Maitland Promenade II, a Class-A office building in Orlando’s Maitland Center submarket changed hands at the end of 2013. It was purchased by KBS Strategic Opportunity REIT for $31.2 million plus closing cost. The Newport Beach, Calif.-based public non-traded real estate investment trust announced the acquisition on December 30. Florida’s Flagler Development Company was the building’s previous owner.
Maitland Promenade II is located at 495 N. Keller Road near the intersection of Maitland Boulevard. It is less than a mile away from Interstate 4. The five-story building offers 230,366 square feet of office space. Amenities include on-site cafe, a fitness center, a covered parking garage and more. Maitland Promenade II was 77.2 percent leased at the time of the sale, according to KBS. Its tenant roster includes such companies as Star Networks (First Data), United Healthcare, Zurich Insurance, Akerman, Senterfitt and Edison and New York Life.
“We believe Maitland Promenade II is one of a handful of assets that tenants consider when looking for Class-A office space with efficient floor plates and covered parking in Maitland,” says KBS Capital Advisors Senior VP, Jeff Rader. “The Maitland submarket has benefited from its proximity to the Orlando Central Business District and we anticipate increased activity as tenants consider assets like Maitland Promenade II as a suburban alternative.”
Marcus & Millichap Real Estate Investment Services reports that office vacancy in the Greater Orlando area plunged in the first half of 2013 to 16.6 percent, the lowest level in four years. In spite of this, the Maitland submarket underperformed the metro and saw office vacancy rise to 26.6 percent. Demand for office space is strong, thanks to the improving economy and the relative lack of construction, and Marcus & Millichap reports that the Orlando office vacancy could end the year at 16.4 percent, the lowest year-end reading in five years.Photo credits: http://www.maitlandpromenade2.info/ Charts courtesy of Marcus & Millichap Real Estate Investment Services.