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 …
ATLANTA, GA. — Hillwood Investment Properties, through its U.S. Industrial Fund II, has acquired a 320,000-square-foot distribution park in Atlanta. The purchase price was not disclosed. Westridge Logistics Center is a Class A multi-tenant building located near the I-75/GA Highway 155 interchange. Westridge features concrete tilt wall construction, a minimum clear height of 24 feet, building depths of 180 to 210 feet, an ESFR sprinkler system, truck court depths of 120 feet, and T-5 lighting. Frank Fallon, Brian Budnick and Chris Riley of CBRE represented the seller in the transaction.
PASADENA, MD. — Sterling Organization has acquired a 319,518-square-foot retail center in Pasadena, approximately 15 miles south of Baltimore. Sterling Organization purchased Pasadena Crossroads in an off-market transaction from Pasadena Crossroads LLC for $31.6 million. The shopping center is anchored by Kmart, Shoppers Food & Pharmacy, Babies “R” Us, LA Fitness and Gardiner Wolf Furniture. The center is currently 100 percent occupied and was built in the 1970s. Pasadena Crossroads is located across the street from a new 120,000-square-foot Walmart, which is set to open this month.
COLUMBIA, S.C. — NAI Avant has arranged a 5,400-square-foot office lease in downtown Columbia. The Mariner Group has relocated its headquarters to the TD Bank Building located at 1501 Main St. Mariner is a provider of maritime situational awareness and response management solutions and services. Paul Hartley, Roger Winn and Paul Paschal of NAI Avant represented Mariner in the transaction.
NASHVILLE, TENN. — An affiliate of Berkshire Group has acquired a 153-unit apartment complex in Nashville. Artisan on 18th is a Class A community that was purchased for an undisclosed price. The complex is located in the Music Row neighborhood and is close to Vanderbilt University, the Medical District, the Tennessee State Museum, Bridgestone Arena and Honkey Tonk Row. The asset is a five-story, wood-frame building. Community amenities include two outdoor courtyards, grills, fire pits, a resident lounge, business center, television room, fitness center and bike storage. Stonehenge Real Estate Group developed and sold the property. Berkshire Communities will manage the property.
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.
NORCROSS, GA. — Multi Housing Advisors (MHA) has arranged, in separate transactions, the sale of four apartment communities located in Norcross, Ga. for a total of $71.7 million. Josh Goldfarb and Tyler Averitt of MHA’s Atlanta office represented the Boston-based seller, Realty Financial Partners, in the transactions. In the first transaction, King Rook Capital, with corporate offices in New York, purchased Highland Reserve for $23.3 million. The 416-unit property was built in 1987. In the second transaction, Emma Capital Properties purchased Highland Valley for $18.8 million. The 300-unit property was built in 1985 and was subsequently renamed Princeton Heights Apartments. In the third transaction, Atlanta-based Audubon Communities purchased Highland Corners for $16.2 million. The 252-unit property was built in 1979. In the fourth transaction, Atlanta-based Marquis Investments purchased Highland Lakes for $13.4 million. The 240-unit property was built in 1985.
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.
ALEXANDER CITY AND RAINBOW CITY, ALA. — Berkadia has arranged the sale of a multifamily portfolio encompassing a total of 172 units for $3.8 million. The properties include Azalea Court I & II, Sherwood Forest and Wildhaven. The properties are located in Alexander City and Rainbow City, Ala. David Oakley and Josh Jacobs of Berkadia’s Alabama office negotiated the portfolio sale representing the Birmingham-based seller. Suit Properties of Gadsden, Ala. was the buyer.
DURHAM, N.C. — LEM Capital has funded a $6.5 million joint venture investment for the acquisition and renovation of Emerald Forest, a 320-unit multifamily property located in Durham, N.C. The property is set to undergo value-add renovations. Emerald Forest is a garden-style asset that was built in 1985 and features a mix of studios, one-, two- and three-bedroom units.