Located in downtown's Lake Eola Heights neighborhood at 206 Hillcrest St., the 1.82-acre property lies a block east of N. Magnolia Avenue and the Orlando Sentinel building.
The parcel features a one-story office building with 20,032 gross square feet, built in 1972. Vista Clinical's Hillcrest Orlando LLC previously paid $2.2 million for it in November 2015.
End-profit from the sale will be around $1.1 million, following renovation investments in recent months and a portion of the proceeds reinvested as security deposit for the lease, Davian Santana, Vista Clinical's founder and president, told GrowthSpotter on Monday.
"We'll move our administrative, IT and related infrastructure to Orange County and the downtown property, it will become our operating hub," he said. "One of the things we liked was that this building had a full data center with a generator backup.
"We just love the 32801 zip code, it's a great place to establish ourselves with a lot of talent," Santana continued. "I see downtown becoming a big area of growth for technology, it's ripe to happen there."
An emerging competitor in a market dominated by Quest and Labcorp, Vista Clinical specializes in same-day results for lab testing at low prices. Founded in 2003, the company has grown to 31 locations in Florida, most in Orange and Lake counties.
Vista Clinical listed the property for sale on Jan. 22 at $6.2 million, and drew seven Letters of Intent within two weeks, said Hooman Hamzehloui, listing broker and founder of Masters Realty.
The highest offer was $6.1 million, but Santana and Hamzehloui favored a lower offer by Alliance Consolidated after reviewing their strong reputation for efficient closing on acquisitions.
"Once we met them we knew they'd be a good landlord, and this could build a good relationship for future real estate deals," Santana said. "We made a concession (on price) but were able to lower the rent to compensate."
An initial capitalization rate of 8.4 percent, Hamzehloui's target for the seller, was maintained after negotiations.
"What Vista Clinical is doing is truly fascinating, their company has shaken up the lab services market by giving the quickest results at the best price," Hamzehloui said. "Once I sold (Alliance Consolidated) on Vista Clinical as a tenant, they bought in and we ended up delivering the same cap rate of 8.4."
Vista Clinical will reinvest the $5.1 million in sale proceeds for growth in Lake County, where it plans to expand its footprint of support labs with new acquisitions.