$15.6 Million Non-Performing Orlando Office Loan_Property for Sale

Orlando, FL, US, Americas

$15.6 Million Non-Performing Orlando Office Loan

Asset description

The Property comprises 127,632 SF of Class-A office space and 13,493 SF of retail space located in Downtown Orlando, Florida, and was 41.6% leased as of June 30, 2023. Fueled by the demand for creative space, the building offers a refreshingly different office environment for tenants. With 12-16’ ceiling heights, flexible meeting spaces, community seating, and a social hub with a coffee shop, the Property is fully modernized and amenitized to match the needs of the flourishing submarket.

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Attributes

Loan status

Non-Performing

Media

Investment highlights

PATH TO OWNERSHIP

A consensual Deed-in-Lieu ownership option is anticipated to be available prior to closing.

FLIGHT TO QUALITY

The Property has been totally revamped, benefiting from over $7.0M in capital improvements since 2020. This focused primarily on exterior improvements, lobby renovations, bathrooms/amenities, and specialty suites. Hovering close to 40.0% occupancy (as of June 2023), the remaining space is well positioned for investors to significantly boost cash flow through continued leasing.

POWERFUL SUBMARKET MOMENTUM

Class-A Orlando CBD office has experienced over 20% rent growth since 2017, while holding approximately 90% occupancy. With an average suite size of ~10,000 SF, the Property is well-suited to attract the smaller tenants that comprise the submarket’s demand pool. Five (5) new leases were executed in H2 2022.

TRUE CBD LIFESTYLE

The Property is strategically located on the corner of North Orange Avenue and Jefferson Avenue, nestled in the heart of Orlando’s Central Business District. With a Walk Score of 94, the access to amenities is unparalleled. The area boasts 50+ walkable restaurants. The regional train and bus terminals are also located just steps away, offering seamless access to the rest of the city.

ATTRACTIVE BASIS

At $15,601,767 in total unpaid principal balance, the Loan basis is at a discount to the Borrower’s acquisition basis in 2019.