Pizzuti Testing Market: Putting Eight Office Buildings, 92 Acres on Block

Pizzuti isn't placing a price tag on the 996,000 sf of class A office (eight buildings) and 92 acres of undeveloped dirt. He wants to first see what offers the properties will generate as a single purchase. Independent area commercial appraisers tell GlobeSt.com on condition of anonymity the entire package should go for at least $227 million.

They base their ballpark assessment on the estimated replacement cost of the eight buildings at $200 per sf or about $199 million. The appraisers estimate the 92 acres could bring $300,000 per acre or about $6.89 per sf. Pizzuti paid Chemical Bank of New York $7.5 million or $21,429 per acre (49 cents per sf) for the land in 1994.

Greenwich Group International LLC of Greenwich, CT is marketing the Heathrow portfolio.

Pizzuti tells GlobeSt.com he is considering selling his Heathrow portfolio at this time to generate funds for new industrial product investments in Central Florida. Domestic and foreign investors are looking but so far haven't bought any bulk portfolios in metro Orlando over the past 18 months, local brokerages report.

"Industrial has always been Pizzuti Cos.' primary focus," the developer tells GlobeSt.com. "We're looking right now (for properties) in Jacksonville, Lakeland, Ocala and other surrounding markets" whose development potential hasn't been tapped. "Jacksonville is only now being discovered (by developers) again," Pizzuti says.

However, his jewel 5.64 acre Downtown Orlando site is not for sale. For the past seven years, the developer has been searching for anchors that would allow him to build a two-building, 29-story, 800,000-sf office property and a five-star, 350-room hotel across from the 25-story, one million-sf Orange Courthouse complex at 425 N. Orange Ave.

"We're still holding out hope on that project," Pizzuti says.

The Heathrow office buildings comprise 300 Heathrow, 84,953 sf; 400 Heathrow, 100,821 sf; 500 Heathrow, 75,860 sf, 701 Heathrow, 126,570 sf; 801 Heathrow, 150,567 sf; 901 Heathrow, 178,241 sf; 1000 Heathrow, 87,066 sf; and 1001 Heathrow, 192,159 sf.

The 1001 Heathrow building is expected to be completed by June. The other seven buildings are 95% leased, many to Fortune 500 companies. Besides Columbus and Orlando, Pizzuti is active in Chicago, Indianapolis and Jacksonville.