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Real Estate Briefs (Tampa)

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  • | 6:00 p.m. June 24, 2005
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Real Estate Briefs (Tampa)

LakeView Apartments Sell for $26 Million

Only a small sign on the public right of way explains what the new owners had planned for the 240-rental apartments at the LakeView at Calusa Trace in north-central Hillsborough County. That changed the week of June 20 when Lakeview Development at Calusa Trace LLC began a series of radio ads to promote the availability of for-sale condominiums at the 41-acre property just northwest of the Veterans Expressway and North Dale Mabry Highway.

Just a few weeks ago, the Odessa-based partnership acquired the property for $26 million, or about $108,333 a unit, from a Chicago-based investment group.

The partnership is experienced in the local condo conversion market. It includes Dunedin developer Jeff Ricketts with Kampsen & Associates Inc., an Odessa-based real estate development consulting firm. Mary Kampsen is listed in state records as that firm's president.

Prior to the LakeView deal, Ricketts had completed a 26-unit waterfront condo conversion in Dunedin. Then he started the conversion of the 88-unit Victoria Palms apartment community at 700 Lyndhurst St., Dunedin.

At the LakeView property, the partnership plans to sell units from $130,000 to slightly more than $200,000. That range targets the mostly working-class tenants who currently occupy the rental units.

"Hopefully, we're going to sell to a lot of first-time home buyers," Ricketts says. "Our first offering was for (tenants) to buy their own apartments. Of course, the state gives them the right to stay for a certain amount of time depending on how long they've been there. We're making it as easy as they can to buy it."

Even so, Ricketts expects speculative investors to take interest in the conversion. He says investors could account for about half the sales there. "The value is so incredible investors cannot ignore it."

Although he didn't offer too many details, Ricketts says the partnership doesn't necessarily invest in just properties publicized for sale. "Often times, we inquire about property not for sale," he says. "It just has to have the right parameters to fit the conversion. For one, it's convenient to the employment center (downtown Tampa)."

The partnership bought the multifamily property for about 77% more than the prior owner paid for it in 1997. Lakeview at Calusa Trace LP, a holding of Chicago-based Pace Management LLC, acquired the property that year for $14.7 million from Tampa's Spanos Corp.

The partnership obtained a $23 million loan from KeyBank NA. It also borrowed another $5.1 million from Sarasota-based Investors Management Trust, a firm controlled by real estate developer Neil Malamud. He did not say how the partnership intended to use the capital in excess of the sale price.

"We're not going to remodel it," Ricketts says. "It's a Triple A property."

Towers of Channelside

secures $96 million in loans

Borrower: Towers of Channelside LLC, Tampa

Lender: Wachovia Bank NA, Tampa, as principal lender and agent for several other lenders.

Property: 1103 Cumberland Ave. and 415 S. 12th St., Tampa

Mortgage amount: $95,560,000.

Other financing: $5,628,000, Gold Bank, Tampa

Law firm on mortgage: Hill Ward & Henderson PA, Tampa

Plans, description: Developers of the Towers of Channelside secured the financing necessary to build two, 29-story condominium buildings in Tampa's Channelside District.

Towers of Channelside LLC obtained $95.56 million to finance construction of 257 luxury condos on about 88,885 square feet of land in the 400 block of South 12th Street and the 1100 block of Cumberland Avenue.

The Tampa office of Wachovia Bank N.A. is the lead lender. It loaned almost $22.6 million to the development partnership and agreed to act as agent for five other lenders.

Besides Wachovia, the other lenders are Fifth Third Bank, $14 million, Gold Bank, $18 million, First Charter Bank, $9 million, National City Bank, $18 million and Mercantile Bank, $14 million. Gold Bank already has a secured interest in the project. It loaned slightly more than $5.6 million in January last year to finance the property acquisition.

The primary spokesperson for the project, Richard Sacchi, was out of town and unavailable for comment.

Information available through the partnership's Web site ( shows condo unit floor plans ranging from 1,136 to 4,852 square feet. Plans include four levels of parking, with space available for 691 vehicles.

With about $101.2 million in loans now outstanding, the developers must produce average sales of at least $393,618 a unit just to break even. The partnership has reported having at least 250 reservations.

Last January, the Towers of Channelside partnership acquired the property for $6.12 million, or about $68.88 a square foot, from trusts controlled by moving industry executive J. Eugene Fogarty.

The partners in Towers of Channelside include Peninsular Towers LLC, whose managing members are listed as Sacchi and Bradley A. Hite, and MJM Land Holdings LLC, a company controlled by APHC Inc. and Michael McGuiness.

Pradip Patel entity buys

Airport Business Center

Buyer: Naidip ABC LLC

Seller: Engelhardt Gehrand Partnership

Property: Buildings only at 14450 46th St. N. and 14255 49th St. N., Clearwater.

Price: $10,200,000.

Prior sale: Not available, land belongs to Pinellas County government.

Law firm on deed: Thomas A. Ruggles PA, Bellair.

Plans, description: An investment group headed by Tampa real estate investor Pradip Patel acquired the buildings and fixtures at Clearwater's Airport Business Center earlier this month for $10.2 million.

Naidip ABC LLC purchased the improvements for about $62.22 a square foot from the Engelhardt Gehrand Partnership. That's a partnership between Clearwater's Hallmark Development of Florida Inc., a family-owned company led by Daniel Engelhardt, and St. Petersburg's Continental Business Housing Inc., a family-owned corporation led by Bill Gehrand.

The acquisition includes about 163,950 square feet of office-service space at 14450 46th St. N. and 14255 49th St. N., just west of the St. Petersburg-Clearwater International Airport. Construction at the site first began in 1989 and continued in phases over the next decade.

The acquisition group formed by Patel, former president of what now is Tampa's Wellcare Health Plans, secured the property with a $9.8 million mortgage through Bank of America NA. That's about 96% of the purchase price. Financing terms allow for advance draws of up $19.6 million over the course of 20 years.

Elliot Ross of Clearwater's Ross Realty Group Inc. and Kyle Burd of CB Richard Ellis represented the seller.

This was a somewhat complicated deal, Ross says, because the deal involved a Pinellas County ground lease on the 13-acre site.

"There was market resistance to the lease, which is why the value is somewhat lower than what somebody would expect," Ross says.

Post Properties partnership

acquires 4 acres for condos

Buyer: Soho Condominium Development LLC, Atlanta.

Seller: Heidt & Associates Inc. and the Swan Plaza partnership.

Property: 708 S. Howard Ave. and 2220 W. Swann Ave., Tampa

Price: $12,000,000

Prior sale: Main parcel, 3.1 acres, sold for $400,000 in 1981.

Law firm on deed: Bricklemyer Smolker & Bolves PA, Tampa.

Plans, description: An affiliate of Atlanta's Post Properties Inc. (NYSE:PPS) paid nearly $3 million earlier this month for four acres in South Tampa's Hyde Park community.

Soho Condominium Development LLC, a partnership between Post Properties and Toni Everett Co.'s Anthony Everett, plan to build at least 140 luxury condominiums on the site, says Tampa commercial land broker Bill Eshenbaugh.

"Future land use may change through zoning, so it can go up from there," he says.

Eshenbaugh represented the sellers, Tampa's Heidt & Associates Inc.; a partnership that includes Edward T. Henry, Frank E. Rankin Jr. and two trusts managed by Edward A. Andrews; and another partnership that includes Andrews, Henry and Rankin, doing business as Inman Plaza Partnership, and a trust controlled by Andrews. The principals in the deal, Andrews and Henry, are Heidt & Associates senior executives.

The scope of the proposed project is slightly smaller than other projects Post Properties has completed in the Tampa area. It primarily focuses development efforts on more affluent neighborhoods such as South Tampa for its multifamily projects.

It built, owns and manages three apartment communities in the Tampa area - Post Hyde Park, 389 units, Post Harbour Place, 784 units, and Post Rocky Point, 916 units.

Family-owned Hialeah firm

purchases Carrollwood Palms

Buyer: Delsal LLC, Hialeah.

Seller: Decade Gulfcoast Apartments LP, Waukesha, Wis.

Property: 4302 Gunn Highway, unincorporated Hillsborough County.

Price: $12,350,000

Prior sale: Unavailable.

Law firm on deed: Quarles & Brady LLP, Milwaukee, Wis.

Plans, description: Hialeah-based Delsal LLC has purchased the 204-unit Carrollwood Palms apartment complex for almost $12.4 million or about $60,539 a unit.

This is the buyer's second purchase in the Tampa Bay area, says Tony Delgado, a principal in the family-owned Delsal LLC. The firm also owns the 204-unit Hamilton Point apartments in the Brandon area.

This is an owner-operated property, says Tony Delgado, who operates Delsal in partnership with his father, Renan Delgado.

"We're owner-operators and plan to keep the (Carrollwood Palms) property," he says. "It's not going condo."

Already, the company has started façade renovations, replacing the wood siding and painting, Delgado says. Planned renovations include pool and clubhouse upgrades.

The father-and-son team assumed an existing mortgage with a current balance of about $8.41 million through an agreement with Wells Fargo Bank NA, as trustee for the registered holders of J.P. Morgan Chase Commercial Mortgage Securities Corp.

The seller, Waukesha, Wis.-based Decade Gulfcoast Apartments LP, purchased 18-year-old property in 1995 for an unknown amount in a workout arranged by the Resolution Trust Corp. Corporate records list Decade Gulf Coast's general partner as JK Investments of Clearwater Inc., a company controlled by real estate investor Jeffrey Keierleber.

- David R. Corder


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