Maitland 200 Moves for $28M

"Based on current occupancy of 96%, the property is expected to produce an initial unleveraged yield or going-in cash capitalization rate of approximately 9% on the first 12 months of operations," says Parkway president and CEO Steven G. Rogers. "We have a talented existing management team in place that will take over and raise the bar for customer service at Maitland 200."

Rogers says the purchase was funded with the REIT's existing lines of credit and represents the reinvestment of proceeds from the sale of various properties through joint ventures during 2003. Maitland 200 boasts corporate tenants including Charles Schwab, Camp, Dresser & Mckee and the Florida Department of Revenue, which together occupy about 69% of the building.

John McRae, senior vice president of Trammell Crow Co./Orlando and Crow brokers Dale Peterson and Chris Riley represented Terrabrook.

"The specific challenge in selling this property occurred prior to the sale," McRae tells GlobeSt.com. "Getting the property leased to 96% in a submarket with 20% vacancy" was the hurdle the Crow leasing team had to surmount. The weighted average rent in the 62-building, 5.7-million-sf Maitland Center submarket is $19 to $20 per sf.

McRae credits Trammell Crow broker Paul Reynolds with raising a large portion of the occupancy level. "He handled the leasing, including 21,600 sf with the Department of Revenue," McRae says adding that he is "not exactly sure" why the deal was done at this time but suspects "the seller likely recognized the demand in the market for stabilized properties."

Terrabrook owned the 10.8-acre property since 1998. Parkway owns or has an equity interest in 59 office properties in 11 states with an aggregate 10.7 million sf of rentable space.