A local private equity group paid $1.3 million this week to stake its claim in downtown Orlando, buying a turn-key office building with private parking a block west of Lake Eola.
Located at 127 N. Magnolia Ave., the 0.15-acre parcel lies in the shadow of the One Eleven high-rise office and apartments building, and features a single-story office building from 1953 with 3,307 square feet of conditioned area.
The buyer was an affiliate of real estate and small business investors K Capital Group, which was founded by Kamran Farid, co-founder of the fruit bouquet business Edible Arrangements.
K Capital Group's real estate investments include three office properties totaling approximately 150,000 square feet, along with five luxury rental homes in Reunion Resort and residential lots there for future development.
The company has previously based its headquarters in Connecticut and on Orlando's Kingspointe Parkway, but the Magnolia Avenue investment solidifies their long-term optimism for the downtown submarket.
"Here at K Capital we are committed to the Orlando community. We believe we show that commitment to the area by making our roots permanent," executive vice president Jeffrey Manfredonia told GrowthSpotter. "We chose to move our offices downtown because that is where we believe we can make the most impact.
"Our previous location (on Kingspointe Parkway) didn't give us the same level of opportunity," he continued. "Downtown enables you to meet new people all the time, and that's what we are trying to do."
Hooman Hamzehloui of Masters Realty International represented the buyer and will continue to do so in their search for local acquisitions.
The seller was an investment vehicle for Skip Gibson, Jr., who previously paid $550,000 in October 2012. Gibson is a local Internet marketing and e-commerce professional who also builds high-end spec homes in Winter Park with a partner, via Zoltan Homes.
This was Gibson's lone commercial real estate investment, and he was initially marketing it for lease late last year through Jeff Freeman of Fannie Hillman + Associates.
"But one of the (lease) prospects decided he actually wanted to buy the building," Gibson said. "I wasn't interested in selling because it's a prime location and is something I would have rather kept, but the offer was too good to pass up."
Gibson had renovated the building's interior within the past year to offer a modern, open layout concept. That turn-key space and private dedicated parking helped make the building a unique value in downtown, he estimated.
The office building came partially furnished. K Capital Group will also rebrand the front of the building in the coming months, which still has signage from a former hospitality tenant.