Owens Realty Nabs Orlando Office Asset

By Jeff Hamann

2699 Lee Road in Winter Park, Fla.

Owens Realty has acquired 2699 Lee Road, an 87,226-square-foot Class B office asset near Orlando, Fla., from SugarOak for $10.5 million. The buyer financed its purchase with a $7.1 million, 10-year, non-recourse mortgage issued by Reinsurance Group of America. The loan includes an interest-only first year with a 30-year amortization schedule. CBRE’s Ron Rogg and Chip Wooten closed the sale, while the firm’s Zac Brumbaugh secured the financing package.

Located in Winter Park, a northern suburb of Orlando, the six-story asset is situated at the northeastern corner of Interstate 4 and Florida Route 423. Orlando’s city center sits approximately five miles south of the building, directly accessible via the interstate. The building, built in 1974, is 84 percent leased to a variety of tenants, including Orlando Orthopaedic Center, StoneBridge Group, Maxim Healthcare Services and Waterstone Mortgage Corp. Prior to this transaction, SugarOak acquired the property for $7.4 million in 2002 from EverWest Real Estate Partners, per Yardi Matrix.

“While there is great merit to this property’s qualities, suburban office is not always an easy asset type to finance with aggressive life company terms,” said Brumbaugh, vice president of CBRE, in a prepared statement. “Nonetheless, our presentation of the strong office leasing absorption in the market and the property’s competitive location allowed for us to obtain a strong life company loan.”

Image courtesy of Yardi Matrix