City Office Snags $76M Office Portfolio in Florida
The properties are anticipated to generate an initial full-year cash net operating income yield of approximately 8.3% based on the purchase price and the estimated cost of planned capital improvements.
By Robert Demeter
Carillon Point, Tampa
Orlando & Tampa—City Office REIT Inc.’s recently acquired office portfolio consists of the Research Park Collection, a five-building office park in Orlando, and Carillon Point, a 124,187-square-foot office building in Tampa Bay. The company purchased the Orlando asset for $49.8 million and paid $26.3 million for the Tampa property.
The Research Park Collection is situated on a 10-acre land parcel within the Central Florida Research Park, the fourth largest research park in the United States. It’s five buildings total 272,192 rentable square feet and are 93 percent leased to a strong and diversified tenant roster, including various military entities and defense contractors. The major conditions for the acquisition have been satisfied, and the transaction is anticipated to close in mid-July 2016
Built in 2008, Carillon Point is a mid-rise six-story Class A office building located within the Carillon Office Park in St. Petersburg, Fla. at 970 Lake Carillon Drive and features controlled access and a total of 590 parking spaces including covered parking. It is currently 100 percent leased to a strong and diversified tenant roster. According to Yardi Matrix, the property is managed by Tower Realty Partners.
“These acquisitions are well positioned in quality locations within our target markets, have strong in-place tenancy and favorable acquisition metrics,” said James Farrar, CEO of City Office. “We believe that our disciplined strategy of expanding our footprint in leading submarkets positions City Office to deliver long-term cash flow growth.”
Photo courtesy of Yardi Matrix
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