Atlanta-based commercial property investor and manager Bauman & Company paid $10.68 million on Wednesday to enter the Orlando market, buying a three-story medical office building in South Orlando that's home to Nemours Children's Clinic.
Located at 1717 S. Orange Ave., the 32-year-old medical office building known as Lake Lurna Professional Center features 45,458 gross square feet across three floors, with the property totaling 4.27 acres across four parcels.
The building is fully leased by medical specialists large and small, including Nemours and Jewett Orthopaedic Clinic. The property lies a block east of the Arnold Palmer Hospital for Children.
Bauman acquired a mortgage worth $7.2 million from Siemens Financial Services to finance the purchase.
The commercial investment group specializes in medical office building acquisition, leasing and management, and is adding its first Orlando property to a small medical office portfolio with properties in Vero Beach and Roswell, Georgia.
That portfolio lineup is on the verge of doubling, with Bauman set to close Monday on three more property acquisitions in other markets, founder Billy Bauman told GrowthSpotter on Friday.
"We've looked at a number of properties in Florida the past three to four years, and always come back to the Orlando market, which offers a unique medical district that's centrally located to the city, and easily accessible to outlying areas," Bauman said. "We are continuing to expand our search for acquisitions in Central Florida, and the east and west coasts of the state."
Bauman's search is focused on office assets that are strategically positioned on hospital campuses. The company favors multi-tenant buildings of modern construction, and will tackle value-add properties, he said.
In the near-term, Bauman & Company will be making aesthetic improvements to the Orlando office building, including landscaping and signage upgrades.
Bauman & Company also owns a handful of multi-family and distribution center properties in Louisiana, Alabama and Georgia.
The seller of the S. Orange office building was an affiliate of Orlando-based Mears Transportation, which paid $6.1 million in August 2011 for a property that was 66 percent occupied at the time.
While real estate is far from Mears' core business, the company has accumulated several significant investment properties over the past seven years, including two professional office buildings in Baldwin Park on New Broad Street.
Sale of the property was motivated by favorable market conditions, said Roger Chapin, vice president of public affairs. Mears doesn't have immediate plans to reinvest the sale proceeds to fulfill a 1031 exchange opportunity, but continually evaluates real estate investment options, he added.
Editor's Note: This story was corrected on April 2 to list Jewett Orthopaedic Clinic as the property's second largest tenant, and remove Mid-Florida Cardiology.