20 North Orange Avenue (20 North)
20 North is a 268,868 square foot, Class B office tower and garage completed in 1984 and located at the main-and-main intersection in Downtown Orlando. The property was purchased off-market as it was owned by a TIC group which had declared bankruptcy. SQUARE2 principals worked collaboratively with the TIC ownership group, receiver and lender to negotiate and construct a DPO.
The asset was purchased for $33 million, which is substantially below replacement cost and nearly 50% below its last, peak sale. Because the property was subject to protracted litigation, it had substantial deferred maintenance issues which negatively impacted operations, maintenance and tenancy. While rents were below market, the common areas, building finishes and exterior aesthetics were dated and as a result, the condition of the asset made it difficult to attract new or retain existing tenants.
The SQUARE2 team embarked on a complete redevelopment of the project to include the main lobby and first floor retail conversion from what once was a 26,000 square foot banking center, 2nd floor lobby, common areas, and restrooms, creation of a conference center, and a complete elevator modernization as well as upgrades to other main building systems. The garage, which was heavily used by night time and weekend visitors to the area’s night life, was updated with new parking control technology, security, and a new parking operator was contracted. After a 24-month planning and redevelopment, SQUARE2 principals successfully re-tenanted the ground floor to include a bank branch, school, three restaurants, and commercial furniture and design firm. Furthermore, as a result of the newly improved and amenitized building, CenterState Bank signed a lease making this location its regional headquarters, Pipeline - a shared office provider - leased a full floor, and Morgan & Morgan, one of the nation’s largest law firms, renewed and expanded. In total, the team completed approximately 205,000 square feet of leasing, including new tenants and renewals resulting in a sale in 2021 for $63 million.