Orlando Commercial Real Estate Wrap-Up – September 2020

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.