UPDATED: DECEMBER 7, 2016 11:17 AM — A local commercial real estate fund has a 34-year-old vacant office building in Downtown Orlando under contract, with plans to close in December, fill it with tenants and explore vertical redevelopment over the next decade, its CEO told GrowthSpotter.
Located at 320 E. South St., the 1.82-acre parcel supports a two-story, 31,454-square-foot office building with monument signage. The building lies immediately west of the exit ramp of SR 408 and South Street.
The seller is an affiliate of Boston-based TA Realty, which previously paid $7.15 million for the property in May 2007.
The building has been vacant for roughly a year, the last tenant to leave being AECOM. It has been listed for lease since then but the owner's preference has been to sell, said J. Paul Reynolds, principal with Foundry Commercial and listing broker on the property.
The buyer now under contract is an affiliate of Upshot Real Estate Fund I LP, which is sponsored by Raul Socarras, who is also CEO of Orlando-based Upshot Capital Advisors.
"Our goal is for this to be an opportunistic and value-add fund, looking at strong assets we like over the long haul of five to 10 years," Socarras said. "The Central Business District is a core market for us.
"Our plan for this property is to stabilize it with two to four large tenants, then potentially redevelop the property when it ripens in the five- to 10-year timeframe," he continued. "We like the future of the CBD, and think this (site) could be promising for a mixed-use project with office and multifamily or condos down the line."
Socarras forecasted a closing in December, and declined to specify an acquisition price.
(UPDATE:This sale closed on Dec. 6 for $4 million to the Upshot fund affiliate)
One of the company's stabilized asset funds owns more than 20 assets across Florida and Maryland, he said.
This particular Real Estate Fund I is under contract on a handful of other properties, Socarras said, including 28 acres in St. Cloud and 5 acres in Winter Garden at the intersection of Daniels Road and Colonial Drive, both planned for new mixed-use retail and office.
Socarras said the fund is far from reaching its investment target, and will continue to look for value-add properties in Greater Orlando.