Avison Young’s Florida Capital Markets Group closed the $15.1 million sale of Central Corporate Center, a five-building office park totaling 318,516 square feet and spanning 21.7 acres at 5915 S. Rio Grande Ave. in Orlando.
Situated between Orlando’s Central Business District to the north and the Orlando International Airport to the south, the property was ideal for an investor seeking to a well-located asset with great value-add potential.
The sale was facilitated using the Ten-X auction platform and represented a joint-effort between Avison Young’s Orlando and South Florida offices.
On behalf of the seller, 110 Grove, LLC, Avison Young’s South Florida team of Principal David Duckworth; Principal and Miami Managing Director Michael T. Fay; Principal John K. Crotty, CCIM; Vice President Brian C. de la Fé; and Associate Berkley Bloodworth collaborated with Orlando-based Principals Nathan Eissler, CCIM, SIOR, and Lisa Bailey to spearhead the disposition to Florida-based entreprenuer Marc Osheroff.
“Our team was engaged to sell Central Corporate Center at the highest value within the shortest possible timeframe, so we worked with the seller to develop a strategy using the Ten-X platform,” said Duckworth. “We were able to generate incredible exposure and eliminate the risk of buyer default by requiring a hard deposit upon awarding the deal.”
Office investment activity has been steady in Orlando, with a total transaction volume of $359.3 million for the period from January 2020 to June 2021, according to Avison Young research. Average base rents have increased by 6.7% from peak-to-trough since the onset of the pandemic. Demand is starting to increase as the business economy continues to gain momentum, employees come back to the office, and tenants that postponed their long-term occupancy strategies re-enter the market.
“Central Corporate Center was under 30% leased with short-term agreements at the time of the listing, which made it a prime value-add opportunity offering great upside potential,” said Eissler. “The buyer was attracted to the asset’s location and size and has plans to re-lease the property with new improvements.”
Located within Orange County’s Orlando Central Park submarket, Central Corporate Park offers excellent connectivity throughout the region due to its convenient access to Interstate 4, State Road 428, and US Route 441. Originally a build-to-suit for Lockheed Martin and previously occupied by an AT&T web hosting group, the property features a 51,000-square-foot data center, which is in high demand since the pandemic pushed companies to shift focus and invest in digital infrastructure.
According to population projections produced by American City Business Journals, Orlando is projected to be the second-fastest growing large metropolitan area in the United States moving toward 2030, with Orange County anticipated to increase by 30% in the next 11 years. Office investment and leasing activity have already started to pick up since the pandemic lull and is expected to grow along with the market.
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