Black Salmon JV Obtains $45M Loan for Orlando Tower
- Jan 10, 2020
JLL Capital Markets has orchestrated $45.1 million in financing for 111 N. Orange Ave., a 245,000-square-foot office building in the heart of downtown Orlando. Acting on behalf of a joint venture between Black Salmon Capital and Tower Realty Partners, JLL secured the loan through City National Bank, the third-largest bank in Florida.
READ ALSO: Orlando Office Report – Summer 2019
Black Salmon just acquired 111. N. Orange in December 2019, purchasing the Class A property from a partnership between DRA Advisors and Tower Realty for $67.8 million. A 21-story structure, 111 N. Orange first opened its doors in 1986 and underwent its most recent cosmetic renovation in 2017. The building, which also features 1,500 square feet of ground-level retail space, is approximately 93 percent leased to a long list of businesses, including credit tenants Regions Bank, UBS and Geico.
JLL’s Maxx Carney, Matthew McCormack, Michael DiCosimo and Alec Carreras comprised the team that represented the borrower in the financing transaction. In a prepared statement, Carey noted that Orlando’s solid fundamentals in the local economy continue to attract lenders and that office assets are demanding premium financing terms and pricing. Research supports JLL’s assessment. According to the Urban Land Institute and PwC’s Emerging Trends in Real Estate 2020 report, Orlando ranks seventh in the country for overall real estate prospects and 50 percent of the survey’s respondents rank the city’s office market as a buy.
The allure of Orlando
Lenders have been keen on putting their money in the Orlando office market, providing loans in a range of sizes over the last year. Smaller transactions in 2019 included a $4.1 million construction loan from LV Lending for a 42,900-square-foot office condo project within the 31-acre The Village at Hunter’s Creek mixed-use development just outside Orlando in Hunter’s Creek. In neighboring Maitland, NXT Capital provided a $14 million acquisition loan for 850 Trafalgar, a 149,000-square-foot office building.