By Keith Loria, Contributing Editor
Starwood Capital Group has acquired Millennia Lakes I, II and III, a three-building, 414,000-square-foot office portfolio in Orlando, Fla., from Barings Real Estate.
Cushman & Wakefield facilitated the transaction on behalf of the seller. Public records revealed the price for the Class A property was approximately $92.2 million.
“Its excellent location with I-4 frontage, as well as the quality of the product and strong tenancy contributed to the appeal of the portfolio,” Michael Lerner, Cushman & Wakefield’s senior director, told Commercial Property Executive.
Located at 4700, 5323 and 5337 Millenia Lakes Blvd., the trio of buildings were built in phases during a six-year span that began in 2001. The buildings feature a distinctive architectural design and have high-end, elegant finishes.
Amenities at the property include a fitness center and café. Fitness buffs will further enjoy the scenic lake with a jogging path and nearby walking trail that is adjacent to the Mall at Millenia.
At the time of the deal, the portfolio was 91.2 percent leased and boasted a tenant roster that included Prudential and AXA Equitable Life Insurance.
According to Lerner, interest was very strong, with approximately 20 offers.
“Interest in well-located suburban office, such as this portfolio, has become more attractive to investors over the past 12 months,” he said. “This is due to higher achievable yields than other product types such as apartments and industrial.”
A vibrant development
The office park is part of a 450-acre master planned development that includes office, apartments, hotel and retail.
“The location was a huge factor, as this is a true live-work-play environment adjacent to the Mall at Millenia, which has a wide variety of restaurants and retail, plus high-end apartments, and a hotel within the park,” Lerner said.
The Cushman & Wakefield team also included Vice Chairman Mike Davis and Executive Director Rick Brugge.
In May, Starwood Capital Group sold 14 upscale hotel properties in the U.K. in a transaction valued at $1.1 billion. The 2,638-key collection, part of the portfolio of The Principal Hotel Co., a controlled affiliate of Starwood, was acquired by Foncière des Régions.
Image courtesy of Cushman & Wakefield