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Tampa Bay Area
Business Observer Friday, Apr. 29, 2005 13 years ago

Real Estate Briefs (Tampa)

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Westin Hotel to be built at Tampa's Rocky PointFirst quarter sees industrial and office market as robust NCO Financial Systems building on N. Florida Avenue. sold for $5.3 millionYankees star Alex Rodriguez invests in area properties Wisconsin-based ABC Supply buys office propertyVenetian Garden in Clearwater soldNew owner for Swan Lake on N. Lakeside DriveOffice buildings on West Cypress St., Tampa, sold for $13.4 million
by: Adam Hughes Staff Writer

Real Estate Briefs (Tampa)

Westin Hotel to be built

at Tampa's Rocky Point

The Impact Group will soon raze the Days Inn Rocky Point to build Tampa's first Westin Hotel. The upscale 12-story, 200-room four-star waterfront hotel on the Courtney Campbell Parkway will cost $32 million, according to Dilip Kanji, an Impact Group president.

Groundbreaking of the 6.1-acre development, which will include Oasis Rocky Point Island condominiums, is planned for mid-June. The development, overlooking Old Tampa Bay, will open by December 2006.

"The Westin is central to the master plan and will be a remarkable sight on the Rocky Point skyline," Kanji said in a press statement released April 26. "We are delighted to be the company to bring these signature services to Tampa."

The Impact Group, a Tampa-based real estate development company, has completed more than 16 properties valued at more than $60 million statewide, including the Hilton Garden Inn Historic Ybor City in 1999. It is currently involved in real estate projects throughout Florida worth $110 million, the company said in a press statement.

First quarter sees industrial

and office market as robust

Based on strong leasing activity, high investment volume and new development in the Tampa Bay area industrial and office market for the first quarter of 2005, the real estate community and area businesses are upbeat about the rest of the year, according to CB Richard Ellis.

With the visible economic upswing evidenced by an improved job market, consumer spending and opportunity for growth, new businesses are keen on pursuing strategies to keep a competitive edge over rivals, according to the news release. New products and services, expanding operations and improving production with new technology are spawning the need for larger and more efficient distribution and manufacturing space.

High occupancy levels are pushing large users toward new speculative construction. Investors are looking for long-term income and short-term assets. Private investors remain the dominant buyer in the Tampa Bay area.

Summit Real Investment Trust recently sold University Park Business Center, a 101,198-square-foot three building flex park, to AHC Metro Park Tampa LLC for $99 per square-foot totaling over $10 million. The rate for average industrial investment sale is between $50 and $60 per square foot, a substantial increase from the previous rate of about $48 per square foot in 2004. The current availability rate is 8.6% and the lease at triple net rate is about $6.74 per square feet.

In the office segment, noteworthy investments include the sale of 400 North Ashley Plaza, a 31-story, 512,851-square-foot office building in downtown Tampa for $35.5 million or $69.22 per sq. ft and 134,583 square-foot Class B office building Parc Center in East Tampa for $10 million or $74.30 per square foot. The current vacancy rate in the office segment is 14.9% and the leasing rate is $18.6 per square foot.

In the first quarter, tenants were seen to strategically analyze their position in the market, weighing the pros and cons of downtown and suburban markets. As lease rates are increasing, fewer concessions are being offered and the pendulum is swinging toward a landlord's market.

NCO Financial Systems building on

N. Florida Avenue. sold for $5.3 million

Marco Island-based Orange Grove LLC bought the 38,000-square-foot NCO Financial Systems Building at 15316 N. Florida Ave. for $5.3 million from Newt Properties LLC.

CB Richard Ellis negotiated the transaction on behalf of the buyer.

Joseph Magdalener, one of the partners of the group, said the building is 98% occupied and "is in good shape," not requiring any capital improvements.

For the Orange Grove group, this is its first commercial real estate investment in the Tampa Bay area and Magdelener said the group is looking at similar properties for future investments. Karl Cupel and Otto Schmalz are the group's other partners.

The group obtained a mortgage of $6.85 million from General Electric Capital Assurance Co. using the name OG Shopping Center LLC for the transaction.

Yankees star Alex Rodriguez

invests in area properties

Alex Rodriguez, Major League baseball's highest paid player and a New York Yankee, and other investors have bought three apartment complexes: Lakeside Villas and Pine Tree Apartments in Tampa and Harbor Club Downs in Palm Harbor for a total of $44.6 million.

Rodriguez is the chief executive of the Coral Gables-based Newport Property Ventures and Constantine Scurtis is the president of the company.

The price per unit for Lakeside Villas (372 units), formerly owned by Daniel, Robert and William Curtis and located at 4902 N. MacDill Ave., was $42,500; for Pine Tree Apartments (110 units), formerly owned by Pine Tree Associates at 3706 W. Idlewild Ave., was $48,181 and for the Palm Harbor complex (272 units), formerly owned by Hattiesburg, Miss.-based Dawn Properties Inc. and located at 455 Alternate U.S. 19, was $86,397.

The Curtis family also sold a vacant residential property at 3223 W. Louisiana Ave., Tampa, for $1 million.

The investors used Newport Pinetree and Lakeside I for the transaction of the Tampa apartments and Newport Harbor Ltd. for the Palm Harbor apartment complex transaction. The buyers obtained a mortgage of $41.97 million from Column Financial Inc.

Wisconsin-based ABC

Supply buys office property

American Builders and Contractors (ABC) Supply Co. Inc., a full-service roofing and siding supplier based in Beloit, Wis., bought a 94,930-square-foot office building at 9810 W. Broadway Ave., Tampa, for $8.1 million or $84.27 per square foot.

Ken Hendricks is the CEO and his wife, Diane Hendricks, is the executive vice president of ABC Supply Co. Inc. The seller was Fort Lauderdale-based TLKKB Holding Co. Inc. of which Timothy P. O'Connor is the director.

Landscape contractors and farm equipment and supplies dealer John Deere Landscapes is one of the major tenants which has taken a lease at the building.

ABC Supply Co. used the name West MCNAB Broadway LLC for the transaction.

Venetian Garden

in Clearwater sold

Bart Baker of Malibu, Calif.-based Bart Baker Insurance Services and Dunedin's Fabian Calvo bought the12-unit Venetian Garden Apartments at 300 Venetian Drive, Clearwater, from Venetian Garden Apartments LLC for $1.44 million or $120,000 per unit. All the units are occupied, said Baker.

New owner for Swan Lake

on N. Lakeside Drive

Largo-based Britannia Management Co. bought the 244-unit Swan Lake Apartments at 3401 N. Lakeside Drive, Tampa, for $14.124 million or $57,885 per unit. The seller was Benjamin Mallah of Swan Lake Reverse LLC.

The apartment complex built in 1982 on 14 acres is 94% occupied, according to Michael Howland, and is a well kept property. However, there would be some improvements such as new roofs and some remodeling of apartment interiors, he added, and the group would manage the property.

The Britannia group, which bought the Coral Cove Apartments at Belcher Road, Clearwater, in November 2004, obtained a mortgage of $12 million from Lehman Brothers Bank FSB for the purchase of the Swan Lake Apartments.

Office buildings on West Cypress St.,

Tampa, sold for $13.4 million

Chicago-based Gem Investors Inc. sold two office buildings at 5660 and 5840 W. Cypress St., Tampa, totaling 197,692 square feet for $13.4 million or $67.78 per square foot.

The buyer was Wells Fargo Bank, the trustee for the registered holders of the Credit Suisse First Boston Mortgage Securities Corp. which is ARCap REIT Inc. in Irving, Texas. ARCap did not immediately return GCBR's calls.

Etc....

• Fort Lauderdale-based Live Oak Commercial LLC sold vacant commercial land at 2043 Bruce B. Downs Blvd., Tampa, to Gulf Coast Shared Services Inc. for $1.2 million.

• Santa Barbara, Calif.-based George L. Eastman Co. LLC bought a drugstore at 11670 Countryway Blvd. in unincorporated Hillsborough from Grant and Kathleen Wilkinson of Wilkinson Family LP for $5.03 million.

• Temple Terrace awarded the 23rd annual Community Design Awards on April 21. The winner in the Outstanding Contribution to the Community in the Master Planning and Urban Design category was awarded to the Temple Terrace Downtown Redevelopment Plan. The city, its citizens, the city council, community planners and Torti Gallas & Partners received the award for Excellence in Public Participation category.

• Roman Cyzszczon and Krystyna Czyszczon sold single-family residential property at 11000 Eight St. E. in St. Petersburg to Isle of Palm Development LLC for $1.33 million.

• Erik Ball and Rasa R. Ball sold a hotel property at 270 108th Ave., Treasure Island, to ETB Development Co. LLC, an affiliate of McGrath Development Co. of St. Pete Beach, for $1.92 million. ETB Development Co. obtained a $9.25 million mortgage from Branch Banking & Trust Co.

• Oregon-based real estate investment bank Pacific Security Capital has opened a Tampa office at 3111 W. Martin Luther King Jr. Blvd. with Armando Yanez named as its director. Yanez, a University of South Florida graduate, has over 20 years of experience in Florida's real estate market, according to a press statement.

• Trammell Crow Co. has been awarded the assignment to oversee the leasing of the Class A 400 North Ashley Plaza office building. Miami-based American Capital Partners bought the building in February for $35.5 million.

• Charlie Alloway has joined the retail services group at CB Richard Ellis. Alloway formerly worked for McDonald's Corp. where he was in the Florida real estate department for 18 years. At CBRE he works with David Conn, who specializes in tenant representation.

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