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Two notable office sales took place last week in Maitland and Orlando

A photo of the 21-story Regions Bank Tower at 111 N Orange Avenue.
A photo of the 21-story Regions Bank Tower at 111 N Orange Avenue.(Avison Young)

Investors from Miami and Greenville, South Carolina bought office buildings in Central Florida last week.

The largest sale took place in downtown Orlando.

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Miami-based real estate investment firm Black Salmon paid $67.75 million to acquire the 21-story Regions Bank Tower at 111 N Orange Avenue.

Grant Peterson, vice president of acquisitions for Black Salmon, told GrowthSpotter the deal marks the company’s first investment in Florida since launching in 2017.

“This would be our first deal in Central Florida, and hopefully not our last,” Peterson said.

Prior to Black Salmon, Peterson specialized in office acquisitions throughout the southeast and Central Florida. He said the company invests in stabilized properties primarily located in urban cores or areas with high records of job growth.

“I’m very familiar with downtown Orlando and Orlando," Peterson said. “I knew we’d make a deal there sooner or later.”

The deal for the roughly 246,000-square-foot building in Orlando breaks down to about $275 per square foot. The seller, G And I VIII 111 N Orange Ave LLC, is tied to New York-based DRA Advisors.

CBRE’s Ron Rogg and Chip Wooten represented the seller. Avison Young was tapped by the new ownership to continue leasing the building.

The entity led by the New York investment advisor bought the property in 2015 for $51 million. Tenants in the building include Regions Bank, UBS, Geico and coworking space provider Regus.

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JLL Capital Markets worked on behalf of Black Salmon to arrange $45.1 million in financing through City National Bank.

Black Salmon was launched in 2017 as an investment platform with a goal to invest up to $300 million in two years on commercial real estate throughout the United States.

Its portfolio includes assets in markets like the San Francisco Bay Area, Phoenix and Indianapolis.

The four-story Lake Destiny Executive Center I at 1101 N. Lake Destiny Road.
The four-story Lake Destiny Executive Center I at 1101 N. Lake Destiny Road.(TerraCap Management)

In Maitland, TerraCap Management, sold the four-story Lake Destiny Executive Center I office building for $7 million.

The 57,392-square-foot building at 1101 N. Lake Destiny Rd. traded hands for about $122 per square foot.

The buyer was Greenville, South Carolina-based RealOp Investments. The real estate investment firm has a commercial real estate transaction history that tops $9 billion, according to its website.

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Albert Livingston, national director of asset management for TerraCap, said the firm purchased the building with the intention to reposition the property.

“After completing major upgrades we were able to restore this distressed asset to a solid option for smaller professional users looking for covered parking, lake views, and I-4 signage,” he said in a written statement.

Maitland Center's office market just got hotter. Learn more about the deal here.

TerraCap bought the building along with an adjacent 23,160-square-foot building in 2015 for a combined $4.32 million. Occupancy was about 56 percent at the time.

In 2017, the company sold the neighboring building to the south at 1001 N. Lake Destiny Rd. to AdventHealth for about $3.15 million.

"Within a year, the adjacent building was sold to an end user and Lake Destiny occupancy was on the rise, Livingston said in a press release.

The 57,392-square-foot Lake Destiny building sold about 80 percent occupied to tenants included The Mortgage Firm and ClearChoice Dental Implant Centers.

Joe Rossi and T.J. Campton of Colliers International Central Florida represented TerraCap Management in the sale.

Have a tip about Central Florida development? Contact me at arabines@GrowthSpotter.com or (407) 420-5427, or tweet me at @amanda_rabines. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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