Stiles Realty and Divaris Close Sale on Repositioned Class A Office Buildings in Orlando
Posted on 8/28/2013Following a successful repositioning plan to stabilize the foreclosed Baldwin Park office complex in Orlando, Stiles Realty announced today the sale of the Class A asset for $8.64 million. The property comprising Baldwin Park I and II, totaling 64,695 square feet was acquired by Orlando-based private investor MDS Baldwin Park, LLC. The transaction represents the first office sale since 2010 in the 436 corridor submarket.
"The sale of the Baldwin Park office complex is a testament to its quality, which was highlighted by our 12-month strategic repositioning program," said Tom Kates, Stiles Realty broker associate. "Despite foreclosure and competition with office product in other well-located Orlando submarkets, we were able to attract national corporate tenants. This helped us to take the asset from 27 percent to 85 percent occupancy during 2012, which is where it stood at the point of sale."
Baldwin Park I & II are located at 4750 and 4776 New Broad Street, respectively, in the upscale community of Baldwin Park, three miles from downtown Orlando. Stiles Realty, in partnership with fellow CORE affiliate Orlando-based Divaris Real Estate, represented the seller.
Challenged with limited exposure and activity, the Baldwin Park office complex faced foreclosure in 2011 and experienced severe tenant loss. Divaris Real Estate was appointed to manage and lease the properties in August 2011, when the property was only 27% leased. Divaris engaged Stiles Realty to co-lease and manage the portfolio on behalf of an institutional owner. Stiles moved to launch an aggressive repositioning plan aimed at showcasing the property's distinct identity, area amenities and upscale professional environment.
"We are pleased with the results we achieved at the property, especially in such a short time-frame," said Divaris. "This asset has incredible upside potential and long-term value, and Stiles helped us to execute a sound strategy that presented that value while leveraging their local expertise, national relationships and years of experience in the Orlando market."
Stiles and Divaris secured leases including a 28,000-square-foot architecture and engineering firm Rogers Lovelock & Fritz, Inc. Momentum continued throughout the year as another nearly 20,000 square feet of space was leased to national tenants including; skincare firm Dermalogica; online home furnishings company Altogether Home; property and casualty companyGallagher Bassett Services; and Allied Specialty Vehicles, which reports approximately $1 billion in annual revenues.
According to Kates, the level of leasing activity in Baldwin Park is unusual for a tertiary submarket like the 436 Corridor. He attributes the surge in activity to the team's focus on marketing the benefits of the area, including Baldwin Park Village Center's restaurants, shops and other amenities. This strategy attributed to the property sale after only 45 days on the market.
"Promoting Baldwin Park as a place where business and entertainment coexist was a key factor attracting tenants and ultimately selling the property," commented Kates. "The combination of the building's quality space and location within an upscale community was the catalyst for our ability to bring real value to the property."