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Commercial Real Estate
Business Observer Thursday, Jun. 6, 2019 2 months ago

Bromley adds Highwoods Properties to partner network

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North Carolina-based REIT with extensive Tampa portfolio will develop Midtown Tampa offices
by: Kevin McQuaid Commercial Real Estate Editor

Bromley Cos. has tapped a veteran office developer to oversee a trio of planned office towers at its 22-acre Midtown Tampa project.

Highwoods Properties Inc., of Raleigh, N.C., becomes the fourth development partner to join with New York-based Bromley on the $500 million project, at Interstate 275 and Dale N. Mabry Highway between downtown Tampa and the suburban Westshore Business District.

Other partners include Crescent Communities, which is building a 390-unit, Novel apartment complex; Casto Southeast Realty Services and Jeffrey R. Anderson Real Estate Inc., overseeing 220,000 square feet of retail space; and Concord Hospitality Enterprises — also of Raleigh, N.C., which will develop a 225-room, dual-branded Aloft and Element hotel.

In all, Midtown Tampa is expected to contain 1.8 million square feet of space at completion in early 2021.

But at 750,000 square feet, the office component will be the largest sector within the development. Bromley considers the office space to be a “key element to the overall master plan” for Tampa’s first open-air, mixed-use project, according to a statement.

“Highwoods is one of the largest and most prominent landlords in the Tampa area, and we thought that they also had a strategic advantage for us within their existing portfolio for tenants’ future real estate needs,” says Nicholas Haines, Bromley’s CEO.

“We looked at their portfolio across the Southeast and we were extremely impressed with their execution,” he adds. “And we really like their team — there’s great cultural compatibility and they fit with our vision for the overall project.”

Under the agreement with the real estate investment trust, Highwoods will own an 80% interest in the three buildings.

Midtown One, a 150,000-square-foot project that is being developed on a speculative basis, is scheduled to commence in the final quarter of this year and be completed in early 2021.

The $72 million project, of which Bromley says 40% of the space is already committed, will be leased by commercial real estate brokerage Cushman & Wakefield.

Highwoods’ CEO Ed Fritsch in a statement describes Midtown Tampa as “an irreplaceable location and strong financial backing from each of the development partners.”

“With limited spec office development underway in Tampa and healthy demand, we believe this is an opportune time to commence construction of Midtown One,” Fritsch says.

With Midtown One, Highwoods’ development pipeline now exceeds $700 million, comprising 1.7 million square feet.

In Tampa, Highwoods owns nearly two dozen office properties containing 3.77 million square feet, including the SunTrust Financial Centre downtown; the six-building Highwoods Preserve in Westshore; and the former Laser Spine Institute headquarters, at 5332 Avion Park Dr.

“Office will be a key driver for the other uses at Midtown,” Haines says. “But in each of our partners, we looked for first-class execution, a rock-solid balance sheet, experience with successful mixed-use properties around the country and a strong track record in Tampa. Highwoods and all the other partners we’ve selected all qualify.”

 

 

 

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