Orlando-based event supplier Florida Event Decor paid $2.5 million on May 31 to pave a path for its growing business, buying a warehouse in Orlando Central Park with enough undeveloped land on the lot to expand the building by 50 percent.
Set on 2 acres at 2301 Premier Row, the 39-year-old warehouse features more than 30,600 square feet, and 1 acre of undeveloped land that could fit a 15,000-square-foot building extension.
HJA Realty, LLC, an affiliate of Florida Event Decor owners Eric and Valorie Karter, sourced a $2 million loan from Citizens Bank of Florida that matures in five years.
The seller was developer Brett Kingstone's Max King Realty, which previously paid $1.05 million for the investment rental property in 2000.
"This was a very interesting transaction because I used to be (the Carters') landlord many years ago, they were a tenant in my Chancellor Drive building for Florida Event Decor," Kingstone told GrowthSpotter. "They outgrew my facility to the point they needed to buy a building, and I was the first guy they called. Now they're a landlord and owner. A true Orlando success story, Erik and Valorie and great, hardworking people who built their business and were successful enough to buy their own building, and I'm happy and proud to have done this transaction with them."
Kingstone is expected to reinvest the proceeds of his sale to fulfill a 1031 exchange opportunity, said Vincent F. Wolle, founder of Results Real Estate Partners who served as listing agent on the property, and managed its leasing over the past 16 years for Kingstone.
The three-tenant building features 20-foot ceiling heights, dock and ramp access, rail access and 10 dock-high doors. The property had multiple offers over the past year in a deeply undersupplied Central Florida market for dock-high warehouse space, Wolle said.
"There is no supply right now for this level of multi-tenant building in a centrally located park like OCP, which is the place to be for this buyer with easy access to everything, especially Orange County Convention Center," he said. "It's been a really solid investment for Brett (Kingstone), and it was kind of hard to get him to sell it to be honest. If the (Carters) didn't want to use the entire building it'd be a great rental source for them."
Florida Event Decor is expected to occupy up to two thirds of the warehouse space and expand further as a third lease expires, Wolle said.
Wilson McDowell of Cite Partners represented the buyers in the deal.