Real Capital Solutions, Inc., a Colorado-based investor of distressed assets, spent $11.69 million on Sept. 25 to enter the Orlando market with an office complex purchase near the international airport, and is actively pursuing more local investments, the company's vice president of acquisitions told GrowthSpotter.
Located in the 5700 block of S. Semoran Boulevard, the 15.5-acre Airport Business Center includes six buildings and 186,355 square feet. It was 55 percent occupied when acquired, though about 12,000 square feet in new lease deals were closed while the property was under contract, and another 20,000 square feet are pending lease now, said Adam Abeln of RCS.
"Our firm is more opportunistic, in that assets we look for are typically at least 25 percent vacant or more, so we're looking for property like this we can add major value to," Abeln said.
"We're now focusing quite a bit on office, industrial and retail properties in the Orlando market," he added. "We just put in some offers on other office buildings in Orlando MSA. We're also looking at a couple apartment development deals in Orlando now, as well as some homebuilding deals."
RCS has capital investment segments for apartments, single-family homes, commercial properties and condominiums, and sees Orlando as a new growth market for all of those areas, Abeln said.
The company's new office property near OIA will receive light upgrades in the coming months to lighting and exterior painting. Abeln said RCS is quickly starting to see bigger tenants pursue space there, indicating a growing interest in Orlando by larger office space tenants.
"Some of the deals we're negotiating now are 5,000 to 10,000 square feet, and they're credit-grade tenants as well. That growth in the size of space being demanded is a positive," he said.
The Airport Business Center was part of a $22 million portfolio acquisition by RCS that includes three office properties in Florida, which totaled 15 buildings and more than 401,000 square feet. One of the other properties was located in Longwood, Longwood Business Center, with 133,531 square feet.