Commercial Real Estate Briefs

By Business Observer Staff
| 6:00 p.m. June 29, 2007
| 2 Free Articles Remaining!

Charlotte–Lee–Collier

by Sean Roth | Real Estate Editor

LEE/COLLIER

Fort Myers' P.F. Holdings

buys Horizon Plaza

BUYER: P.F. Holdings Florida LLC (principal: Scott True), Fort Myers

SELLER: L.I. Smith and Fred Williams

PROPERTY: 16050 S. Tamiami Trail, Fort Myers

PRICE: $2 million

PREVIOUS PRICE: $1.125 million, September 1999

TITLE FIRM ON DEED: Title Junction LLC, Fort Myers

PLANS, DESCRIPTION: Fort Myers-based real estate development and management firm P.F. Holdings Florida LLC purchased the 10,500-square-foot Horizon Plaza shopping center for $2 million. The small shopping center was 100% leased at the time of the sale, according to Scott M. True of P.F. Holdings Florida.

The investment group has previously purchased vacant land, but Horizon Plaza is the group's first income producing property.

"We've been down here for two years," True says having relocated from Boston, "but it's been tough finding anything with a decent cap rate with cash flow. We've been looking at pretty much anything: apartments, residential and commercial and land. It was hard to find real value."

The purchase price equated to about a 7.5% capitalization rate. True says the new ownership plans to do some minor cosmetic improvements in the near term including power washing, painting, roofing improvements and landscaping work.

The real estate research firm CoStar Group reports that tenants in the center include: Armon Inc., Studio B Hair Salon Inc., Sunburst Shutters, We the People and chiropractor Dr. J. Todd Williams.

Paradise Development buys

ArborGate land for Walgreens

BUYER: Win-Treeline Ltd. (principals; Michael Connor, George Kidman, Robert Forlizzo, Michael Wagner, Spiro Comitos and M. Bridget Blake), Safety Harbor

SELLER: 100 Treeline East LLC

PROPERTY: 10670 Colonial Blvd., Fort Myers

PRICE: $2.69 million

PREVIOUS PRICE: $6.5 million, January 2006 (included additional land)

LAW FIRM ON DEED: Henderson Franklin Starnes & Holt PA, Fort Myers

PLANS, DESCRIPTION: Safety Harbor-based Paradise Development Group purchased 16 acres at the intersection of Colonial Boulevard and Treeline Avenue for $2.69 million. The developer plans to build a Walgreens drug store on the site, according to Owen Ewing, a vice president with Paradise Development Group.

The site, which is cut off prior to the tip of the intersection, is located in HIW Development's planned ArborGate Commercial development project. AborGate is located half a miles east of Interstate 75 and is part of WCI Communities' 18,000-unit master-planned community Gateway.

Paradise Development Group focuses on developing grocery anchored shopping centers, drug stores and other retail projects, including big box centers.

Win-Treeline mortgaged the property to Regions Bank for $5.57 million.

Debbie's Drapery Design Studio moves to Trace Center Way

BUYER: Locations International Inc. (principal: Debbie Kershaw), Naples

SELLER: Richard and Christine Paganes

PROPERTY: 1661 Trade Center Way, Naples

PRICE: $1.2 million

PREVIOUS PRICE: $120,000, April 1994

LAW FIRM ON DEED: Bradley D. Bryant Attorney at Law PL, Naples

PLANS, DESCRIPTION: Locations International Inc., a limited liability group owned by Debbie Kershaw, who also owns Debbie's Drapery Design Studio of Naples, purchased a 6,200-square-foot showroom building in the Trade Center of Naples for $1.2 million. Kershaw plans to move her drapery and design firm to the new property from a smaller leased location at 1257 Airport St., Naples in August.

"What was most attractive about the location was the Trade Center address, which most people know in Naples," says George Scharring-Hausen, general manager of Debbie's Drapery Design Studio and Kershaw's husband. "The new location also puts us close to a lot of other businesses related to home design and home construction ... other interior designers, granite people and other related businesses. Most of our buyers also come from north Naples near the new office."

Debbie's Drapery Design Studio will occupy 3,000 to 4,000 square feet, and existing tenants will occupy the remainder. Besides doubling the business' square footage, the new location has taller 18-foot high ceilings allowing Debbie's Drapery Design Studio to work with larger draperies.

Locations International Inc. mortgaged the property to Community Bank of Naples NA for $1.02 million.

Etc...

• Gulf Coast Land & Investment purchased 0.74 acres of vacant commercial land at 219 Del Prado Blvd. S., lot 1410, Cape Coral from Scheffler Hurley Investments LLC for $650,000. Jennifer Horn of Gates D'Alessandro & Woodyard LLC negotiated the transaction

• The Fort Myers division of Tri-City Electrical Contractors Inc. has started on $4.8-million worth of work for the new 33-story High Point Place Condominium and City Homes, Phase II, in Fort Myers under its contract with Kraft Construction. The 105-unit high-rise is scheduled for completion in September. Tri-City also served as electrical contractor on phase I, which consisted of a 33-story, 105-unit tower and the initial three-story, six-unit City Homes building.

• Compass Placida, LLC purchased 8.2 acres at 6691 Placida Road in Cape Haze from Ginger Land Acquisitions for $3 million. Jim Tamblyn, CCIM of Colliers Arnold and Ron Struthers, CCIM of RE/MAX Properties represented the seller. Don Lutz of Park Place Realty represented the buyer.

• National Construction Rentals leased 22,000 square feet of storage at Parkway Plaza at 10261 Metro Parkway, Fort Myers from Kuehner Properties LLC. Jim Garinger, CCIM and Andrew Falde of Colliers Arnold negotiated the transaction.

• Sal's Pizza leased 2,813 square feet in Bay Crossings at 26251 S. Tamiami Trail, Bonita Springs from The Park Apartments LLC. The Retail Team of Karen Johnson-Crowther, Charlene Greenblatt, Salli Jones-Doyon, and Lindsey Schmoyer of Colliers Arnold negotiated the transaction.

• Raphael Rachman Studios leased 2,000 square feet of flex space in Parkway Plaza at 10231 Metro Parkway, Fort Myers from Kuehner Properties LLC. Jim Garinger and Andrew Falde of Colliers Arnold negotiated the transaction.

• Catherine Soak purchased vacant land at1413 and 1419 S.W. Santa Barbara Place and 1420 Santa Barbara Blvd., Cape Coral from Jean Cohen Trustee for $565,000. Hal Arkin of Gates D'Alessandro & Woodyard LLC and Costal Realty Swell Inc. handled the transaction.

• Fort Myers-based Stevens Construction Inc. completed construction of the 10,531-square-foot Center for Surgical Excellence, an ambulatory surgery center in Venice. The center houses the office of Dr. Jaffer Kahn and Dr. Tarique Kahn, two operating rooms and seven pre-op/recovery beds.

• Morande Enterprises sold 10 acres, including a 42,000-square-foot automobile dealership, to Collier County for $8.35 million as part of Charpter 11 Bankruptcy Plan. Lisa M. Schiller, Partner with Rice Pugatch Robinson and Schiller, P.A. negotiated the sale. Proceeds from the sale are being used to pay Morande Enterprises' creditors and are expected to allow the company to reorganize and continue operating.

Morande Enterprises, which operated as a Suzuki and Mazda dealership on the 10-acre property, filed a bankruptcy petition for Chapter 11 in mid-January of 2005 at Schiller's recommendation.

• Gora McGahey Associates in Architecture completed the design for a new prototype branch bank for Orion Bank, to be located in the Coconut Crossing Shopping Center in Estero. A neo-Mediterranean design, the new building will encompass about 3,500 square feet and include three drive-through lanes.

• Real state agent Tim Colen has opened One Source Commercial Realty, Southwest Florida a new full-service commercial real estate firm, at 8771 College Parkway in Fort Myers.

• Fort Myers-based J.L. Wallace Inc. completed construction of the Church of the Cross, a two-story, 14,317-square-foot building at 13500 Freshman Lane in Fort Myers. The project includes construction of a multi-purpose, pre-engineered metal building with site work.

• Nu-Cape Construction Co., a division of the Owen-Ames-Kimball Co., has started managing construction of a 17,000-square-foot build-out and addition to Physician's Primary Care's Viscaya Boulevard office in Cape Coral. The expanded practice location will house 32 exam rooms, central nurses' stations, laboratories with adjacent waiting areas, as well as offices for support staff and practice administration.

Physicians Primary Care is the largest independently owned, multi-specialty practice in Southwest Florida. This is the second in a series of building projects O-A-K has managed for the practice. Earlier this year, NuCape completed a new office building near HealthPark Medical Center for the practice's obstetrics and gynecology group.

• Brooks & Freund has reached the mid-point on construction of the Forum Centre Shops at 1 Forum Blvd., at the main entrance to The Forum at Fort Myers, a 706-acre mixed-use development. The project includes construction of a 21,432-square-foot strip center with 16 tenant spaces. Currently, Brooks & Freund is completing the site work. Boca Architect Corp. provided architectural design services. Craig Streetzel of Brooks & Freund is project manager. Construction is expected to be complete in August.

• Centertown LLC purchased five acres at 13350 Apaloosa Lane, Fort Myers from Seahorse Communities and KAI Enterprises for $2.24 million. Todd Holman and Steve Wood of Gates D'Alessandro & Woodyard LLC negotiated the transaction.

• Al Mueller purchased a 3,125-square-foot commercial lot at 3103 Santa Barbara Blvd. N., Cape Coral from Raymond Schneider for $11,000. Andrea Burson and Cooper Huff of Gates D'Alessandro & Woodyard LLC negotiated the transaction.

• with pic

Fort Myers-based Stevens Construction completed construction of the Lee County Electric Cooperative distribution and service center. Located on Global Drive in Immokalee, the 8,138-square-foot facility houses a 5,912-square-foot warehouse and distribution center and 2,226 square feet of office space. The center serves as the main service and distribution hub for LCEC's east Collier County territory. Alliance Design Group designed the masonry and pre-engineered metal facility.

SARASOTA/MANATEE

Manatee County School Board

buys Superior Electronics buildings

BUYER: The School Board of Manatee County, Bradenton

SELLER: Superior Electronics Partnership

PROPERTY: 2501 E. 63rd Ave., Bradenton

PRICE: $15.75 million

PREVIOUS PRICE: $2.2 million, July 1995

LAW FIRM ON DEED: Blalock Walters Held & Johnson PA, Bradenton

PLANS, DESCRIPTION: The Manatee County School Board purchased a 115,000-square-foot office and an 18,575-square-foot office/warehouse building from Superior Electronics Partnership for $15.75 million. The property also included five acres for future expansion.

Ian Black Real Estate was the listing agent. Ron Allen of NDC Construction Co. and former state senate president/developer John McKay assigned a contract they held on the property over to the school board.

The school board plans to use the buildings to consolidate a number of its operations including professional development, curriculum, instructional technology, purchasing, print shop, instructional materials center, METV, TV production, construction services, psychologists/social workers and exceptional student education.

The purchase price equates to $117.91 a square foot.

Sarasota investors

buy Riverside Oaks Park

BUYER: Lawndale Mobile Plaza Inc. (principals: Michael and Gina Cook), Sarasota

SELLER: Riverside Oaks LLP FKA Riverside Oaks

PROPERTY: 27205 Jones Loop Road, Punta Gorda

PRICE: $2.98 million

PREVIOUS PRICE: $225,000, November 1988

LAW FIRM ON DEED: Icard Merrill Cullis Timm Furen & Ginsburg PA, Sarasota

PLANS, DESCRIPTION: Sarasotans Michael and Gina Cook purchased the 100-lot Mobile Home Park in Punta Gorda for $3 million.

"There are no changes planned at this time," says Ruth Henderson, on-site manager for Riverside Oaks speaking on behalf of the Cooks. "They've been in the manufactured home business for 27 years. They built a number of the communities from the ground up so they know how they work. They've owned communities in Orlando and just sold one they owned in Toledo, Ohio."

Lawndale Mobile Plaza mortgaged the property to the former ownership Riverside Oaks LLP for $125,000 and to Sky Bank for future advances up to $2.494 million.

Massachusetts investor buys Commerce Court building

BUYER: 7560 Commerce Court LLC, Marshfield, Mass.

SELLER: Herrig Enterprises LLC

PROPERTY: 7560 Commerce Court, Sarasota

PRICE: $1.89 million

PREVIOUS PRICE: $1,000,000, June 2001

LAW FIRM ON DEED: Williams Parker Harrison Dietz & Getzen, Sarasota

PLANS, DESCRIPTION: Marshfield, Mass., real estate investor William Fitzgerald III purchased a 12,384-square-foot office building from Herrig Enterprises for $1.89 million. The office building is the former home of Steve Herrig's Progressive Employee Services, which is now located at 6407 Parkland Drive in Sarasota. The building is currently leased to the travel-incentive company Grand Incentives.

Michelle Fuller and Jag Grewal of Coldwell Banker Commercial NRT represented the seller, and Robert T. Anderson of the Anderson Group of Sarasota LLC with Re/Max Premier Services represented Fitzgerald.

"Mr. Fitzgerald is a friend and business associate of mine," Anderson says. "He's transitioning a number of his business interests from Massachusetts to Sarasota County. He mainly owned warehouse or distribution facilities, but down here he is looking for income producing office- or warehouse-type property."

The purchase price equates to a 7.5% capitalization rate.

7560 Commerce Court LLC mortgaged the property to People's Community Bank of the West Coast for $1.42 million.

Etc...

• Core Construction Services Southeast Inc. recently started a $10 million project at the former Northshore Retirement Center on Beach Dr. Northeast in St. Petersburg, converting the facility into a condominium. The conversion project for Heathrow-based Certus Development LLC is expected to take 16 months. Smith & Associates of Tampa has been named sales agents for the condominiums.

• Linda Frank and Julio Melendez purchased a 12,372-square-foot industrial/light warehouse building at 1910 18th St. and 1741 Gillespie, Sarasota from Larry Brown for $267,000. Marcia Cuttler PA of American Property Group of Sarasota Inc. represented the seller, and Julio Melendez of Coldwell Banker represented the buyer.

• General contractor Jeffrey E. Charlotte has opened J. E. Charlotte Construction Corp., a full-service construction firm specializing in general contracting and construction management at 2750 Stickney Point Road, unit 106, in Sarasota. JEC will focus on commercial construction, including general office, medical, retail and banking. Prior to opening his own firm, Charlotte served as executive vice president and co-owner of Hennessy Construction Services.

• Sarasota-based home builder John Cannon Homes Inc. plans to build all of its current and future new homes to meet or exceed the green building guidelines set by the Florida Green Building Coalition Inc.

• Sarasota County received a check for $5.17 million as part of a grant from the Florida Communities Trust. The grant was awarded to offset the $16 million cost of the Blackburn Point Park Addition in Osprey. In January 2006, the county purchased 11 acres of waterfront property to increase the public's access to the water. The county is considering developing a public boat ramp in the park.

• CST Environmental, a California-based demolition and remediation firm, has opened its southwest regional office in Downtown Bradenton's Riverwalk Professional Park. The regional office most recently demolished the former venue of the Charlotte Hornets, the 19-year-old 24,000-seat Coliseum in Charlotte, N.C.

• Jason's Deli leased 4,800 square feet of retail space at The Shoppes at Port Charlotte at 1100 El Jobean Road in Port Charlotte from Falls Creek Development LLC for 10 years. Debbie Anglin and Lori Conable of Ian Black Real Estate and Brian Burn of Sevell Realty Partners handled the transaction.

• Lincare Inc. leased 4,500 square feet at 740 Commerce Drive in Venice from Pinebrook Park LLC for three years. Lori Conable of Ian Black Real Estate and Paul Schouten of Michael Saunders handled the transaction.

• Talk Too Me sub-leased 6,375 square feet of office space at the Sarasota City Center at 1605 Main Street, Suite 709 in Sarasota from Compressor Controls Corporation for a year. Steve Horn and Debbie Anglin of Ian Black Real Estate handled the transaction.

TAMPA BAY

Newland Communities planning

FishHawk neighbor Lake Hutto

BUYER: NNP IV-Lake Hutto LLC (Newland National Partner IV LLC), San Diego, Calif.

SELLER: Pulte Home Corp.

PROPERTY: Lithia Pinecrest and Lithia Spri Road and 15406 Boyette Road, Brandon

PRICE: $50 million

PREVIOUS PRICE: $7.8 million and $184,200, March 2005

LAW FIRM ON DEED: Hill Ward & Henderson PA, Tampa

PLANS, DESCRIPTION: Residential developer Newland Communities purchased 1,129 acres adjacent to it's FishHawk Ranch community in Pasco County for $50 million. The Lake Hutto community, previously owned by Pulte Homes, has been approved for about 3,200 residential units and 360,000 square feet of retail and office space.

Far from a discount price, the $50-million purchase also commits Newland Communities to about $75 million in additional financial and land contributions, including $72 million for road improvements, $3 million for an addition to Newsome High School, a 32-acre land donation for schools and parks and a 20 acre donation for an expansion of the FishHawk Sports Complex. Including all mandatory financial spending along with the contracted purchase price, but excluding the value of the land donations, the purchase brakes down to about $110,000 per undeveloped acre.

The property is being called FishHawk West, but Newland Communities officials expect to rename the community later this fall.

The developer is currently putting together a plan for the property, but at this point it looks likely that it will feature more attached residential than FishHawk Ranch and a commercial town center. The new community is currently scheduled to open in mid-2009, according to Vaiki O'Grady, vice president of marketing for Newland Communities

Similarly in Tampa Bay, Newland Communities is also in the planning stages to develop the Waterset community in the Southshore area and Bexley in central Pasco County.

BPG Investment Partnership

buys, renames telecom building

BUYER: Tampa Bay Office Investors LLC (BPG Investment Partnership VII LP), Yardley, Pa.

SELLER: 12470 Telecom Drive LLC

PROPERTY: 12470 Telecom Drive, Temple Terrace

PRICE: $24 million

BUYER: 12470 Telecom Drive LLC

SELLER: Verizon Data Service Inc.

PRICE: $8 million

PREVIOUS PRICE: $2.81 million, February 1988

PLANS, DESCRIPTION: A private equity fund managed by Yardley, Pa.-based BPG Properties Ltd., BPG Investment Partnership VII LP, purchased a 181,154-square-foot office building in Tampa's Telecom Park from an affiliate of Verizon-building consolidator GHP Office Realty for $24 million. The property has been renamed Riverside at Telecom Park.

"The acquisition of 12470 Telecom Drive provided us with the opportunity to acquire an exceptional office building within one of the largest and fastest growing office markets in Florida," John Brogan, vice president of BPG said in a press release announcing the deal.

Previously owned by Verizon, the telecom giant now leases 17,000 square feet. The remainder of the space in the five-story building is vacant. The building, which houses floor plates ranging from 35,000 to 37,000 square feet, was designed with raised floors, an uninterruptible-power system and dual electric power feeds from separate substations.

BPG has started renovating one of the floors speculatively; construction is scheduled for completion toward the end of August. Space in the building is being listed for $24 a square foot.

Dale Peterson, Jeff Dunne and Jeff Oram of CB Richard Ellis represented the seller. Mercedes Angell and Melissa Ackermann of Cushman & Wakefield's Tampa office have been named the exclusive leasing agents for the property.

BPG Investment Partnership VII holds equity commitments of $550 million.

The private equity real estate fund manager BPG Properties Ltd handles a collective portfolio of more than 20 million square feet of office, retail, student housing and industrial properties and more than 25,000 apartment units throughout the United States.

Ocala investors buy buildings

plan condo conversion

BUYER: Advanced Office Condos LLC (principals: Richard Barner Jr. and Frank Mooney), Ocala

SELLER: Jorge R. Maggiora and Nilce Bartolucci

PROPERTY: 711 and 719 N. Florida Ave., Tampa

PRICE: $4 million

PREVIOUS PRICE: $365,000, August 1993 and $275,000, January 1981

LAW FIRM ON DEED: Gary A. Bodzin, Esq., Aventura

PLANS, DESCRIPTION: Advanced Office Condos LLC, an investment group composed of Richard Barner Jr., Frank Mooney, Mike Richards and Bobbie Celler, purchased two office buildings on North Florida Avenue for $4 million to add to its inventory of office condominiums. The larger building at 711 is 30,182 square feet and the group has announced plans to condominiumize it into 20 units. The smaller property, 719, is a two-story, 15,000-square-foot building with street level retail space.

"We're basically stripping both of them down and bringing them up to class-A office standards," Celler says. "It's going to cost a couple million."

Units in both of the buildings are being listed for $250 a square foot while they are being renovated and $275 post renovations.

The North Tampa avenue buildings are following the same business plan that the new owners applied at the nearby 620 E. Twigg St. office building, where the group is selling 20 office condominiums and three retail units.

"What's driving this is the level of development in downtown that is pushing office users right towards our buildings," Celler says. "We're the next block [in line for development interest]. There are sections of the city near us - that are less developed then ours - that already seeing new redevelopment."

Advanced Office Condos mortgaged the property to the former owners Jorge R. Maggiora and Nilce Bartolucci for $3.2 million.

Etc...

• Bright Horizons Family Solutions leased 1.25 acres of land at Cypress Preserve in New Tampa from Buckley Properties. Tom Chamblee and Ben McLeish of Colliers Arnold represented the tenant. Jim Dunphy of Buckley Properties represented the landlord.

• General Dynamics Ordinance & Tactical Systems, Inc. leased 12,281 square feet of flex space in Meridian Gateway Center at 3340 Scherer Drive in St. Petersburg from Meridian Cos. John Dunphy, CCIM, SIOR of Colliers Arnold represented the landlord, and Ann Barrett represented the tenant.

• Calkain Institutional Advisors, Calkain Cos.' institutional brokerage division, handled the marketing and sale of a 160,000-square-foot industrial portfolio of six buildings in Tallahassee. Jonathan Hipp, President of Calkain Cos., along with Joel Kahn, managing director, and Brett Pagani, Associate, represented the seller, Capital Circle Commerce Park LLC, in the transaction.

• Fountain Square Lakeland LLC purchased the 148-unit Fountain Square Apartments in Lakeland from Fountain Square Residences LC for $9,650,000 or $65,202 per unit. Darron Kattan and Andrew Wright of Marcus & Millichap in Tampa handled the transaction.