Acquisition grows the company’s Orlando area footprint to nearly one million square feet
Denholtz Properties announces the acquisition of a 106,966-square-foot, seven-story office building at 618 East South Street in Orlando, Fla.
The building joins 100 East Pine Street, an 80,010-square-foot, six-story office building in Orlando, Fla. already owned by Denholtz Properties, to expand the company’s Downtown Orlando Office Portfolio to 186,976 square feet. The Downtown Orlando Office Portfolio is an integral piece of Denholtz Properties’ portfolio of office and flex/industrial properties in the Orlando area that now spans just under one million square feet.
“The ongoing flight to quality and the strong overall growth fundamentals of Orlando’s commercial real estate sector continue to provide us with great confidence in the trajectory of the downtown office market,” said Stephen Cassidy, President of Denholtz Properties. “Through the Downtown Orlando Office Portfolio, we are excited to offer our investors the opportunity to tap into this dynamic market to realize its unique value-creation potential.”
Constructed in 2011, 618 East South Street is one of Orlando’s newest office buildings and is the downtown’s first privately developed LEED Certified building with best-in-class materials, specifications and modern design elements. Additionally, the building features the best parking in downtown Orlando with an integrated parking garage and a ratio of 3.1 spaces per 1,000 square feet. The building is supremely located at the eastern gateway to Downtown Orlando and adjacent to SR 408 East-West Expressway, one of Orlando’s primary thoroughfares to provide outstanding regional access.
Currently 100 percent leased, 618 East South Street serves as the southeastern headquarters for GAI Consultants, an engineering, planning, and environmental consulting firm with worldwide clients in the energy, transportation, development, government, and industrial markets. In addition to GAI Consultants, the building is home to six additional tenants spanning the financial services and healthcare markets. Tenants enjoy a strong surrounding amenity base with a Publix Supermarket and Lake Eola Park just blocks away and Thornton Park, a neighborhood consisting of award-winning restaurants, luxury condominiums and apartments, located just north of the building.
Located less than a mile from 618 East South Street, 100 East Pine Street sits at the intersection of East Pine Street and South Magnolia Avenue, two of Orlando’s busiest thoroughfares. An abundance of supporting retail, dining and entertainment including the Dr. Phillips Center for the Performing Arts as well as multiple modes of public transportation are all within a short walking distance to the building.
Denholtz Properties oversaw an aggressive $6-million capital improvement campaign at the property in 2019 to bring it up to modern standards that included a complete renovation of the lobby, total replacement of the elevators, complete painting of the property, new storefront façade for retail spaces, a new web-based HVAC control system and a new building access control system. Owing to its tremendous location and recently renovated exterior and interior, 100 East Pine Street is currently 90 percent leased to a diverse blend of 12 tenants.
In addition to the Orlando market, Denholtz Properties also owns over 600,000 square feet in the Tampa/St. Petersburg area. Building upon its success in these central Florida markets, Denholtz Properties launched a joint venture with an affiliate of an institutional investment management firm targeting multitenant industrial projects strategically located in densely populated high-growth infill areas earlier this year. The joint venture plans to acquire and develop multitenant industrial properties with a total value of over $1 billion.
Cassidy added, “The Southeast’s superior quality of life, ideal business environment and strong population growth continues to give us supreme confidence in the long-term trajectory of the market. We look forward to continuing to target strategic acquisitions across the office and flex/industrial sectors and leveraging our time-tested operating platform to drive results in this market on behalf of our investors in the months to come.”