Advertisement

Highwoods sells MetroCenter office portfolio and dev. site in MetroWest

Raleigh-based Highwoods Properties just sold its Windsor and Berkshire at Metrocenter office buildings for $32.5 million in a portfolio deal that also included an additional office development site.

The Class A office portfolio at 2101 Park Center Dr. and 2145 Metrocenter Blvd. spans a total of 182,753 square feet, meaning the deal breaks down to about $180 per square foot.

Advertisement

The buyer is is a limited liability company called Metrocenter Office, represented by Akerman partner Aileen Davis in Tampa .

The company is tied to First American Exchange Company, which specializes in facilitating 1031 exchanges. The exchange is a part of the U.S. tax code that allows an investor to defer taxes on capital gains from a real estate sale if it re-invests in another property.

CBRE's Ron Rogg and Chip Wooten represented the seller. The property sold 89 percent leased to 11 tenants, the largest of which have a long history at the property, according to a press release.

The office portfolio traded hands with a roughly seven-acre shovel-ready development opportunity. In 2017, Highwoods began seeking approvals from the City of Orlando to build a remaining 218 parking spaces to support the future construction of a 48,000-square-foot Oxford office building.

The original Master Plan for MetroCenter dating back nearly 20 years allows for the development of five office buildings totaling more than 400,000 square feet within the MetroWest DRI.

Employees at the office buildings have close access to retailers such as Starbucks, Tijuana Flats, and Chipotle. The renowned Robert Trent Jones golf course is also nearby.

The transaction takes place at time when the Orlando market experiencing record positive net absorption, being one of only two markets in the United States to record positive net absorption each year since 1995, according to the release.

CBRE data claims Orlando office vacancy rates are among the lowest of all Florida MSAs, with current levels at 9.1 percent.

Nearby, Georgia-based multifamily developer RISE: A Real Estate Company is close to breaking ground on a new 442 market-rate luxury apartment complex called West Vue.

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 FacebookTwitter and LinkedIn.

Advertisement
Advertisement
Advertisement