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TerraCap sells Class A office building in Maitland for $28M

TerraCap sells Class A office building in Maitland for $28M
Less than a year after bringing the property up to full occupancy, TerraCap Management has sold The Keller Center in Maitland for nearly $28 million. (TerraCap Management)

A week after buying two office buildings near the University of Central Florida, TerraCap Management has sold one of its office assets in Maitland for $27.9 million.

The Keller Center is a 160,000-square-foot, Class A office building located at 101 Southhall Lane. CBRE's Ron Rogg and Chip Wooten brokered the sale.

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Additionally, the CBRE Debt & Structured Finance team led by Zac Brumbaugh assisted the buyer, Susquehenna Holdings Ltd., by arranging a $21.66 million, non-recourse, on balance sheet loan from a bank that featured a competitive fixed interest rate and 30-year amortization.

TerraCap acquired the building in 2014 from Parkway Properties and invested over $7 million in renovations and tenant improvements. Albert Livingston, director of asset management, told GrowthSpotter those improvements included extensive renovations of all the lobbies and common areas.

"It was underparked, so we added a new 400-stall parking deck," he said.

The building was 26 percent occupied when TerraCap bought it. The Estero-based firm worked with then-Cushman & Wakefield's Rick Solik and Matthew McKeever (now with Colliers International) on the lease-up.

They brought it up to full occupancy last fall, signing four new tenants: Adventist Health System, CDM Smith engineering and Alegeus Technologies and HealthCare Scouts.

Livingston said the Keller Center fit perfectly with TerraCap's business model, which focuses on value-add real estate acquisitions.  TerraCap typically holds onto assets for three to six years, improves the cash flow, and then sells for a profit.

"There was a lot of competition for Keller," Livingston said. "We're very pleased with the price."

Last week, TerraCap paid $39.19 million for two Class A office buildings -- known as Resource Square I and III -- near UCF.

The company sold some of its local holdings in recent years, and currently owns one other 75,000-square-foot office building in Lake Mary. Across the southeastern United States it owns more than 3.5 million square feet of office, multifamily and hotel properties.

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @LKinslerOGrowth. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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