Deeds for the sale had not been recorded as of Friday in Orange County, but managing partner Mark Schlossberg said SVP is "very pleased with the acquisition, and excited about all the investment and infrastructure work happening (in Orlando) now, and the prospects for future job growth."
"We looked at all the alternatives, and felt that (CBRE and JLL) were the best fits for us and the buildings, and believe they'll do an outstanding job," Schlossberg said.
The downtown office towers, which total more than 1.03 million square feet, are a big market entry for SVP, and rank it among the top two office landlords in Downtown Orlando. The company currently owns one other asset in Florida, a hotel in Sunrise.
"We're constantly looking for high-quality assets at a compelling basis in strong markets that have fundamentals to support solid future growth," Schlossberg said. "We saw all of those in this opportunity."
With strong economic growth fundamentals in Greater Orlando's favor, SVP will be on the lookout for more acquisition opportunities locally, Schlossberg said.
Cousins moved to divest its local holdings just 12 months after buying in to the downtown office market.
The company inherited the three Orlando buildings when it reached a deal in April 2016 to acquire Parkway Properties, an acquisition valued at more than $2 billion that involved a portfolio of Parkway's Class A office buildings in major urban markets across the southeastern United States. The company closed a stock-for-stock merger in October 2016.
In selling the buildings, Cousins signals an intent to refocus its capital on core assets in larger MSAs of the southeast, where average rents are generally higher than the $26 to $31 per square foot that Class A high-rises in Downtown Orlando are commanding now.
At $208.1 million for the three Cousins buildings, the sale reflects a value of $200 per leasable square foot. The price is lower than other downtown tower sales in recent years, but within reason.
All three Cousins buildings are currently leased at a range of 85 percent to 95 percent. The Citrus Center is a Class B building, 1970s vintage, near fully leased with a highly valued amenity on top in the Citrus Club, but some deferred maintenance.
The Bank of America building is the tallest and most notable of the three, but has energy efficiency issues. Its location value suffered after Orlando's modern arena and Dr. Phillips Center opened a few blocks to the south, an attribute that won't fully recover until Creative Village opens in 2019 and creates new demand.
And the One Orlando Centre is well regarded for its ample parking, recent investments in a new fitness center and popular shared conference center space. Its location north of Colonial Drive and distance from the Central Business District have been considered a negative, but it's also surrounded by a growing residential base in the North Quarter.
The two most recent office tower sales downtown reflect a much higher price per leasable square foot, but are considered preeminent Class A buildings and trophy assets.
Piedmont Office Realty Trust paid $170.8 million in November 2015 to enter the Orlando market with the 35-story SunTrust Center tower, with 654,618 square feet of conditioned area marketed in the tower and a second building, as well as a seven-story parking garage. That reflected a price of $260 per leasable square foot.
And in July 2016, Piedmont paid close to $168 million for the CNL Plaza I (14 stories), CNL Plaza II (12 stories) and related parking garages, which total 622,487 square feet of marketed leasable area. That reflected a price of $269 per square foot.
In May 2015, DRA Advisors and Tower Realty Partners paid $51 million for the Regions Bank Tower at 111 N. Orange Ave., which with 246,023 leasable square feet boiled down to $207 per square foot.
And in December 2014, Highwoods paid $68.3 million for the Lincoln Plaza building with 82 percent occupancy and 246,000 leasable square feet, reflecting $278 per square foot.