TerraCap Management LLC, a privately held investment firm with its headquarters in Naples, Florida, announced the sale of Lake Point Commerce Center, a six-building, 134,389 square foot, office/flex park located in Orlando.
Albert Livingston, TerraCap Partner and National Director of Asset Management, said, “Across our portfolio during COVID, we observed significant rent growth and tightened occupancy for single-story flex product. This resulted from increased need for distribution space and users migrating to non-traditional office space. The demand for flex office/industrial product combined with lack of available land in growth-constrained infill locations further benefited this asset, and we expect this trend to continue.”
TerraCap acquired Lake Point in July 2019. During their three-year ownership period, TerraCap completed several capital projects at the property, including roof replacements, parking lot repairs, and HVAC replacements, while maintaining the property’s occupancy above 90%. The property is located less than five minutes from Orlando International Airport.
“Lake Point’s performance follows our investment thesis of acquiring strategically-located properties in growing markets and working closely with established leasing and management teams to execute each asset’s business plan,” said Mark Hardee, TerraCap Asset Manager. “Average new and renewal leases signed in the last 12 months exceeded the in-place rents at our acquisition by more than 50%, and the property was 98% leased when sold. We appreciate our leasing and management teams for their strong efforts towards what we view as another success for TerraCap.”
Ron Rogg of CBRE represented TerraCap in the sale transaction. Lisa Bailey with Avison Young represented TerraCap on leasing during their ownership, and Harvard Pacific represented TerraCap on property management.
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