A real-estate investment trust formed by a joint venture between KBS Realty Advisors and the Singapore conglomerate Keppel Corp. just paid $48.5 million for its second office property in Maitland.
According to a deed recorded Jan. 17 in Orange County, Keppel-KBS US REIT bought the 230,371-square-foot Maitland Promenade I building at 485 N Keller Rd. for about $210 per square foot.
The deal comes a little more than a year after the same REIT paid $40.2 million for the neighboring Maitland Promenade II building.
The seller, TA Realty, paid $33.1 million for the Maitland Promenade I building in 2014. The most recent deal gives the REIT control of almost 20 acres of land including two ponds in Maitland. Cushman & Wakefield represented the seller.
Jeff Rader, the senior vice president and asset manager at KBS, said Maitland Promenade I would be the 13th property acquired by the fund since launching its $448 million initial public offering on the Singapore exchange in 2017.
Its initial portfolio included Maitland Promenade II as well as other buildings in cities like Seattle, Houston and Denver.
"The acquisition brings the size of the fund to about $1 billion," Rader told GrowthSpotter, adding the REIT plans to add two more assets within the next year.
He said the fundamentals of Orlando's economic and employment growth made the asset an easy selection. In a recent report released by the Florida Department of Economic Opportunity, Orlando was ranked the fastest growing metropolitan area in the country for 2017.
Owning the property next door also adds cost saving value, he said. "It allows for more synergies in economic expenses and with the tenants able to move within the two buildings," Rader said.
Maitland Promenade I traded hands nearly 100 percent leased to tenants including Spectrum, Allstate and AdventHealth. CBRE will handle leasing the property.
Another North American company to list a REIT in Singapore includes Canadian insurer Manulife Financial. It raised $470 million at its offering in 2016.