After six painful years, vacancy is finally declining in the Orlando office market. Effects of the Great Recession on real estate markets have been thoroughly examined here before, but outside factors that have played such a prominent role in reshaping the office market are creating significant impact. These changes might appear to be negative, but they will ultimately prove positive. Quantum advances in communication and data storage, new attitudes regarding workplace culture, workspace sharing centers and virtual offices have stirred the submarkets that comprise the greater Orlando area. While they are affecting all sectors of commercial real estate, they are felt most acutely in the office markets, slowing employment growth and corporate expansion, which have always powered the rate of change in quarter-to-quarter vacancy declines. Cloud-based data storage and paperless transaction platforms have shrunk the size of private offices with file storage rooms. Text messaging, email and file sharing platforms such as Dropbox have reduced the need for face-to-face meetings and demand for conference rooms and private offices. Real estate closings that once involved several parties in a conference room are antiquated now. Over the past five years, staffed reception areas have given way to scaled down waiting salons with …
MIAMI, FLA. — Binswanger-Gateway has arranged a 20,600-square-foot office lease for Compass, a residential real estate brokerage firm. Compass will occupy the penthouse in the Art Deco building, located at 605 Lincoln Road in Miami Beach, for 10 years. The historic 72,000-square-foot building was constructed in 1936 by architect Robert E. Collins and was the former home of Sony Music. Pedro Garcia and Zach Binswanger of Binswanger-Gateway brokered the transaction. Lincoln Road Penthouse LLP is the landlord and was represented by Gordon Messinger of Cushman & Wakefield.
BOYNTON BEACH, FLA. — Stiles Realty has sold the 62,573-square-foot retail component of Renaissance Commons, a mixed-use commercial complex in Boynton Beach, Fla. The property was sold for $18.2 million. Dan Coyle of Stiles Realty represented both parties in the transaction. Cohen Commercial Properties was the buyer, and Wells Fargo Bank affiliate Redus One LLC was the seller. Located at 1880 N. Congress Ave. and 1500 W. Gateway Blvd., the retail component of Renaissance Commons includes 17 ground floor units across two buildings. The retail space is 80 percent leased to tenants including Bonefish Grill, Starbucks, Village Tavern Restaurant and AT&T. Renaissance Commons includes 293,000 square feet of office condos, office rentals and a self-storage facility. Stiles Realty and Stiles Property Management, both of which had been leasing and managing the property since Wells Fargo foreclosed on it in early 2014, were retained under the new ownership.
TAMPA, FLA. — KeyBank Real Estate Capital has secured a $33.6 million non-recourse, CMBS first mortgage loan for CIO Intellicenter. The class A, multitenant office building spans four stories and totals 203,509 square feet of rentable space. The property is located in Tampa and is 100 percent occupied. Randy Martin of Key’s commercial mortgage group secured the financing.
TAMPA & CLEARWATER, FLA. — Berkadia’s Orlando and Tampa offices have arranged the sale of two Florida properties totaling nearly $53 million. Berkadia negotiated the sale and financing of Mainsail South Residences, a multifamily property located at 4711 S. Himes Ave. in Tampa. Jason Stanton of the Tampa office, along with Cole Whitaker and Hal Warren of the Orlando office, completed the sale on Sept. 10. Justin Ownby of the Tampa office negotiated the $25 million acquisition loan through Berkadia’s Fannie Mae Program. The sellers were Mainsail Villas II LLC and Mainsail Villas Holdings LLC of Tampa. Avesta Acquisition LLC, of Tampa, was the buyer and plans to renovate the property’s interior, exterior and common areas. The 10-year loan features a 2.6 percent floating interest rate and a 30-year amortization schedule. Mainsail South Residences is a 319-unit property built in 1984. Unit amenities include fully equipped kitchens, ceiling fans, cable and Internet access, washer and dryer units, vaulted ceilings and patios or balconies. Select units have fireplaces. Community amenities include a swimming pool, Jacuzzi, sun deck, laundry facility, business center, clubhouse, recreation room, extra storage space and secured access gating. The property is 95 percent occupied and is located on a …
JACKSONVILLE, FLA. — Aileron Investment Management has arranged a $13.8 million loan for the construction of a 122-room Residence Inn by Marriott hotel located in Jacksonville. The transaction was structured as an SBA 504 loan, with Aileron providing an $8.7 million first mortgage loan, and a $5.1 million interim second mortgage loan. Upon completion of the construction, the loan will convert to long-term permanent financing. Florida Business Development Corp. was the CDC on the transaction.
ORLANDO, FLA. — ARA Newmark has arranged the sale of Reserve at Conway, a 220-unit Class B property located near downtown Orlando. The property was 94 percent occupied at the time of the sale. Kevin Judd, Scott Ramey, Patrick Dufour, Richard Donnellan and Marc deBaptiste of ARA Newmark represented the seller, an affiliate of Chicago-based Oak Residential Partners, in the transaction. Oak Residential is a privately owned company that invests in, develops and manages commercial and multifamily real estate across the Midwest, Southwest and Southeastern United States. Chicago-based Redwood Capital Group was the buyer. Constructed in 1983, the Reserve at Conway includes a unit mix of one- and two-bedroom apartments in six floor plans. Community amenities include a swimming pool, fitness center, outdoor kitchen, sports court, bark park, business center, laundry facility, car care center, clubhouse and resident lounge, Wi-Fi and a Starbucks. The Reserve at Conway is located six miles southeast of downtown Orlando in the Southeast/Airport submarket.
The industrial market in Orlando has undoubtedly experienced robust leasing activity over the first half of 2015, especially among the smaller users ranging from 3,000 to 10,000 square feet. With an average industrial vacancy rate of 9.3 percent throughout Southeast / Southwest Orlando according to second quarter 2015 market reports, quality space for smaller tenants is becoming more and more scarce and available dock-high small space is virtually nonexistent. Industrial is Rebounding Two specific factors can be directly linked to the current industrial shifts in Central Florida: construction spending and theme park growth. The construction industry is booming, in particular within the single-family and multifamily sectors, allowing construction companies of all sizes market share due to high demand for services. Industrial parks are welcoming back smaller construction business owners that may have downsized and operated out of their homes during the downturn but are now looking for larger warehouses and mixed-use spaces for business. Secondly, theme park expansions, spurred by the record year of tourism in Orlando in 2014, have caused many businesses that were on the back lots of the parks to be pushed back out into the marketplace. Higher tourism rates represent a boost in consumer confidence and …
SOUTH PASADENA, FLA. — Berkadia has arranged a $27.1 million loan for Waters Pointe Apartments, a multifamily community located at 1885 Shore Drive S. in South Pasadena, roughly 30 miles southwest of Tampa. The property was more than 97 percent occupied at the time of financing. Waters Pointe’s amenities include an Internet café, Olympic-sized swimming pool, fitness center, fishing pier, lounge area and a covered veranda. Mitch Sinberg and Michael Wallace of Berkadia’s South Florida office closed the 10-year, floating-rate loan through Freddie Mac on behalf of the borrower, Robbins Property Associates. Robbins will use the loan to refinance existing debt on the property and return equity to the sponsorship.
ORLANDO, FLA. — McCraney Property Co. has secured a new, long-term build-to-suit lease with Freeman Expositions Inc. for 451,823 square feet at Bent Oak Phase II in Orlando. The 1 million-square-foot development project is planned to complement the existing 703,920-square-foot Phase I of Bent Oak at 1701 and 1802 Boice Pond Road. The lease represents the largest build-to-suit industrial lease signed in the market in more than seven years, bringing the industrial park to 48 percent leased prior to the construction of Bent Oak II. McCraney Property has teamed up with joint venture partner Clarion Partners to develop Bent Oak II. Bent Oak II will be located at the intersection of Taft Vineland Road and the Florida Turnpike and will deliver by year-end 2016 and will consist of six buildings in total. Freeman will relocate from its current locations to occupy 100 percent of Building 600. McCraney Property has hired Edwards Construction, C4 Architecture and Smiley & Associates Engineering to design and build the project. Matt Sullivan of Cite Partners represented McCraney Property and Clarion Partners in the transaction. Tom McCarthy, Joe Hills and Josh Lipoff of JLL represented the tenant.