Ron Osborne, Managing Director/Broker of Sperry – RJ Realty, represented the Buyer, GCDC Orlando LLC, in the purchase of a medical office located at 4980 E Irlo Bronson Memorial Highway in St Cloud, Florida.
PD ST. CLOUD LLC sold the medical office building for $5.3 million.
The newly constructed build-to-suit property was built for Sanitas Medical Center, which currently occupies the property. The Tenant signed a 10-year lease with over 9 years remaining with an annual increase at the time of the sale.
Sanitas operates 6 other locations in greater Orlando and has 68 medical facilities throughout Florida, Texas, Tennessee, Connecticut, and New Jersey.
Osborne also arranged for the financing of the acquisition with FirstBank Florida. Jeff Goldstein, Vice President, Business Relationship Officer, represented FirstBank Florida in the transaction, with 50% down at an attractive interest rate of about 7%. Osborne has a long-standing relationship with FirstBank Florida along with other lenders.
“Obtaining financing for a nonresident buyer is extremely difficult without them having a permanent residence in the United States,” stated Osborne. “We have been very successful in helping our client obtain loans from different lenders.”
Osborne stated that the Buyer is still looking for great opportunities to acquire additional assets this year.
“They must be in a major MSA with a cap rate over 7.5%+ or approaching it with annual rent increases,” Osborne explained. “With the more normalized interest rates of 7 to 8%, both developers of STNL properties are adjusting their offerings prices to meet the buyer’s expectations of being able to purchase a property and obtain a reasonable amount of leverage,” he added. “The days of 4 to 5% cap rates are coming to end. Developers need to develop in order to stay in business and recognize that as their construction loans are coming due, they will need to meet the market demands.”
The property was represented by Jeffrey Cicurel with JLL’s Miami office.
About Sperry – RJ Realty: Sperry – RJ Realty provides landlord and tenant representation for some of the largest global owners and operators of real estate, as well as local and entrepreneurial owners and developers throughout Florida. With clients ranging from large, private investors to institutional owner advisors to local investors, Sperry – RJ Realty prides itself on providing best-in-class marketing and a full suite of research capabilities to support the efforts of its professionals. Sperry – RJ Realty aligns its interests with those of its clients to facilitate results and the ultimate success of each asset.
