A new U.S.-focused office REIT paid $40.225 million on Thursday for the Maitland Promenade II building, part of an 11-asset portfolio focused on key office growth markets across the country.
Located at 495 N. Keller Road just west of the Maitland Center Office Park, the 9.14-acre parcel features a five-story office building and parking garage built in 2001, with 226,990 square feet of net lettable area.
Keppel-KBS US REIT launched its $448 million initial public offering and became listed on Singapore's stock exchange this week, the largest property trust IPO launched on the Singapore exchange so far this year.
The REIT's initial portfolio will consist of 11 office properties totaling approximately 3.2 million square feet in seven key U.S. growth markets, and is jointly owned by Singapore-based Keppel Capital Holdings and U.S.-based investment firm KBS Pacific Advisors.
The seller of the Maitland building was a direct affiliate of KBS, which previously paid $31.2 million for the property in 2013. KBS was ranked the 11th largest U.S. owner of office properties globally with a portfolio of more than 41.8 million square feet, according to National Real Estate Investor in December 2016.
Keppel-KBS US REIT told investors on Nov. 2 that the 11 office properties have a combined occupancy rate of 90 percent among 340 tenants, stable lease expiry profile of 3.7 years, no single year with more than 20 percent of total leases expiring, and built-in rent escalations of 2-3 percent for 97.5 percent of the leases.
Greater Orlando's office market carried a 9.76 percent vacancy rate at the end of the third quarter, with 193,246 square feet of net absorption and 824,296 square feet of new product under construction, according to Cite Partners' latest quarterly report.
Among 11 local submarkets, Maitland Center is the third largest with more than 6.73 million square feet of leasable area. It had a 9.5 percent vacancy rate at the end of Q3, on the higher end of the submarkets, but its year-to-date absorption rate of 44,157 square feet ranked fourth, according to Cite's Q3 report.