16&17 Real Estate Briefs

By: 
Sep. 19, 2003

Deal of the week

California Firm Ventures into Tampa Bay Area

Sunchase at Clearwater

Location: 6550 150th Ave. N., Largo

Buyers: Jasmine at Clearwater LLC, a holding of Lyon Jasmine Holdings LLC, affiliates of Newport Beach, Calif.-based Lyon Capital Ventures LLC

Seller: OTC Apartments LP, a holding of Aimco/OTC ORS Inc., affiliates of Denver-based Apartment Investment & Management Co.

Purchase price: $17,905,800

Number of units: 461 apartments

Year built: 1985

Prior sale: $5,592,000 in 1991

Just market value: $13.9 million

Sunchase at TAMPA

Location: 7610 W. Waters Ave.

Buyers: Jasmine at Tampa LLC, a holding of Lyon Jasmine Holdings LLC, affiliates of Newport Beach, Calif.-based Lyon Capital Ventures LLC

Seller: OTC Apartments LP, a holding of Aimco/OTC ORS Inc., affiliates of Denver-based Apartment Investment & Management Co.

Purchase price: $9,837,286

Number of units: 216 apartments

Year built: 1985

Prior sale: $6.1 million in 1991

Just market value: $7.44 million

By David R. Corder

Associate Editor

TAMPA - Affiliates of Lyon Capital Ventures LLC have acquired 677 rental apartments in Hillsborough and Pinellas counties - the first venture by the Newport Beach, Calif.-based company into the Tampa Bay area.

For a total of about $28 million, the privately held real estate investment firm acquired the Sunchase apartment properties in Tampa and Largo from affiliates of Apartment Investment & Management Co., the Denver-based real estate investment trust.

The affiliated Jasmine at Clearwater LLC paid about $18 million, or $38,841 a unit, for the 18-year-old Sunchase at Clearwater apartments. The 461 units at 6550 150th Ave. N., Largo, last sold for about $5.6 million in 1991. Pinellas County officials most recently assessed the property's just market value at $13.9 million. The buyer financed the sale with a $16.5 million mortgage through New York-based Lehman Brothers Holdings Inc., doing business as Lehman Capital.

The affiliated Jasmine at Tampa LLC paid about $9.8 million, or $45,543 a unit, for the 18-year-old Sunchase at Tampa apartments. The 216 units at 7610 W. Waters Ave. last sold for $6.1 million in 1991. Hillsborough County officials most recently assessed the property's just market value at about $7.4 million. The buyer financed the acquisition with an $8.1 million mortgage through Lehman Capital.

A spinoff of The William Lyon Co., Lyon Capital Ventures formed in 1998 as a multifamily real estate investment company, according to the company's marketing material. Prior to the Tampa Bay area acquisitions, the company claimed ownership in 8,409 apartment units. That included 6,699 units in Southern California, 868 units in Northern California; 404 units in Colorado; and 438 units at the Reflections at Welleby Apartments in Sunrise, Fla.

These two properties are just the latest sales for the publicly traded REIT in the Tampa Bay area. The REIT recently sold the 200-unit Coral Cove Apartments in Clearwater to Tampa-based Wisco LLC, a holding of William I Sultenfuss II. Prior to these sales, the REIT claimed ownership in 39 apartment properties and 11,463 units in the Tampa Bay area.

Real estate briefs

Collier

New condo-hotel planned

for downtown Fort Myers

Homes for America, which developed Fort Myers' newest river front high-rise condominium, The Beau Rivage, plans a new condo-hotel in downtown Fort Myers, says project manager William Cohill. The 22-story tower is planned for the corner of Old Business U.S. 41 and First Street. It will be a little more than a block from the Ramada Inn, which is being converted to a condo hotel as well.

The facility will front the Caloosahatchee River and include four stories of parking and a connected structure with 13,000 square feet of retail space, hotel amenities and meeting rooms. The top deck will include a pool and dining facilities. The retail area will consist of four 1,000-square-foot units with frontage on First Street.

While the total number of one-bedroom and two-bedroom units will be 220, with as many as 300 hotel suites and rooms will available to rent. When combined with the 400 plus rooms in the renovated Ramada Inn, this will add 700 new rooms to support conventions in downtown's Harbourside Conference Center.

Cohill says unit buyers will be required to enter units into the hotel rental pool, with owner occupancy limited to 45 days each year. If tax considerations require, the top three floors of the building may be devoted to larger two-bedroom and three-bedroom condos without occupancy restrictions as long as the units are in the rental pool when unoccupied. The developers are discussing management with four major national hotel operators.

Cohill estimates that, based on typical average construction costs of $200 per square foot, the entire project may amount to a $40- to $50-million investment. The project is scheduled to go before the Community Redevelopment Agency on Oct. 1 with final city approval anticipated by the end of the year.

Hillsborough

Carlyle affiliate closes

on Hendry Ranch land

An affiliate of Carlyle Investments Inc. paid about $10,908 an acre for 582 acres of mostly pasture land in northwest Hillsborough County as part of a plan to build 147 upscale, lakefront homes.

Stonelake Ranch LLC paid about $6.4 million for the property along U.S. 301 in Thonotosassa to Hendry Ranch LLC, Harold M. Hendry and Robert H. Kapp. Hendry Ranch, a company controlled by Harold Hendry, sold about 516 acres of the total.

"There is nothing like it out here," says Charles B. Funk, president of Tampa-based Carlyle Investments. "We have 10,000 linear feet of lakefront. There is elevation uncommon to anyplace else around here. It has the highest elevation in Hillsborough County; 40 feet above the lakefront in some places."

Although some planning and permitting issues remain, Funk says he expects to begin site work within a couple of months. Then the company expects to sell lots of three acres from $200,000 to $500,000 each. That could mean total gross sales of about $51 million on 147 lots at an average price of $300,000.

"There's about 200 acres of open space," says Funk, who along with Jeff Meehan developed the 596-acre Arbor Green residential community in New Tampa. "We're doing everything right. We're not changing density. We're not cutting down one tree if we can help it."

Pinellas

Ramada Inn Gulfview

sells for $13 million

Wisconsin investor Jeffrey Keierleber apparently negotiated a good deal with the $12.9 million acquisition of the 289-unit Ramada Inn Gulfview. Decade Gulfcoast Hotel Partners LP and JK Gulfview Inc. - two Waukesha, Wis.-based companies controlled by Keierleber - paid about $44,671 a room to AGH PSS I Inc., a holding of Meristar Hospital Corp. Meristar, a Washington, D.C.-based publicly traded real estate investment trust, merged about a year ago with Interstate Hotels & Resorts Inc.

The Keierleber companies acquired a property - 521 S. Gulfview Blvd. in Clearwater - that last sold in 1998 for about $14.6 million, or about $50,688 per room. That's about $1.73 million, or $5,982 a room, less than what Meristar paid for it in 1998. He financed the acquisition with a $10 million mortgage through Associated Bank NA.

The sale came as Meristar reported a net income loss of $206 million, or $4.48 a share, on revenue of $258 million for the three months ended June 30. That compares with a net gain of $3 million, or 6 cents per diluted share, on revenue of $270 million for the same period a year ago. This is the second major transaction this year for Keierleber. In March, he sold a 94,594-square-foot office building at 400 Cleveland St. in Clearwater for $8.2 million to 400 Cleveland LLC.

European investors buy

Clearwater retail center

A European-led investment group acquired the new Publix-anchored neighborhood retail center at 619 S. Fort Harrison in Clearwater for $7.72 million.

AEM Erfahrung LLC paid about $190 a square foot for 40,702 square feet of retail space on 4.29 acres to Clearwater-based Harbor Oaks Development LLC. The buyer financed the property with a $5.36 million note and mortgage assumption agreement through Wells Fargo Bank Minnesota NA.

Property records list Miami-based Cronus Inc., a commercial real estate services company directed by Jorge L. Rodriguez, as AEM's representative. Although he wouldn't identify the principals, Rodriguez says the investors in AEM are not German even though they adopted a German-sounding name. Their plans are to eventually register the company as Panamanian.

"The property we acquired is positioned for significant appreciation," says Rodriguez about the 100% occupied retail center.

MANATEE

Sarasota's Vengroff

buys Forest Cove

Harvey Vengroff, chairman of the Sarasota-based commercial collections and receivables management firm Vengroff, Williams & Associates Inc., bought the Forest Cove Apartments, 1437 45th Ave. Circle W., Bradenton, from Tri Star Properties LLC for $1.5 million. Vengroff says he bought the 35-unit apartment complex to renovate it. He has a reputation for buying and redeveloping properties in less than desirable areas, notably on Central Avenue near downtown Sarasota. "It is pretty run down. I'm planning to build eight more (units) out there," he says.

Vengroff's first renovation to the development was digging ditches to alleviate flooding on the property from the recent rains. He expects to start renovating the buildings in the next few weeks. The complex currently has a vacancy rate of 14%, with five units still unoccupied.

"I am trying to buy property around it," says Vengroff, who mortgaged the property to Bank of Commerce for $1.2 million.

About three weeks ago Vengroff bought a small retail center at 622 Central Ave., Sarasota, from Melton Augustine for $370,000. Vengroff says he is still debating what to do with the space. "We will probably build a two-story building," he says.

SARASOTA

Kauffman, Macaskill

building University retail center

Dr. Mark Kauffman, developer of the proposed Courthouse Centre mixed-used downtown Sarasota building, and John Macaskill, president of Sarasota-based ASO Corp., bought general commercial land at 5150 University Parkway in Sarasota from University Park Auto Spa LLC for $700,000. According to Diane Lawson, of Sarasota Commercial Management Inc., the partners plan to build a 10,000-square-foot retail center. She says the developer is finalizing leases with two companies to occupy a total of 4,000 square feet in the new building. "We are still looking for destination retail," Lawson says, "such as a high-end patio furniture area or an upscale liquor store. We are looking for specialized retail."

The developer plans to complete the center in about a year. The rental rate for the space is $25 triple net. The partnership also owns two adjoining commercial buildings in the 300 block of Washington Boulevard and a shop at 18 S. Boulevard of Presidents on St. Armands Circle.

In other news, Kauffman's Courthouse Centre, Main Street and U.S. 301 Sarasota, activity is running high. The Melting Pot restaurant, which is currently located in Sabal Plaza in Sarasota, has signed a lease to occupy 5,000 square feet in the new building. All but two of the building's 19 condos are under contract. "Right now we are moving some ground," Lawson says, "but we will have a true groundbreaking in the next couple weeks. We are seeing a lot of good indicators." To date, 20,000 square feet of the 60,000 square feet office space is still available and about 21,000 square feet of the total 28,000 square feet of the retail space.

Georgia Nokomis Group

applies to divide site

The Georgia Nokomis Group Inc. filed a site plan to subdivide four acres of land on Tamiami Trail in Nokomis. According to the company's real estate agent Danny Kay, president of Nokomis-based Properties of Distinctions of Venice Inc., the business plans to divide the general commercial property into four one-acre sites. "We are still waiting to hear back from the county," Kay says. "But we already have two companies set to buy." Kay says that an Italian deli and a Goodyear Tires are committed to buy as soon as the subdivision is approved.

Riverside Bank builds

first Venice branch

Cape Coral-based Riverside Bank of the Gulf Coast is developing its eighth branch and first Venice location on U.S. 41 near Venice Avenue. About two months ago, the bank bought the property from U.S. 41 Highway Holdings Inc. for $760,000. "We have chosen an architect and are moving onto choosing a contractor," says John Moran, bank president and CEO. "We are hoping to have that branch open sometime next summer." The new facility will be 4,700 square feet with four drive-through lanes and a drive-through ATM.

The location will be the bank's third branch in Sarasota County. Morn says: "With it's proximity to U.S. 41 and downtown Venice ... it was very attractive for a hometown bank like ours." Riverside has not yet built a branch in Manatee County, he says, adding: "We just haven't found the right opportunity."

ETC...

× TKD 03 Inc. purchased a 4,100-square-foot office condominium at 2100 Proctor Road, Sarasota, from River View Office Park Inc. for $650,000. The property is zoned for office, professional or institutional users (OPI). John Harshman, of Harshman and Co. Inc., represented the buyer. The new owner mortgaged the property to The Bank of Commerce for $620,000.

× Dashrath and Pravin Patel of Pinellas Park bought the Corner Store, a convenience mart, at 602 Tamiami Trail, Venice, from Michael and Bonita Rich for $662,000. The Patels, who purchased the property using the corporate name of Keshav Enterprises LLC, mortgaged the Venice property to Community National Bank of Sarasota County, $530,000.

× MDG Capital Corp. has sold about 2,513 square feet of office space at Orion Bank Centre at 2180 Immokalee Road in north Naples to First Boston Title. MDG Capital Realty Inc., a subsidiary of MDG Capital Corp., brokered the sale.

× David and Stephanie Peterson bought two units in the Sarasota County Interstate Business Center in Venice for $190,000. Bill Kleiber and Jim Walter of Richardson Kleiber Walter handled the sale.

× Commercial Maintenance Management Inc. leased 5,000 square feet at 221 Blue Juniper Blvd. in the Sarasota County Interstate Business Center in Venice. Christine Walter of Richardson Kleiber Walter handled the transaction.

× Bent Oak Ventures bought 13,300 square feet of vacant general-commercial land at 3837 Clark Road, Sarasota, from George and Sandra Hernandez for $205,000. Rico Boeras PA, of Preferred Commercial Inc., was the listing broker, and John Caragiulo of Hembree & Associates Inc., was the selling broker.

× Bradley and Cynthia Latham purchased 1.59 acres of vacant heavy-industrial land at 4916 15th St. E., Bradenton, from SunTrust Bank, trustee for the estate of Willis and Marjorie Lawson, for $195,000. The listing broker was Rico Boeras PA, of Preferred Commercial Inc., and Janet Orr of New Concepts Properties was the selling broker.

× The Sarasota-based developer Barrington Group Inc. transferred the 200-unit townhouse community on Honore Avenue north of University Parkway, called Carolina Landings, to its sales division in a $20.4 million deed change. The developer owns a smaller nine-acre parcel adjacent to Carolina Landings and hopes to build a second townhouse community there next year.

× Miramar-based Edison Petroleum Inc. bought a service station at 1857 Tamiami Trail, Venice, from Bellmark Properties LC for $685,000. Edison Petroleum mortgaged the four gas-pump station to Century Bank FSB for $530,000.

× Bradenton-based Neal Communities posted more than $8 million in gross sales in August, the highest monthly total in Neal's 33-year history. Neal has confirmed $5,988,636 in new home sales and $2,375,400 in lot sales for a total of about $8.36 million in sales from August 1 to August 31. Neal Communities is currently selling new homes in nine neighborhoods spanning four area communities, University Park Country Club, Lakewood Ranch, Woodlands Park, and University Place.

× Medici Gallery LLC leased 1,702 square feet at 75 S. Palm Ave., Sarasota from Miramar Plaza Associates Ltd. John Harshman, of Sarasota-based Harshman & Co. Inc., represented the tenant.

× Kazan Inc. sold property at 4910 14 Street W. to the investment groups of Bri-Lane Properties LLC, NSC Properties LLC and CAC Property Investments LLC for $975,000. Located on the property is the Fountains Office Centre, a 15,600-square-foot office building consisting of various size suites ranging in size from 160 to 5,000 square feet. The building is 92% leased. The groups plan to upgrade the building facade, landscaping, common areas and conference center space.

× Terrace Walk Plaza, a local partnership, purchased the Terrace Walk Plaza, a 59,936-square-foot shopping center at 5701 E. Fowler Ave., Tampa, from Regency Centers LP for $5.08 million. The seller was represented by Sharon Bands of Encino, Calif.-based Marcus Millichap, and the buyer was represented by Elliott Ross, CCIM, of Clearwater-based Ross Realty Group Inc. Terrace Walk, with more than 15 shops and restaurants, leased and managed by Mike Myers and Judi Lechner of the Ross Realty Group.

× Douglas Fife, president of Sarasota-based Coast Controls Inc., sold the company's headquarters at 7500 Commerce Court in University Park of Commerce to Coast Controls Inc. for $700,000. According to Rodney Shrock, chief financial officer, there are no changes planned for the building. Coast Controls mortgaged the property to Northern Trust Bank of Florida for $660,000.

× Bradenton entrepreneurs George Smith and Roy Jackson bought about 14 acres of orchard or citrus land at 12270 N. U.S. 301 in Bradenton from Allyn Morrison for $490,000. Smith says that he expects to develop the majority of the land as residential property along with professional space near U.S. 301. Smith and Jackson, who bought the property as S&J Land of Manatee LLC, mortgaged the land to First National Bank & Trust for $400,000.

× Manatee Community College opened its new 17,772 square-foot, $2.6 million Raymond D. Cheydleur Academic Resource Center and Elise J. and Edgar H. Price Jr. Learning Lab at 5840 26th St. W., Bradenton. The new building replaces two 45-year-old classroom buildings and is designed to act as a one-stop center for academic support services including individualized tutoring, group study, videotape instruction, study-skills enhancement and computer-assisted instruction. The ARC will open to students in October 2003.