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A view of the office building at 3900 Millenia Blvd.
A view of the office building at 3900 Millenia Blvd. (CBRE)

Founding surgeons of Tampa-based The BioSpine Institute paid $11.8 million on Tuesday to enter the Orlando market, buying a 61,600-square-foot Class A office building near Mall at Millenia.

Located at 3900 Millenia Blvd., the building comes with a second tenant in seller Market Traders Institute, which will remain to lease roughly half the space.

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The building has a 300-space parking garage attached by a covered bridge, a three-story water feature inside the building, outdoor patio on the east side and unique outdoor water features on three of four sides.

The sale closed on July 18 and was recorded Friday in Orange County.

This Boca Raton-based buyer now seeks CRE consultants to advise on what to do next, after winning a legal dispute over the property with a local partner.

"This building is really unique, it was originally built-to-suit (in 2008) for a tenant but was way overbuilt, they probably spent $400 per square foot which is about double what you'd spend today on a traditional Class A office building," Micah Strader, first vice president at CBRE Orlando who represented the seller, told GrowthSpotter on Friday.

"We were happy with how the process went, and had a couple groups at the end bidding for it," he continued. "I think the most impressive part was the market demand for owner(-occupied) buildings: this one traded for $8.7 million some 18 months ago, and today it's trading for almost $12 million. As much as the doctors paid for it, they still paid less than half of replacement cost."

The BioSpine Institute specializes in minimially invasive spine surgery, and has facilities in Tampa and Brooksville. The new owner is expected to fully renovate the Millenia building's first floor to convert into a surgery center.

The buyer sourced a $10.03 million loan from USAmeriBank to help finance the acquisition.

CBRE's Tom Rich assisted Strader as listing agent, and the buyer was represented by David Chapin with JLL.

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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