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Commercial RE Briefs

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  • | 6:00 p.m. October 6, 2006
  • Commercial Real Estate
  • Tampa Bay–Lakeland
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Commercial RE Briefs

by Sean Roth | Real Estate Editor

Tampa Bay

Osprey SA buys Tampa Oaks

BUYER: Osprey Tampa Oaks LLC (principal: Osprey SA Ltd.), Brighton, Mich.

SELLER: Opus Real Estate Florida II LLC

PROPERTY: 12802 Tampa Oaks Blvd., Temple Terrace

PRICE: $29 million

PREVIOUS PRICE: $22.8 million October 1999

LAW FIRM ON DEED: Norton Hammersley Lopez & Skokos PA, Sarasota

PLANS, DESCRIPTION: Brighton, Mich.-based real-estate investment company Osprey SA Ltd. purchased the 164,752-square-foot, Class-A office building Tampa Oaks for $29 million, or $176 per square foot.

"This was certainly an Osprey quality building," says Mark Stroud, COO of Osprey Management Co. LLC. "We're not really planning to make any big changes. It's fully leased with Fortune-500 tenants. There are great synergies because we have holdings in Hidden River Office Park across the street. It's just an extremely safe property that we plan to hold on to. It just really fits nicely into our portfolio."

Office rents average in the building in the middle $20s. The cap rate at the time of the sale was in the low 7% to 7.25% range.

Current building tenants include the University of Phoenix, United Rentals, Verizon Wireless and the Coca Cola Co. The building was originally constructed in 1998.

Osprey SA's limited liability company for the transaction, Osprey Tampa Oaks LLC, mortgaged the building to Comerica Bank for $21.75 million.

In June, Osprey SA purchased the 89,000-square-foot Westlake Corporate Park in Tampa for $31.9 million.

Sunrise Senior Living, GE Healthcare acquires six Aston Gardens facilities

Mclean, Va.-based Sunrise Senior Living, Inc. has completed its acquisition of a 25% share and operations of six Florida senior living communities operated under the Aston Gardens brand name. GE Healthcare Financial Services, Sunrise's joint venture capital partner for the transaction, acquired the remaining 75% interest in the properties, which have annual revenues of more than $65 million.

The six Aston Gardens communities - three in Tampa Bay, one in Venice, one in Naples and one in Parkland - are 95% occupied and have an overall capacity about 2,300.

"This acquisition is very complementary to Sunrise, given its communities are 100% private pay," says Tiffany Tomasso, chief operating officer of Sunrise Senior Living. "In addition, these communities increase our position in the fast-growing independent living market and expand our presence in prominent Florida retirement locations."

The total purchase price for the transaction was $460 million, including about $134 million in debt and $10 million in transaction costs. The GE Healthcare Financial Services affiliate funded 75% of the equity - about $117 million -and Sunrise funded the remaining $39 million with the balance of the purchase price - about $170 million - covered through financing.

Porter Development preparing the Royale project

BUYER: Tyrone Crossings Investors III LLC (principal: Lester Porter), St. Petersburg

SELLER: Tyrone Crossings Investors LLC

PROPERTY: 1400 and 1500 66th Ave. N. St. Petersburg

PRICE: $5.05 million

PLANS, DESCRIPTION: St. Petersburg developer Lester Porter, president of Porter Development of Clearwater, transferred 13 acres at 66th Avenue North and 18th Avenue in St. Petersburg to a separate limited liability company, Tyrone Crossings Investors III LLC, to secure permanent financing for a major mixed-use development called the Royale. The infill development is made up of a160-unit condominium and a commercial development, the Shoppes at Royale, which features a restaurant, 90,000 square feet of retail space and 75,000 square feet of office space.

Porter tells the Review that although he is unsure of the current start date, he expects to open the retail space in the first quarter of 2008.

"Right now we are still working to finish our lease negotiations." Porter says.

Tyrone Crossings Investors III LLC mortgaged the 13-acre property to IXIS Real Estate Capital for $7 million.

New ownership group expanding Turtle Cove Marina

BUYER: Turtle Cove Group LLC (principal: Edward Spaeth), New Port Richey

SELLER: Spaeth Dorrell and Cul Leus LLC

PROPERTY: 601 Roosevelt and property on Lutean Shores, Tarpon Springs

PRICE: $2.6 million

PLANS, DESCRIPTION: Turtle Cove Group LLC, an investment group composed of Edward Spaeth, Dan Bicz and Craig Gallagher, acquired the Turtle Cove Marina in Tarpon Springs for $2.6 million. The three partners are working to significantly expand the marina and associated amenities along with creating a mixture of ownership types.

"We're still working on the exact ownership structure," Bicz says, "but we do expect to keep portions of the Marina open to public and introduce both a dockominium-style option as well as a more of a club-style ownership option."

The owners plan to increase the size of the marina in two construction phases from its current storage capacity of 141 dry slips and 21 wet slips to about 360 dry slips and about 80 wet slips.

"That would make us one of the biggest marinas in the area," Speath says. "Probably the closest in size is Tampa Bayside." In addition, Turtle Cove Group LLC will construct a pool and shower facilites along with a possible new clubhouse and playground.

Liberty Property Trust buys 100 Legacy Park

BUYER: Liberty Property Limited Partnership (aka Liberty Property Trust), Malvern, Pa.

SELLER: 100 Legacy Park Ltd.

PROPERTY: 3020 S. U.S. Highway 301, Riverview

PRICE: $14.26 million

PLANS, DESCRIPTION: A Malvern, Pa.-based $6.5-billion real estate investment trust, Liberty Property Trust, purchased the 100,000-square-foot, Class-B office building 100 Legacy Park for about $14 million. Home Depot leases the entire six-year-old, two-story building as a customer fulfillness center.

The property was attractive as a long-term investment, according to Bob Goldschmidt senior vice president for Liberty Property Trust, because of the stability of the tenant, condition and age of building and location near the Silo Bend office building the REIT is currently developing.

Liberty Property Trust owns more than 63 million square feet of office and industrial space in 20 markets throughout the United States and United Kingdom.


• Circle K purchased a 1.46-acre parcel at the northwest corner of U.S. 301 and Clinton Avenue in Dade City from Hillvest, Inc. of Zephyrhills for $1.02 million, equal to $16.04 per square foot. Colliers Arnold represented the buyer, and Ed Smith Real Estate Inc. represented the seller.

• Clearwater-based Creative Contractors was chosen to build a new fire station for the Palm Harbor Special Fire Control and Rescue District at 250 West Lake Road, Palm Harbor. The $3.4-million, split-level, 20,000-square-foot building will replace an existing fire station.

Creative Contractors has also been selected by Pinellas County Public Works for two projects. The first is a 35,000-square-foot renovation and addition to the Pinellas County Sheriff's Office. The $3.8 million two-story project includes a new video visitation area and administration and training space. The second project is a one-story renovation and addition to the existing Pinellas County jail kitchen. The $2.1 million project will facilitate additional dinning capacity. Both projects are at 14500 49th St. in Clearwater.

• Williams Schifino Mangione & Steady PA leased 4,714 square feet of additional office space at the 38-story Tampa City Center in Tampa from Tampa City Center. Andy May of Cushman & Wakefield negotiated this transaction on behalf of the landlord.

• Creative Mailbox & Sign Designs, LLC purchased a 41,000-square-foot industrial warehouse at 12801 Commodity Place in Tampa from Kaf-flex Products/Heyco Products for $2.52 million. Tim Callahan and Chris Sass of Cushman & Wakefield negotiated the sale on behalf of the seller.

• The Craftmatic Organization Inc. renewed a lease on 12,800 square feet of industrial space at Corporex Park Distribution Center in Tampa from Cobalt Industrial REIT. Mike Davis and Rian Smith of Cushman & Wakefield negotiated the lease on behalf of the landlord.

• Starbucks Corp. negotiated a 6,764-square-foot long-term office lease renewal and expansion in Centerpointe in Tampa from USAA Real Estate Co. Jim Paladino and John Fish of Cushman & Wakefield represented the tenant in the transaction.

• BPB America Inc., a manufacturer of wall and ceiling systems, negotiated a new 35,000-square-foot long-term office lease at Colonial Park II at 4300 West Cypress St. in Tampa from Colonial Properties Trust. Mercedes Angell and Melissa Ackermann of Cushman & Wakefield represented the landlord.

• Florida Spine Properties LLC purchased a 26,000-square-foot office building at 2220-2230 and 2250 Drew Street in Clearwater from JES Properties Inc. Andy May, Barry Oaks, and Bill Reeves, of Cushman & Wakefield negotiated the sale on behalf of the buyer.


Best Western Island Gateway sold, converted to La Quinta

BUYER: LQ FT Myers LLC (Lodge Borrower III LLC), New York City

SELLER: Boykin Fort Myers LLC

PROPERTY: 20091 Summerlin Road, Fort Myers

PRICE: $11.23 million

PREVIOUS PRICE: $6.3 million, November 1996

LAW FIRM ON DEED: Baker & Hostetler LLC, Cleveland, Ohio

PLANS, DESCRIPTION: Irving, Texas-based La Quinta Corp. purchased the 158-room Best Western Island Gateway in Fort Myers for $11 million. La Quinta Corp. has converted the hotel to a La Quinta Inn & Suites.

"The main focus right now is going to be on the re-branding," says Teresa Ferguson, director of communications and public relations for LQ Management LLC. "Eventually we are going to be doing some renovations in the common areas and a few changes in some of the rooms."

Ferguson was unsure whether the hotel company would increase the number of suites in the Fort Myers hotel, which under the Best Western brand only offered one suite.

La Quinta owns and operates two other hotel properties in Lee County.

The hotel company has been undertaking a more aggressive growth plan since it was acquired by an affiliate of the Blackstone Group earlier this year for $3.4 billion.

La Quinta's limited liability company for the transaction LQ FT Myers LLC mortgaged the hotel property to Bank of America NA for about $11 million.

Lee County government acquires Wachovia Bank building

BUYER: Lee County, Fort Myers

SELLER: Roefsco Ft Myers LLC

PROPERTY: 2201 Second St. and , lot 27, Monroe Heights, Fort Myers

PRICE: $12.5 million

PREVIOUS PRICE: $3.77 million, Sept. 2004

LAW FIRM ON DEED: Duncan & Tardif PA, Fort Myers

PLANS, DESCRIPTION: Lee County purchased the 65,000-square-foot, six-story former Wachovia Bank building along with an additional 200 parking spaces in the center of downtown Fort Myers from Norcross, Ga.-based Fialkow & Co. for $12.5 million. The building is located near the planned 10-story courthouse tower building and the existing nine-story,120,000-square-foot former SunTrust Bank building that the county acquired for $17 million in 2004. The county previously was leasing about a floor and a half in the almost 30-year-old bank building. The county commission eventually decided to acquire the entire facility to house the municipality's growing operations and personnel. The Second Street building also provides the county 120 surface parking spaces.

"We'll eventually take over the entire building," says Robert Clemens, land acquisition manager for the county. "It really is smarter for us to own than to lease just over an about five- to seven-year period based on where lease rates are going. Plus, at the end of the lease terms you don't have anything for your money."


• Fort Myers-based Stevens Construction started construction on the Barkley Surgery Center on Barkley Circle, off Summerlin Road. The Stevens team will renovate 8,284 square feet of the existing 12,200-square-foot ambulatory surgery center. Jason P. Tramonte Architect Inc. designed the renovation project.

• Mustafa Nacer Fathi leased a 3,000-square-foot retail space in La Mexicana at 4235 Palm Beach Blvd., units 3 and 4, from La Mexicana of Palm Beach Blvd. LLC. Raul Casanova of VIP Commercial-TCN Worldwide negotiated the transaction.

• El Eden leased 2,400 square feet of retail space in La Mexicana # 3 Shopping Center at 1421-71 Ortiz Ave. from La Mexicana #3 Inc. Raul Casanova of VIP Commercial-TCN Worldwide negotiated the transaction.

• United Rentals (North America) Inc. purchased about 4.15 acres in Plantation Corporate Park from Michael Palomba for $1.8 million or about $10 per square foot. Paul Sands of VIP Commercial TCN Worldwide negotiated this transaction.

• Fort-Myers-based design-build/construction management firm STULTZ Inc. completed a major expansion of the Noonan Academy's campus on Plantation Road, just north of Daniels Parkway in Fort Myers. Noonan Academy founder Roberta Noonan owns and operates childcare and education facilities in Fort Myers, Cape Coral and Bonita Springs. The expansion project added a 9,500-square-foot classroom building for a middle school.

• Naples-based Premier Commercial Properties of Southwest Florida, Realtors entered into a strategic alliance with Oakbrook Properties, the development division of Oakbrook Cos., a St. Charles, Ill.-based hotel and resort operator/owner. Premier Commercial will function as the exclusive listing and purchasing representative for Oakbrook Properties' land transactions in Lee, Collier, Charlotte, and Sarasota counties.

• The Naples Learning Center leased 5,200 square feet of retail space at 121 10th St. S., Naples from Elwood Properties Inc. Jay Crandall of Coldwell Banker Commercial NRT represented the landlord in the transaction.

• The medical practices of Lenholt & Schlossberg P.L. leased a 2,481-square-foot medical office at 2230 Venetian Court, Unit 6A, Naples from Venetian Plaza AE 2004 LLC. Tim Colen of Gates D'Alessandro & Woodyard LLC Realtors negotiated the transaction.

• Bowler Plumbing leased a 4,762-square-foot office/warehouse at 5641 Division Drive, unit 1 in Fort Myers from Central Park Office Complex Inc. Kevin Rosenthal of Gates D'Alessandro & Woodyard LLC Realtors negotiated the transaction.

• American International Trading purchased two warehouses on 1.61 acres at 10131-10171 Betsy Parkway, St. James City from Ray & Joanne Fleury for $1.2 million. Tim Colen and Andrea Burson of Gates D'Alessandro & Woodyard LLC Realtors represented the seller, and Dan Miller of Re/Max Realty Group represented the buyer.


Vengroff buys Airport Inn for housing, business incubator

BUYER: Oakridge Apts. LLC (principal Harvey Vengroff), Sarasota

SELLER: Mariner Investments Inc.

PROPERTY: 8440 North Tamiami Trail, Sarasota

PRICE: $7.3 million

PREVIOUS PRICE: $1.6 million for the buildings only, October 2005

LAW FIRM ON DEED: Lawrence Hankin PA, Sarasota

PLANS, DESCRIPTION: Entrepreneur Harvey Vengroff, founder of the Sarasota collection and receivables company Vengroff Williams & Associates, purchased the 120-unit Airport Inn hotel and the space that had formerly housed the Joyland Country Nightclub. Vengroff plans to run the building as an apartment complex until the University of South Florida can raise enough money to purchase the property. Even before the purchase by USF, Vengroff expects to lease the units to students from the Ringling School of Art and Design, USF and/or New College of Florida.

Vengroff plans to convert the former Joyland space into incubator space for startup companies in conjunction with USF.

Vengroff's Oakridge Apts. LLC mortgaged the property to Mariner Investments Inc. for $5.7 million.

"This is similar to what we did with Startup Florida (on Central Avenue in downtown Sarasota)," Vengroff says. "Hopefully this will make some money for the school and make these businesses more successful than they would be if they didn't have that extra support."

Vengroff plans to renovate the building's roof, plumbing and electrical system.

Senior Living Management buys Grand on Beneva

BUYER: CR Investments of Sarasota LLC, Coconut Creek

SELLER: Grand Care Corp.

PROPERTY: 7130 Beneva Road, Sarasota

PRICE: $3.8 million

PREVIOUS PRICE: $313,700, December 1993

LAW FIRM ON DEED: Boone, Boone Boone Koda & Frook PA, Venice

PLANS, DESCRIPTION: Coconut Creek-based Senior Living Management Corp. purchased the 37-unit Grand on Beneva assisted-living facility for $3.8 million. Dennis Wagner, president and CEO for Senior Living Management, says the company will rename the facility the Savannah Grand of Sarasota.

Senior Living Management, which currently owns 21 facilities in three states, targets smaller middle-market properties. The company's portfolio covers 17 communities in Florida including properties in Brandon, Bartow, Lakeland, Haines City and Lake Wales.

"This is just part of our larger expansion," Wagner says. "We don't have a set number of properties that we want to acquire but we will typically buy one to three a year. We are not necessarily looking for higher end properties. This goes back to our smaller market philosophy which allows us to open up the market as opposed to the larger companies that come in and target the top 15% of people in that market."

Wagner says the company plans to upgrade the building's interior.

Senior Living Management's limited liability company for the transaction, CR Investments of Sarasota LLC, mortgaged the property to FirstBank Puerto Rico Miami Agency for $3.2 million and to MedHoldings Inc. for $600,000.


• Annemarie Pech purchased a 5,250-square-foot office warehouse at 1945 17th St. in Sarasota from T.J. Richardson for $940,000. Janet Robinson and Ian Black of Ian Black Real Estate and Dan McDonald with Beckmann Realty handled the transaction.

• Renaissance Nutraceuticals Inc. leased 1,100 square feet of space from Coconut Bay Properties for one year at 7319-B Merchant Court in Lakewood Ranch. Lori Conable and Janet Robinson of Ian Black Real Estate and Susan Goldstein of Michael Saunders & Co. handled the transaction.

• Gymboree Play & Music leased 3,700 square feet of space from Stone Civix Ltd. for five years at Oaks Plaza, 3904 Central Sarasota Parkway in Sarasota. Debbie Anglin of Ian Black Real Estate handled the transaction.

• David Hunihan's Fidelity Homes has moved its headquarter to Sarasota Business Center on Commerce Drive in Venice. The company occupies more than 3,500 square feet of space in the new building, including a mezzanine, which will allow Fidelity Homes to expand its corporate offices and consolidate additional space. Sarasota Business Center sits on 61 acres of land near the Interstate 75 and Jacaranda interchange.

• The Manatee Association of Realtors relocated from 2901 Manatee Ave. W. in Bradenton to 4732 SR 64 E. in the 1st National Business Park in Bradenton. The office will serve as the Association's temporary location until it's new headquarters is completed in Lakewood Ranch.


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