It’s been one long, uncomfortable summer for the Orlando hospitality industry. Unfortunately, there seems to be no relief in sight for hoteliers anytime soon. At the beginning of 2009, the Orlando market had 438 hotels totaling approximately 111,700 rooms, a number that is second only to Las Vegas. Orlando will have added another 3,775 hotel rooms by the end of this year; during 2010, the area will introduce another 1,000 rooms. While some existing hotels are being closed permanently and others are just shut temporarily for renovation, it is hard not to believe that the Orlando market will be playing catch-up for many months in an effort to absorb this new supply. The slide started late last year when occupancies stopped advancing after a 5-year climb. For year-end 2008, the Orlando market overall was down 3 percent in occupancy but up 3 percent in average daily rate (ADR), leaving revenue per available room (RevPAR) essentially unchanged during 2007. However, by the end of the first quarter of 2009, both occupancy and RevPAR dropped to their lowest levels since 2002. Occupancy was actually 2.8 percent below 2002 levels, and ADR was off almost 7 percent from the same period, making the …
Southeast
CHARLOTTE, N.C. — Legrand Holdings has leased 332,000 square feet of warehouse space from ProLogis in the firm’s 559,000-square-foot Carowinds Distribution Center in Charlotte. Legrand will use the space to support its North American line of electrical installation and information networks products. Anne Johnson and Bryan Crutcher of CB Richard Ellis’ Charlotte office represented the tenant.
DURHAM, N.C. — Virginia Beach, Va.-based Kotarides Developers has purchased 16 acres of land from a private seller to develop a 240-unit Class A apartment complex. The property, which is located 2 miles from Duke Hospital on Bertland Avenue in Durham, is part of the Croasdaile Country Club and Croasdaile Farm areas. John High of Trinity Partners Raleigh, N.C., office represented the seller.
CHESAPEAKE, VA. — Jimalee has purchased a 30,500-square-foot warehouse from Old Dill Road LLC for $2.24 million. The property is spread across 3 acres at 3728 Profit Way in Chesapeake. The building will house Electric Motor Contracting Co.’s expanded operations. Patrick Mumey and W. Scott Wermers of Thalhimer’s Virginia Beach, Va., office brokered the sale.
WASHINGTON, D.C. — The Superior Court for the District of Columbia has appointed San Diego-based Douglas Wilson Cos. receiver of a 442,000-square-foot office building. The property is located on Half Street in Washington. Currently halfway complete, the property was designed to LEED Silver standards. The firm has also been appointed receiver of a 243,000-square-foot building at 100 M St. in Washington.
SILVER SPRING, MD. — Silver Spring-based Mid-City Financial Corp. has purchased the 192-unit Aspen Crossing Apartments from an undisclosed party for $20.8 million. The property, which is 96 percent occupied, is located at 14120 Grand Pre Rd. in Silver Spring. Aspen Crossing was built in 1979 and recently benefited from $2.5 million in renovations. Bill Roohan, Mike Muldowney, Andy Boyer, Michael Rudolph and Brian Margerum of CB Richard Ellis’ Washington, D.C., office brokered the sale.
ORLANDO, FLA. — Passco Cos. has secured a $12.65 million loan to acquire the 212-unit Promenade Crossing apartment complex. The Class A property, which is more than 95 percent occupied, is located at 4000 Maguire Blvd. in Orlando. The 10-year loan carries a fixed interest rate and was financed by Wachovia Multifamily Capital, a Freddie Mac servicer. Kevin Greenberg and Mark Strauss of Cohen Financial’s Newport Beach, Calif., office arranged the loan.
CHESAPEAKE, VA. — The U.S. General Services Administration, acting on behalf of the U.S. Coast Guard, has signed a lease renewal for 61,992 square feet with First Potomac Realty Trust. The 10-year lease allows the Coast Guard to occupy the entire Crossways Commerce Center III building in the Crossways Commerce Center Business Park in Chesapeake. The tenant leases an additional 73,263 square feet elsewhere on the property.
ALABAMA — Orlando, Fla.-based Cuhaci & Peterson Architects has been selected to remodel two Winn-Dixie supermarkets in Alabama. The stores, which both total 61,500 square feet, are located in Montgomery and Prattville.
ORLANDO, FLA. — Hardin Construction has completed the 469,000-square-foot Restaurant Support Center for Darden Restaurants. The Orlando facilities was built to house 1,300 employees that originally worked at 12 different locations. From the new property, workers will support Red Lobster, Olive Garden, LongHorn Steakhouse and Seasons 52 restaurants throughout the country. The architecture firm Perkins + Will designed the space to LEED Gold NC requirements. Green features include efficient heating and air systems, automatic lighting and a reflective roof.