PPF Real Estate, a division of a global investment firm based in the Czech Republic, has completed the largest office transaction in Central Florida history, paying $315 million to acquire Orlando’s SouthPark Center, a 10-building suburban office park totaling approximately 1.25 million square feet of Class A space with room to grow.
Cushman & Wakefield’s Mike Davis, Rick Colon, Rick Brugge, and Dominic Montazemi, with support from Zach Eicholtz, Brooke Tulley, and Ryan Jenkins represented the seller, AEW Capital Management, in the transaction. The 162-acre office park was developed between 2003 and 2009 and has 31 acres of available land to support future development.
“Widely regarded as one of the top suburban office parks in the Southeast, SouthPark has been institutionally owned and maintained with several recent amenity upgrades helping to fuel the park’s outperformance of the broader market,” Davis said Friday in a release announcing the sale.
PPF Real Estate is a subsidiary of PPF Group, which operates in 25 countries and invests in multiple sectors, including financial services, telecommunications, media, biotechnology, real estate, and engineering.
Brian Linnihan, Jason Hochman, Mike Ryan, and Ron Granite of Cushman and Wakefield arranged $233 million of acquisition financing on the transaction. Following its acquisition of the Mansell Overlook office park in suburban Atlanta earlier this year, PPF Real Estate has invested or committed to over $500 million in real estate investments in its first full year of U.S. operations. Cushman & Wakefield has advised PPF Real Estate on acquisition financing for both of the firm’s office acquisitions.
SouthPark Center is located at the intersection of John Young Parkway and Destination Parkway, offering proximity to Orlando International Airport, the Orange County Convention Center, the Florida Turnpike and the Beachline Expressway/S.R. 528. Amenities include dedicated Lynx bus stops, a fitness center, a full-service café, an outdoor pavilion, food truck events, on-site mobile detailing and on-site dry cleaning.
“PPF Group is an opportunistic family office investor. Thus, the proposition of acquiring large portfolios with strong cash flows, accompanied with development upside, is compelling to us as an investor and remains a strategic priority,” said Aaron Smith, Managing Director for PPF Real Estate U.S.
“Due to location, scale, and overall product quality, SouthPark remains a top destination for tenants,” Colon added. “Throughout the recent pandemic, the park witnessed strong absorption and rent growth as the highest quality office space remains in very strong demand.”
The Tourism Corridor office submarket has proved to be one of the region’s most resilient in 2021. The total vacancy rate for the Third Quarter was 13.3%, slightly less than the regional average rate, according to Cushman & Wakefield’s most recent MarketBeat report. The submarket currently has 330,000 square feet of new office space under construction.