Harp Development plans office, retail town centreMiami investors acquire Myerlee Square, plan officeNaples investor buys University Commons officeCharlotte State Bank plans North Port branchSarasota developer files Cobia Bay site planHupp Realty Advisors plans Manatee WalgreensKBS REIT buys Sabal VI officePublix buys Tampa land for GreenWise MarketOAM Associates buys Palm Harbor Red Roof Inn
Commercial RE Briefs
by Sean Roth | Real Estate Editor
Harp Development plans office, retail town centre
BUYER: Lehigh Town Centre LLC (Harp Management LLC), Fort Myers
SELLER: Lehigh Commercial LLC
PROPERTY: Property north of Lee Boulevard, Lehigh Acres
PRICE: $13.1 million
PREVIOUS PRICE: $6.89 million, April 2005 (includes multiple parcels)
LAW FIRM ON DEED: Morrison & Caudill PL, Naples
PLANS, DESCRIPTION: Fort Myers-based developer Harp Development purchased 31.5 acres on both side of Sunniland Boulevard east of Venice Avenue West in Lehigh Acres for $13.1 million. The developer plans to create 235,000 square feet of office and retail space on both sides of the street.
"It will be developed in three phases," says Kenneth Notturno, vice president and general counsel for Harp Development. "We are looking at the end of the year to have the development order on the first phases. We should start constructing the first phase toward the first half of 2008."
The developer has letters of intent from a number of potential tenants, but has yet to convert them to contracts. Harp Development is currently in discussions with Walgreens, Ruby Tuesdays, OfficeMax, The Fresh Market, Sweetbay Supermarket, Quizno's Subs and Cold Stone Creamery.
"This is the single largest contiguous tract of commercial land in Lehigh Acres," Notturno says. "It was previously zoned for residential, but it was one of the areas designated when the county did a review of the lack of available commercial land in Lehigh Acres. It was targeted for an overlay district."
The western side of the development, which is near a school, has been tagged for a medical/professional office development. The eastern parcels will have most of the restaurants along with a small strip running along Sunniland Boulevard and a larger strip center behind it.
Harp Development is known for developing a number of residential, commercial and motor coach resort projects primarily in Lee County, including the Cypress Woods RV Resort, Majorca Palms, Golden Palms RV Resort, Pondella Industrial Park and Harp Commons.
In other Harp news, the developer released plans to break ground on a residential project in University Groves in northern Sarasota next year.
Harp Development's purchase entity Lehigh Town Centre LLC mortgaged the property to First American Bank for $10.125 million.
Miami investors acquire Myerlee Square, plan office
BUYER: Sonic Real Estate Investment Inc. (Ashok and Kiran Khiyani, Miami
SELLER: Suffield Investments LLP
PROPERTY: 7050 Winkler Road, Fort Myers
PRICE: $3.63 million
PREVIOUS PRICE: $2.35 million, August 2002 (includes multiple parcels)
LAW FIRM ON DEED: Kevin F. Jursinski PA, Fort Myers
PLANS, DESCRIPTION: Real estate investors Kiran Khiyani, a broker associate with the Century 21 Doral Stars office, and her husband, Ashok Khiyani, purchased the 29,000-square-foot Myerlee Square shopping center on Winkler Road for $3.63 million. The Khiyanis already own the 25,000-square-foot Regal Plaza retail center on U.S. 41 in Fort Myers. Kiran Khiyani says that she was attracted to Lee County because of its growth rate.
"When you look at the job growth and the economic base you see that it will have a pretty positive effect on long-term investment," Khiyani says. "When I put in all the numbers in my chart I saw the [Internal Rate of Return] was very good and with rents there below the market it had considerable upside. There was also the substantial size of the property; it's on almost six acres. We already have the zoning there for a medical or office plaza beside [Myerlee Square]."
While, Khiyani says that work on an addition to the site is planned soon, the new owners also gradually plan to work on tenant changes to bring more activity to the center.
"Right now it's surrounded by a lot of homes where the people are 55 and up so what you see in the center now is a lot of services and offices there," Khiyani says. "There's not a lot of retail or entertainment to bring traffic in so we will be looking to bring in a club or arcade. We'll also try to add an ice cream parlor."
The new owners, who went by the corporate name of Sonic Real Estate Investment Inc., mortgaged the property to FirstBank Florida for $2.72 million.
Naples investor buys University Commons office
BUYER: Calvin D. Wible, Naples
SELLER: Carpenter Ft. Myers LLC
PROPERTY: 12748 University Drive, Fort Myers
PRICE: $3.1 million
PREVIOUS PRICE: $2.6 million, November 2001 (includes multiple parcels)
LAW FIRM ON DEED: Henderson Franklin Starnes & Holt PA, Fort Myers
PLANS, DESCRIPTION: Naples investor Calvin Wible purchased a 9,662-square-foot office building in University Commons at the northeast corner of College Parkway and Summerlin Road for $3.1 million or $320.84 per square foot. The building is fully leased to investment banker/brokerage Smith Barney, according to Randal Mercer of CB Richard Ellis, Fort Myers-Naples, who represented Wible. CB Richard Ellis will also be managing the property for Wible. The property was purchased as a long-term investment.
W. Scott Rogers of Sperry Van Ness / Real Estate Capital Advisors Inc. in Alpharetta, Ga., represented the seller.
Wible mortgaged the property to Busey Bank for $1.8 million.
• Fort Myers-based J.L. Wallace Inc. has started construction on Tarpon Springs Plaza Outlot 6, a retail shopping plaza on Tarpon Bay Boulevard in Naples. The project includes construction of a single-story retail structure totaling more than 11,200 square feet. Construction is scheduled for completion in May.
• Brooks & Freund has completed construction of the Water Gardens, a new condominium community at 1349 Aqui Esta Drive in Punta Gorda. The project includes a 46,000-square-foot building, with 18 condominium units and a 30-car enclosed parking garage. The Fort Myers-based contractor also built the community's large pool and deck with gazebo.
• Taylor-Pansing Inc. has completed construction of the Landshore Business Park in the Benchmark Industrial Center off Dr. Martin Luther King Jr. Boulevard in Fort Myers. The project consists of two separate office/warehouse buildings on one site. The first building is 22,690 square feet with 13 units. The second building is 20,682 square feet and houses 11 units.
• Fort Myers-based Eagle Concrete Systems has completed 24,998 square feet of concrete work in two buildings in the Estero Town Commons in Estero. Scott Architecture Interior Graphics designed the retail center. J.L. Wallace Inc. is the general contractor.
• Brooks & Freund has started construction on Ole at Lely, a new condominium community off Celeste Drive in Naples. The project calls for the construction company to build 24 buildings. The buildings will range from five- to 10-unit condominiums. Construction is scheduled for completion in November.
• Fort Myers-based McGarvey Development has started construction on Eastlinks Business Park, in the Gateway area of south Fort Myers. The project is designed to offer flex or office users access to Interstate 75 and the Southwest Florida International Airport. The development, which is adjacent to McGarvey Development's Westlinks Business Park, includes six buildings: one garden-style office building, two Class-A office buildings over parking and three flex buildings. About 174,000 square feet of office space and 173,000 square feet of flex space are being offered for lease. An additional 7.41-acre out-parcel on Daniel Parkway is being listed for sale. The first buildings are scheduled for completion in August.
Charlotte State Bank plans North Port branch
BUYER: Charlotte State Bank, Port Charlotte
SELLER: K2M LLC
PROPERTY: a portion of Tamiami Trail also known as lot 1E Fullenkamp Sumter Subdivision II, North Port
PRICE: $1.35 million
PREVIOUS PRICE: $1.471 million, March 2005
LAW FIRM ON DEED: Norton Hammersley Lopez & Skokos PA, Sarasota
PLANS, DESCRIPTION: Port Charlotte-based Charlotte State Bank purchased slightly more than one acre of land on Tamiami Trail in North Port for $1.35 million. After 20 years in the Charlotte County, the community bank is taking its first steps toward opening a branch in North Port.
"The engineers and architects are working on it right now," says Don Martin, marketing director for Charlotte State Bank. "We are adjusting the square footage based on the size of the parking lot. We're in the process of purchasing another site in Charlotte Harbor, and we'll [develop] that one first. This one is probably two years out."
The bank's need for a new branch in North Port stems, Martin says, from the significant number of current North Port residents that are already customers. The bank currently has five offices in the Punta Gorda-Port Charlotte market.
Sarasota developer files Cobia Bay site plan
Cobia Bay LLC, a partnership of Michael Blaikie, James Gabber,t Leonard Meyer Jr., Cyrus Bispham Jr. and Joseph Formella, filed a site plan to develop a 32,314-square-foot neighborhood retail center on the land between Avant Street and Richardson Way on Fruitville Road. The development is being called Cobia Bay.
"It's about a year out," Blaikie says. "We've gone through our preliminary [Sarasota County Development Review Committee] meeting. There are six houses there that we are awaiting approval to demolish."
Blaikie expects the development to end up with one or two restaurants along with a bank site. Sarasota-based Formella Construction will be the general contractor for the development.
Cobia Bay LLC bought the land for the development in late 2006 for $2.5 million.
Hupp Realty Advisors plans Manatee Walgreens
BUYER: Hupp Retail Upper Manatee LLC (principal: Andrew Hupp), Clearwater
SELLER: Peter and Vivian Gambino, individuals and trust,
PROPERTY: 1455 Upper Manatee River Road, Bradenton
PRICE: $2.6 million
PREVIOUS PRICE: $35,000, March 1995
LAW FIRM ON DEED: Law Offices of David E. Platte, Belleair
PLANS, DESCRIPTION: Clearwater-based developer/owner Hupp Realty Advisors Inc. purchased 3.16 acres near the intersection of Upper Manatee River Road and State Road 64 in Bradenton for $2.6 million. Hupp Realty Advisors has announced plans to develop the site as a 15,000-square-foot Walgreens drug store.
Hupp Realty Advisors officials expect the company to hold the project after it is constructed and leased to Walgreens.
Hupp Retail Upper Manatee LLC mortgaged the site to Fifth Third Bank for $1.525 million.
• KMS LLC has leased 2,080 square feet at The K-Centre, 6220 State Road 64 in Bradenton, from Lena Place LLC for 10 years. Steve Horn of Ian Black Real Estate handled the transaction.
• Smarty Pants Inc. leased 5,000 square feet in 832 62nd Street Circle East in Bradenton from Lena Place LLC for five years. Steve Horn and Debbie Anglin of Ian Black Real Estate handled the transaction.
• Ferguson Enterprises, Inc. leased 11,250 square feet at lot 32, Sarasota International Trade Center, phase II in Sarasota from Central Plaza LLC for 10 years. Debbie Anglin of Ian Black Real Estate and Tim Hague of Advantis handled the transaction.
• The Saba Family Trust LLC put the Pompano Plaza retail center at 3048 17th St. in Sarasota up for sale for $3.1 million or $210 per square foot. The 14,725-square-foot retail center was built in 1984. Current tenants in the retail center include: Papa John's, Buffalo Wing Factory and Jackson Hewitt tax services. David Wells of Marcus & Millichap Real Estate Investment Brokerage Co.'s Tampa office is handling the listing.
KBS REIT buys Sabal VI office
BUYER: KBS Sabal VI LLC, Newport Beach, Calif.
SELLER: NCFLA 2 Owner LLC
PROPERTY: 3611 Queen Palm Drive, Tampa
PRICE: $16.5 million
PREVIOUS PRICE: $10.6 million, July 2005
LAW FIRM ON DEED: Greenberg Traurig PA, Orlando
PLANS, DESCRIPTION: Newport, Calif.-based KBS Real Estate Investment Trust purchased the 96,346-square-foot Sabal VI office building in Tampa for $16.5 million. The office building, located on a 10-acre parcel, is 100% leased to the managed care company PPO CCN Managed Care Inc. (61%), the pharmaceutical/medical supply firm PharMerica (20%), and auto financer Ford Motor Credit Co.
According to a Securities and Exchange Commission filing related to the acquisition, the current aggregate annual base rent for the tenants in the building is $1.4 million. CCN Managed Care has a $13.15 per square foot lease that is scheduled to run through March 2016. PharMerica is paying $16.83 per square foot for a lease that ends September 2008. Fort Motor Credit signed its lease in January to run through April 2012 for an average annual rate of $21.24 per square foot.
KBS REIT mortgaged the Tampa office building to Wells Fargo Bank NA for $11.04 million.
In July, KBS REIT purchased the four-story Sabal Pavilion, which is leased to Ford Motor Credit in East Tampa for $24.25 million. The Tampa building was the first property asset for KBS REIT.
KBS Capital Markets Group is the dealer manager for KBS REIT. KBS Capital Advisors is the advisor for KBS REIT. Both companies are affiliates of KBS Realty Advisors, a premier real estate investment firm that has invested or managed more than $6 billion since the company's inception in 1992.
Publix buys Tampa land for GreenWise Market
BUYER: Publix Super Markets Inc.,
SELLER: A. S. Weekley Jr., Trustee
PROPERTY: 2405 and 2403 W. Azeele St., Tampa and additional nearby land
PRICE: $3.5 million
TITLE FIRM ON DEED: All Florida Title Agency Inc., Tampa
PLANS, DESCRIPTION: Publix Super Markets purchased land at the northeast corner of Armenia and Azeele streets for $3.5 million. The property is planned as one of Publix's new healthy food, organic-focused Publix GreenWise Markets. Depending on the construction schedule, the 39,000-square-foot planned store will be the third or fourth such store for the Lakeland-based grocery giant.
The new brand is a response to the growth in consumer demand for healthier/organic foods, which has in turn created a large market for specialty grocers such as Whole Foods Market and Wild Oats. Publix GreenWise Markets also are planned in Vero Beach, Palm Beach Gardens and Boca Raton. The Palm Beach Gardens location is expected to be the first open store and should debut sometime later this year.
Publix media and community relations manager Shannon Patten did not have a scheduled construction start date or projected opening date for the new store.
OAM Associates buys Palm Harbor Red Roof Inn
BUYER: OAM Associates LLC (principal: Mrudula Patel), Palm Harbor
SELLER: Deven J. and Neha D. Desai
PROPERTY: 32000 U.S. 19 N., Palm Harbor
PRICE: $4.15 million
PLANS, DESCRIPTION: The hotel investment group OAM Associates LLC purchased the 100-unit Red Roof Inn in Palm Harbor for $4.15 million. The same group owns a Travel Lodge and several other hotels in Pennsylvania.
"We liked it because it was a completely renovated hotel from the walls right down to the linens," says Amish Patel, part of the new ownership group. "What we are telling people is that everything is brand new including the management. We just plan to keep the property up and improve the experience for our guests."
The new owners mortgaged the property to Flagship Community Bank for $3.32 million.
• Orlando-based Tilt-Con Corp. has begun work on the three-story, 105,607-square-foot Tampa Oaks II office building in Tampa under a contract with Opus South Corp. Designed by The Opus Group, the project is slated for completion in August 2007.
• Clearwater-based Creative Contractors Inc. signed a $14 million contract with the School Board of Pasco County to build Gulf Trace Elementary School. The 93,000-square-foot school will be built at 3303 Gulf Trace Boulevard off of U.S. 19 in Holiday. The school is made up of seven buildings that include classrooms, a library, art and music rooms, offices, a kitchen and a large multi-purpose cafeteria. The school will be the first tilt-wall structure used for a Pasco County School. Similarly, Gulf Trace Elementary will be Pasco County's first "green"-certified school under the Leadership in Energy and Environmental Design program of the U.S. Green Building Council.
• Brookdale Senior Living Inc. has announced the acquisition of a continuing care retirement community in Tampa for $51 million. The community consists of 362 independent living retirement apartments, a 270-bed skilled nursing facility and a 107-bed assisted living facility. Brookdale has managed the community since 1998 under a cash-flow management agreement, similar to a lease. However, Francie Nagy of Brookdale Senior Living declined to comment on which Tampa property was involved.
• New York-based Investcorp Real Estate Group completed the sale of Cypress Point Shopping Center, a 166,933-square-foot retail property in Clearwater, to Ramco-Gershenson Properties Trust. So far terms of the deal were not being disclosed. Investcorp acquired Cypress Point in November of 2004. The property is 97% occupied, and its anchor tenants include Burlington Coat Factory and Fresh Markets.