CBRE SELLS OFFICE BUILDING IN ORLANDO, FLORIDA FOR $21.8 MILLION

CBRE SELLS OFFICE BUILDING IN ORLANDO, FLORIDA FOR $21.8 MILLION

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Orlando, Fla. – March 16, 2018 – CBRE announced today the sale of 215 Celebration Place, a suburban office building in the South Orlando submarket of Celebration, Florida—a $2.5 billion, “live, work, and play” community that is home to some of the strongest demographics in Central Florida. The property consists of 125,959 rentable square feet. CBRE’s Ron Rogg, Chip Wooten and Jay Dixon represented the seller, TerraCap Management, a Florida based private equity real estate fund manager.

“Celebration Place IV represented a rare opportunity to acquire the top multitenant office building in a high-growth market,” said Ron Rogg, executive vice president at CBRE. “A combination of strong occupancy, exceptional lease-up potential, credit tenancy and predictable income make it one of Central Florida’s leading investment opportunities today.”

“As part of our value-add strategy we were able to increase occupancy, rental rates, the weighted average lease term, and overall tenant creditworthiness; all factors which increased value for our investors during our hold period,” said Albert Livingston, National Director of Asset Management and Partner with TerraCap Management. “This profitable transaction reinforces the opportunities available in rapidly growing secondary markets where acquisition pricing is more attractive for investors than in overbought gateway cities. With careful attention to details and focus on tenant satisfaction by high quality teams of leasing and property management, TerraCap has been able to achieve attractive investment returns with well mitigated risks,” added Robert Gray, Managing Partner with TerraCap Management.

Built in 2001 and designed by award-winning architect, Aldo Rossi, the building is the newest of four office buildings that make up the Celebration Place office development. The property includes 13 different tenants from several different industries with an average remaining lease term of more than four years, offering predictable income during the lease up of more than 23,000 sq. ft. in a tight submarket with 7.5% vacancy.
Celebration was named “New Community of the Year” by the Urban Land Institute and the population within five miles of the property has grown 20% over the past 5 years and is projected to grow another 12% over the next five. There have been more than $300 million of commercial investment transactions completed in this submarket in the past 12 months.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

About TerraCap Management, LLC

TerraCap Management, LLC considers thematic factors such as business formation, employment growth and population growth on a market-by-market basis, as most metros and submarkets have different economic-based industries and therefore move through their economic cycles differently. TerraCap makes moderate strategic overweighting or underweighting to markets, depending on the specific economic drivers influencing supply and demand.

The Investment Manager has been in operation since 2008 with offices located in Estero, FL, Tampa, FL, and the Atlanta, GA metro area. As operators, TerraCap believes it can make decisions more efficiently while leveraging expertise from property to property. More information can be found at terracapmgmt.com.