Commercial Real Estate Briefs

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| 6:00 p.m. September 25, 2008
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COMMERCIAL REAL ESTATE SARASOTA-MANATEE by Sean Roth | Real Estate Editor

Publix Super Markets buys Longboat Key's Town Plaza I

BUYER: Avenue of the Flowers Acquisitions Co. LLC (principals: John Attaway, David Phillips, John Frazier and William Crenshaw), Lakeland

SELLER: Dead River Properties Inc.

PROPERTY: 525 Bay Isles Road, Longboat Key

PRICE: $14 million

PREVIOUS PRICE: $5 million, June 1983

LAW FIRM ON DEED: GrayRobinson PA, Tampa

PLANS, DESCRIPTION: Lakeland-based grocery chain Publix Super Markets Inc. purchased Town Plaza I of Avenue of the Flowers on Longboat Key from Dead River Properties Inc. for $14 million, equal to $136 a square foot.

The shopping center currently houses Prudential Palms Realty, Patchington, BB&T, Antony V's Packaged Wines and Spirits, Nails of Longboat Key, Philips Men's Wear in Avenue of the Flowers, Reagan Paige, Re Federico, UPS Shipping Internet Cafe, and White Sands Cleaners.

"We have purchased the plaza and are currently reviewing our plans for the property," Shannon Patten, a Publix spokesperson, told the Longboat Observer. "Nothing has been finalized regarding future plans for the property at this time."

Publix is not completely new to retail center ownership. Last year, along with buying a distribution center and land for stores in the Gulf Coast, Publix purchased the 120,000-square-foot Crossroads Shopping Center in Lehigh Acres for $16.35 million.

The grocer considers acquiring centers that make sense from an investment standpoint and that offer the chain additional flexibility to manage the property and its stores, according to Patten.

It was not the first time the plaza was under contract this year. Last fall, Boca Raton-based retail firm Woolbright Development Inc. told tenants in the plaza it was under contract to acquire the property. That deal eventually fell apart.

The sale does not include Town Plaza II, which is located behind the main plaza.

- Additional reporting by Kurt Schultheis, contributing writer

Kolter Land Partners

buys 104 Stillwater lots

BUYER: KC Stillwater LLC (principals: Michael Clarke, Howard Erbstein and Robert Julien), West Palm Beach

SELLER: Standard Pacific of Southwest Florida fka Westfield Homes of Southwest Florida

PROPERTY: lots 1-28, 39-56, 75-140, Stillwater, Englewood

PRICE: $1.14 million

LAW FIRM ON DEED: Bricklemyer Smolker & Bolves PA, Tampa

PLANS, DESCRIPTION: Kolter Land Partners, the land acquisition wing of West Palm Beach-based Kolter Communities, purchased 104 developed residential lots from Standard Pacific Homes for $1.14 million, equal to $11,000 a lot.

"We'll probably hold them for a couple years while the market improves," says Bobby Julien, CEO of The Kolter Group. "[Standard Pacific] was still building homes there ... they just wanted an exit. We feel the market there is already starting to stabilize; I'm not sure whether it will be a year or two years but it's on its way."

Julien says his real estate investment, development and construction company is in an accumulation phase, including the recent purchase of properties in Grand Hampton in Tampa.

As for the planned Grande Sarasotan condominium project at the northwest corner of U.S. 41 and John Ringling Boulevard in downtown Sarasota, Julien says Kolter will likely break ground in the fall of 2009.

"The Sarasota market really has seen its last new condos since last July," he says. "So we think if we do some new updated product there it should do well. It won't sell for the same price it used to, but the numbers should still make sense."

First Industrial Realty Trust

buys Bradenton auction land

BUYER: First Industrial Financing Partnership LP (First Industrial Finance Corp.), Chicago

SELLER: Adesa Florida LLC

PROPERTY: 6005 E. 24th St., Bradenton (land only)

PRICE: $4.59 million

PREVIOUS PRICE: $6.34 million, March 2006

LAW FIRM ON DEED: Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago

PLANS, DESCRIPTION: Chicago-based First Industrial Realty Trust Inc. purchased the real estate under Adesa Inc.'s vehicle auction facility in Bradenton for $4.59 million. The facility features several auction lanes and a repair/reconditioning shop for body and mechanical work and detailing. The purchase was just one part of an $82-million acquisition by the industrial real estate firm of eight vehicle auction sites from vehicle-auction giant Adesa. As part of the agreement, Adesa agreed to lease back the properties for at least the next 20 years.

The portfolio included four sites in California (Tracy, Otay Mesa, Mira Loma, and Sacramento), and single sites in Fairburn, Ga.; Houston; Auburn, Wash.; and Bradenton.

"Through this sale-leaseback with First Industrial, we were able to unlock capital to reinvest back into our core business, while securing long-term use of these strategic real estate sites," Eric Loughmiller, executive vice president and chief financial officer of Kar Holdings Inc., parent company of Adesa, said in a press release. "With twenty-year lease terms, we will maintain operational control of our key auction locations while maximizing our return on capital."

Pine Avenue Restoration

partners break ground

The principals of The Pine Avenue Restoration Project have started construction on their first two mixed-use buildings, at 315 Pine Ave., on Anna Maria Island.

The Pine Avenue Restoration Project began a little over a year ago, when Michael Coleman and Island restaurateur, Ed Chiles, contracted to buy 15 lots in Anna Maria's historic mixed-use residential/business district. Both partners were concerned that Pine Avenue was becoming dominated by residential development. The partners plan to have one floor of retail, with a second floor of residential above.

David Teitelbaum and Alan Galletto of Island Real Estate will direct sales and marketing for the project.

Etc...

• Almost five years after being closed to the public, the historic Nokomis Beach Plaza is scheduled to reopen soon. Jack West, the architect who designed the original plaza, oversaw its rehabilitation. The $1.3-million project was funded by a combination of Sarasota County impact fees, penny surtax (1-cent sales tax) funds and historical resource grants. The new beach plaza is designed to protect sea turtles with recessed lights with true red filters, tinted windows, louvers and shades.

• RSL Holdings LLC leased 2,900 square feet at 329 Central Ave. in Sarasota from Hunter Street River View LLC for one year. Ian Black and Steve Horn of Ian Black Real Estate handled the transaction.

• XL Merchandising of Florida LLC leased 8,750 square feet at the Sarasota Commerce Center at 7455 16th St. in Bradenton from Navimo USA for one year. Lori Conable of Ian Black Real Estate and Nick DeVito of Kleiber DeVito Real Estate Group handled the transaction

• Dolphin Medical Group leased 2,275 square feet at The Shops at Silverleaf Shopping Center in Parrish from NAP Chin Road LLC for five years. Steve Horn of Ian Black Real handled the transaction.

COMMERCIAL REAL ESTATE LEE-COLLIER by Sean Roth | Real Estate Editor

Brookwood Financial company

buys Calusa Creek home lots

BUYER: Brookwood Calusa Creek LLC, Beverly, Mass.

SELLER: Beazer Homes Corp. and Beazer Commercial Holdings LLC

PROPERTY: lots in Calusa Creek at Duncan Road and U.S. 17 in Punta Gorda

PRICE: $2.94 million

PLANS, DESCRIPTION: Brookwood Value Partners LLC, an affiliate of Beverly, Mass.-based private equity firm Brookwood Financial Partners LP, has made its second residential acquisition. The firm purchased 106 single-family home sites and 118 townhome sites in the Calusa Creek community in Punta Gorda from Beazer Homes Corp. for $2.7 million and a separate 2.87-acre commercial site from Beazer Commercial Holdings LLC for $249,987.

"Due to the combination of highly-motivated sellers intent on reducing the inventory on their books and the lack of qualified buyers in the market, we believe that the pricing discounts on residential lots will result in strong returns for investors with capital and discipline," Thomas W. Brown, director of acquisitions for Brookwood, said in a press release.

"Our strategy does not rest on simply purchasing lots at a discount to replacement cost," Brown said. "You have to delve deeply into the local market and the type of product that will be the most in demand once housing comes back. We have spent the last year or so studying the residential sector in Southwest Florida."

In August, Brookwood purchased 214 residential lots - and contracted to purchase another 140 lots once they are finished - in The Grove in Lehigh Acres from D.R. Horton for $3.38 million.

Randy Thibaut of Land Solutions Inc. handled both sides of the Calusa Creek and The Groves transactions. Land Solutions represents Brookwood in the Southwest Florida market. Thibaut says that while there are no immediate third and fourth residential lot purchases planned, Brookwood is looking throughout Florida.

"The location of [Calusa Creek] doesn't have a lot of competition from finished lot inventory in the marketplace," Thibaut says. "As a community it's pretty insulated. They're probably looking at this over the next three to four years. It's probably going to be a year to a year and a half for us to get through this absorption before the [residential real estate market] really gets going."

Brookwood Financial Partners acquires real estate and invests in private companies. Since 1993, Brookwood has acquired, in addition to the residential lots, 60 properties totaling about 8.1 million square feet of office, retail and research & development space as well as 143 hotel rooms, 138 condominium units and 572 apartments units. In addition, Brookwood has invested in private companies in the wireless telecommunications, restaurant, software and outsourcing industries. Brookwood has raised more than $386 million in equity to acquire assets with a value of about $1.1 billion.

Etc...

• Compass Construction Inc. has been awarded the contract to construct the 3,700-square-foot addition to the Desoto County Library in Arcadia. Located at 125 North Hillsborough Ave. in Arcadia, the addition to the existing library will create a new children's wing.

• Owen-Ames-Kimball Co. has begun construction on a parking facility with retail for the City of Punta Gorda. The project, located at the corner of Herald Court and U.S. 41, will feature a four-level, 409-space parking garage with a portion of the ground floor available for retail leasing. The garage will be constructed of pre-cast concrete with an applied brick finish.

• McGarvey Development Company leased 9,693 square feet of office and warehouse space at 925 East Industrial Circle, Cape Coral in East Cape Commerce Center to Image First Gulf Coast Inc. Image First Gulf Coast is a uniform supplier. Matt Price of McGarvey Development Co. negotiated the transaction.

• Rees Holding LLC purchased a 3,250-square-foot commercial condominium at 8801 Business Park Drive, unit 601 from Alico Road Business Park LP for $536,250. Bjorn Rosinus of Pelican Team Realty Inc. was the listing agent, and Robyn and Alex Wright of Woodyard & Associates LLC represented the buyer.

• Trevor Elmquist, DO, PA dba Elmquist Eye Group leased 2,022 square feet of office space at 2378-2384 Surfside Blvd., Cape Coral from Dodge Cape Coral Inc. for three years and four months. Robyn and Alex Wright of Woodyard & Associates LLC represented the tenant

• Personalized Physician Care dba Healthcare Associates leased 2,450 square feet of office space at 201 8th St. S., Naples from Baker Center South.

• Gulfcoast International Products leased 2,400 square feet of industrial space at 6187 Shirley St., unit 1, Naples from WVG LLC. Christine Martin of Investment Properties Corp. handled the transaction.

• Fort Myers-based J.L. Wallace Inc. has started construction on a SunTrust Bank at The Forum Center located at 3330 Forum Blvd. in Fort Myers. The project will include a 3,773-square-foot branch bank building with three drive-thru teller lanes. Robert Reid Wedding Architects & Planners provided architectural design services.

• Bravo! Cucina Italiana, a casual full-service chain restaurant plans to open a 6,500-square-foot location at The Mercato in Naples, Florida. The restaurant is scheduled to open during the second half of 2009.

• Sheeley Architects Inc. will provide the architectural design for two new Quiznos in Georgia and Arkansas. In the past year, Sheeley Architects Inc. has designed Quiznos in Fort Myers, Kissimmee, Orlando, Venice, Tallahassee, and has also provided architectural designs for the Puerto Rico locations and is continuing to provide designs throughout the Southeast and the State of Florida.

• Richard Durling of Fort Myers will be inducted into the Florida Housing of Fame on Oct. 4 during Florida Home Builders Association's Annual Fall Conference at the J.W. Marriott Hotel in Orlando. As president of the Lee Building Industry Association and FHBA, Durling, president of Marvin Development Corp. made affordable housing a local and statewide priority while fighting to keep arbitrary regulations, excessive fees and government restrictions in check.

• The Tampa Police Athletic League awarded Tampa-based Wilderarchitecture Inc. a contract for the design and master planning of its Diana Street facilities. Phase one of the project includes the revamping of existing sports fields. Phase two includes the construction of a full-size gymnasium, and phase three includes a new classroom building.

• Meridian Construction and Development just completed construction on the new Drug Enforcement Administration building in Homestead. The building contained high-end security features including bulletproof walls and doors, blast-proof glass and an extensive security and access system. The building also features a specialized security system and holding cells. Meridian construction also installed a reflective white roof membrane that allows the entire building to run on less energy because it reflects heat away from the structure.

• L'Elegance Beauty Supply leased 3,000 square feet of retail space at 11566 Tamiami Trail E., Naples from Walpert Properties of St. Louis. Harry Looknanan Jr. of Sperry Van Ness handled the transaction.

• Gracie Bara Martial Arts Studio leased 2,450 square feet at 11536 Tamiami Trail E., Naples. Harry Looknanan Jr. of Sperry Van Ness and Kevin Fitzgerald of NAI Southwest Florida handled the transaction.

• W. Bradley Cooper Jr., CPA leased 2,056 square feet at 8250 College Parkway, Fort Myers from SF LeVan Asset Management. Harry Looknanan Jr. of Sperry Van Ness represented the tenant.

Corders Landscape Supply buys Production Circle property

BUYER: Corders Landscape Supply of Naples Inc. (principal: Paula Bonar), Bonita Springs

SELLER: Corders Landscape Supply Family Limited Partnership

PROPERTY: 24119 and 24157 Production Circle, Bonita Springs

PRICE: $1.7 million

LAW FIRM ON DEED: Siesky Pilon & Wood, Naples

PLANS, DESCRIPTION: Three years after buying the commercial landscaping supply business of Corders Landscape Supply in Bonita Springs, Paula Bonar purchased the real estate of the business on Production Circle for $1.7 million. The property features a 4,656-square-foot warehouse building that stretches across two parcels, for a total of 2.7 acres, according to data from the Lee County Property Appraiser.

"I didn't have enough money when I first bought the business to finance the real estate so I bought the business with an option and have been leasing the property from the original owner," Bonar says. "Nothing really has changed."

In addition, the property also houses a small trailer that Bonar leases out to a flower business.

Corders Landscape Supply employs seven people.

The new ownership, Corders Landscape Supply of Naples Inc., mortgaged the property to M&I Marshall & Ilsley Bank for $1.31 million.

S&O Inc. buys Ortiz,

Ballard retail center

BUYER: S&O Inc. (principals: Oqab and Sana Abuoqab and Mustafa Ayyad), Fort Myers

SELLER: La Mexicana III Inc.

PROPERTY: 1421-1471 Ortiz Ave., Fort Myers

PRICE: $4.32 million

LAW FIRM ON DEED: Randy L Merritt Esq. PA, Sarasota

PLANS, DESCRIPTION: S&O Inc., a Fort Myers company owned by Oqab and Sana Abuoqab and Mustafa Ayyad, purchased a Hispanic-focused retail strip center at the southeast corner Ortiz Avenue and Ballard Road for $4.32 million, equal to $208 a square foot for the building. The 20,808-square-foot center occupies a two-acre site and is dominated by the La Mexicana restaurant/grocery store and the Discoteca Mexico Lindo, a video tape, DVD and cassette rental and retail business.

The Review was unable to contact the new owners for comment prior to publication.

S&O Inc. mortgaged the property to First Bank for $3.3 million and to the former owner La Mexicana III Inc. for $700,000.

COMMERCIAL REAL ESTATE TAMPA BAY by Sean Roth | Real Estate Editor

Forge Capital, DeBartolo buy Fairway Oaks center

BUYER: CRP II-Fairway Oaks LLC (Peter Collins, Robert Moreyra, Edward Kobel and Geza Henni), Tampa

SELLER: Octans Corp.

PROPERTY: 13700 Little Road, Hudson

PRICE: $7.63 million

PREVIOUS PRICE: $6.1 million, December 1994

LAW FIRM ON DEED: Holland & Knight LLP, Orlando

PLANS, DESCRIPTION: The real estate fund CRP II, a joint venture of Forge Capital Partners and DeBartolo Development Inc., has made its second acquisition, this time in the Tampa region.

The fund purchased the 79,283-square-foot Fairway Oaks Shopping Center at the southeast corner of Little Road and Hudson Avenue from Case Pomeroy Properties for $7.63 million, equal to $96 a square foot.

Built in 1994, the center is anchored by a 42,323-square-foot Publix and also features Dollar General, Subway, Beef O'Brady's and Great Clips. Fairway Oaks is currently 86.5% occupied.

"We're extremely pleased to own the center," says Ted Anglyn, director of acquisitions for Forge Capital Partners. "We were able to purchase for well below replacement cost. It is an extremely well located, strong center. It was critical at this stage of the financial cycle that we were able to close for all cash. We're actively pursuing as many retail investments as we can in low to moderate income areas."

In January, the fund purchased its first property, the Sunshine Shopping Plaza in Lehigh Acres at the intersection of Homestead Road and Loop Road for $8.89 million. The Winn Dixie-anchored, 111,189-square-foot plaza houses Ace Hardware, Family Dollar, GNC, Cash Advance, Maria's Restaurant and China Star.

CRP II has raised more than $90 million in equity from investors including; TIAA-CREF, Regions Bank, Wachovia Bank and Synovus Financial.

The Cushman & Wakefield investment sales team of Karl Johnston and Patrick Berman represented Case Pomeroy Properties in the deal.

Patel family hoteliers

Buy, rebrand USA Inn

BUYER: VBK Santoshi LLC (principal: Vijay Patel), Tampa

SELLER: Jai Hanuman Inc.

PROPERTY: 2905 N. 50th St., Tampa

PRICE: $2.4 million

PREVIOUS PRICE: $1.35 million, October 2004

TITLE FIRM ON DEED: Fuentes & Kreischer Title Co., Tampa

PLANS, DESCRIPTION: The Patel family purchased the 59,114-square-foot, two-story former USA Inn motel in Tampa and a connected 12,000-square-foot restaurant for $2.4 million.

The new owners are converting the 100-unit motel into an Econo Lodge and Suites, according to Vijay Patel, the managing member of the purchase company.

"We're redoing the whole property," Patel says. "We're replacing the carpeting, changing the furniture and redoing the sliding doors ... adding tile flooring. The real estate value here is pretty high. It's near Bush Gardens, the Hard Rock Casino and Channelside."

Renovation and rebranding the motel is scheduled for completion towards the beginning of the year. The new owners are looking for a tenant to lease and operate the attached restaurant.

The Patel family owns several other motel properties in the Memphis area and Texas. The Patel family's purchase entity VBK Santoshi LLC mortgaged the property to Citizens Bank for $1.11 million.

The Sembler Co. appointed

Atlanta's top retail developer

The Atlanta Business Chronicle has recognized St. Petersburg-based The Sembler Co. as "Atlanta's Top Commercial Retail Developer." The designation was based on the square feet of new retail space developed. Sembler has been recognized with the title eight consecutive years in a row.

"From January 2007 through August 2008, Sembler developed 2,922,000 square feet in the greater Atlanta metropolitan area," Jeffrey S. Fuqua, president of Sembler, said in a press release, "with 2,632,000 square feet currently under construction and another 2,400,000 square feet planned."

Recent developments include TOWN / Brookhaven, The Prado, Canton Market Place, Cumming Town Center, Deerfield Place, Henry Market Place Phase III and Westside Crossing.

Etc...

• Internet retailer CPI Group Inc leased 28,000 square feet at 3719 Corporex Park Drive in Tampa from Cobalt Industrial REIT. Rian Smith and Mike Davis of Cushman & Wakefield negotiated the new lease on behalf of the landlord

• The Ross Realty Group has been awarded the assignment to represent the Cleveland Street Office Building at 1255 Cleveland St. in Clearwater for lease or sale. This five-story 49,038-square-foot building has been extensively renovated into a vanilla shell.

• Creative Contractors Inc. has been selected by the University of South Florida to build the new Science and Technology/General Academic Facility on the St. Petersburg campus. The 34,000-square-foot, $9-million structure will be the first building in the University of South Florida system designed and constructed to meet the LEED green building certification. It will be 20% more energy efficient and 30% more water efficient than a standard building of its size. RS&H of Tampa designed the two-story building, which includes classrooms and laboratories.

• Cushman & Wakefield has been chosen as the exclusive marketing and leasing agent for SunTrust Financial Centre, an office tower in Tampa jointly owned by Macquarie Office Trust and the Stiles Corp. The Tampa office team of Andy May, Barry Oaks, and Bill Reeves will handle leasing responsibilities. The SunTrust Financial Centre is currently home to major tenants such as SunTrust Bank, Hapag-Lloyd, 22Squared and Ernst & Young.

Hills & Associates

joins Atwell-Hicks

Tampa civil engineering firm Hills & Associates merged with the Tampa office of national land development consulting firm Atwell-Hicks.

"As two firms representing a significant portion of the regional real estate and development community, we felt the merger ensures continued success for our clients and employees," Atwell-Hicks President and CEO Brian Wenzel, said in a press release. "President Jeff Hills will leverage his knowledge and relationships to lead regional growth initiatives, while industry veteran Dave Bartz will focus on providing outstanding client consulting and operational leadership for the firm." 

As a result of the merger, the local offices of both firms will combine to operate as Atwell-Hicks. The existing Atwell-Hicks Tampa office has relocated to 4610 Eisenhower Blvd., the current office of Hills & Associates.

St. Luke's Cataract, Laser Institute

buys Dale Mabry bank branch

BUYER: River Site LLC (principal: Dr. James Gills, J. Pitzer Gills III, Bradley Houser, Lew Friedland and David Ford), Tarpon Springs

SELLER: Regions Bank successor by merger to Village Bank of Florida

PROPERTY: 13303 N. Dale Mabry Highway, Tampa

PRICE: $1.5 million

PREVIOUS PRICE: $350,000, December 1984

LAW FIRM ON DEED: Bradley Arant Rose & White LLP, Birmingham, Ala.

PLANS, DESCRIPTION: Tarpon Springs-based St. Luke's Cataract & Laser Institute purchased a 6,200-square-foot former Regions Bank branch building on Dale Mabry Highway for $1.5 million, equal to $242 per square foot. Another $2.5 million has been budgeted to gut the interior and rebuild it as an eye-care center.

"We wanted an office that would be more convenient to [the North Tampa] portion of our patient base," says Brad Houser, administrator. "The building was in quite good shape; it was built in 1986, but it was renovated recently. It's a terrific location with good signage. For us the keys were site access, parking and visibility. We're planning to adapt the drive-through as covered parking."

The new office is scheduled to open in April.

The practice plans to station a cataract surgeon in the office, but all surgeries will be done in the ambulatory surgery center in the Tarpon Springs locations.

The institute will use Creative Contractors Inc. in Clearwater as the general contractor for the project.

St. Luke operates three other Tampa Bay-area branch locations: 9400 Ninth St. N., St. Petersburg; 1180 Mariner Blvd., Spring Hill; and 7509 State Road 52, Suite 110, Bayonet Point.