TerraCap Management LLC, a privately held investment firm with its headquarters in Estero, Florida, has acquired Orlando International Business Center in Orlando for $24,000,000.
Orlando International Business Center is comprised of six single-story office/flex buildings totaling 196,000 square feet. The property is well-located, with access to State Roads 528 and 417 and is located less than five miles from Orlando International Airport. The property is also only one mile from Lee Vista Promenade, a mixed-use development with over 700,000 square feet of retail.
Steve Hagenbuckle, Founder and Managing Partner of TerraCap said, “Expanding our single-story flex/industrial office park holdings near Orlando International Airport during its multi-billion-dollar expansion is consistent with past successful outcomes for TerraCap. Orlando continues to be a top growth market on many metrics, which is also consistent with our overall thesis and strategy.”
Orlando International Business Center is currently 88% occupied, with a diversified rent roll, providing strong in-place cash flows.
“Due to lack of available land and increasingly dense development projects in the market, single-story office/flex in close proximity to Orlando International Airport is a growth constrained product type that we are excited to add to our portfolio. We know this product, market, and associated tenants,” said Albert Livingston, Partner and National Director of Asset Management for TerraCap.
The seller was represented by Ron Rogg of CBRE-Orlando. Prime Finance provided debt financing for TerraCap, with assistance from the CBRE-Orlando debt team. Foundry Commercial LLC was hired for the leasing assignment, and Harvard Pacific was hired as property manager.
Franklin Street has expanded its presence in the Central and Northeast Florida industrial market with the addition of Matthew Weinberger as Director of Industrial Advisory & Transaction Services. He brings a strong background representing owners, investors and occupiers in the disposition, acquisition, development and leasing of flex and industrial assets throughout the Southeast U.S.
Weinberger comes most recently from Millenia Partners, a full-service commercial real estate firm based in Orlando, where he served as Vice President. Prior to that, he worked for Lincoln Property Company where he focused on office and industrial leases and sales.
In addition to representing clients in transactions, he has significant experience in site selection for new warehouse and distribution center locations, consulting on owned real estate assets and portfolios, and assisting industrial real estate users and investors with development and investment strategies.
“As Franklin Street continues to grow its business in Central and Northeast Florida, the booming industrial sector is a key focus,” said Yvonne Baker, Regional Managing Partner for Franklin Street in Orlando and Jacksonville. “Matthew brings deep market knowledge and valuable relationships that are vital as we represent clients in a historically strong and in-demand industrial market.”
Weinberger said, “It’s a great time to be involved in the Florida industrial real estate market, especially with a growing team like Franklin Street’s where the opportunities are infinite.”
Weinberger earned a B.A. in Business Management and Entrepreneurship from the University of Central Florida. He is a member of NAIOP Central Florida, the UCF Alumni Association and the Winter Park Chamber of Commerce.
Crossman & Company continues to strengthen management services by announcing that Joe Ravenelle, CPM. LEED AP has joined the firm as Director of Property Management.
Ravenelle comes to Crossman & Company from Avison Young where he was a senior property manager. There he oversaw capital spending and managed over 2.6 Million sq. ft. of commercial real estate in the Greater New York area. Some of Ravenelle’s clients include the largest institutional real estate owners in the country.
"We are excited to welcome Joe to our team. His experience and skill level emphasize our commitment to having the most talented industry professionals to maintain our standards of excellence, enhance client support and drive growth,” said John Zielinski, CCIM, President and COO of Crossman & Company.
Serving Florida, Georgia, Alabama, Tennessee, South Carolina, and North Carolina, with offices in Orlando, Tampa, Miami, Boca Raton, Fla., Charlotte, N.C. and Atlanta Ga., Crossman & Company has experience in retail and office leasing, property management and investment sales of shopping centers, single-tenant, triple-net assets, as well as mixed-use and lifestyle properties.
Prior to Avison Young, Ravenelle directed operations and management of a 2.2 million-square-foot commercial real estate portfolio with four property managers. He also spearheaded strategic analysis, budget management, and overall execution of highly effective improvement and capital projects.
“I am excited and proud to join the Crossman team. I look forward to using my experience in the real estate industry to augment Crossman & Company’s continued success and growth throughout the Southeast,” noted Ravenelle.
Crossman & Company represents nearly 400 shopping centers in the Southeast with over 28 million square feet under leasing and/or management.
To all landlords with interest in Florida real estate, a small but very welcome change in real estate conveyances becomes law on July 1, 2020. After June 30, 2020, it is no longer required to have witnesses join in a real property lease – whether commercial or residential – for it to be valid.
The new law took effect this summer that eliminates a previous requirement that commercial and residential leases be signed by an “in-person” witness. As more and more transactions occur digitally — pandemic or no — the requirement that someone sign a document personally has become increasingly antiquated, explains Paul P. Partyka, 2020 President of the Central Florida Commercial Association of Realtors.
“In the post COVID-19 world, this will streamline the process. Regardless of the pandemic, this just makes good business sense, period,” shares Partyka, CCIM, MICP, President of The Partyka Group, Inc. at NAI Realvest in Orlando.
Florida House Bill 469 (HB 469), filed on Oct. 28, 2019, and co-sponsored by Reps. Juan Alfonso Fernandez-Barquin and Wyman Duggan, received unanimous support in both the House and the Senate, with a 117-0 vote in the House and 40-0 vote in the Senate.
Florida Gov. Ron DeSantis signed HB 469 on June 27, 2020. A change welcomed by Florida landlords; it removes the requirement under Section 689.01 of the Florida Statutes that a landlord must have two witnesses when signing a lease for a term of more than one year. HB 469 provides that no subscribing witnesses are required for a lease of real property, eliminating the requirement that two subscribing witnesses be present when the lessor signs a lease with a term of more than one year.
Until House Bill 469 took effect on July 1, Florida was one of just seven states that continued to require such in-person witnesses to leases.
It has long been a question of landlords to their lawyers over the years if witnesses are really necessary when a lease is executed. Because Florida now allows electronic signatures on leases, the burden of having a lease witnessed had become even a larger problem, adding many hours of delay in securing a lease commencement date to make sure the required number of witnesses are available at the same time as both the landlord and tenant to execute the lease. The new law will save landlords a considerable amount of time because now a lease needs just two parties signing it instead of up to six (the landlord, tenant and two witnesses for each side).
The statewide chapter of NAIOP, formerly the National Association of Industrial and Office Parks; Florida Realtors, Central Florida Commercial Association of Realtors, the Florida Apartment Association and the Florida Bar’s Real Property, Probate and Trust Law section all endorsed the change, which was first introduced into the Florida Legislature in 2019.
Electronic signatures, or “e-signatures,” have been allowed on purchase contracts for commercial and residential property sales for many years, Partyka adds.
Seefried Industrial Properties and Clarion Partners LLC have delivered a 1.1 million-square-foot industrial facility in Deltona.
The building features 34,275 square feet of office space, 1,034 auto parking spaces and 350 trailer parking spaces. The property is situated on North Normandy Boulevard along Interstate 4, about 30 miles north of downtown Orlando.
The tenant, an undisclosed e-commerce company, expects to house 500 employees at the facility.
The joint venture began construction nine months ago with the design team, which includes general contractor The Conlan Co., architect Ford & Associates and civil engineer Kimley-Horn.
Source: RE Business
Cushman & Wakefield has arranged the sale of Airport Commerce Center, a seven-building small bay industrial park located in Orlando’s Airport Lake Nona submarket. The final sale price was $43 million.
Mike Davis, Rick Brugge, Rick Colon, Dominic Montazemi, Zachary Eicholtz and Ryan Jenkins of Cushman & Wakefield represented the seller, TA Realty, in the transaction.
Affiliates of Richland Capital Holdings, a Tampa, FL based diversified real estate investment company, acquired the property.
“We are excited about the purchase of Airport Commerce Center as it represents a stabilized, institutional-quality industrial asset located virtually adjacent to the Orlando International Airport in a supply-constrained and vibrant submarket of Orlando,” said Matt Bray, CEO of Richland.
Airport Commerce Center marks Richland Capital Holdings’ third industrial acquisition in Central Florida over the past nine months, bringing their total industrial holdings in the region to just under 500,000 square feet. Richland expects to continue their expansion of industrial holdings in Central Florida in the coming months.
“Despite the near-term headwinds related to the pandemic, we believe that Central Florida has great long-term growth prospects across a variety of real estate asset classes,” Bray said.
“Airport Commerce Center offered a fantastic opportunity for Richland to invest in a property with a premier infill location, prime accessibility to major roadways, and a diverse tenant base with upside potential,” Davis added.
“Additionally, the property has a strong historical performance with an average occupancy of 92% over the last 10 years, which is largely attributable to the lack of directly competitive small-bay industrial product,” Colon said.
Located on 25 acres at the Northeast Corner of South Orange Avenue and the Beachline Expressway, the 319,386-square-foot property offers connectivity to Orlando via several major thoroughfares. The property is fully leased to a strong tenant roster which includes Panera Bread, Tesla, Economy Rent a Car and Chrysler. Airport Commerce Center includes 866 parking spaces for a ratio of 2.7/1,000 sf, dock-high loading, and flexible zoning.
An entity tied to an Orlando commercial bakery looks to build new commercial space near the airport.
Donut Holedings LLC — which shares an address with Orlando-based Bakery Express of Central Florida Inc. — seeks approvals for 195,000 square feet of warehouse buildings on 13.5 vacant acres northwest of Landstar Boulevard and Wetherbee Road, according to Orange County records. A company representative wasn't available for comment.
The project team so far includes Orlando-based Florida Engineering Group Inc. Donut Holedings purchased the land for $3.7 million, or roughly $274,074 an acre, in January 2017, according to Orange County records. Jetport Industrial Park Of Orlando Ltd. was the seller. The property's market value is $3.3 million.
The project may cost $12.7 million to build, based on industry standards.
It's not known how this warehouse will be used, but the race is on for more land to build space to meet e-commerce needs locally.
Online shopping has risen due to Covid-19 as more people order goods from home instead of venturing out to stores. In fact, for every $1 billion increase in e-commerce spending, there's a need for 1.25 million square feet of additional distribution space, according to a CBRE "U.S. Industrial & Logistics" second-quarter 2020 report.
"It's like a time machine and you come out 10 years later," David Murphy, senior vice president of CBRE Group Inc. (NYSE: CBRE), said of the growth in e-commerce. "That's what industrial looks like today. It's an accelerant to fast forward an impact that was already going to happen."
New construction is an important regional economic driver. It creates jobs, while also providing more space for companies involved in e-commerce, logistics, housing and other industries.
The airport/Lake Nona industrial submarket has a 13.2% vacancy rate compared with the Orlando-area average of 8.2%, Cushman & Wakefield PLC (NYSE: CWK) reported. That's likely due to the high amount of space under construction — 1.1 million square feet — which is tops among Central Florida submarkets. The large amount of space under construction shows demand for industrial product there.
In addition, the submarket has average asking warehouse/distribution rates of $5.89 per square foot, which is near the Orlando-area average of $5.97 per square foot.
The owners of this 36.5-acre assemblage on Boggy Creek Road are surrounded by new and planned developments, like Medical City, Tyson Ranch and D.R. Horton's development on the 115-acre AdventHealth property. (Daly Design Group)
For the second time in as many weeks, a group of property owners on the outskirts of Lake Nona have formed an assemblage to seek city annexation for a mixed-use project.
Five individual owners of six parcels in the Orlando-Kissimmee Farms rural enclave east of Boggy Creek Road applied for a Comprehensive Plan Amendment to change the future land use from Rural to Neighborhood Center, with Planned Development/Neighborhood Center zoning and inclusion in the city’s southeast sector plan. The assemblage known as the Beth Road annexation adds up to 36.5 acres. It’s contiguous to the Lake Nona’s Medical City property on the north and a half-mile north of the Osceola County line.
The land owners engaged Daly Design Group to create a Framework Master Plan that would create three separate zones within the development for commercial, multifamily and residential nodes. The 8.2 acres fronting on Boggy Creek Road would be slated 78,700 square feet of mixed-use non residential development.
The framework master plan for the Beth Road properties show three separate nodes for non-residential (red), mulitfamily (yellow) and townhouse development (blue).
Just east of the mixed-use pod would be a 19-acre lot entitled for a 380-unit apartment community. The third zone is a 9-acre lot north of New Hope Road and contiguous to Medical City, which would be entitled for 92 fee-simple townhomes.
Daly declined an interview request. In the application package, he wrote that the project would create an internal street network with pedestrian connectivity. The project would provide needed housing and services to the employment centers, like Medical City and Orlando International Airport, which is two miles away.
He also pointed out that Boggy Creek Road is scheduled to be reconstructed next year from a 2-lane rural road to a 4-lane urban roadway, and that OUC is extending utilities to the county line. The current and pending permitted projects along the Boggy Creek corridor are trending along the same lines as the Narcoossee Road corridor.
“This area of the City is undergoing rapid change to the existing rural character of the area,” Daly wrote. “The approvals of the Poitras property is located ¾ of a mile to the east of the subject site and Lake Nona Medical City located to the north of the site are bringing urban character development to the Southeast area of Orlando.”
Directly across the street from the Beth Road assemblage lies the 115-acre AdventHealth property, which now under contract to D.R. Horton. Pending permits would allow for 660 multi-family units, 166 townhomes, 160 senior housing units, 150,000 square feet of retail use and 150,000 square feet of office uses.
Just south of that project, the mixed-use Tyson Ranch master-planned community is already underway with new apartments by The Bainbridge Companies and M/I Homes.
“The proposed development on the subject parcel is consistent with the emerging development pattern that is changing from rural to urban in nature in this area of the City,” Daly wrote. “This change in character is being driven by the entitlements granted to the multiple properties along the west side of the corridor. The planned reconstruction of the Boggy Creek corridor which will bring urban infrastructure to the site and improved roadway connectivity supports the increase of development intensity and will provide the southern gateway into the City of Orlando.”
The consulting development team also includes GTC Engineering as civil engineer, Bio-Tech Consulting as environmental engineer and Traffic & Mobility Consultants.
Earlier this month a group of homeowners on Narcoossee Road – some of the last homeowners on Lake Whippoorwill – also petitioned for annexation and Urban Village land designation. Both cases are scheduled to go to the Municipal Planning Board on Oct. 20.
Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of North Lake Business Park in Altamonte Springs.
The property sold for $28.5 million.
“North Lake Business Park’s diverse mixture of regional and national tenants provides new ownership with long-term cash-flow security and the variety of building types, units and loading options offer considerable flexibility and excellent potential upside,” said Douglas K. Mandel, IPA executive managing director.
Mandel represented the seller, Real Capital Solutions, and procured the buyer, Taurus Investment Holdings, LLC, a global real estate private equity firm headquartered in Boston, Massachusetts.
“Taurus has been investing in the Orlando office market for over 25 years and maintains strong confidence in its resiliency and future growth potential,” said Peter A. Merrigan, CEO of Taurus Investment Holdings. “We found the Northlake acquisition particularly attractive due to its location and the tenants’ ability to completely control their employee and client environments.”
A 10-minute drive from Downtown Orlando, the property has a half-mile of frontage on Orlando’s most-traveled thoroughfare, Interstate 4. The Altamonte Springs SunRail station is three miles from the property, State Road 436/Altamonte Drive is less than a mile away, and the area’s largest retail complex, the Altamonte Mall, is close by. Constructed between 1982 and 1987 on 29 acres, the 15-building, 270,000-square-foot business park is approximately 75% office space and 25% air-conditioned warehousing. The average unit size is 5,000 square feet. At the time of the sale, the property was 90% leased to a mix of technology, real estate and healthcare tenants.
Founding Principal Amy Calandrino, CCIM of Beyond Commercial, a commercial real estate firm headquartered in Maitland, represented the buyer, Lemetra Investments, LLC, in a $2.75 million purchase of a 47,468 square feet warehouse facility. The seller, United Partners Investments, Inc., was represented by David Murphy, MAI, SIOR, CCIM of CBRE.
The buyer’s principal, Adrian Little, certified minority-owned fabrication company – JETechnology Solutions, Inc. – will occupy the property. JETechnology Solutions is a trusted partner of some of the most recognizable names in the industry such as the United States armed forces and Lockheed Martin. The new facility will allow them to expand considerably.
“JETechnology Solutions is just one great example of the manufacturing sector’s growth. One post-COVID change driving record manufacturing growth is supply chain optimization increasing opportunities for manufacturers to utilize stateside based suppliers,” said Calandrino.
“When I’m asked about the state of the commercial market, most people have no idea that the industrial market especially with manufacturing facilities is thriving in part because of the supply chain innovation,” she added.
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