Orlando-based Owens Realty Capital paid $10.45 million on Wednesday for a six-story office building in Winter Park near an I-4 intersection, and has another $50 million-plus that it's ready to place in new Central Florida acquisitions.
Located at 2699 Lee Road and less than three miles from Park Avenue, the 87,266-square-foot building offers potential as a visual landmark along a gateway road for Winter Park, CEO Bob Owens told GrowthSpotter.
"We feel its proximity to the highway, Lee Road's growth as a gateway into the city, and all the development further (east) on U.S. 17-92 showed us this property ... could be enhanced to be a premier office building in town," he said.
The building, which dates to 1974, is anchored by Waterstone Mortgage (15,000 SF) and Healthcare Scouts (14,000 SF) as its largest tenants, followed by Orlando Orthopedics, Maximum Healthcare Services and Centauri Health Solutions.
Currently leased near 85 percent with more than 3.6 years of average remaining terms, Owens Realty plans to invest in significant upgrades to the property's interior and exterior to enhance the building's value, and strategically lease the remaining 12,000 square feet of vacancies.
"We'll invest about $500,000 more in improvements to the common areas, exterior landscaping, paving work and a new roof," Owens said. "The largest contiguous space vacant is roughly 7,000 square feet."
This is now the 10th building in Winter Park that Owens Realty Capital has purchased. Affiliate Owens Realty Services handles property management and leasing.
Palmer Vietor, Owens Realty's vice president of acquisitions, led the deal on behalf of the buyer. CBRE Orlando's capital markets team of Ron Rogg and Chip Wooten represented the seller, Virginia-based commercial property investor SugarOak, which previously paid more than $4.87 million in July 2012.
CBRE began marketing the property in late September, scheduled a call for offers, and Owens Realty Capital emerged through the LOI and interview process.
Owens Realty's other high-profile local assets include virtually two city blocks in downtown Winter Park's Hannibal Square district of retail, apartment and office buildings, and the Class A Baldwin III office building in Baldwin Park.
Looking forward, the company's acquisition strategy includes between $50 million and $100 million in new assets across Central Florida, Owens said.
Owens Realty Capital's asset class interest spans mixed-use to office buildings, with a focus on opportunistic or stabilized investments in mature markets with a high barrier to entry for new construction, Owens added.