New York-based private equity real estate firm The Praedium Group and Orlando, Florida-based Tower Realty Partners have sold two office/flex space properties in Orlando to Costa Mesa, California-based Leasco Management Co. for $32 million (€25 million). Both properties were fully occupied when sold.
The Orlando Airport Business Center, which the joint venture purchased in April 2005 for $14.3 million, sold for $22.7 million, or $128 per square foot. The Northlake Business Center, which was purchased in November 2005, sold for $9.7 million, or $120 per square foot.
Both properties were “attractive opportunities because of the strong demand for office/flex space in the area,” Mark Lippman, vice president at Praedium, said in a statement. “After acquiring the properties we were able to move quickly to stabilize the assets. As a result, we were able to execute our business plan sooner than expected and exceed our investment return in a short period of time.”
Praedium is currently investing its $700 million Praedium Fund VI, which has $2 billion in buying power. Tower owns and operates a portfolio of office and retail projects in Central Florida worth $200 million.
Since the Orlando Airport Business Center deal in April 2005, Praedium has acquired 1.2 million square feet of Central Florida office/flex space and spent $200 million on various asset types in the region, according to a statement released when the partnership purchased the 19-story, 356,00 square foot One Orlando Centre for $70 million in March.