the new owner.

The post JLL Negotiates Sale of Orlando 7-Eleven Property appeared first on Commercial Property Executive.

StorQuest Express. Image via Google Street View

The William Warren Group has debuted StorQuest Express Self Storage, a new, 64,361-rentable-square-foot facility in Kissimmee, Fla. The property is “always open”, providing 24/7 on-site or online customer support.

In 2019, the company funded the development with a $4.1 million construction loan from CAMPUS USA Credit Union, according to Yardi Matrix data. The owner acquired the site for $525,000 from a private investor in 2018, Osceola County records show.

Located on 4 acres at 161 Oakwood Drive, the property encompasses five single-story buildings completed earlier this year. The facility provides climate-controlled and drive-up access units ranging from 25 to 400 square feet. Additionally, the store has an on-site manager, security cameras and both auto and RV parking.

There are at least 10 other self storage properties within a 3-mile radius, according to Yardi Matrix. The site is 18 miles south of downtown Orlando and 6 miles northeast of downtown Kissimmee.

In May, The William Warren Group paid $8.7 million for a 66,273-rentable-square-foot self storage property in Venice, Fla. Skymar Capital Corp. provided a five-year, $6 million loan for the purchase.

The post The William Warren Group Debuts New Orlando Facility appeared first on Commercial Property Executive.

Orlando Health building in St. Cloud. Image courtesy of Catalyst Healthcare Real Estate

Catalyst Healthcare Real Estate has wrapped up construction on a 50,000-square-foot medical office building in St. Cloud, Fla. Anchored by Orlando Health St. Cloud Hospital, the development broke ground in 2019. According to Osceola County records, Ameris Bank provided nearly $10 million in construction financing. Davis Stokes Collaborative served as the project architect.

Located at 1330 Budinger Ave., at the intersection of U.S. Highway 192 and Budinger Avenue, the 84-bed facility is the first multi-specialty medical property developed on the campus of OHSCH, the former St. Cloud Regional Medical Center. Earlier this year, Orlando Health entered into an agreement to become the majority owner of the newly-built asset.

The facility provides patient access point and serves as a walk-in clinic as well. Outpatient services include cardiology, diagnostic imaging, gastroenterology, urology and primary care. Celebration Orthopaedic, Sports Medicine Institute and Eye Florida also lease space at the building, which is some 2 miles from the city center in the Medical Arts District. There are numerous dining and shopping options alongside the highway, including St. Cloud Square.

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The Element Orlando Universal Blvd. Image courtesy of Marriott International

Hotel occupancy rates are recovering across the country, just in time for Peachtree Hotel Group to open a new 165-key property in Orlando, Fla. Located in the 20-acre IOCON Park entertainment district, the Element Orlando Universal Blvd is part of the Marriott International brand of hotels.

Owned, developed and operated by Peachtree, the extended-stay hotel at 8278 Universal Blvd. is just east of Interstate 4, some 10 miles from the metro’s downtown and about 14 miles from Orlando International Airport. The surrounding area offers more than 40 restaurants, bars, entertainment and boutiques, and the Orange County Convention Center, Universal Studios and SeaWorld Orlando are nearby.

The eight-story building features studio and one-bedroom suites which include a kitchen equipped with microwaves, mini-fridges and toaster ovens. Guests at the sustainability and wellness-focused hotel will have access to a breakfast bar, on-site store, fitness center and year-round outdoor heated, natural saline pool. The pet-friendly property offers pet amenities such as treats, bowls and beds for dogs.

The hospitality sector has a long road ahead to recovery, but U.S. hotel occupancy has climbed from its low point of 22 percent in early April to 43.9 percent during the week ending June 20, according to data from STR.

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Sand Lake Commerce Center. Image courtesy of Cushman & Wakefield

Even with Universal Studios and SeaWorld resuming park operations earlier in June, Orlando remains in a dicey position. Shortly after beginning the process of reopening the economy, the metro’s COVID-19 caseload spiked, leading to many businesses yet again suspending operations. Walt Disney World plans to open its doors to the public on July 11 following months of closure, even as the theme park’s Anaheim, Calif., location pushed out its timeline following guidance from the state. Despite the myriad uncertainties surrounding commercial real estate operations, activity continues to occur as investors, developers and tenants position themselves to come out the other end of the crisis. Check out our June selections of Orlando must-knows: 

1. DEAL – McDonald Development sells southern Orlando warehouses for $26 million.

Cushman & Wakefield brokered the sale of the 230,117-square-foot Sand Lake Commerce Center to LBA Logistics. The Class A industrial property was delivered earlier this year and is located at 7705-7725 Winegard Road, some 7 miles south of downtown and 5 miles west of Orlando International Airport. The two buildings feature 28- to 30-foot clear heights, 180 foot truck courts and a total of 79 loading docks and four grade-level drive-in doors.

2. LEASE – Residential tower lands Michael Jordan-themed retail tenant.

The Trophy Room will occupy some 2,000 square feet on the ground floor of Modera Central under a 10-year lease, according to Orlando Business Journal. Mill Creek Residential Trust’s 22-story building came online late last year and has 25,000 square feet of office and 12,500 square feet of retail space in addition to its 350-unit residential component, Yardi Matrix shows. Bishop Beale Duncan acted on behalf of the landlord.

3. M&A – Simon, Taubman dispute leaves Orlando mall’s future uncertain.

Retail giant Simon’s public withdrawal from its previously agreed $3.6 billion merger agreement with Taubman Centers Inc. led a judge to refer the case to mediation before the end of July. Should the merger move forward, Simon will become co-owner of Orlando’s 1.1 million-square-foot luxury Mall at the Millenia. The property at 4200 Conroy Road is 7 miles southwest of downtown, a short distance from Universal Studios.

4. DEVELOPMENT – Area REALTOR Association announces new HQ.

The Orlando Regional REALTOR Association plans to redevelop and move into Orlando Executive Park, a three-building, approximately 100,000-square-foot office property 5 miles north of downtown at 5405, 5420 and 5421 Diplomat Circle. The association acquired the campus in late 2019 for $9.5 million, according to public records. General contractor PBC will break ground on the project in January 2021, with completion slated for the second half of 2022. The company’s current headquarters is located 1 mile west, at 1330 Lee Road.

5. DEVELOPMENT – Mills 50 building slated for redevelopment.

A private investor/developer filed plans to tear down an aging 5,400-square-foot building at 719-723 N. Mills Ave., replacing it with an 8,800-square-foot retail development, according to Orlando Business Journal. 7-Eleven, which closed a store in the building in late 2018, sold the property last summer for $750,000. The neighborhood boasts a diverse retail scene less than 2 miles from downtown Orlando and the city’s executive airport.

The post Orlando Commercial Real Estate Wrap-Up – June 2020 appeared first on Commercial Property Executive.

Sand Lake Commerce Center. Image courtesy of Cushman & Wakefield

LBA Logistics, an Irvine, Calif.-based industrial real estate investment and management firm, has expanded its Florida holdings with the acquisition of Sand Lake Commerce Center in Orlando, Fla., for $26.4 million. LBA purchased the two-building, Class A, 230,117-square-foot industrial asset near Orlando International Airport from the owner and developer, McDonald Development Co.

READ ALSO: Orlando Commercial Real Estate Wrap-Up – May 2020

Sand Lake Commerce Center, located at 7705-7725 Winegard Road, near the intersection with Sand Lake Road, was completed in December 2019. The property is situated on a 20.3-acre site and has a vacant retail outparcel on a hard corner. Features include tilt wall construction, 28-foot to 30-foot minimum clear heights, ESFR fire protection, three-phase power, a shared tuck court with 60-foot concrete aprons and tinted glass with aluminum storefronts.

Mike Davis of Cushman & Wakefield said in prepared remarks that Sand Lake Commerce Center provided a rare opportunity to acquire a Class A industrial asset in Orlando. He noted the property had robust interest from investors who were seeking infill last-mile industrial buildings. Davis was among the Cushman & Wakefield team members who arranged the sale on behalf of McDonald Development. He was joined by Rick Brugge, Rick Colon, Mark Hardee and Zach Eichholtz.

Colon said in prepared remarks the modern construction and Sand Lake Road frontage provided a clear leasing advantage over competition in the area, where industrial assets were built in the 1980s and 1990s. The property was in contract to sell during the construction period and was 20 percent leased at the time of closing.

Company deals

McDonald Development has been active in the Orlando industrial market. In 2016, Cushman & Wakefield, including Davis and Brugge, represented McDonald when it sold LeeVista Business Center, a 479,100-square-foot warehouse and distribution center adjacent to Orlando International Airport, to Colony Capital for $47.9 million. In April 2018, McDonald Development contracted with Cushman & Wakefield | Thalhimer to market the 458,754-square-foot Carolina Commerce Center, a Greer, S.C., property the firm was building near the Greenville/Spartanburg Airport on nearly 43 acres.

Last year in March, LBA Logistics, which also owns industrial sites in Jacksonville, Fla., and Winter Park, Fla., acquired 3771 Channel Drive, a 624,356-square-foot warehouse and distribution center in West Sacramento, Calif., from Sacramento Foodco Investors in a private deal.

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Image via Pixabay.com

In May, Orlando slowly started to recover from the difficulties brought by the coronavirus pandemic. With most theme parks preparing to gradually reopen, the City Beautiful hopes hotels are next. In the meantime, commercial real estate activity hummed along, albeit at a slower pace. While a downtown building is about to change designation, a resort changed operators and a medical office building changed hands. Here’s our list of May must-reads:

1. DEVELOPMENT – Downtown office tower turns residential.

The 128,000-square-foot building at 200 S. Orange Ave. is slated for a major conversion, per Orlando Business Journal. According to submitted plans, the 10-story property is to include eight floors of residential units atop ground-floor retail and first-floor office space. Empty since Truist Financial Corp. relocated in January, the LEED Gold-certified asset is under contract to be purchased by Lincoln Property Co.

2. OPERATIONS – Margaritaville Resort Orlando gets new property manager.

Encore Capital Management selected Davidson Hotels & Resorts to manage the 186-room casual-luxe property which reopened on May 15. Davidson currently operates Margaritaville Hollywood Beach Resort in Hollywood Beach, Fla.; Margaritaville Hotel Nashville Downtown in Nashville, Tenn.; and Paradise Point Resort and Spa in San Diego, Calif., with plans to reposition and convert to Margaritaville Island Resort San Diego.

3. DEAL – MOB asset changes hands in Oviedo.

IRA Capital acquired Oviedo Crossing Medical Center, a 22,000-square-foot medical office building. According to GrowthSpotter, the fully leased property at 7400 Red Bug Lake Road in Oviedo traded for $8.7 million, the sale also being subject to a $5.6 million loan from Siemens Financial Services. The building is less than 1 mile south of AdventHealth Oviedo Emergency Room.

4. PEOPLE – Colliers grows Central Florida industrial, office roster.

Nicholas Hanson joined the firm as managing director of investment services, partnering with Joe Rossi, T.J. Campton and Mackenzie Daugherty. Most recently, Hanson served as vice president of investments within Marcus & Millichap’s Orlando office and as director of the firm’s National Office and Industrial Properties Group. During his six-year tenure, he closed industrial and office transactions across Central and North Florida.

The post Orlando Commercial Real Estate Wrap-Up – May 2020 appeared first on Commercial Property Executive.

Orlando. Image via Needpix.com

Orlando’s commercial real estate had its fair share of activity in April, despite mounting challenges from the COVID-19 pandemic. In one of the month’s largest deals, Amazon signed a 1.1 million-square-foot lease agreement as e-commerce businesses continued to grow. Alongside a number of key investment transactions, development activity also pushed forward. Read our April selection of Orlando must-knows:

1. LEASING – Amazon signs 1.1 million-square-foot industrial lease.

The e-commerce giant’s new space is at 3015 Coast Line Drive, according to Orlando Business Journal. Yardi Matrix shows the former Winn-Dixie distribution center consists of two buildings completed in 1975 and 1997 on 78 acres. Additional construction is planned for the site, which is 30 miles south of Seefried Industrial Properties’ 1.4 million-square-foot development for Amazon in Deltona.

2. DEAL – Kissimmee Quality Inn & Suites changes hands.

Rosemont Hotels Inc. sold the 113-key property to Japan-based Sarasa Hotels for $10.6 million. Located at 2945 Entry Point Blvd., the 1984-built hotel is 4 miles from Walt Disney World Resort, close to Margaritaville and the ESPN Wild World of Sports. HVS Brokerage & Advisory brokered the deal.

3. DEAL – Tratt Properties pays $41.2 million for a CVS Distribution Center.

The company purchased the two-building, 713,585-square-foot property as part of a 1031 exchange, following the $34.9 million disposition of a 526,320-square-foot warehouse leased to Pepsi in Winston-Salem, N.C. Situated on 43 acres at 8201 Chancellor Drive, the CVS distribution center is close to Florida’s Turnpike and the Beach Line Expressway, with direct access to Interstate 4. Cushman & Wakefield brokered the transaction.

4. DEVELOPMENT – Cedarwood Cos. completes first U.S. self storage development.

The six-story, 787-unit facility delivered on a 1-acre parcel just south of downtown at 930 Sligh Blvd., close to Interstate 4 and the Orlando Regional Medical Center. The 117,000-square-foot property features climate-controlled units ranging from 20 to 286 square feet. Cedarwood had financed the development with an $8.5 million loan from Huntington Bank.

5. DEAL – Orlando Health to buy St. Cloud Regional Medical Center.

Community Health Systems Inc. agreed to sell its majority ownership share in the 84‑bed facility in St. Cloud. Prior to the agreement, Orlando Health already held a minority interest in the asset. The hospital at 2906 17th St. offers a wide range of services, including imaging and radiology, and has emergency room facilities. The transaction is expected to close this summer.

6. DEAL – SRS arranges Shoppes at Veranda Park sale.

The brokerage assisted the seller, Unicorp National Developments, in the $3.2 million disposition of the 17,603-square-foot retail center. Located at 2295 S. Hiawassee Road within the MetroWest master-planned development, the asset was fully leased to eight tenants at the time of sale. JLL represented the buyer in the deal.

The post Orlando Commercial Real Estate Wrap-Up – April 2020 appeared first on Commercial Property Executive.

Benjamin Landes, Research Analyst at JLL. Image courtesy of JLL

Until early this month, when the entire state of Florida went under lockdown, Central Florida’s High-Tech Corridor—the Interstate 4 corridor—hadn’t been showing any signs of slowing down. A dynamic technology sector, as well as the area’s more traditional economic engines—tourism and the entertainment industry—were fueling its resurgence.

According to a recent JLL report, more than 265,000 people filled tech positions in 2019 in Central Florida and the number was expected to continue to grow, before the coronavirus outbreak. However, around the same time, the Walt Disney Resort closed, travel was restricted and companies such as OneWeb Satellites in Merritt Island, Fla., announced workforce cuts. Time will tell if this is just the beginning of more layoffs in the area of tech.

READ ALSO: How Coronavirus Is Impacting Office Leasing

JLL Research Analyst Benjamin Landes, who has been tracking the Millennial migration phenomenon and the impact of increased tech activity in the region, pointed out that, as a result of these two trends, there has been a significant change in leasing and development activity in Central Florida in the past two years. He expects the resurgence to continue, despite the fact that, at this point, firms are delaying any big decisions in terms of leasing and development. 

What was the state of leasing activity among tech firms across Central Florida prior to the COVID-19 crisis?

Landes: Over the 12 to 24 months before the outbreak, we saw a dramatic increase in leasing by technology companies in Central Florida. The number one reason a firm chooses any location is almost always talent. The High-Tech Corridor is home to over 500,000 students enrolled in a diverse set of programs across dozens of universities, colleges and technical schools. With programs ranging from certifications in production technology for manufacturers on the Space Coast to the world’s foremost entomology program at the University of Florida, employers find filling positions much easier when they have a large, diversified talent pool to hire from.

Secondly, new firms were also attracted to the area’s low cost of living and burgeoning talent pipeline. Finastra, a British fintech firm founded in 2017, found everything they were looking for in Lake Mary, Fla., and leased 109,000 square feet, which represents the entire Phase I of The Edison at Primera. Existing firms were also finding success and expanding their Central Florida operations. Fattmerchant opened its doors with less than 3,500 square feet back in 2015, but expanded to over 18,000 square feet in 2019, after announcing plans to expand its staff to nearly 200 workers.

Have you noticed any changes in activity since the coronavirus pandemic started?

Landes: Social distancing has been a huge disruption in a lot of ways and could have lasting impacts on the way we live, work and socialize. Due to the unknowns about the duration and extent of the disease spread, it’s hard to predict the impact on the local economy. Firms are generally delaying big decisions, as they look for signals on where their business is headed this year.

Which real estate sectors were benefiting the most from growth in the high-tech sector, and why?

Landes: The growth of the high-tech sector has had the strongest impact on office real estate in Central Florida. Over the 12 months prior to the pandemic, technology companies leased more than 1 million square feet of office space across the High-Tech Corridor. Additionally, many tech firms and startups were working out of flex office spaces, which came with a lower price tag and more flexibility to do light manufacturing or lab work, as well as administration and research.

Additionally, Central Florida’s supply of office space has been constrained by a pronounced lack of big-block spaces, with almost nothing over 50,000 square feet available in the region. This spurred more development, as rental rates were finally beginning to rise to levels that merit new construction. While raw land can hardly be called “scarce” in Central Florida, desirable raw land is becoming more and more so.

READ ALSO: CPE’s Coronavirus Coverage

Give us an example of a recent or upcoming office project making an impact in the region. Why are these appealing to Millennials and Gen Zers?

Landes: Water Street Tampa is a perfect example. First of all, it’s located right in the heart of downtown, a few blocks outside of the main central business district. Rather than being lost in a forest of corporate silos, Water Street stands out. Just off the bay, the site extends from the Tampa Marriott Water Street to the Sparkman Wharf retail and office venue, both near completion of extensive renovations. 

1001 Water St. Image courtesy of JLL

Secondly, the building at 1001 Water St. was designed to “wow” today’s modern workforce with a biophilic design, which integrates natural materials with access to daylight, and expansive views of beautiful Tampa Bay. Floor-to-ceiling windows and double-height terraces with gardens fill the offices with natural light and connect people to nature. This design extends throughout the entire district and has been proven to improve wellness for workers, which, in return, is expected to increase productivity.

Finally, the amenities are virtually unprecedented in Central Florida. The 20-story penthouse floor, usually reserved for top-dollar tenants, is an amenity floor designed for use by all tenants, featuring a lounge, a terrace and a large meeting room.

For Brevard County, Tampa Bay and Orlando—do you see a different recipe for success in each of these markets or do they rely on the same fundamentals for attracting a younger workforce?

Landes: Brevard, Tampa and Orlando are three completely different animals. While they all lie along the High-Tech Corridor and they all boast thriving technology sectors, each has unique characteristics that define their appeal, growth and specialization.

Brevard County was built on the water and around the space industry. It offers an unparalleled quality of life, paired with a plethora of unique opportunities to work on a revolutionary technology that will forever alter the course of human history. From rocket scientists to production technicians, Brevard had the most highly concentrated high-tech economy in Florida, according to a 2018 report from the Milken Institute.

Orlando’s draw is the ultimate live-work-play arrangement. Imagine living 20 minutes away from six of the world’s top 25 theme parks, in an affordable home that is also only 20 minutes away from work. That is the reality for hundreds of thousands of people who live in and around Orlando. The city also boasts the nation’s second-largest university, which offers not only a world-renowned hospitality program but an engineering school that provides the most engineers to the aerospace industry in the country.

Tampa’s beautiful bay and glimmering coastline have made it a prime target for domestic migration, pretty much since the invention of air conditioning. Now, over 80 colleges, universities and technical schools in the region contribute to a robust talent pipeline. What’s more, an average of 75 percent of graduates end up staying in Florida—a majority within the Tampa MSA, where they find a rich history, cultural diversity and an amazing quality of life.

Let’s talk about demographic data. How much of the Millennial talent is locally educated and how much of the younger workforce is coming from other states?

Landes: The vast majority of younger talent in Central Florida was educated locally. Two-thirds of University of Central Florida graduates and three-quarters of University of South Florida graduates stay in Florida after graduation, according to the schools. Many of the young professionals who live and work in the area originally migrated from another state to attend university, but decided to stay. That is not to say, however, that the same is true of older Orlando professionals. Ordinarily, Florida gets over 1,000 new residents every day—many from colder climates along the Rust Belt and in the Northeast. Puerto Rico has also contributed significantly in recent years, partially due to the devastation caused by Hurricane Maria in 2017.

Will the trend of Millennials flocking to Central Florida’s High-Tech Corridor evolve going forward? 

Landes: I don’t see this trend reversing anytime soon, or even in my lifetime, to be frank. The draw of the Sun Belt is undeniable and Central Florida is more appealing than the competition. The weather is nicer for longer periods, the cost of living is lower and there are so many fun things to do.

To bolster the trend, firms simply need to keep investing in the region. As the population continues to grow across the High-Tech Corridor, we’ll need more housing, more office space and more retail centers. Millennials love transit-oriented development and amenity-rich environments that enable the live-work-play experience, while giving them the feeling of community. Finally, they will want to see sustainable investments that won’t spoil Florida’s natural beauty for the next generation. 

How do you see the region’s commercial real estate market developing further, given the challenges posed by the pandemic?

Landes: In times of uncertainty, we often see delays in decision-making for leasing and investment, as well as moderate demand, as short-term cost reduction can overtake long-term planning. Real estate investment has fluctuated during previous crises, but the overarching trend over time has been for increased allocations to the sector and we see no reason for this to change. We will know more about potential longer-term impacts on real estate when we have greater clarity on the extent and duration of the outbreak and the related response from consumers, businesses and government.

The post Why Millennials Prefer Central Florida’s High-Tech Corridor appeared first on Commercial Property Executive.

Image via Pixabay.com

Cedarwood Cos. has wrapped up the development of its first self storage property in the U.S., a 787-unit building in Orlando, Fla. The developer acquired the site for $1.6 million from Battaglia Group Management in 2018, according to public records. Huntington Bank provided $8.5 million in construction financing for the project.

Located on a 1-acre parcel at 930 Sligh Blvd., the 117,000-square-foot building features all climate-controlled units, ranging from 20 to 286 square feet. The six-story facility includes passenger elevators, security cameras, moving carts and supplies and truck rentals.

Situated near downtown Orlando, the property is close to Interstate 4 and the Orlando Regional Medical Center. Additionally, several residential communities are within a 1-mile radius.

US Storage Centers will manage the building, making it the fourth addition to the company’s management portfolio in the Orlando market, according to President & CEO Charles Byerly. Last fall, the company paid $9 million for a 118,595-square-foot facility in Bakersfield, Calif. The seller was a private investor.

The post Cedarwood Cos. Wraps Up Construction on Orlando Facility appeared first on Commercial Property Executive.

Walt Disney World. Image via Pixabay.com

March was a busy month in Orlando’s real estate sector, despite growing concerns around the widespread COVID-19 pandemic. While construction work continued at many of the city’s major projects, the Theme Park Capital of the World’s namesakes largely closed for business. The market’s retail assets also face challenges with rent issues on the horizon, though some relief is on the way. Read our March selection of Orlando must-knows:

1. OPERATIONS – Hospitality sector shuts down amid coronavirus concerns.

Walt Disney Co. closed the doors of Walt Disney World Resort, and other theme parks in the metro—including SeaWorld, Adventure Island, Discovery Cove and Universal Orlando Resort—followed suit, according to clickorlando.com. As tourism slows to a halt, with some hospitality assets—including the Hyatt Regency at the Orange County Convention Center—also halting operations. Reopening dates have yet to be determined.

2. DEVELOPMENT – Work on major urban projects continues.

Orlando has several major projects underway where work has not been halted, according to Orlando Business Journal. One of them is the $2.2 billion south terminal at Orlando International Airport, which is expected to wrap up in late 2021. The $2.3 billion Interstate 4 extension project will also continue to move forward. Construction work on Universal’s Epic Universe park will not cease, although the 700-acre project is not expected to open until 2023.

3. OPERATIONS – Publix waives rents for two months.

Publix owns 282 shopping centers, according to Tampa Bay Times. The supermarket chain will offer rent relief to its tenants forced to close due to the coronavirus pandemic. In addition to the two-month rent relief, the company also is waiving payments for common-area maintenance fees and taxes, regardless of tenant access to other forms of financial aid. 

4. DEAL – Tratt Properties buys CVS distribution center.

A closed-ended fund managed by EXAN Capital sold the property for $41.2 million, according to GrowthSpotter. The 713,585-square-foot facility serves nearly 500 stores. Located on 43 acres at 8201 Chancellor Drive in southern Orlando, the warehouse is close to Florida’s Turnpike and the Beachline Expressway. Cushman & Wakefield assisted the seller.

5. DEAL – Downtown 7-Eleven trades for $6.3 million.

JLL Capital Markets brokered the sale of the 2,990-square-foot retail building on behalf of the seller. A private investor purchased the asset at a 4.17 percent cap rate, the lowest for a 7-Eleven outside of California, according to the brokerage firm. The store at 83 E. Colonial Drive opened in 2000.

The post Orlando Commercial Real Estate Wrap-Up – March 2020 appeared first on Commercial Property Executive.

Orlando. Image via Pixabay.com

Orlando remains a hospitality hot spot, and the four hotel projects that landed $140 million in financing last month are one of the many hints that this is not going to change anytime soon. Meanwhile, a major mall is set to change hands as part of a larger, $3.6 billion acquisition. Here’s Commercial Property Executive‘s selection of Orlando must-knows for the past month:

1. DEAL – The Mall at Millenia to change hands as part of $3.6 billion Taubman acquisition.

Simon Property Group is set to acquire an 80 percent interest in Taubman Realty Group, which owns 34 Class A malls across the country. The 1.2 million-square-foot Mall at Millenia, located 3 miles from Universal Studios Florida, just off Interstate 4, is slated to trade as part of this transaction. The shopping mall’s  tenant roster includes Bloomingdale’s, Macy’s, Neiman Marcus, H&M and the Cheesecake Factory, among many others.

2. FINANCING – HALL Structured Finance closes $140 million loan for new hotels near Disney.

The four projects located at the western entrance of Walt Disney World Resort add up to 997 guestrooms and are slated to come online by year-end. The list of properties underway includes a Fairfield Inn, a Residence Inn, a Homewood Suites and a Home 2 Suites, all being developed by Doradus Partners.

3. DEAL – Brightman-Gil Real Estate buys Maitland office building.

Crocker Partners sold the 174,000-square-foot asset located at 851 Trafalgar Court in Maitland, Fla. CBRE assisted the seller in the $28.2 million transaction. The buyer received a seven-year, $18.6 million loan from Reinsurance Group of America. The asset last changed hands in 2014, when Crocker acquired it from GID for $14.9 million.

4. DEAL – Griffin Industrial acquires second Orlando industrial asset.

The company bought the property from an individual private investor for $7.9 million, according to public records. The property came online in 1985 and is located at 3320 Maggie Blvd. The 108,000-square-foot, fully leased facility increases Griffin’s footprint to 41 assets totaling almost 4.6 million square feet.

The post Orlando Monthly CRE Wrap-Up (Feb. 2020) appeared first on Commercial Property Executive.

Maitland Lakes

Crocker Partners has sold Maitland Lakes, a 174,000-square-foot office property near Orlando, Fla., to Brightman-Gil Real Estate Investments for $28.2 million. The new owner financed the acquisition with a seven-year, $18.6 million loan provided by Reinsurance Group of America, according to Yardi Matrix. CBRE represented the seller. 

The property last traded in 2014 when Crocker purchased it from GID for $14.9 million. In the six years that followed, the firm brought the asset’s occupancy to 91 percent. The tenant mix includes Sprint, Wiley and North American Title Co., according to Yardi Matrix.

Located alongside Interstate 4 at 851 Trafalgar Court in Maitland, Fla., the property opened its doors in 1984. In 2016, Crocker renovated the building by upgrading elevators, improving common areas and completely redesigning the on-site café.

With this purchase, Crocker has continued its expansion in Central Florida. In January, the firm partnered with PCCP to purchase Resource I & III, a portfolio totaling 245,111 square feet. The assets traded for $50.4 million.

The post Suburban Orlando Office Asset Trades for $28M appeared first on Commercial Property Executive.

Resource Square III

TerraCap Management has sold Resource Square I and III, a two-building office portfolio totaling 245,111 square feet in Orlando, Fla. The joint venture of Crocker Partners and PCCP LLC paid $50.4 million for the Class A, fully leased properties. JLL represented the seller and procured the buyer in the deal. The brokerage firm also secured the seven-year, floating-rate acquisition loan with Synovus Bank on behalf of the buyers. The portfolio last traded in May 2018, when TerraCap purchased it for $39.2 million.

Located at 13501 Ingenuity Drive and 12001 Research Parkway, respectively, the two properties are part of the 1,000-acre, 58-building Central Florida Research Park. Completed in 1999, the three-story Resource Square I has 91,890 square feet of leasable space. The 2003-built Resource Square III has 153,221 square feet of space across five stories. Both properties have a parking ratio of 5 spaces per 1,000 square feet. Notable tenants include Laser Institute of America, Aegis Technologies and AIT Engineering, per Yardi Matrix data.  

Adjacent to the University of Central Florida, the properties are 14 miles east of downtown Orlando and some 3 miles north of Waterford Lakes Town Center, home to more than 1.9 million square feet of shops and restaurants.

Expanding portfolio

This purchase brings Crocker’s Central Florida assets under management to a total of almost 1 million square feet. The company acquired another Orlando office portfolio for nearly $55 million in October 2018.

JLL Senior Director Ike Ojala, Senior Managing Director Hermen Rodriguez, Senior Director Robbie McEwan and Director Matt McCormack led the JLL Capital Markets team assisting the seller in the disposition. Director Maxx Carney and Associate Reid Carleton secured the financing on behalf of the joint venture. 

The post PCCP, Crocker Buy 2 Orlando Office Assets appeared first on Commercial Property Executive.

111 N. Orange Ave. Image courtesy of Black Salmon

JLL Capital Markets has orchestrated $45.1 million in financing for 111 N. Orange Ave., a 245,000-square-foot office building in the heart of downtown Orlando. Acting on behalf of a joint venture between Black Salmon Capital and Tower Realty Partners, JLL secured the loan through City National Bank, the third-largest bank in Florida.

READ ALSO: Orlando Office Report – Summer 2019

Black Salmon just acquired 111. N. Orange in December 2019, purchasing the Class A property from a partnership between DRA Advisors and Tower Realty for $67.8 million. A 21-story structure, 111 N. Orange first opened its doors in 1986 and underwent its most recent cosmetic renovation in 2017. The building, which also features 1,500 square feet of ground-level retail space, is approximately 93 percent leased to a long list of businesses, including credit tenants Regions Bank, UBS and Geico.

JLL’s Maxx Carney, Matthew McCormack, Michael DiCosimo and Alec Carreras comprised the team that represented the borrower in the financing transaction. In a prepared statement, Carey noted that Orlando’s solid fundamentals in the local economy continue to attract lenders and that office assets are demanding premium financing terms and pricing. Research supports JLL’s assessment. According to the Urban Land Institute and PwC’s Emerging Trends in Real Estate 2020 report, Orlando ranks seventh in the country for overall real estate prospects and 50 percent of the survey’s respondents rank the city’s office market as a buy.  

The allure of Orlando

Lenders have been keen on putting their money in the Orlando office market, providing loans in a range of sizes over the last year. Smaller transactions in 2019 included a $4.1 million construction loan from LV Lending for a 42,900-square-foot office condo project within the 31-acre The Village at Hunter’s Creek mixed-use development just outside Orlando in Hunter’s Creek. In neighboring Maitland, NXT Capital provided a $14 million acquisition loan for 850 Trafalgar, a 149,000-square-foot office building.

The post Black Salmon JV Obtains $45M Loan for Orlando Tower appeared first on Commercial Property Executive.

Image courtesy of Amazon

Amazon continues to expand its portfolio of U.S. fulfillment centers with news of a project in Deltona, Fla., near Orlando. Seefried Industrial Properties will develop the 1.4 million-square-foot facility on behalf of the e-commerce giant.

READ ALSO: Amazon Doubles Down on NYC’s Hudson Yards

Amazon’s new fulfillment center will sprout up on 85 acres along the I-4 Corridor, roughly 30 miles north of Orlando. The facility will be the first major project to debut at the new Portland Industrial Park, which the City of Deltona created as part of a five-year economic development plan. According to a City of Deltona Planning and Zoning Board document, the structure will carry an address on N. Normandy Blvd. and feature numerous cargo bays, separate parking for trucks and employees, an area for public pickups and drop-offs and an internal bus stop.

Upon completion, the Deltona fulfillment center will join Amazon’s ever-expanding collection of facilities in Florida, which includes a project announced in Auburndale in November, as well as locations in Orlando, Miami, Tampa and Jacksonville. The company has invested in excess of $5 billion in Florida since opening its first fulfillment center in the state in 2013.

Amazon’s development collaboration with Seefried is a proven partnership, with Seefried having spearheaded more than a few build-to-suits for the e-commerce leader. In 2019 alone, Seefried completed a 2.6 million-square-foot project in Bakersfield, Calif.; a 2.3 million-square-foot facility in Birmingham, Ala.; and a 1 million-square-foot development in Greensboro, N.C.

A potential bandwagon

Officials from the City of Deltona and Volusia County expect the Amazon project to play a large role in further bolstering economic development in the area, which is currently in growth mode. As noted on Deltona’s Department of Economic Development & Ecological Sustainability website, the Deltona-Daytona-Ormond Beach area is forecast by global staffing firm Manpower to become the third-highest employment center in the U.S.

The brand-new Halifax Health-University of Florida Health Medical Center of Deltona will do its part in strengthening the area’s employment forecast, as will Amazon. The company will create more than 500 new full-time positions at its new Deltona fulfillment center.

The post Amazon’s 1.4 MSF Florida Project appeared first on Commercial Property Executive.

The groundbreaking of Cambria Hotel Orlando International Airport. Image courtesy of Choice Hotels

Choice Hotels International Inc. and Reddy Hotels have broken ground on Cambria Hotel Orlando International Airport, a 106-key hotel in Orlando, Fla. The hotel is slated for completion by early 2021. Construction and design of the project are managed by Florida-based SMS Construction and MILES architecture group.

Situated at 7986 South Conway Road, the hotel will be just off Freeway 528, around 4 miles from Orlando International Airport and 9 miles from downtown Orlando. The hotel provides access to theme parks such as Walt Disney World, Universal Studios and Sea World. The new development will also be located near bus lines 11 and 42 on McCoy Road. Once completed, Cambria Hotel Orlando International Airport will feature an open-concept lobby, spa-style bathrooms with Bluetooth mirrors, a meeting and event space, fitness center, outdoor pool and patio.

Earlier this month, Choice Hotels opened a 352-key Cambria branded hotel in Anaheim, Calif., located just a mile from Disneyland Resort.

The post Cambria Hotel Breaks Ground in Orlando appeared first on Commercial Property Executive.

111 North Orange. Image courtesy of Black Salmon

Black Salmon has paid $67.8 million for 111 North Orange, a 245,201-square-foot, Class A office building in downtown Orlando, Fla. According to Yardi Matrix data, the seller was Tower Realty Partners, which purchased the asset in 2015 for $51 million.

Located at 111 N. Orange Ave., the 21-story building features 15,323-square-foot floorplates and a parking ratio of 3 spaces per 1,000 square feet. Amenities include a ground-floor fitness center and a new conference center. The 1986-built property is currently 94 percent leased, with Regions Bank, UBS, Geico and Regus on the tenant roster.

The office tower rises on a 1.2-acre site in the city’s central business district, surrounded by more than 500,000 square feet of street-level retail. The property is one block west of Lake Eola Park near Interstate 4, with the Lynx Central and Church Street SunRail stations within walking distance.

In August, Black Salmon acquired Arizona’s second-tallest office tower, in a joint venture with ScanlanKemperBard Cos. The 375,862-square-foot building in Phoenix traded for almost $93 million.

The post Black Salmon Pays $68M for Orlando CBD Office Tower appeared first on Commercial Property Executive.

CoCo Key Hotel and Water Resort. Image courtesy of Marcus & Millichap

InSite Group has sold CoCo Key Hotel and Water Resort, a 396-key hospitality asset in Orlando, Fla., to a private investor. The buyer paid $21 million, according to public records, financing the acquisition with a five-year, $3.5 million mortgage from Amerant Bank.

Marcus & Millichap assisted the buyer in the transaction. The property last changed hands in 2015 for $15.1 million. 

Built in 1970, CoCo Key Hotel and Water Resort has, in addition to its guestrooms, a 54,000-square-foot water park. The hotel’s guest amenities include a swimming pool, a fitness center, a business center and three on-site restaurants. 

Located on 9.4 acres at 7400 International Drive, the property is alongside Interstate 4 in one of Orlando’s major hospitality corridors, 3 miles from Universal Orlando Resort. Orange County Convention Center is 2 miles south, and the hotel is 9 miles from the world’s largest Holiday Inn resort, reopened in June following the completion of $27.5 million in renovation work.

Senior Director Ahmed Kabani and Associate Juan Alzate with Marcus & Millichap’s National Hospitality Group represented the buyer.

The post Orlando Resort Trades for $21M appeared first on Commercial Property Executive.

770 Gills Drive. Image via Google Street View

First Industrial Realty Trust has acquired 770 Gills Drive, a 54,000-square-foot industrial building in Orlando, Fla. Whitely Capital sold the Class A property for $6.3 million. 

Located in the Southeast Orange submarket at 770 Gills Drive, the warehouse was completed in 2018 by Kelsey Construction. The facility is 10 miles west of Orlando International Airport and approximately 7 miles east of the Orange County Convention Center. Situated on 3.7 acres, the building is between Florida’s Turnpike and the Beachline Expressway.

JLL negotiated the deal on behalf of the buyer. Executive Vice President Josh Lipoff and Senior Vice President Mike Borling worked with First Industrial’s Senior Regional Director Chris Willson and Investment Officer Brad Kluever.

Speaking at the recent Avison Young U.S. Industrial Summit, First Industrial CIO & Co-Founder Jojo Yap shared how the company’s investments have shifted toward port cities due to the potential for higher rental rates. About 20 percent of the firm’s portfolio is now in Southern California. In line with this strategy, First Industrial paid $7.3 million for a 40,831-square-foot facility in Carlsbad, Calif., in August.

The post First Industrial Grows Portfolio With Orlando Buy appeared first on Commercial Property Executive.

SmartStop Self Storage

Strategic Storage Trust IV has added four new facilities, totaling 326,000 square feet in North Carolina, Virginia and Florida, to its portfolio. Taylor Theus Holdings traded the newly constructed Class A properties, according to Yardi Matrix. Under the new ownership, the facilities will be rebranded as SmartStop Self Storage. 

Mark Owen, senior vice president of Eastdil Secured, brokered the deal.

The acquisition encompasses properties in growing suburban areas or close to the urban cores of Charlotte, N.C., Charlottesville, Va. and Ocoee, Fla. The facilities occupy a combined total of approximately 14.6 acres and comprise 3,500 storage spaces, ranging between 12 to 200 square feet. Characteristics of the assets include climate control, drive-up accessibility, electric gated entry and computerized keypad access. Additionally, the properties also offer wine storage spaces.

Strategic Storage Trust IV is a public, non-traded REIT sponsored by SmartStop Self Storage. Strategic Storage Trust IV owns 21 facilities comprising around 15,000 units, which equates to 1.8 million net rentable square feet. Earlier this year, the REIT acquired Guardwell Self Storage, a facility with 48,000 net rentable square feet in Redmond, Wash.

The post Strategic Storage Trust IV Buys Multi-State Portfolio appeared first on Commercial Property Executive.

Celebration Pointe. Image courtesy of Centennial Bank

Unicorp National Developments has scored $21 million in financing from Centennial Bank for the second phase of Celebration Pointe, a 109,000-square-foot retail center. The project is underway in Celebration, Fla., the master-planned community originally developed by The Walt Disney Co. According to Osceola County records, Unicorp purchased the development site from Walt Disney Imagineering for $13.6 million. Groundbreaking is slated for December, or the first quarter of 2020 at the latest, with an estimated completion of 18 months.

Celebration Pointe sits at the busy intersection of Interstate 4 and World Drive, where the daily traffic count reaches 210,000 cars. The property is 5 miles northeast of downtown Celebration and 18 miles southwest of downtown Orlando. Walt Disney World Resort, visited annually by 55 million tourists, is 4.4 miles northwest.

Celebration Pointe’s phase two totals 84,000 square feet and will have Dave & Busters and a supermarket chain as anchor tenants. Other confirmed tenants at the property include Dunkin Donuts, Walgreens and Burger King, bringing the current total occupancy at 56 percent. The retail center will mainly serve a population of more than 15,000 residents living within a 3-mile radius and having an average household income of more than $133,000.

In March, InvenTrust purchased two retail assets developed by Unicorp in Winter Park, Fla. The 76,000-square-foot portfolio sold for more than $63 million.

The post Unicorp Lands $21M Loan for Orlando-Area Retail Project appeared first on Commercial Property Executive.

Technology One. Image via Google Street View

Equity Partners Inc. has sold Technology One, a 31,872-square-foot office building in Orlando, Fla. Zaragon Inc. acquired the asset for $7.6 million. JLL represented the seller and procured the buyer in the deal. According to Orange County records, the property last traded in 2017 for $3.5 million.

Technology One sits on 3.3 acres at 3050 Technology Parkway within the Central Florida Research Park, the largest research park in Florida. The entire complex encompasses 65 buildings spread across more than 1,000 acres. Technology One is less than 1 mile south of the University of Central Florida, across the street from IDE Orlando. Alafaya Commons shopping mall is less than 2 miles south of the building, and the Research Park holds several hotels. Completed in 1999, the single-story asset is fully leased to two simulation companies, Cole Engineering and Bohemia Interactive.

JLL Senior Director Robbie McEwan and Associate Ryan Stoffer led the company’s Capital Markets team representing the seller in the transaction. A JLL team has recently brokered the $270 million sale of a 1.8 million-square-foot office campus in Charlotte, N.C.

The post Zaragon Buys Orlando Office Building appeared first on Commercial Property Executive.

Holiday Trail Plaza. Image courtesy of Marcus & Millichap

Marcus & Millichap has brokered the sale of Holiday Trail Plaza, a 24,635-square-foot strip retail center in Kissimmee, Fla. According to Osceola County records, Hickman Properties LLC sold the Class B asset to Engend Co. III LLC for roughly $5.8 million, or about $235 per square foot. The property last traded in 2005 for $7.4 million, public records show.

The retail center sits on more than 2 acres at 5877 W. Irlo Bronson Memorial Highway in the Old Town Kissimmee area. The property is right next to Central Florida GreeneWay and less than 2 miles west of Interstate 4. The area’s retail offering also includes Publix, Waffle House and Walgreens. The 1998-completed property was fully leased at the time of sale, with a tenant roster that features New Balance and Dunkin’ Donuts.

Marcus & Millichap Vice President Scott Gould and Senior Vice President of investments Tim Giambrone with the company’s National Retail Group brokered the deal. In June, Giambrone was also instrumental in the $11 million sale of a retail asset in Haines City, Fla.

The post Kissimmee Shopping Center Changes Ownership appeared first on Commercial Property Executive.

Winter Garden Commerce Center. Image courtesy of JLL

WGCC Properties LLC has sold Winter Garden Commerce Center, Class A, four-building industrial park totaling 140,929 square feet in Winter Garden, Fla. According to Orange County public records, KKR purchased the asset for $21.6 million, the highest price per square foot for an industrial sale in Orlando. JLL assisted the seller in the transaction and has been selected as exclusive leasing partner and property manager.

Located at 661, 671, 681 and 691 Garden Commerce Parkway, the 9.7-acre property is roughly 14 miles west of downtown Orlando, within the N.W. Orange County Industrial submarket. The industrial park has easy access to both Florida Turnpike and Western Beltway.

Completed in 2018, Winter Garden Commerce Center features 20- to 24-foot clear heights, 36 dock-high doors, 36 grade-level doors, four ramps and a 140-foot shared truck court. The property is 94.9 percent leased to 15 local, regional and national tenants.

JLL Capital Markets Senior Vice President Bret Felberg, together with Managing Directors Britton Burdette and Pete Pittroff, led the team that negotiated the deal on behalf of the seller. The JLL Leasing and Property Management team includes Senior Vice President Bobby Isola and Managing Directors Wilson McDowell and Matthew Sullivan.

In July, KKR acquired a multi-state industrial portfolio totaling 565,644 square feet. The properties were purchased from three different sellers.

The post Orlando-Area Industrial Park Sells for Record Price appeared first on Commercial Property Executive.

L to R: Jim Costello, Maggie Coleman and Colleen Pentland Lally. Photo by Holly Dutton

Three years ago, Chinese investment in U.S. real estate hit a peak of $46.5 billion. The country’s biggest players—Anbang and Wanda Group—plunked down billions of dollars for high-profile properties in core markets of the country, including New York City. But now, with an investing atmosphere shaken by trade wars, uncertainty surrounding the stability of the U.S. government and the ever-looming threat of a recession, what foreign investment looks like in the U.S. has experienced a significant shift. 

“It’s changing, but it’s not the end of the world,” said Jim Costello, Senior Vice President at Real Capital Analytics, at a panel on foreign investment at the 2019 CREW Network Convention in Orlando, Fla., on Sept. 26. Costello noted that for the first time in seven years, cross-border investors are selling more than they are buying.

READ ALSO: Capital, Interest Rates Battle as Properties Obsolesce Faster

“Don’t panic,” said Costello. “There are a lot of negative things in the news these days, but if you look at some of the fundamentals in the U.S. economy, there’s still a lot of good reasons to be in U.S. real estate.”

While Chinese investment has pulled back dramatically, other countries have filled in the gap. Canada is the top foreign investor of American real estate, with 54.2 percent of cross-border investment, followed by Germany with 7.7 percent, according to data from Real Capital Analytics. 

Data from Real Capital Analytics. Photo by Holly Dutton

Looking at new markets

Foreign investors aren’t just looking to acquire office properties—retail, industrial and senior housing and care assets are attracting more capital. The interest in new sectors can be attributed at least in part to wariness in investing in primary markets and sectors due to cap rate compression.

“We’ve talked to a lot of groups about importance of Seattle and Chicago,” said Maggie Coleman, a managing director in international capital at JLL. “In some ways those are acting more like primary markets. We’re working on education around secondary market exposure.”

In the multifamily sector, Canada has emerged as one of the biggest investors in the U.S., picking up large portfolios in the southeast and southwest regions, where the development of workforce housing has flourished.

“They saw workforce housing before it became the darling of multifamily,” said Coleman. “They really identified that this is where middle America rents and works and this part of America is not going anywhere.” 

What lies ahead

Despite the higher cost to investors, medical office and senior housing properties are getting more attention, as the demographic wave of aging Baby Boomers is leading to an uptick in demand for these kinds of properties.  

Investor concerns over regulatory issues such as rent control could indirectly give secondary markets a boost, as most of the regulations that have been implemented have been affecting coastal cities.

“They’re pausing when they look at states and cities where they implemented or are having some kind of regulatory conversation and may implement in future,” said Coleman.

Analysts are also anticipating a big influx of investor money coming in from Japan, where $8 trillion in pent-up capital is yet to be deployed, with a large amount needing to go into real estate.

“We’ve been courting Japanese investors for a while,” said Coleman. “But then we saw an influx from Singapore. We saw their REITs and pension come out with capital in a very meaningful way. That has really supplemented the Japanese capital, which we’re still waiting for.”  

The post Why Foreign Investment in the US Looks Different appeared first on Commercial Property Executive.

Michael Weinberg, Managing Director, Berkadia. Image courtesy of Berkadia

While hospitality and health care are Orlando’s economic powerhouses, other sectors, including STEM, are starting to gain traction.

“Employment rose 3.8 percent between July of 2018 and 2019, making Orlando number one in the country for job growth. What many people don’t realize is that a lot of these jobs are in the STEM, tech, medical and health-care sectors—it’s not just hospitality jobs,” Berkadia Managing Director Michael Weinberg told Commercial Property Executive.

A recent addition to the company’s Orlando office, Weinberg completed more than $3 billion worth of transactions over the course of his career. Previously, he served as senior managing director for HFF for roughly nine years. In the interview below, he shares his insights into Orlando’s office market, touching on the metro’s best submarkets for investment, challenges and risks investors may face, as well as the expansion of the coworking footprint across the area.

Describe Orlando’s current office landscape. What opportunities does this market offer?

Weinberg: Bolstered by nation-leading job and population growth, Orlando has experienced strong demand for office space over the past few years. We’ve had one of the lowest office vacancy rates in our market’s history and more capital is pouring into the area, including institutional and cross-border money, which previously would not have considered Orlando. There’s tremendous opportunity for investors to plant a flag in the ground now before it’s too late to capitalize on the growth.       

Tell us more about Orlando’s best submarkets for office investment. What attracts investors to them?

Weinberg: Orlando still represents a value relative to other primary office markets due to higher cap rates and lower price per square foot. Lake Mary has been active on the development and investment fronts and is popular with tenants because it offers newer vintage product and strong parking ratios. According to NCREIF, the Orlando MSA has seen a 10 percent compound annual growth rate in total returns for five-year hold periods on office investment. This puts us in the top 10 market in the country for returns over that period, ahead of some darling cities like Nashville, Seattle, Boston and Miami.

Some of the larger trades in the entire Orlando market over the past five years have been in Lake Mary—these include portfolio investments made by Starwood, Parmenter and others. South Orlando, which surges when homebuilding and hospitality are vibrant, is also very active right now. Westwood Corporate Center sold for nearly $58 million and Millenia Park One sold to a 1031 buyer for around $38.3 million. This submarket is also seeing some development activity from catering to the increased demand from tourism and population growth.

The University of Central Florida area, which benefits from the rapid growth at the university but also increased governmental and defense spending, has held steady over the years. This submarket boasts three of the largest sales transactions in the past 12-18 months with the University Park deal ($67.4 million), Siemens deal ($53.8 million) and the 2300 Discovery Drive building ($49.5 million), according to Real Capital Analytics.

What are the challenges and risks investors face in the metro today? How can they overcome them?

Weinberg; It’s difficult to ignore the macro trends of a slowing economy and when the national economy slows, historically Orlando has suffered more than other markets due to its reliance on tourism. However, this time around, Orlando has a much more diversified economy so I don’t think it will feel the brunt of any economic downturn.

There are some significant health and life science clusters around Lake Nona, several large hospital systems, a lot of academic/tech/STEM-related activities at Creative Village in downtown Orlando and by the main campus of University of Central Florida. All told, there is about $10 billion worth of major infrastructure projects that are already fully funded, or under construction, and have a five- to 10-year timeline to design and construct.

What factors will influence the business in the next 12 months?

Weinberg: Obviously, continued job and population growth is key. Orlando is projected to outpace the national average in job growth over the next five years—some sources project it will be double or triple the national job growth rate. Looking ahead, the lack of big blocks of office space poses a challenge for our region in attracting new companies or growing existing ones. These factors, plus continued rent growth, may put developers in a better position to break ground on new office projects—but that will depend on whether we see some moderation in land prices and construction costs to make it financially feasible.

Orlando’s coworking footprint is expanding. How do you see demand for this type of workspaces going into 2020?

Weinberg: I see this type of space remaining relevant, but there will certainly be winners and losers—it depends on who can operate profitably to remain in occupancy. Most of the coworking growth has been in downtown, highlighted by the recently inked 70,000-square-foot WeWork deal at SunTrust Center. There are many others in downtown Orlando that have popped up like Industrious Office, Pipeline, Venture X and Canvs that have leased space and even Novel Coworking, which bought the historic Angebilt Building. 

READ ALSO: What Makes Orlando Attractive to Coworking Providers

One of the city’s first coworking operators, Catalyst, announced its closure this summer, citing increased competition with the amount of coworking space in downtown going from less than 40,000 square feet a few years ago to an anticipated 240,000 square feet by next year. 

What are your predictions on office investment trends going forward?

Weinberg; Despite all the positive fundamentals, we have seen decreased investment sales activity this year. According to CoStar, 2019 is on pace to see around $700 million in Orlando metro area activity, which is down from previous years and would be the lowest volume in six years. Over that time, the volume has ranged from $811 million in 2016 to the peak of $1.25 billion in 2017. I anticipate further flattening of sales activity looking forward. One explanation for this is that many trophy towers downtown traded between 2014 and 2017 and those larger deals tend to skew end-of-year volume upward.

Some of the new development could spur sales transaction activity, but there is not enough of it right now to create a large uptick in volume. A further trend that we are seeing—and I expect to continue—is clients interested in recapitalizing their deals with new partners with longer-term hold horizons and using debt to lock in long term at historically low rates.

What are your goals in your new role at Berkadia?

Weinberg: My goals are to continue to have clients lean on us as trusted advisors, whether it’s underwriting, finding new sources of equity or custom-tailored debt. 

The post What You Should Know About Office Investment in Orlando appeared first on Commercial Property Executive.

Liberty Corner. Image courtesy of Liberty Investment Properties

Liberty Investment Properties, in partnership with private investors, is developing Liberty Corner, a 108,924-square-foot self-storage and retail facility in Orlando, Fla. Turner Construction Co. is the general contractor and Bishop Beale Duncan serves as leasing manager for the restaurant and retail spaces. The development team also worked together for the construction of a 704-unit self-storage asset in Jacksonville, Fla. The project is slated for completion in the last quarter of 2019. 

Located at 107 Hillcrest St. in the city’s central business district, at the intersection of East Colonial and Magnolia Avenue, the development is close to Interstate 4. The site is also near residential areas, with 9,581 rental units completed or under construction within a 2-mile radius, per Yardi Matrix data.

The three-story building, promoted under an Eat, Shop & Store concept, will feature more than 15,000 square feet of retail including a restaurant and drive-thru. The second and third floors will house My Neighborhood Storage Center of Magnolia, offering 750 climate-controlled units totaling 95,660 square feet.

The post Self Storage Development Underway in Orlando appeared first on Commercial Property Executive.

Viera Colonnade. Image courtesy of SRS Real Estate Partners

Corporate Property Group Inc. has sold Viera Colonnade Shops, a three-building, 27,051-square-foot shopping center in Viera, Fla. The buyer, a private partnership between domestic and foreign investors, acquired the asset for $11.8 million, or $436 per square foot. According to Brevard County records, the sale was subject to a nearly $6.7 million loan originated by Mutual of Omaha. SRS Real Estate Partners negotiated the deal on behalf of the seller.

Located at 2328, 2338 and 2348 Citadel Way, Viera Colonnade is near Interstate 95, adjacent to The Avenue Viera, the 525,000-square-foot open mall featuring World Market, Bed Bath & Beyond and Michaels. Downtown Melbourne is approximately 16 miles south and Orlando Melbourne International Airport is within a 30-minute drive.

Built in 2017 and 2018 on 3.4 acres, the shopping center is fully occupied by 14 tenants including UPS, Jersey Mike’s, Great Clips, Mattress One and Blaze Pizza. All tenants recently signed 10-year triple-net leases.

SRS’ Investment Properties Group Managing Principals Patrick Luther and Matthew Mousavi brokered the deal on behalf of the seller, while the buyer was self-represented.

The post Orlando-Area Shopping Center Sells for $12M appeared first on Commercial Property Executive.

Metro Storage

Metro Storage LLC has added a 62,607-rentable-square-foot facility to its portfolio in Orlando, Fla. Volta Global sold the storage asset for $7.5 million, according to Yardi Matrix data. The sale was subject to a $5.6 million loan held by First American Bank. The acquisition marks the firm’s second store in Orlando and 24^th in Florida.

Located at 7500 W. Colonial Drive, the storage asset is alongside Freeway 50, roughly 7 miles from downtown Orlando. The facility is situated near residential areas, there are more than 14,000 rental units completed or under construction within a 3-mile radius, according to Yardi Matrix.

The two-story storage asset was constructed in 2018 and encompasses a total of 641 climate-controlled indoor and non-climate-controlled drive-up units, ranging from 20 to 400 square feet. Features of the facility include gated entry, security cameras and parking and RV parking spaces.

In May, the company has secured $78 million refinancing loan for an eight-property portfolio in Illinois, New Jersey and Pennsylvania.

The post Metro Storage Expands Florida Holdings appeared first on Commercial Property Executive.

Image via Pixabay.com

Urban Commons has completed a $27.5 million renovation on the former Nickelodeon Suites Resort in Orlando, Fla., rebranding it as the Holiday Inn Resort Orlando Suites and Waterpark.

The renovation included upgrades to all areas of the hotel, including the guestrooms, lobby, café, lounge, meeting rooms and restrooms. It also made detailed changes to the waterpark and food and beverage facilities. Following these upgrades, the property has become the world’s largest Holiday Inn Resort.

Urban Commons acquired the property in 2014 and immediately made plans for the transformation. The 24-acre resort offers 777 suites on six floors. The noteworthy Lagoon Waterpark boasts seven slides, a splash zone, kids’ play area, a four-story water tower, a 400-gallon water dump tank, interactive water toys and a nine-hole miniature golf course.

READ ALSO: World’s Tallest Modular Hotel Advances in NYC With $65M Loan

Among the new food offerings are the Club Candy, a colorful sweet escape featuring treats and drinks; The Hideaway Lounge, a sleek full-service bar offering appetizers and snacks; Hershey’s Ice Cream, a parlor serving hand-dipped ice cream and fresh-brewed coffee, and a Subway.

The Holiday Inn Resort Orlando Suites and Waterpark is conveniently located, offering easy access to all Orlando has to offer. It’s less than a five-minute drive to the Walt Disney World Resort and is nearby Universal Orlando Resort, SeaWorld, Legoland Florida Resort, Disney Springs, Disney’s Hollywood Studios and Universal CityWalk.  

Booming Orlando

Last year, the Orlando area saw another record for visitors, becoming the first-ever U.S. destination to surpass 70 million tourists in back-to-back years.

According to Marcus & Millichap’s latest hospitality report, the metro is seeing a 4 to 6 percent gain in guestroom count, based on approximately 7,000 guestrooms under construction as of mid-year. Additionally, occupancy remains strong, with increases in basis points and RevPAR. That’s spurred a boom in hotel resort activity of late.

In December, a joint venture between funds managed by Trinity Real Estate Investments LLC and funds managed by Elliott Management Corp. acquired the 409-acre Grande Lakes Orlando Resort. The luxury complex features two hotels, including a 582-key Ritz-Carlton and a 998-key JW Marriott, and a Greg Norman–designed 18-hole championship-caliber golf course.

The post Urban Commons Unveils World’s Largest Holiday Inn Resort appeared first on Commercial Property Executive.

Building P. Image courtesy of LV Lending

ARB Development LLC, through its manager Bellavista Building Group Inc., has received a $4.1 million construction loan for a 42,909 square-foot office condo building within The Village at Hunter’s Creek, a 31-acre mixed-use project currently under development in Hunter’s Creek, Fla. The planned building has broken ground and is slated for completion in the first quarter of 2020. LV Lending, a Miami-based private lender, facilitated the financing on behalf of the lender.

The Village at Hunter’s Creek is located on the corner of Central Florida GreeneWay and John Young Parkway, 18 miles south of downtown Orlando. The development encompasses 19 buildings, 1,544 parking spaces and a 2-acre central park with a playground and performance stages, as well as the signature clock tower.

The Class A building developed by Bellavista Building Group sits inside the mixed-use project just off Village Park Drive. The three-story construction, dubbed Building P, will offer 48 office condo units, with floorplans ranging from 654 to 1,049 square feet.

LV Lending Partner & CEO Camilo Niño, Partner Ricardo Uribe and Commercial Director Alen Hernandez secured the financing on behalf of Bellavista Building Group. In February, the same team facilitated the $2.2 million financing for a future development in Key Largo, Fla.

The post Greater Orlando Office Condos Land Financing appeared first on Commercial Property Executive.

Altamonte Commerce Center. Image via Google Maps

EastGroup Properties has sold Altamonte Commerce Center, an eight-building, 185,000-square-foot office, flex and warehouse complex in Altamonte Springs, Fla. SunCap Opportunity Fund, a Fort Lauderdale-based investment firm, acquired the asset for $14.9 million. According to EastGroup Properties, the sale closed at a 6.8 percent cap rate. The company had owned the property since 1999. CBRE negotiated the deal on behalf of the seller.

Located at 217–311 Altamonte Commerce Blvd. and 620-658 Douglas Ave., Altamonte Commerce Center is right off Interstate 4, in Seminole County. Downtown Altamonte Springs is approximately 3 miles east of the property and Orlando International Airport is 23 miles south.

The industrial complex consists of eight buildings with 9×10-square-foot dock high loading doors and 9×10-square-foot grade level loading doors, minimum 18-foot clear height and a parking ratio of 1/1000 square feet. The property is currently almost fully occupied, with only 9,000 square feet available.

Senior Vice President David Murphy and Vice President Monica Wonus of CBRE’s Industrial Services Group represented the seller in the disposition. Earlier this month, another CBRE team announced the sale of a 221,542-square-foot warehouse in Fort Lauderdale. 

The post SunCap Opportunity Fund Buys Orlando-Area Industrial Center appeared first on Commercial Property Executive.

Contact Pointe. Image courtesy of Yardi Matrix

Tower Realty Partners and TriGate Capital sold Contact Pointe, a Class A, 92,127-square-foot office building in Lake Mary, Fla. Exeter Property Group purchased the asset for $15 million. According to Yardi Matrix data, the sale was subject to a $10 million loan originated by Citizens Financial Group. CBRE assisted the seller in the disposition.

Located at 3210 Lake Emma Road in Seminole County, Contact Pointe is within 3.4 miles of the city center and only a 20-minute drive from downtown Orlando, via Interstate 4. The closest airport is Orlando International, situated within 30 miles.

The three-story building, constructed in 1996 on a 23.3-acre site, is now fully occupied. Its tenant roster includes Falck USA and AT&T, which signed a 30,000-square-foot lease at the property in 2016.

The CBRE team that represented the seller consisted of Executive Vice President Ron Rogg and Senior Associate Chip Wooten from the Orlando office.

The building is part of Contact Pointe Corporate Park, which also includes a 152,642-square-foot property located at 3200 Lake Emma Road. Completed in 1975, the Class B office asset is owned by The Kroger Co. According Yardi Matrix, the firm bought the property from Tower Realty Partners in 2016, for $18.3 million.

The post Orlando-Area Office Building Trades for $15M appeared first on Commercial Property Executive.

The Grove at Winter Park. Image via Google Street View

TriOut Advisory Group has purchased The Grove at Winter Park, a 112,351-square-foot retail center in Winter Park, Fla. Consolidated-Tomoka Land Co. sold the asset for $18 million, with HFF representing the seller in the transaction.

Situated at 4270 Aloma Ave. on a 12.8-acre site, the shopping mall is along Winter Park’s retail corridor, where the traffic count is roughly 35,000 vehicles per day. More than 97,000 people with an average household income of nearly $80,000 live within a 3-mile radius of the center.

Completed in 1985, The Grove at Winter Park underwent significant renovations in 2018. The modernization works featured façade renovation, parking lot improvements, signage and landscaping. Aside from anchor 24 Hour Fitness, the tenant roster includes Pet Supplies Plus, My Salon Suites, Twisted Root Burger Co., Quickly Boba and Babyland Day Care. 

The HFF advisory team assisting the seller included Senior Managing Director Brad Peterson, Senior Director Whitaker Leonhardt, Director Michael Brewster and Associate Ryan Stoffer.

Several Orlando-area retail centers changed hands in the last few months. The 186,000-square-foot International Drive Value Center traded for $26.2 million in November, the 411,500-square-foot Millenia Plaza sold for $56.4 million in February and two Winter Park malls totaling 76,000 square feet commanded $63.5 million in March.

The post Metro Orlando Retail Center Trades for $18M appeared first on Commercial Property Executive.

Aloft Orlando Downtown. Image courtesy of HFF

GDC Properties has obtained an $18 million refinancing for Aloft Orlando Downtown, a 118-key hotel in Orlando, Fla. HFF worked on behalf of the owner to secure the five-year, non-recourse, floating-rate loan from a national bank. 

Located at 500 S. Orange Ave., close to the City Hall, the property is near Interstate 4, with Orlando International Airport within a 20-minute drive. Dr. Phillips Center for Performing Arts is right across the street and the hotel’s guests have easy access to various shopping and dining venues in the vicinity.

GDC Properties acquired the historic eight-story Orlando Utilities Commission office building in 2012 and converted it into Aloft Orlando Downtown through an adaptive reuse project. The LEED Gold certified hotel, which opened in late 2013, features a gym, outdoor pool, business center, lounge and nearly 9,000 square feet of meeting space. 

Managing Director Gregg Shapiro and Senior Managing Director Michael Weinberg led the HFF team that represented the borrower in this deal. The funds will retire existent debt and fuel further investments in the hotel. 

Another Aloft-branded hotel is under construction roughly 14 miles south of the asset. In February, Meridian Capital Group secured $42 million in construction financing for the development.

The post Downtown Orlando Hotel Scores $18M Refi appeared first on Commercial Property Executive.

Jessie Callahan, Development Executive, Novel Coworking. Image courtesy of Novel Coworking

Since it first appeared, in 2005, the concept of coworking has spread across the world. Individual workers, as well as businesses, benefit from this type of environments more than they do from traditional offices. Seeing Orlando, Fla., grow as a hotspot for techies and entrepreneurs, Novel Coworking—which expended in Minneapolis in October—decided to enter the metro and purchased the 100-year-old Angebilt Building at 37 N. Orange Ave. for $13.7 million. The company plans to invest several million of dollars into renovations to transform the property into a dedicated coworking space.

Why did the company choose Orlando, what strategies does it use to maximize the space and what other markets are seeing the highest demand? Novel Development Executive Jessie Callahan answered in the interview below.

At the beginning of the year, Novel Coworking acquired The Angebilt Building in Orlando. What is the story behind this purchase and what are your updates regarding the renovation?

Callahan: We were drawn to Orlando due to the job creation happening here, and the strong tech growth in the city. We know companies want to be here for a number of reasons including proximity to Millennial talent matriculating from good schools, affordability and the great weather. As Novel Coworking provides fully-furnished, technology-equipped and affordable workspace to small businesses, entrepreneurs and enterprise companies, we believe there is huge demand for our product in this growing economy. 

We were drawn to Orlando for these reasons and found a beautiful building with irreplaceable history that we knew our team and program could add value to. We look forward to opening two floors of private offices in the Angebilt Building in September 2019 complete with a vibrant coworking lounge, direct fiber internet, an espresso bar, local beer on tap, modern furnishings and community events.

The property is a 100-year-old building. What strategies do you use to maximize the space?

Callahan: The Angebilt is one of many historic buildings in the Novel Coworking portfolio. We are excited for the upgrades we will bring to accentuate the majesty of the Angebilt, while preserving the heritage and history of this asset as part of the fabric of downtown Orlando. 

The businesses and amenities we bring into to the building will add greater vibrancy to the property. With an espresso bar, full kitchen, shared gathering space and modern furnishings, our tenants have the ability to afford amenities they would not otherwise have access to in traditional office space. While the energy will surely be felt on the newly developed second and third floors, our plans for the second floor include a coworking lounge that can be seen from the historic atrium-style lobby, which will add energy you can feel the minute you walk into the building’s lobby.

Describe Orlando’s current coworking office landscape. What can you tell us about demand in the area?

Callahan: Coworking space is a growing and increasingly competitive portion of the local office market in Orlando. We have seen demand for flexible, customizable workspace from small to mid-sized businesses, as well as enterprise companies needing larger customizable office suites. Novel Coworking will be introducing a budget-friendly product to the market with high-quality offices and amenities.

What are your predictions for this market going forward?

Callahan: All signs show continued job growth in the Orlando market. Downtown is young, and there’s a pipeline of talent both from universities and the existing community that wants to be downtown. We are also seeing an influx of tech to the Orlando market, both from small businesses and enterprise firms moving their tech offices to Orlando. We believe these factors signal that Orlando is rife with tenant demand for the vibrant workplace we are bringing to this community.

What can you tell us about cap rates and values for coworking properties in Orlando?

Callahan: Novel Coworking’s model is unique in the coworking industry in that we own all of our assets, and thus, we can invest in our assets to drastically improve both asset infrastructure and interiors. Due to this model, Novel has repeatedly shown its ability to dramatically increase the cashflow of buildings it operates by transforming tired and often previously vacant office space into creative, flexible, budget-friendly workspaces that businesses enjoy calling home. 

According to Yardi Matrix data, the company owns more than 1.7 million square feet of office space in the U.S. Which markets are seeing the highest demand and what factors are contributing to this?

Callahan: We are currently located in 22 markets and seeing demand in urban core locations across the board for our product. In every market, our flexible leasing model provides an alternative to traditional office space, and we are seeing small business tenants and enterprise clients alike abandon rigid traditional office leases for the alternative model that Novel Coworking provides. Lease terms at a Novel Coworking space are flexible enough to accommodate companies as they scale and need more space for their dedicated office space, and the beauty of our model is that these spaces are ready for our clients immediately.

By eliminating operational costs like (paying) a receptionist, a move-in ready office for up to 100 employees at Novel Coworking can save a business up to 50 percent over a traditional lease with a traditional build-out. With coworking memberships starting at $129 a month, private offices starting at $550 a month, and office suites as low as $199 per employee a month, Novel Coworking provides small businesses, enterprise firms, and entrepreneurs with high-caliber amenities at a budget price.

What are Novel Coworking’s business plans going forward?

Callahan: We’ve seen huge demand for flexible customizable workspaces across the country as we continue to expand our portfolio by acquiring and repositioning office buildings in urban markets nationally.

The post What Makes Orlando Attractive to Coworking Providers appeared first on Commercial Property Executive.

The new location is in Barnie’s Coffee & Tea former headquarters building in the Milk District, which is within a 10-minute drive from downtown Orlando and right across Festival Park. The building is close to Interstate 4 and the Orlando International Airport is only 11 miles away. The leased space is part of a 37,000-square-foot industrial warehouse built in 1958. According to Orange County records, Central Florida Lumber and Supply Co. owns the building, having purchased it for $4.4 million in 2006.

Barton Malow has undertaken major renovation and improvement works at the location. According to the Orlando Business Journal, the office uplift included adding windows to the space, enhancing the exterior and improving the interior space. DAP Design was the architect of the eight-month project. The office has 44 workstations, eight conference rooms, a 50-seat training room, a lunchroom, lounge areas as well as an outdoor patio.

Just 16 miles southwest of the property, planning continues at O-Town West, the $1 billion mixed-use project between Disney World and SeaWorld. Earlier this month, JLL was selected as leasing manager of the Class A office tower included in the 82-acre upcoming development.

The post Barton Malow Relocates Orlando Office appeared first on Commercial Property Executive.

The Office at The Boardwalk at O-Town West. Image courtesy of JLL

Unicorp National Developments has selected JLL to lease a Class A office tower within O-Town West, a proposed $1 billion master-planned community situated between Disney World and SeaWorld in Orlando, Fla.

Designed by Oppenheim Architecture, the premium office building will form part of The Boardwalk, a mixed-use project within the 82-acre community developed. The Boardwalk will also feature 160,000 square feet of shops, restaurants and entertainment space overlooking a water fountain show, and a 1,250-space parking garage.

Groundbreaking of The Boardwalk at O-Town project is slated for January 2020, with a target completion date of June 2021. The planned office property will measure anywhere from 100,000 to 225,000 square feet. Unicorp will take a full floor in the building for its own headquarters, spanning 25,000 square feet, and JLL is already talking to companies that are eyeing around 125,000 square feet of additional space.

“Real pent-up demand is the big story for Class A office space,” Darryl Hoffman, senior VP of JLL’s Agency Leasing Team in Orlando, told Commercial Property Executive.

Orlando needs more office space

The building is poised to capitalize on Orlando’s tight office market, which reached 8.7 percent direct vacancy in the first quarter, according to JLL—the lowest level since 2006. “If you are a user that’s looking to place 400, 500 jobs, and you’re looking at multi-markets across the Southeast, Orlando does not have many options, because there’s been really no new construction through the run-up in the economy,” Hoffman noted.

“Our absorption in that time has been tremendous, our rental rate growth has been pretty good, and our overall occupancy for Class A space is in the 90s throughout all of the MSA,” he added. “If you need 50,000 square feet today, there’s one, maybe two options that work in South Orlando. And if you need 100,000 square feet, there’s maybe one. So there is a need for new office space.”

A hub for elite execs

The larger O-Town West development will also include the “Glass House,” a 1,600-unit luxury apartment community, as well as a town center anchored by a grocery store and other facilities. The project is located at the corner of Palm Parkway and Daryl Carter Parkway, with frontage along Interstate 4, and will have access to the interstate via a new exit ramp in the future.

“There’s a huge high-net-worth or decision-making core that lives in what we call South Orlando, that side of town. It’s a very nice area that doesn’t have a lot of proximity to your typical office buildings,” Hoffman explained. “So this project will cater to the large corporations, like a Disney or NBCUniversal, or some of the other large travel-related industries of Central Florida, but it will also cater to the decision-making core of Orlando that’s looking for Class A office space to grow their homegrown and local businesses.”

Unicorp, developer of the ICON Orlando 360 entertainment complex, announced the new project early last year. The company will handle all the retail leasing efforts, while JLL oversees the office leasing.

The post JLL Tapped to Lease Class A Orlando Office Tower appeared first on Commercial Property Executive.

2145 Metrocenter Blvd. Image courtesy of CBRE

A two-building, 182,753-square-foot office portfolio in Orlando, Fla., has changed hands for $32.5 million, according to CBRE, which arranged the sale of the fee simple interest to Metrocenter Office LLC.

Highwoods Properties, a Raleigh, N.C.,-based REIT, confirmed during its first-quarter 2019 earnings call with analysts Wednesday that it had sold the two suburban Orlando buildings.

CBRE’s Ron Rogg and Chip Wooten represented the seller of the buildings at 2101 Park Center Drive and 2145 Metrocenter Blvd., also known as Windsor and Berkshire at Metrocenter.

The Class A property is 89 percent leased to 11 tenants, the largest of which have a long history at the site, according to CBRE.

“Given the strong historical occupancy and current market conditions, the buyer will benefit from ownership of these assets in a rising rate environment with strong predictable income,” said Rogg, in a prepared statement. “Also, 7 + acres are available for future development, giving the future ownership the ability to scale up to 407,753 square feet.”

CBRE noted Orlando has robust market fundamentals with vacancy continuing to decline to a current level of 9.1 percent—the lowest of all Florida MSAs. The firm said the Orlando MSA has led the country in job growth the past three years and is a consistent national leader in population growth. It is only one of two markets that have experienced positive net absorption each year since 1995.

On a year-over-year basis, Orlando topped major U.S. metros with 5.4 percent office employment growth, while Seattle, Houston and Charlotte also had robust job growth in office-using sectors, according to a survey of 115 markets conducted by Yardi Matrix.

Located in South Orlando, the property has easy access to Orlando’s main highways including Interstate 4, the Florida Turnpike and East/West Expressway (SR 408). Downtown Orlando is six miles away and the Orlando International Airport is 20 miles from the property. It is located in the mixed-use MetroWest community with residential, retail and entertainment options nearby, including the Robert Trent Jones golf course.

Busy Office Market

The Orlando office market has seen several transactions in recent months including the sale of 850 Trafalgar, a 150,000-square-foot office building in Maitland, Fla., for $13.8 million to TerraCap Management. The four-story property in the Maitland Center Office Park was sold by The Praedium Group, which had owned it since August 2007.

In February, Jefferson River Capital purchased Reserve at Maitland, a three-building, 196,835-square-foot Class B office campus in Orlando, for $33.5 million from Taurus Investment Holdings. Taurus had owned the office campus since January 2016.

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(Left to right) Larry Kahn and Scott Edwards. Images courtesy of Franklin Street

Adding industrial sales and leasing to its services in Orlando, Franklin Street has named Larry Kahn as senior director of the regional branch. Kahn will work together with Scott Edwards, senior associate for industrial services. The two brokers will focus on landlord and tenant services and site selection for local, regional, and national clients throughout Central Florida and the southeast.

Kahn has 20 years of experience in industrial real estate. Before joining Franklin Street, he served as a director for Cushman & Wakefield’s Rail Advisory Group, specializing in rail-served industrial real estate. His previous position was that of vice president at CNL Commercial Real Estate.

Edwards also specializes in industrial landlord and tenant services. Prior to Franklin Street, he occupied the position of regional sales manager with Dackor Designs, a national manufacturer and distributor of continuous laminates.

“Central Florida is transitioning from being a spoke to an industrial hub for distribution, which makes this a special moment in time to do industrial real estate here,” said Kahn in prepared remarks. “Franklin Street has embraced the change by assembling technology tools to better address customer needs.” 

Kahn’s move to Franklin Street is the fourth in a series of recent executive transfers out of Cushman & Wakefield. Earlier this month, two of the company’s executives joined CBRE’s team in Tampa and another one joined the same team two days ago.

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Lakeside Winter Park

InvenTrust Properties has added two assets to its metropolitan Orlando footprint with the acquisition of Lakeside Winter Park and Lakeside Crossing, two retail centers totaling 76,000 square feet in Winter Park, Fla. The company paid $63.5 million for the properties.

Lakeside Winter Park and Lakeside Crossing, located across from each other along Orlando Avenue, sit in an affluent area just 5 miles from Orlando. The Central Florida city is high on InvenTrust’s acquisitions list. “Orlando is a target market for InvenTrust due to the positive and growing demographics including population and household income growth,” Dan Lombardo, director of investor relations with InvenTrust Properties, told Commercial Property Executive.

Unicorp National Development completed Lakeside and Lakeside Crossing in 2014 and 2016, respectively. Both national and regional tenants are represented at the properties, including one of only two Trader Joe’s in metropolitan Orlando. 

Investor favorite

Investor enthusiasm for retail assets in Orlando continues unabated. “In 2014 over $750 million in capital flowed into the Orlando retail market. Since that time the market’s fundamentals have improved significantly and investors are doing their best to find investment opportunities in the market,” according to a 2019 forecast by CBRE.

Retail property trades in the Orlando area over the last several months include AEW Capital Management’s purchase of Center of Winter Park, an approximately 245,000-square-foot property in Winter Park, from Sterling Org. in a $72.8 million deal. Earlier this year, North American Development Group bought the 411,500-square-foot Millenia Plaza in Orlando from SITE Centers for $56.4 million. And Saglo Development made its entrée into the Orlando market with the $23.6 million purchase of Goldenrod Marketplace, a retail asset featuring 124,600 square feet of space. 

Image courtesy of InvenTrust Properties

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Downtown Orlando

Sunbelt – 2OF LLC has opened Home2 Suites by Hilton Orlando Airport, a five-story, 128-suite hotel in Orlando, Fla., which is managed by LBA Hospitality.

Located at 5445 Hazeltine National Drive, the Home2 Suites by Hilton Orlando Airport is close to the city’s attractions corridor and offers convenient access to Orlando International Airport and numerous corporations calling the area home.

“With 47 million passengers coming through Orlando International Airport and a major expansion in the works, it’s a great time to open a hotel in this ever-expanding market,” Farrah Adams, LBA Hospitality’s COO told Commercial Property Executive. “Plus, new expansions to Universal Orlando and Walt Disney World Resort will bring additional business and leisure travelers to the area. The property will appeal to those traveling on business as it is within easy access to the Orlando Convention Center and major corporations in area.”

LBA Hospitality is no stranger to the Orlando area as the company opened two new properties—TownePlace Suites by Marriott and Holiday Inn Express and Suites—in the past year.

“This is the seventh Home2 Suites property managed by LBA Hospitality which has been involved with the brand from the very beginning,” Adams said. “It is the perfect fit to our portfolio of properties across the Southeast.”

Amenity-rich features

The new hotel boasts a living area that includes a full-size sleeper sofa, a 49-inch Smart TV with Bluetooth capabilities, and a full kitchen. Amenities include an outdoor pool, a fitness center and self-service laundry. Guests at the pet-friendly hotel can also take advantage of valet laundry, complimentary breakfast and self-parking.

Aside from being less than 10 minutes from Walt Disney World, Sea World and other major attractions, the hotel is also within walking distance to local parks with running paths and plenty of dining, shopping and entertainment possibilities. It’s also not far from Lake Nona Medical Complex. 

“It provides easy access to State Road 528, which leads to the Orlando attractions corridor to the West and beaches and Space Coast to the East,” Adams added.

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CubeSmart Self Storage

HFF has arranged $5.8 million in financing for the acquisition and expansion of Princeton Self Storage, a 43,006-square-foot facility in Melbourne, Fla. The firm worked on behalf of the borrower, SecYour Storage Property Group, to secure the first mortgage financing. CubeSmart was appointed to manage the property.

The facility occupies 4.2 acres at 1060 Polo Drive, just off Melbourne’s residential and retail corridor near Interstate 95 and Freeway 507. Additionally, the asset is around 70 miles from downtown Orlando. The asset is also close to residential areas; approximately 74,000 people live within a 3-mile radius.

Built in 2005, the four-building property encompasses 289 units, ranging from 25 to 200 square feet. The storage facility is gated and features drive-up access, security cameras and climate-controlled spaces. The buyer plans to expand the facility with 349 climate-controlled units, which will bring the total number of storage spaces to 738.

“We are very excited about the acquisition and repositioning of this property as we continue to execute on our business plan of acquiring value-add self storage facilities throughout the United States,” said Chris Corr, managing principal & CEO of SecYour Storage Property Group, in prepared remarks. “This facility represents our third acquisition in Florida along with a very solid pipeline of opportunities to follow.”

Image courtesy of Yardi Matrix

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850 Trafalgar

TerraCap Management has acquired 850 Trafalgar, a 150,000-square-foot office building in the Maitland, Fla., for $13.8 million. NXT Capital facilitated the transaction through acquisition financing. According to Yardi Matrix, The Praedium Group sold the asset for $94 per square foot.

Located at 850 Trafalgar Court within Maitland Center Office Park, the four-story property was completed in 1983 and underwent a series of upgrades, which included a refurbished lobby. The property is home to notable tenants such as Northwest Federal Credit Union, IRS, Federal Bureau of Investigation and Fidelity National Title, according to Yardi Matrix. The Praedium Group purchased 850 Trafalgar in August 2007 from Tricony for $19.6 million.

Upcoming improvements

CBRE Vice President C.J. Kelly of the company’s Atlanta office worked on behalf of the buyer, while Marcus & Millichap Senior Vice President Douglas Mandel and Senior Associate Nicholas Hanson represented the seller.

“We know this submarket and have a track record of repositioning and stabilizing value-add properties in Maitland—we plan to do the same with 850 Trafalgar,” said Albert Livingston, partner & national director of asset management for TerraCap, in prepared remarks.

“As one of the few remaining offices in Maitland with a sizeable block of available space and Interstate 4 frontage, we anticipate it will garner strong interest from growing tenants in the market as well as those entering the market,” added Matt Hart, TerraCap partner & director of investment analytics. In 2018, TerraCap sold Keller Center, a 160,000-square-foot office building north of Orlando, Fla., for $27.9 million.

Maitland Center Office Park features more than 6 million square feet of suburban office space and provides access to surrounding amenities including dining, fitness and retail venues. The property is also proximate to downtown Maitland and a variety of housing options.

Image courtesy of TerraCap Management

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5730 Central Florida Parkway

Meridian Capital Group has arranged $41.8 million in construction financing for a two-flagged Element and Aloft Hotel in Orlando that’s being developed by AD1 Global.

The seven-story property, at 5730 Central Florida Parkway, at the corner with International Drive, will total 284 keys.

The boutique Aloft Hotel, which will have 140 guestrooms, and the nature-inspired Element Hotel, which will have 144, will share an outdoor saltwater pool, laundry and valet services, as well as fitness and business centers. The Element will offer guests complimentary breakfasts, while the Aloft will feature a bar and restaurant, and 4,000 square feet of conference space.

The site is about a mile from Sea World and Aquatica and less than 10 miles from Disney Springs, Ripley’s Believe it or Not and Epcot, with the other Disney parks and the Orlando International Airport less than 20 minutes away by car.

The 36-month loan was provided by a balance sheet lender and features a LIBOR-based floating rate, two one-year extension options and full-term interest-only payments. This transaction was negotiated by Meridian Managing Director Noam Kaminetzky, of the company’s Boca Raton, Fla., office.

“Meridian, the sponsor, and the lender worked closely to structure a deal that provided up to 75 percent loan-to-cost non-recourse senior debt, allowing the sponsor to then layer on EB-5 capital to maximize the return on equity for the deal,” Kaminetzky said in a prepared statement.

Hot—but maybe cooling?

“Orlando is a very hot market fueled by spectacular growth in tourism with a record 72 million visitors in 2017 and growing,” Jon McMillian, AD1 Global corporate director of e-commerce and marketing, said in the prepared statement. “[T]he future is even brighter with Disney planning to open Star Wars Land at the end of this year.”

Over the past five years or so, the Orlando hospitality market has seen its guestroom count barely edge upward, even as demand has soared, pushing the market to 79.2 percent occupancy in 2017, matching a record set in 1996, according to a 2019 outlook from CBRE.

That logjam is about to be broken—big-time—the CBRE forecast notes, with more than 11,000 new guestrooms scheduled to open by 2020, including three mega-properties totaling 3,600 keys.

“Gone for now are the days of very low supply growth in the Orlando market,” the report warns, with occupancy levels expected to diminish starting this year.

AD1 Global has been on the move lately. In December, the company closed on the $95 million acquisition of a five-hotel, 758-key portfolio with properties in Orlando, Atlanta and Charlotte, N.C. And in June 2018, AD1 Global bought the 157-key Marriott Myrtle Beach Barefoot Landing, in Myrtle Beach, S.C.

Also last June, Meridian arranged $240 million in financing for the 560,000-square-foot office tower at 636 11th Ave. in Manhattan. Owner/borrower The Hakimian Org. was refinancing the building, which is fully occupied by Ogilvy & Mather as its global headquarters.

Image courtesy Meridian Capital

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Jeff Sachs, Senior Managing Director, JLL’s Hotels & Hospitality Group, Atlanta

As it celebrates its centennial in the hospitality business, Hilton has launched its latest brand, a meetings-and-events-focused product called Signia Hilton.

Each Signia property will feature a minimum of 500 guestrooms and 75 square feet per key of flexible meetings and events space, as well as:

• An impressive lobby intended to also serve as a social destination for guests throughout their stays;
• Guestrooms with premium designs and quality finishes;
• A destination bar that references that city or resort destination;
• A signature restaurant based on a chef-driven concept;
• Top-notch wellness experiences, such as infinity pools, spas, fitness classes and facilities.

All of these are in addition to large ballrooms and pre-function areas with smart design and the newest technologies.

Signia Hilton will be a global brand, with properties in major urban and resort locales, and will start off with Signia Hilton Orlando Bonnet Creek, Signia Hilton Atlanta and Signia Hilton Indianapolis. The latter will be a 38-story, 800-key property at Illinois and Georgia streets in downtown Indy, and should be completed in 2023, according to a local news report.

“Signia Hilton grew from feedback from top meeting professionals, owners, developers and guests,” David Marr, senior vice president and global head, Full Service Brands, Hilton, said in a prepared statement. 

Big fish, big pond

So, what is Signia’s niche and what are its likely competitors?

“Signia will compete with the typical meeting-oriented hotel brands: Marriott, Marriott Marquis, Renaissance, Hyatt, Omni and even Hilton itself,” Jeff Sachs, senior managing director of Strategic Advisory & Asset Management at JLL’s Hotels & Hospitality Group, in Atlanta, told Commercial Property Executive. “Every brand has good, better and best examples of hotels within their brand; Signia is striving to be the ‘best’ in the meetings segment. Rebranding Bonnet Creek, which is attached to a Waldorf Astoria, is a purposeful statement of what they want the brand to be.”

As to how much of a market there is for a hotel with this focus, he said, “Everyone wants high-end meetings, and the market is robust. Group ADRs in the high-end group hotels we asset manage exceed transient ADR in many cases. Add on the F&B spend, and group hotels blow away other segments.”

“Many convention hotels have not kept up with client demands and existing brands are tied up in existing owner agreements,” Sachs added. “Signia allows the new-tech convention hotels to be developed that meet the needs of groups that ‘old-tech’ hotels cannot provide.”

Video courtesy of Hilton

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Reserve at Maitland

Taurus Investment Holdings has sold Reserve at Maitland, a three-building, 196,835-square-foot Class B office campus in Orlando, Fla., for $33.5 million. BankUnited provided the buyer, Jefferson River Capital, with $23.5 million in acquisition financing, per Yardi Matrix data.

The property last changed hands in January 2016, when Taurus paid $17.1 million for the asset. The seller in that deal, Florida East Coast Industries, is behind a newly completed transit-oriented development in Miami.

Located at 30, 65 and 70 S. Keller Road, Reserve at Maitland is situated a stone’s throw from Interstate 4, 7 miles north of downtown Orlando, with an adjacent city bus route. The immediate area contains multiple retail, multifamily and hospitality assets, and just shy of 4 million square feet of office space is within a mile of the campus. The property, completed in 2001, is fully leased to Sunshine Health, Spectrum and Alere, according to Yardi Matrix. Parking is available at a ratio of 5 spaces per 1,000 square feet.

Image courtesy of Yardi Matrix

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American Industrial Center

A partnership between Blue Vista Capital Management and Logistics Investment Management has acquired American Industrial Center in Longwood, Fla. According to public records, the asset traded for $49 million. The seller was a family-owned company specialized in industrial and warehouse spaces for lease in Central Florida.

Located at 830 S. Ronald Reagan Blvd., the 820,000-square-foot park offers quick access to the northern Orlando metropolitan area. The park, which was 95 percent occupied at the time of sale, consists of 28 buildings constructed using non-combustible, steel frames and 10-foot masonry lower walls on 6-inch concrete slabs. The facilities are equipped with sprinklers, are insulated and have both dock-high and grade-level access. The asset’s parking is designed for a WB-50 turning radius, while the dock-high doors are either 10- or 14-foot tall.

“The transaction is one of the largest industrial park sales in the history of the Orlando market,” said Nicholas Hanson, senior associate in Marcus & Millichap’s Orlando office, in prepared statements. Hanson and Douglas Mandel, Marcus & Millichap senior managing director of investments with the company’s  Fort Lauderdale branch, negotiated the deal on behalf of the buyer.

Last November, Blue Vista Capital Management teamed up with Endurance Real Estate Group to break ground on a 125,000-square-foot built-to-suit facility in Pittston, Pa. The project is slated for completion in the third quarter.

Image via Google Street View

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James Mitchell, Executive Vice President, CBRE

CBRE has promoted James Mitchell to executive vice president of Retail Advisory & Transaction Services in its Orlando office.

Mitchell specializes in tenant representation of large retail anchors, junior anchors, outparcel and inline users. In addition, he represents many well-known developers on the leasing of ground-up retail developments throughout Florida. During his 15-year presence at CBRE, Mitchell has closed transactions of more than $800 million. Prior to joining CBRE in 2007, he served Trammell Crow as a senior associate.

“(Mitchell) is constantly striving to accelerate his client’s success while at the same time create a great client experience which is why he has so many repeat and long-term client relationships,” said CBRE Managing Director Jim Gray in a prepared statement.

Mitchell holds an MBA degree from University of Central Florida and a bachelor of science in finance and real estate from University of Florida. He has also been a member of CBRE’s Retail Advisory Council.

Image courtesy of CBRE

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Maitland Promenade One

KBS has acquired Maitland Promenade One, a Class A office building in Orlando’s submarket of Maitland, for $48.5 million. Cushman & Wakefield arranged the deal on behalf of the seller, TA Realty. 

Located at 485 N. Keller Road, the five-story property is situated within Maitland Center, one of the largest suburban office parks in Central Florida, which comprises eight buildings. Maitland Promenade One is LEED Gold and Energy Star Certified. The asset is currently 98.1 percent leased to tenants such as Spectrum Communications, Adventist Health, Allstate and Taylor Morrison. Features of the 230,371-square-foot property include a Nature’s Table cafe and fitness center, as well as access to a three-story parking garage through a covered walkway. The office park is within close proximity to Interstate 4 and Orlando’s Central Business District. 

The Investment Sales Team included Executive Directors Michael Lerner and Rick Brugge, Vice Chairman Mike Davis, and Director Rick Colon. In November, members of the same team arranged the sale of a 151,479-square-foot office portfolio within SouthPark Center, a master-planned business park in Orlando, on behalf of AEW Capital Management. 

“Maitland Promenade One’s high quality, structured parking, diverse roster of credit-worthy tenants and ideal location within one of the region’s most prestigious office parks make it one of the top suburban office buildings in Orlando,” said Lerner, in a prepared statement. “KBS already owns Maitland Promenade Two, the sister building, so this was a smart, strategic acquisition.”

Image courtesy of Cushman & Wakefield

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Delta Hotel by Marriott Daytona Beach Oceanfront

Summit Hospitality Group Ltd. has tapped Hospitality Ventures Management Group (HVMG) to assume the management of Delta Hotel by Marriott Daytona Beach Oceanfront Daytona Beach Shores, Fla. This marks the second partnership between the two companies. 

Located at 2505 S. Atlantic Ave., the hotel offers 133 keys, which include complimentary Wi-Fi, a flat screen television, private balconies and ocean views. Guests have access to amenities such as a state-of-the-art fitness center, hot tub, swimming pool, 24-hour business kiosk and the OceanView Terrace Bar & Grill. Nearby attractions include Daytona Lagoon, Angell & Phelps Chocolate Factory, Daytona International Speedway, Daytona Beach Kennel Club and Poker Room, Ponce Inlet Lighthouse, Main Street Pier and Volusia County Fairgrounds. 

“From the Daytona NASCAR 500 to its world-renowned beaches, Daytona is a thriving market with an increased demand for an upper upscale, well-branded hotel,” said Richard Jones, senior vice president & chief operating officer at HVMG, in a prepared statement. “With its essentials for the modern frequent traveler, the Delta Hotels Daytona Beach was designed to meet the specific needs of today’s experiential traveler.”

Last month, Key International selected Hospitality Ventures Management Group to manage its new Embassy Suites by Hilton St. Augustine Beach Oceanfront Resort in St. Augustine, Fla. 

Image courtesy of Hospitality Ventures Management Group

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