A local turnkey producer of television studio sets paid $2.52 million on Friday for a new Orlando office-warehouse property, capitalizing on market demand to right-size out of its old property and turn a profit.
Located at 3101 Pennington Road, the 1.8-acre parcel features three single-story modular warehouse buildings that total 40,300 square feet of conditioned area, dating to 1969.
The buyer, FX Design Group, designs and builds studio sets for TV news broadcasters across the country.
On June 4, the company sold its long-time office and warehouse at 922 N. Lakewood Ave. for $3.45 million, with more than 48,700 square feet of conditioned area and 11.75 vacant acres adjacent. FX Design previously paid $1.089 million for those properties between 1997 and 2003.
"When we bought that building 20 years ago we also added on to it, because we were doing more corporate events and trade shows at the time and needed a lot of storage space," President and CEO Mack McLaughlin told GrowthSpotter. "In 2010 we stopped that and concentrated on scenery sets for TV broadcasts, and no longer needed all the space.
"The opportunity came up to sell it, which allowed us to right-size and pull a little cash out. We found a building that's now the right size for us."
FX Design will occupy about 31,000 square feet on the new property and lease the remaining space to a long-time tenant on site. The company will renovate the office space over the next two months, and is subletting its old property through August.
The seller was Williams Industrial Properties Ltd., an affiliate of which previously paid $74,300 in 1978.
FX Design sourced a $1.89 million mortgage from Seaside National Bank to help close its latest acquisition.
Cory Kroeger of Kroeger Commercial represented FX Design on its sale of the old property and purchase of the new.
The buyer of FX Design's old property on Lakewood Avenue was an affiliate of GLE Scrap Metal out of Longwood, which bought the building to expand its recycling business.