Virginia-based commercial investor SugarOak Holdings paid $4.2 million on Wednesday for a Maitland Center office property under threat of foreclosure, an off-market value through a joint venture with the property manager.
Located at 2450 Maitland Center Parkway, the Class A "Park Place" building lies in the heart of Maitland Center with 39,000 square over three floors. The property features reserved and covered parking, and building and monument signage.
The buyer sourced a $3.975 million future advance mortgage from IberiaBank to help close the deal, which will be paid out to SugarOak in installments.
The purchase by SugarOak follows its sale in mid-February of a six-story office building in Winter Park for $10.45 million.
Its re-entry to the Greater Orlando market this week came through a JV with the Maitland building's previous leasing agent and property manager, Harbert Realty Services. The asset was leased near 70 percent at time of sale.
The seller, Park Lane LLC, previously paid $6.5 million for the property in June 2006. It was an investment vehicle of Dr. Adil Elias and Aida Elias, a local couple with an array of investment properties and commercial developments in Greater Orlando over the past 20 years.
The couple has faced a number of mounting debts in recent months.
In March, Fairwinds Credit Union won a motion for summary judgment against Elias and his business entities for $300,000 from an Orange County Circuit Court judge. Elias appealed the decision in April.
In February, the Internal Revenue Service filed a release for the Elias couple of a tax lien dating back to 2010 for more than $1.06 million owed.
And in October 2017, Reinsurance Group of America filed a motion to foreclose on Elias' Park Lane LLC and the Maitland office building, a case that remains open.
Foreclosure action was initiated against Elias and the office property in 2010. His owner-entity filed for bankruptcy and stripped off nearly $2.5 million of debt on the real property and stretched out the loan through the end of 2015, per court filings.
Prior to that loan maturity, Elias' company asked for another extension to sell or refinance, which the lender agreed to through 2017.
Demand for office space in Greater Orlando was strong in the first quarter of this year with new leasing activity of 509,000 square feet, the bulk of which occurred in the Maitland submarket with more than 176,500 square feet in transactions, according to Cushman & Wakefield's Q1 market report.
Through the end of the quarter, Maitland had the third most inventory of 12 office submarkets C&W tracks, with an overall vacancy rate of 8.6 percent (4th lowest) and overall average asking rent for Class A of $20.06 (lowest among nine submarkets).