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SARASOTA — Sarasota County has received offers — each topping $20 million — from six potential buyers interested in purchasing the county’s administration building and some adjacent properties.
The six developers bidding on the properties submitted offers, which were released after a public records request, Aug. 20. County officials will now review the bids.
Of the six offers, the highest, $23.5 million, came from The Seng Co. and Weaver Capital Partners from Georgia. There were two $20 million offers and a $20.1 million offer. The fifth was for $22.5 million from Tricera Capital in Miami and sixth was from Renaissance Centro in Virginia for $22.1 million.
But as is always the case in deals of this size, the devil is in the details.
While the $23.5 million offer from Seng and Weaver was the highest, it includes a leaseback option — as they all do — allowing the county to lease the property for four years at $13 per square foot — $2.05 million per year — with a 3% rent increase beginning in year two.
One of the $20 million offers, from east Manatee County-based Benderson Development, charges no rent but asks the county to relocate its administrative offices to a property near The Mall at University Town Center. Benderson, one of the largest landlords in the country, was a co-developer and builder of the north Sarasota County mall, which opened in 2014.
The bids were submitted on 1660 Ringling Blvd. and adjacent lots after the county decided it was time to sell the administration building, which it moved into in 1995. The adjacent properties are at 1646 and 1703 Morrill St.
According to an email from a county spokeswoman, county commissioners will discuss the proposal Sept. 8. "The board may either terminate the solicitation process or authorize the county administrator to begin negotiating an agreement with the respondent(s) the board determines to best meet the evaluation criteria," she writes. "A best and final offer presentation from proposers is tentatively scheduled for Sept. 28."
County officials made the decision to open the bidding process after learning the building needed at least $32 million in upgrades in order to maintain it through 2031. The 35-year-old building, which was a GTE operations center before the county moved in, also does not meet current codes for its ability to withstand strong hurricanes.
The county has focused on shifting its administrative offices to county-owned land on Cattlemen Road, in northern Sarasota County which is near other county offices. During a June presentation, county officials indicated the site at 1301 Cattlemen Road could accommodate a four-story, 120,000-square-foot building and parking for more than 300 vehicles — with land for future expansion.
The initial phases would cost an estimated $72 million, an amount that would likely require a referendum because it exceeds the spending cap contained in the county’s charter.
If a vote does approve the spending and a sale of the Ringling Boulevard property does occur, a new county administrative building could be ready for occupancy in summer 2025, officials say. At 120,000 square feet, the new building would be one of the largest new office structures developed in Sarasota County in the past decade.
The offers:
Benderson Development, University Park
Price: $20 million
Leaseback: Zero with a “reciprocal invitation to relocate” to property near The Mall at University Town Center; one-year term with three one-year renewal options.
Upfront money and time frame: $200,000 deposit; 90 day due diligence, 120 day site inspection.
Closing: Upon execution of lease of University Town Center Space, “anticipated within six months of purchase and sales contract execution.”
Gateway Mega Investment, Miami Beach
Price: $20 million
Leaseback: Four years at $15 per square foot, or $2.3 million annually, based on 158,149 square feet; 3% increase each year.
Upfront money and time frame: $200,000 deposit; 60 day due diligence.
Closing: 45 days after due diligence expires.
Renaissance Centro, McLean, Virginia
Price: $22.1 million
Leaseback: Four years at $13.50 per square foot, or $2.13 million annually, based on 158,149 square feet; 2% increase each year.
Upfront money and time frame: $1.5 million deposit — on execution of contract $750,000, $750,000 five days after due diligence; 45 day due diligence.
Closing: 45 days after due diligence expires.
The Seng Co. and Weaver Capital Partners, Decatur, Ga.
Price: $23.5 million
Leaseback: Four years at $13 per square foot, or $2.05 million annually, based on 158,149 square feet; 3% increase each year.
Upfront money and time frame: $250,000 deposit; 60 day inspection.
Closing: 30 days after inspection period.
Tricera Capital, Miami
Price: $22.5 million
Leaseback: Four years at $1.8 million per year “plus the property’s full operating expenses, real estate taxes and insurance; 3% increase each year.
Upfront money and time frame: $500,000 deposit, 45 day due diligence.
Closing: 45 days after due diligence expires.
Twenty Lakes Holdings, Stamford, Connecticut
Price: $20.1 million.
Leaseback: Four years at $1.6 million per year; 3% annual increase.
Upfront money and time frame: $1 million— 2.5% of sales price upon contract execution and 2.5% after due diligence; 45 day due diligence.
Closing: 15 days after due diligence expires.
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