ORLANDO-ChampionsGate, a 44,605-square-foot office building, has sold for an undisclosed amount. The property marks another central Florida distressed sale.
Grubb & Ellis Senior Vice President Joe Rossi and Associate Vice President Bret Felberg represented the seller, Rosemont Realty, in the sale of the three-story, freestanding building. Ontario, Canada-based Vista Group purchased the distressed asset.
“The transaction was a success in achieving the goals of both the seller and their lender,” says Rossi. “The buyer owns a number of hotels, shopping malls and other commercial properties in Canada and the U.S. They are extremely pleased with their first office acquisition in the local Orlando market.”
Built in 2001, the building is located within ChampionsGate, a central Florida golf course community. ChampionsGate is close to Walt Disney World Resort and other tourist attractions. The building is more than 70% leased to nine tenants and will serve as an investment property for the buyer.
Rossi tells GlobeSt.com he is seeing more Orlando distressed properties come online this year after transacting only about five distressed deals in the first half of 2010. As he sees it, banks are finally realizing it’s time to get more distressed assets off the books.
“I don’t see many staple deals yet in Orlando,” Rossi says. “But the market it starting to pick up. I’ve seen a few buildings come to market recently and trade at good prices.”
Indeed, conditions improved across the board and continued the up and down pattern of 2010 in Orlando’s office market during the fourth quarter. Overall vacancy decreased by 70 basis points to 19.4%—the first drop in overall vacancy since 2006, according to Grubb & Ellis.
Absorption improved from negative 148,615 square feet in the third quarter and recorded its best figure in four years with positive 374,246 square feet in the fourth quarter. Grubb predicts the Orlando office market will experience a gradual recovery in 2011 as vacancy and absorption numbers continue to rebound and landlords adjust rents accordingly.
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