California-based industrial real estate investor Avistone paid $9 million on Nov. 3 for three small-bay industrial flex buildings in Orlando Central Park, it's first asset in the Greater Orlando market, and is pursuing more locally, a managing principal with the company told GrowthSpotter.
Located at 7101 Presidents Dr. on 7.98 acres, the 108,432-square-foot property known as Presidents Plaza 2 is currently 94.6 percent leased to 16 tenants, which include a food service company, graphic designer and government contractor.
"Over the past year, we've been actively searching for the right deals to help us establish critical mass in the Orlando market area," said Daniel P. Culler. "Presidents Plaza is situated within a very desirable submarket ... which exhibits one of the lowest vacancies in the Orlando market for flex/industrial product."
Avistone owns and operates 11 light industrial park properties across the country, according to its website. This is the group's first in Florida.
New supply of similar, shallow-bay product in this submarket is limited to non-existent, said Culler, citing bulk distribution buildings as dominating the delivery pipeline. That has put "upward pressure on market rental rates, and will continue to do so in the near-term."
Avistone targets stabilized, multi-tenant business parks that produce healthy cash flow, and is seeking more acquisitions in the $5 million to $25 million range.
"We are actively surveying the Orlando market for strategic acquisition opportunities to help us expand our local presence," Culler said.
Avistone bought the property via six LLC affiliates that all took varied stakes in the asset. They jointly sourced a $6.3 million loan from Starwood Mortgage Capital.
The seller was McCraney Property Co., represented in the deal by Mike Davis, executive director for Cushman & Wakefield in Tampa. Avistone did not involve a broker.
Approximately 4,320 square feet of fully air-conditioned space remains available in the building, said Lisa Bailey of Avison Young, leasing agent on the property for former owner McCraney and the incoming Avistone. The space features two-foot overhead doors for loading vans, and 1,700 square feet of office space within.
The sale by McCraney concludes its disposition of a 294,200-square-foot portfolio within Orlando Central Park over the past two months, totaling $19 million.