The properties sold were the 170,000-sf Orlando Airport Business Center for $22.7 million, or $128 per sf, and the 80,400-sf Northlake Business Center for $9.64 million, or $120 per sf. Both properties were 100% occupied at the time of the sale.
The Praedium Group vice president Mark Lippmann tells GlobeSt.com that the properties were purchased by the JV in 2005 as short-term investment opportunities with the intent of increasing occupancy and selling them. "After acquiring the properties, we moved 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," Lippmann says. "After the properties are fully leased, there's not much else we can do with them so we sell them."
The Orlando Airport Business Center was purchased in 2005 for $97 per sf. "At the time there was a loan on the property that could not be burned off," Lippman says. "We were able to retire that loan during the time we owned the building. [Leasco] was able to put new financing on the building."
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