A fund of PM Realty Group and The Roseview Group purchased the nine-story Westshore Center with plans to improve it.
TAMPA — Roseview-PMRG Fund I LLC, a $250 million fund formed by Houston's PM Realty Group and Boston-based The Roseview Group, purchased Westshore Center in Tampa for $40 million.
The price equated to $185 per square foot.
The nine-story, 216,410-square-foot office building is located at 1715 N. Westshore Blvd. It was 88% occupied at the time of the sale. The 2.66-acre site also includes a five-story parking garage.
Both of the buildings were constructed in 1984.
An affiliate of Boston-based real estate firm TA Realty has owned the property since 1998.
Roseview-PMRG Fund I LLC announced plans to make a number of capital improvements to the office building to increase occupancy and bring it up to market rents. Some of the improvements include renovating the common corridors and bathrooms; upgrading the building systems, such as the elevator and chillers; and exterior renovations.
This is the first acquisition in Florida for the fund, which was created to buy office properties nationwide at below replacement cost and reposition them. Roseview-PMRG Fund I LLC targets assets it can acquire and upgrade for $15 million to $65 million. Its ultimate goal is to generate mid-teen returns. The fund owns properties in Atlanta, Houston, Pennsylvania and Massachusetts.
“The influx of capital and development of both residential and retail in the Westshore district was a huge factor for us in choosing to acquire this trophy asset,” Steve Corridan, partner of The Roseview Group, says in a press release.
Mike Davis, Rick Brugge and Michael Lerner of Cushman & Wakefield handled the transaction. Brugge says the deal was largely driven by the healthy office dynamics of Westshore, which is seeing heavy absorption, falling vacancy rates and rising rents.
The buyer mortgaged the property to Compass Bank for $33.1 million.