Orlando Office Trades in TIC Transaction
- Jun 20, 2008
Flagler Development Group has acquired Reserve at Maitland, a Class A office property with three single-story buildings in Orlando’s Maitland submarket, in a tenant-in-common exchange, according to Grubb & Ellis Realty Investors L.L.C. The price paid for the 9.5-acre property was not released.Built in 2001, Reserve at Maitland consists of 30, 65 and 70 Keller Road. The three single-story Class A office buildings have six tenant spaces with a total of 197,000 square feet of rentable space. Located near Interstate-4 and the Orlando International Airport, the complex has 943 parking spaces.Officials at Coral Gables, Fla.-based Flagler Development Group could not be reached by press time today. Flagler also owns SouthPark Center in Orlando, which has 176 acres and 2.9 million square feet of space that are being developed into 18 single- and multi-story office buildings with several retail sites. The firm owns, develops, leases and holds in joint ventures about 9.2 million square feet of Class A office and industrial space in Florida. Another key purchase in Central Florida this year was the acquisition in January of Bridgeport Center, a nine-story, 171,000-square-foot office building in Tampa Bay. Flagler president Jose Hevia said in a Jan. 31 news release that the Tampa Bay purchase was “one of several acquisitions Flagler has planned in 2008 to compliment the company’s existing footprint of premier office and industrial offerings in Florida’s major markets.”Reserve at Maitland was acquired by Triple Net Properties on behalf of tenant-in-common investors in 2004. Triple Net (now Grubb & Ellis Realty Investors) became a subsidiary of Grubb & Ellis following the companies’ merger in December 2007. Grubb & Ellis Realty Investors declined to elaborate on the transaction when reached today by CPN. A news release from the firm noted that this was the 53rd securitized 1031 TIC exchange program taken full-cycle by Grubb & Ellis Realty Investors. Among the tenants at Reserve at Maitland is Inverness Medical Innovations Inc., a medical products developer and manufacturer that leased 57,300 square feet at 70 S. Keller Road and 29,900 square feet at 30 S. Keller Road late last year, according to a fourth-quarter 2007 report on the Orlando office market from Colliers International. The Colliers report noted that the Maitland submarket has seen a “substantial increase in overall vacancy this quarter” with an overall vacancy rate of 11.7 percent and a Class A space vacancy rate of 9.2 percent. Colliers stated that average Class A office rents were about $22.87 per square foot in the Maitland submarket, but leasing reports for 30 S. Keller Road noted it was 100 percent leased at $15 per square foot and 70 South Keller was fully leased at about $14.50 per square foot.