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Millenia-area office midrises sell for combined $92M

Millenia-area office midrises sell for combined $92M
Two parcels containing a trio of office buildings were sold recently from an affiliate of Barings to an affiliate of Starwood Property Trust. (Orange County Property Appraiser)

A pair of office properties in Orlando's Millenia area with Interstate 4 frontage have sold for a recorded $92,150,000 in total.

The properties at 4700 Millenia Blvd. and 5323 Millenia Lakes Blvd. had been owned by an affiliate of Barings Real Estate Advisers.

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They were purchased by an affiliate of Starwood Property Trust.

At 4700 Millenia Blvd., a 474,276-square-foot midrise building counts Bluegreen Vacations, DPR Construction and AssistRx among tenants.

On Millenia Lakes Boulevard, these two office buildings and another nearby have been sold by an affiliate of Barings to an affiliate of Starwood Property Trust.
On Millenia Lakes Boulevard, these two office buildings and another nearby have been sold by an affiliate of Barings to an affiliate of Starwood Property Trust. (Orange County Property Appraiser)

Two buildings on the 5323 Millenia Lakes Blvd. parcel total 542,264 square feet and count Hilton Grand Vacations, Barton Malow Co. and Meritage Homes among tenants.

National construction manager Barton Malow has planned to move its office into a larger space on Primrose Drive near downtown later this year. It has been renting an 8,400-square-foot suite at the Millenia Lakes Boulevard property to head up its operations in the Southeast U.S.

DPR Construction, which has leased another 8,400-square-foot suite at 4700 Millenia Blvd., has planned to move as well – into approximately 20,000 square feet at Landmark Center One on Robinson Street.

Attempts to reach Starwood Property and Barings were not immediately successful.

Cushman & Wakefield's capital-markets team represented the seller, with Mike Davis, Michael Lerner and Rick Brugge handling the property.

Barings considered holding onto the asset, said Jeff Sweeney, senior director at Cushman & Wakefield, who had been leasing the property.

"I think they see the health of the market and it was good timing to lighten their overall position," he told GrowthSpotter on Tuesday. "I don't think they've soured on Florida, just the size of the asset overweighted them."

Barings is considering multifamily residential for a 12.8-acre parcel to the east that once had been slated for more Class A office space. The pension fund still holds a shopping center in the area, Sweeney said.

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The three buildings in the deal were 91 percent occupied at the time of the sale, Cushman & Wakefield said in a release late Tuesday. The buildings constructed in phases from 2001 to 2007 recently were awarded LEED Gold Certification.

Starwood Property has been active in Central Florida. It recently closed on purchases as part of a multifamily portfolio sale from Orlando-based AGPM, including a Sand Lake apartment complex last month and another trio of properties near the start of the year.

Have a tip about Central Florida development? Contact me at wzimmerman@tronc.com, (407) 420-5427 or  @zmediaworks. Follow GrowthSpotter on FacebookTwitter and LinkedIn.

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