Orlando investor-developer Cameron B. Kuhn and the locally based law firm of Alvarez, Sambol, Winthrop and Madson PA plan to invest another $1.5 million to upgrade the 10-story, 36,000-sf structure, which was Orlando's first high-rise office building when it was completed in 1926.
The property has been averaging about 95% occupancy during most of its existence, Tom Cook, senior vice president, Carter & Associates/Orlando, tells GlobeSt.com. "It will be 100% occupied when the renovations are completed" by the end of this year, Cook says.
Cook; Jeff McFadden, a senior vice president at Advantis Real Estate Services Co. in Orlando; and Torben Madson, a partner in the law firm, put the deal together over seven months. Cook feels Downtown's office picture will brighten as more multifamily residential products surface. "More and more workers are getting tired of Interstate 4 traffic problems and want to live and work Downtown," the broker tells GlobeSt.com. "That, in turn, is proving to be a catalyst for the office market."
Average asking rent at the Metcalf Building is $20 to $21 per sf, full service. The Tanqueray Club and Citrus Bank are the ground-floor anchors.
For Kuhn, a transplanted Chicago construction industry professional, the Metcalf Building acquisition increases his Downtown holdings to 12 properties totaling 600,000 sf. This is the first deal in which he has paid more than $60 per sf for a property. He sees the Metcalf as a sound investment.
The law firm and Kuhn own the property on a 50-50 basis. "I don't buy real estate to break even," Kuhn tells GlobeSt.com.
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