Colorado-based investment management company Real Capital Solutions just dropped $53.73 million for an office building that sits directly across the University of Central Florida.
The sale of the 226,548-square-foot office building at 11842 Corporate Blvd. is part of a leaseback deal with German engineering and manufacturing giant Siemens Corporation, which fully occupies the building called Siemens Quad III.
The deal is part of the company's overall asset management strategy that involves shaving off some of its national real estate portfolio.
Built in 2003, the Class A office building traded hands for about $237 per square foot. Adam Abeln, vice president of acquisitions, said the deal marks the largest acquisition thus far for RCS.
"Our typical deal ranges between $10 million to $15 million, so this deal, being $53.57 million, I think we kind of hit over that mark," Abeln said with a chuckle.
The deal beats its recent $49 million acquisition for an office property in Jacksonville.
"We’ve been very bullish in the Orlando market, especially now with [the region] leading the pack in job growth," Abeln said.
The company has deployed about $250 million in capital alone in the Orlando market. Abeln said RCS now owns more than 3 million square feet of commercial space in Greater Orlando and is looking to acquire more assets this year.
RCS entered the market in 2015 with its $11.69 million acquisition of the Airport Business Center office complex. In 2017, the company paid $22.3 million for an office portfolio in the Maitland Center totaling 371,458 square feet.
The deal for Siemens Quad III had a short marketing window with multiple competitive bids, Abeln said. CBRE Orlando's Ron Rogg represented the seller.
Records show the company financed the most recent deal with a $41.5 million loan from CIBC Bank USA. Previous sale information for the property was not available online.
According to an agreement filed in Orange County, terms of the 10-year lease deal allows Siemens' USA operations to exercise four separate options to renew its lease by five years.
In 2001, Siemens announced it would move its U.S. headquarters from Iselin, New Jersey to Orlando.
Last year, a company tied to San Francisco-based Stockbridge Capital Group paid $61.5 million for the neighboring Siemens Quad I building at 4400 N. Alafaya Trail. The building serves as the company's global headquarters for Siemens Energy's Service division.
The most recent deal gives RCS a presence within Orlando's Quadrangle Business Park and the nearby Central Florida Research Park where a number of defense and technology companies have offices, including Cisco Systems and Cubic Defense Systems.
Tenants in the parks have access to UCF amenities, including to its library and fitness center.