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Commercial Real Estate
Business Observer Friday, May 10, 2019 2 months ago

Dilweg acquires Concourse Center, four-building Westshore office complex

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$52 million purchase brings company's Florida holdings to 1.2 million square feet
by: Kevin McQuaid Commercial Real Estate Editor

North Carolina-based The Dilweg Cos. has acquired a four-building office complex in the Westshore area of Tampa for $52 million, bringing its Gulf Coast holdings to nearly 1.2 million square feet.

The purchase of Concourse Center represents the latest in a wave of acquisitions by the firm since it expanded to the Sunshine State in 2017. In addition to Westshore, Dilweg also owns office buildings in downtown Sarasota, Lakewood Ranch, Northeast and Northwest Tampa and on Rocky Point.

In all, the company has invested more than $200 million to buy 11 office assets.

Dilweg bought the series of three-story buildings, at 3501-3507 E. Frontage Road, from CRA Advisors in late April.

The 295,000-square-foot project was 90% occupied at the time of the sale, to BayCare Medical Group, the State of Florida’s Attorney General’s Office, Enterprise and Pegasus TSI, among others.

TCM Bank is slated to move into roughly 22,000 square feet in the complex by the end of the year. BayCare is the center’s largest tenant, with about 75,000 square feet.

As it has elsewhere in Florida, Dilweg intends to invest significant capital to upgrade Concourse Center, which was constructed between 1982 and 1984.

Elizabeth Madzula, Dilweg’s Florida managing director, says the company plans to spend about $4 million to improve the buildings’ common areas, operating systems and amenity package.

“We view this as a core-plus acquisition,” Madzula says. “We believe in the fundamentals in Tampa and this presented a good opportunity to buy a quality project below replacement costs.”

Dilweg’s purchase also marks the latest activity on East Frontage Road in Westshore.

Last month, Tampa-based Zons Development unveiled plans for a 13-story, mixed-use development that will contain 100,000 square feet of office space and a 138-room Cambria Hotel, together with retail space and parking on a once-acre site.

Skyview Plaza, at 3413 E. Frontage Road, will commence construction early next year. The hotel will be only the third in Florida to carry the Cambria flag, after properties in Dania Beach and Miami.

Zons anticipates completing the $90 million project in the first half of of 2021, and possibly developing another 100,000 square feet of office space after the end of that year.

 

 

 

 

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