Praedium Acquires Quorum Center Orlando
Joint Venture Makes $29 Million Investment in 13-Building Office/Flex Park
Orlando, FL – September 8, 2009 – In a joint venture, The Praedium Group, a national real estate investment firm, and Tower Realty Partners (Tower), a leader in the value-add investment community, have acquired Quorum Center Orlando in Orlando, Florida from USAA Real Estate Company for $29 million. Located on Vineland Road, the 13-building office/flex park is comprised of 317,521 square feet and presented a compelling investment opportunity for the partnership.
"Due to our successful track record in the Florida market and ability to close quickly, the opportunity to purchase Quorum Center Orlando, was presented to us on an off-market basis," said Mark Lippmann, Director of Acquisitions for Praedium's Southern region. "The acquisition offered a great opportunity to own a premier office/flex asset for an attractive price at a 'main-and-main' location. Our knowledge of the market, product type and access to funds provided the seller with a certainty of closing in a short-time frame."
Currently, Praedium is investing its most recent $900 million real estate private equity fund, Praedium Fund VII, which has pre-committed capital and the purchasing power to acquire over $2 billion in real estate assets. The Quorum Center Orlando presented an ideal opportunity for Praedium's Fund VII due to its superior location, attractive cap-rate and available seller financing. The complex is approximately 85 percent occupied and boasts a diverse tenant roster.
Tower, a long-standing joint venture partner for Praedium, will serve as an equity investor, property manager and leasing agent for Quorum Center Orlando. "We're extremely pleased to partner with Praedium for our 13th joint venture acquisition," stated Clifford Stein, Co-Founder, (along with long-term partner, Reid Berman). "Collectively, we recognized this institutionally-owned and managed complex was in excellent condition, and would fit into Praedium and Tower's portfolio, as part of our strategy in this market."
The Quorum Center's 13-buildings total nearly 320,000 square feet. Construction began on the properties in 1983 and was completed in 1987. The mixed-use complex is easily accessible via Interstate 4 and the Florida Turnpike. It's also minutes from The Mall of Millenia, restaurants, shopping, residential developments and other area amenities, as well as Downtown Orlando, Universal Studios and Orlando International Airport.
"Quorum Center performed exceptionally well over our holding period," says Pat Duncan, President and CEO of USAA Real Estate Company. "This is attributable not only to the location's supreme access to major thoroughfares such as I-H 4 and Florida's turnpike, but also to USAA's strong management and leasing team at the site. The disposition of the Quorum property will increase USAA's already significant capacity for entertaining new acquisitions and development opportunities that serve our best interests."
Mr. Lippmann and Mr. Stein represented the partnership in the acquisition and financing negotiations. Ronald Rogg, Executive Vice President at CB Richard Ellis' Orlando office represented USAA Real Estate Company in the transaction
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About The Praedium Group - The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $7 billion in total investments to date in more than 275 transactions comprised of 45 million square feet of commercial space and 55,000 multifamily units. Praedium was formed in 1991 with a leading international investment bank as its sole investor. Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.
Cadim, a Montreal-based real estate investor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers.
For more information, please see www.praediumgroup.com.
