UPDATED: May 17, 2017 9:10 AM — Massachusetts-based Northland Investment Corporation paid a combined $65.25 million on Thursday for a majority commercial and residential stake in the 313-unit The Paramount on Lake Eola, a Downtown Orlando condominium tower.
The company plans to invest more than $4 million in improvements to the property that include high-end interior renovations, extensive amenity enhancements and exterior updates, Chief Investment Officer Matthew Gottesdiener told GrowthSpotter. The pace of that investment over a long-term ownership strategy was not specified.
Located at 415 E. Pine St. south of Lake Eola, the 16-story high rise features Publix and other retailers leasing ground level space. The building has a fourth-floor rooftop swimming pool, grilling stations and cabanas, fitness center, outdoor fireplace lounge, dedicated resident parking, and most condo units have floor-to-ceiling windows.
One $7.83 million transaction was for three ground-floor commercial space units, which include the 38,858-square-foot Publix, and two secondary spaces of 4,925 and 8,990 square feet. The retail space was fully leased last year by CBRE's Bobby Palta and Wood Belcher.
A separate $57.42 million transaction included 264 condo units. An affiliate of Northland owned two other condo units, which now gives the company 266 units in the tower. The two deeds were recorded Monday in Orange County.
"Orlando has experienced a dramatic economic expansion in recent years, leading the nation in both employment and population growth," Gottesdiener said. "The Paramount, with its unparalleled location in the heart of the CBD, offers a compelling opportunity to benefit from the continued revitalization of Orlando's downtown."
The buyer sourced a mortgage worth more than $70.59 million from Prime Finance Partners out of Chicago.
Northland is a privately held, vertically integrated real estate investment company with its own management affiliate. It claims to currently own and managed a $3.5 billion portfolio of 87 commercial properties, with focuses in New England, Texas and the Southeast.
The seller was USO Norge Paramount Residential LLC, an affiliate of Norwegian real estate investment firm Obligo Real Estate Inc., with management based in New York.