Commercial Real Estate Briefs
by Sean Roth | Real Estate Editor
Missouri developer plans Alico Road retail center
Buyer: Collier Florida Properties LLC, O'Fallon, Mo.
Seller: Three Corners Development LLC
Property: 17100 S. Tamiami Trail, Fort Myers
Price: $1.3 million
Previous price: $845,000, March 2005
LAW FIRM ON DEED: Henderson Franklin Starnes & Holt PA, Fort Myers
PLANS, DESCRIPTION: The Collier Organization, a division of the O'Fallon, Mo.-based developer/brokerage Triad Development Co., purchased 2.4 acres on a service road near the intersection of Alico Road and U.S. 41 for $1.3 million. The Missouri developer plans to build a 19,000-square-foot retail neighborhood center called Three Corners Plaza.
"They're hoping to break ground this fall," says Marybeth Brooks a Realtor with Downing-Frye Realty Inc., who is marketing the property. "It's probably going to take seven to eight months to build, which puts it in towards the first or second quarter of 2008. Triad already has its permits."
The Collier Organization has yet to select a general contractor. As currently planned, the project will feature 12, 1,300- to 2,760-square-foot units and one larger unit. Pre-leasing rental prices run from $17 to $24 a square foot triple net, with $4.50 CAMs.
Three Corners Plaza is Triad Development's first development in Florida, Brooks says, but it's owner has a home in Fort Myers. "He saw the tremendous growth down here and is looking to expand his business," Brooks says. "They're planning on purchasing more and building more down here."
Collier Florida Properties LLC mortgaged the property to Reliance Bank FSB for $3.81 million.
Ed Bonkowski group acquires three duplex properties
Buyer: 611-31 Estero LLC (principal: Ed Bonkowski Inc.), Fort Myers Beach
Seller: Everett Waid Jr. and April Scheel
Property: 631, 621 and 611 Estero Blvd., Fort Myers Beach
Price: $1.6 million
LAW FIRM ON DEED: Thomas F. Kiesel, Fort Myers
PLANS, DESCRIPTION: An investment group headed by Fort Myers Beach-based brokerage and investment manager Ed Bonkowski Inc. purchased three homes on Estero Boulevard for $1.6 million as an investment.
"We have no development plans for it at this time," says Ed Bonkowski. "Each of the lots though are approved for two units so they are really three duplex lots. It's unclear right now whether we'll tear the buildings down or rent them out."
The three lots offer canal frontage and are across the street from the gulf.
"Our company is centered on waterfront," Bonkowski says. "For the last 28 years we've been finding opportunities in soft markets. The market's been soft especially on Fort Myers Beach. This is similar to 1999 when the S&L market collapsed and in those days I was working for the FDIC helping lenders through foreclosures. It's almost like buying short at this point. I have a hedge fund of about $28 million that buys these properties. I formed it over 15 months ago in anticipation of what was happening now."
The new owner mortgaged the property to Encore Bank NA for $1.1 million.
MD Developers build
Fort Myers office
Buyer: MD Developers Inc. (principals: Moshe Kucher and Daniel Koffler), Fort Myers
Seller: INGE Properties Inc.
Property: 14131 Metropolis Ave., Fort Myers
Price: $1.033 million
Previous price: $177,600, August 1999
TITLE FIRM ON DEED: Team Title Insurance Inc.
PLANS, DESCRIPTION: Fort Myers-based MD Developers Inc. purchased a half-acre parcel in the Central Metropolitan Commercial Center for $1.03 million for a medical office building.
"They've been adding onto the hospital on Metro Parkway," says Cathy Diehl, an administrative assistant with MD Developers, "which keeps increasing the need for medical office space."
The medical office building is expected to be two stories and a total of 8,000 square feet. The commercial building marks a change for MD Developers, which has previously developed only residential home sites.
MD Developers mortgaged the property to Reliance Bank FSB for $672,000.
• Bryson Realty LLC purchased a 3,170-square-foot commercial condominium at units 421 and 422 at 5495 Bryson Drive from Park Central North LLC for $725,000. Denise DaSilveira of Gates D'Alessandro & Woodyard LLC and Kevin Fitzgerald of NAI Southwest Florida handled the transaction.
• Collier Florida Properties LLC purchased 2.62 acres of vacant commercial land at 17100 S. Tamiami Trail, Fort Myers from Three Corners Development LLC for $1.3 million. The Spencer Team of Gates D'Alessandro & Woodyard LLC and Marybeth Brooks of Downing Frye Realty handled the transaction.
• Custom homebuilder Frey & Son Homes has expanded to offer remodeling and design services for luxury estate homes. "Homeowners are staying in their homes longer due to current housing market conditions, and they are looking for ways to make their homes more comfortable, while adding value," Ric Bonasera, general manager said in a press release. "Many people want to add special features like home theaters and professional-grade kitchens..."
Remodeling Solutions by Frey will open a showroom in Bonita Springs this fall, which will feature Web-assisted displays and vignettes to showcase the possible products.
• Gates has successfully completed the construction on the 174,000-square-foot SuperTarget retail store in Collier County. The new store has since opened. Gates is currently constructing a SuperTarget store at Coconut Point in Lee County.
• Raymond James agreed to lease the first floor of a two-story building at 8000 Summerlin Lakes Drive in Fort Myers for its Lee County office. Speath Engineering is will occupy the entire second floor. Speath Development LLC owns the building. Randal L. Mercer of CB Richard Ellis, Fort Myers-Naples represented the landlord and John Klein and Todd Brandon of the Equis Corp. represented the tenant.
• Morgan Stanley has extended its lease at 8711 University Pointe Drive for the next 10 years. The lease is estimated to be in excess of $4 million. In addition, Morgan Stanley will expand into a nearby tenant space and start a 10,000-square-foot interior and exterior renovation project. Calvin Wible owns the building. Randal L. Mercer of CB Richard Ellis, Fort Myers-Naples represented the landlord, and David Preve of CRESA Partners of Miami represented the tenant.
• Little Dream Early Learning Center leased 2,500 square feet of office space at 428 Pine Island Road, in Cape Coral from Craig and Gall Campbell Trustees. Scott Miller and Enn Luthringer, of CB Richard Ellis Fort Myers-Naples, brokered the transaction.
• Amerivest Realty leased 2,119 square feet of office space at 14421 Metropolis Ave., in Fort Myers from Broho II LLC. Randal Mercer of CB Richard Ellis Fort Myers-Naples, brokered the transaction.
• Taylor-Pansing Inc. has completed construction on the Sleep Disorder Center of Estero, a tenant build-out in the Estero Medical Building on Arcos Avenue in Estero. Burt Hill/Pollock Krieg Architects Inc. designed the remodel.
• Taylor-Pansing Inc. has begun construction for the Del Prado Land Group Medical Office Project, designed by Jason P. Tramonte Architect Inc. The site is located at 126 Del Prado Blvd. in Cape Coral. The 13,800-square-foot Tuscan influenced old Florida style building will encompass four local physicians a CAT Scan imaging room and one future tenant space. The project is scheduled for completion in April of 2008.
• Taylor-Pansing Inc. has completed construction on phase II of the Capri Commons Center at 420 Del Prado Blvd. N. Phase II consists of a 24,000-square-foot two-story medical office building designed by Architects Edge Inc. The Mediterrean-style building is designated for medical/ professional office space use.
• Fort Myers-based Eagle Concrete Systems started concrete work on the Springs Plaza Shopping Center at 8951 Bonita Beach Road, Bonita Springs. Eagle Concrete is completing all structural concrete and masonry systems for the second phase of the shopping center, using concrete block construction. The new building will include 5,600 square feet of retail space. The project is scheduled for completion in fall 2007.
Saltz Michelson Architects designed the building. J. Raymond Construction Corp. is the general contractor.
• Bonita Springs-based Heatherwood Construction completed construction on the offices of Raven Logistics at Galleria Court in Naples. The 3,000-square-foot interior build-out includes six offices and will serve as the corporate headquarters for Raven Logistics, an international freight management company. The company is relocating its corporate headquarters from Michigan.
• Brooks & Freund has been awarded a contract to build a three-story office building for Riverside Bank at 7331 College Parkway. The project includes construction of a 39,874-square-foot building of which 6,963 square feet is designed for Riverside Bank. The remaining space within the building will be leased as general office and professional space. The bank branch will feature four drive-through service lanes including one with ATM access and will be the 10th bank office location for Riverside.
Joint venture takes control of two Holiday Inns
Buyer: OpRock Bradenton Fee LLC (principal: Oprock Bradenton Mezz LLC), San Francisco
Seller: Ocean Properties Ltd.
Property: 100 Riverfront Blvd., Bradenton
Price: $24 million
Buyer: OpRock Sarasota Fee LLC (principal: Oprock Sarasota Mezz LLC), San Francisco
Seller: Lido Development LLC
Property: 233 Benjamin Franklin Drive, Sarasota
Price: $16.43 million (transferred with this amount being left on the mortgage balance
Previous price: $13.9 million, November 2002
LAW FIRM ON DEED: Paul Hastings Janofsky & Walker LLP, Los Angeles, Calif.
PLANS, DESCRIPTION: Delray Beach-based Ocean Properties Ltd. has transferred the Holiday Inn Riverfront in Bradenton and Holiday Inn Lido Beach to a new joint company it owns with Rockwood Capital LLC. The transfer of the local properties was just one part of a portfolio sale of 24 hotels in Maine, New Hampshire, Massachusetts, South Carolina, Georgia and Florida to this new joint company.
A statement from Rockwood Capital described the properties as a mixture of full service ocean-frontage resorts and select service hotels. Rockwell's spokesperson declined further comment on the deal and its local implications.
Located on the Manatee River, the five-story Holiday Inn Riverfront in Bradenton has 153 rooms, including 57 suites. The beachfront Holiday Inn Lido Beach has 135 rooms, including 4 suites.
The deal is not expected to change operations or management at either hotel.
Rockwood Capital is a private real estate investment company that currently is managing more than $2.7 billion in equity.
Ocean Properties owns the Marriott Key Largo Bay Beach Resort, the Holiday Inn Resort & Marina Key Largo, Ramada Resort & Marina Key Largo, Marina Del Mar Resort & Marina Key Largo, Springhill Suites Tampa, Treasure Island, Hilton Longboat Key Beachfront Resort, Lido Beach Resort and Courtyard by Marriott Naples.
Fort Myers investor
improves Self Storage
Buyer: Palmetto Grove LLC (principal: Jim McMenamy), Fort Myers
Seller: DMT Storage Facilities Inc.
Property: 3151 Cooper St., Punta Gorda
Price: $1.15 million
Previous price: $1.1 million, October 2005
LAW FIRM ON DEED: Olmsted & Wilson PA, Port Charlotte
PLANS, DESCRIPTION: Jim McMenamy, a broker in Fort Myers with Re/Max Realty Group's commercial division, purchased the 27,000-square-foot Punta Gorda Self Storage facility for $1.15 million. The self-storage park, which sits on 2.5 acres, features seven buildings and 250 leasable units.
"I bought it in a 1031 exchange for some industrial land I sold in Fort Myers," McMenamy says. "We going to come in there and paint the buildings and resurface the pavement. We're gutting the office and moving the manager to a temporary facility. We're also planning on new signage."
The facility is running at about 50% occupancy, which McMenamy says was part of his attraction to it as an investment.
"When I bought it the cap rate was a 3 or 4%," McMenamy says. "The potential is there to have a 10% or a 12% once we improve that vacancy. The whole thing just isn't functioning right now. The location is off U.S. 41 in an industrial complex ... so proper advertising and marketing is going to be a must."
Palmetto Grove LLC mortgaged the property to Community Bank of Cape Coral for $750,000.
Publix Super Markets buys University Walk retail center
Buyer: Publix Super Markets Inc., Lakeland
Seller: University Walk LLC
Property: 2875, 2859, 2867, 2863, 2855, 2851, 2847, 2843, 2835, 2831, 2827 and 2821 University Parkway, and 8419, 8445, 8441, 8437, 8433, 8429, 8425 and 8421 Tuttle Ave., Sarasota
Price: $15.86 million
LAW FIRM ON DEED: Graydon Head & Ritchey LLP, Cincinnati
PLANS, DESCRIPTION: Publix Super Markets Inc. purchased the Sarasota shopping center University Walk at University Parkway and Tuttle Avenue for $15.86 million. The purchase follows shortly on the heels of the grocery giant's purchase of the 120,000-square-foot Crossroads Shopping Center in Lehigh Acres for $16.35 million.
Publix occasionally invests in shopping centers that house its supermarkets, according to a spokesperson for the grocery retailer.
Real estate research firm the CoStar Group says the 85,115-square-foot University Walk features a Publix, a Walgreens drug store, Aculaser, Allstate office, Athletes Foot, Cang Tong 3, Dollar Tree, Fashion Bug and Fashion Bug Plus, Fidelity Homes, Foot Specialist, GNC, H&R Block, Hana Japanese, HFC Household Finance, Modern Nails, New York Hair, Opti Mail, Panera Bread Co., Radio Shack, Robb & Stucky Outlet, Shah Jewelers, Signs To Go, Snorp, Spherion, Subway, Super Cuts, Tandem Staffing, The Mail Station and Verizon Wireless.
• Staff Outsource Solutions Inc. leased 3,240 square feet at 353 Interstate Blvd., Sarasota in Interstate Park Corporate Center east of Interstate 75 off of Fruitville Road. David Greenfield, president/broker of 1st Property Group Inc., handled the transaction for the landlord.
• Brooks & Freund has completed construction of Outlook Cove, a new condominium community at 1340 Rock Dove in Punta Gorda. The project includes a 48,000-square-foot, four-story building with a total of 15 units over a parking garage. The condominium units range from 1,800 to 1,840 square feet. RDL Architects Inc. designed the building.
• The Sarasota Architectural Foundation has issued a request for qualifications for a design and financial plan to provide alternative use and preservation of Paul Rudolph's 1958 historic buildings at Sarasota's Riverview High School. The buildings are currently scheduled for demolition.
The RFQ is seeking qualified architect and developer teams with experience in creative planning involving historic buildings. Design and financial proposals must include plans for revitalizing the Rudolph courtyard buildings, financing the work and the long-term preservation of the buildings and compensating for the parking lot and playing fields currently scheduled to be built in that area.
SAF's Riverview Committee has hired architect and environmental planner Bill Liskamm as a professional advisor and facilitator for the competition. The RFQ will be due by Sept. 14, and finalists will be announced on Sept. 17. Proposals will be due in Nov. 2007, with a midpoint review scheduled for Oct. 15.
To download the RFQ visit the SAF Web site: www.sarasotaarchitecturalfoundation.org.
• Brooks & Freund has been awarded a contract to build Gulf Breeze, a new apartment community on Myrtle Street in Punta Gorda. The 179,300-square-foot complex includes 49 apartment buildings with a total of 171 units. Gulf Breeze will offer one-, two- and three-bedroom apartments that range from 728 to 1,323 square feet of living space. Brooks & Freund will also build the community's clubhouse. Kadushin Associates provided architectural design services. Construction is scheduled for completion in late 2008.
• Rumba Restaurant and Lounge LLC leased 5,500 square feet of restaurant space at 1120 N. Washington Blvd. from 1120 N. Washington LLC. 1120 N. Washington is the location of the former Khrome restaurant and nightclub. Listing agent Anthony Migliore of Coldwell Banker Commercial NRT handled the transaction.
• RTC Ventures Inc. purchased a 5,500-square-foot industrial warehouse building at 1316 N. East Ave., Sarasota from Pamela O'Brein as trustee for $410,000. Barry Seidel of American Property Group of Sarasota Inc. handled the transaction.
Montecito Medical Investment
acquires Summit Medical Center
Edward Conk, Robert Neyland, Allan Topfer, Paul Sandler and Warren Sussex), Jacksonville
Seller: Summit Medical Property LLC
Property: 7509 State Road 52, Hudson
Price: $12.46 million
Previous price: $10.35 million, October 2004
LAW FIRM ON DEED: Norton Hammersley Lopez & Skokos PA, Sarasota
PLANS, DESCRIPTION: Santa Barbara, Calif.-based Montecito Medical Investment Co. purchased the three-building Summit Medical Center in Bayonet Point for $12.5 million. The 49,925-square-foot office complex sits on 10 acres near the HCA Regional Medical Center. Officials with Montecito did not return calls for comment.
Montecito Medical is one of the largest privately held companies specializing in acquiring and developing medical real estate. The company has acquired more than $500 million worth of real estate. The purchase is Montecito Medical's first acquisition on the Gulf Coast.
Montecito Summit MOB LP mortgaged the property to Principal Life Insurance for $10.55 million.
acquires Lutz's Willow Lake
Buyer: TMG Willow Lake II LP (principal: Milestone Real Estate Investors II LP), Dallas
Seller: Pasco Associates LLC
Property: 26620 Players Circle, Lutz
Price: $9.775 million
Previous price: $5.55 million, May 2002
LAW FIRM ON DEED: Macfarlane Ferguson & McMullen, Clearwater
PLANS, DESCRIPTION: The Milestone Group, a Dallas-based privately owned apartment real estate investment firm, purchased the 144-unit Willow Lake Apartment complex near Wesley Chapel Boulevard in Lutz for $9.78 million. The multi-building, 109,600-square-foot complex sits on a lake and features one- and two-bedroom units, a swimming pool, and racquetball and tennis courts. TMG Willow Lake II LP mortgaged the Willow Lake property to Sovereign Bank for $7.8 million. Calls to the Milestone Group were not returned prior to publication.
Milestone Group acquires apartments principally in Tampa, Atlanta, Austin, Dallas, Fort Worth, Houston, Jacksonville, Nashville, Phoenix, Salt Lake City and San Antonio. The firm's Web site reports it has acquired $1.5 billion worth of apartment properties in the past year.
It's residential management arm, Milestone Management, handles 88 multi-family properties consisting of 27,594 apartment units.
St. Petersburg investor buys
Raymond James Office Park
Buyer: Saybrook LLC (principal: Peter Ludwiszewski), St. Petersburg
Seller: Requiem Investment Inc.
Property: 2401 and 2400 West Bay Drive, Largo
Price: $5.2 million
LAW FIRM ON DEED: Law offices of David E. Platte
PLANS, DESCRIPTION: St. Petersburg's Peter Ludwiszewski purchased the six-building Raymond James Office Park just outside Belleair Bluffs for $5.2 million. The buildings house a total of 48,000-square-feet of office space and are anchored by Raymond James. The property also includes the historic 1910 Manor House. At the time of the sale, the building had an about 7.5% vacancy.
"[The new owner] was doing a 1031 and he liked the land and the look of the buildings," says Pat Calhoon speaking on behalf of Jane Calhoon of Calhoon Property Management. "It's on about 4.5 acres. It had been really well maintained."
The purchase equates to a 8.75% capitalization rate, but with about 4,000 square feet of vacant space available for lease, Calhoon says the cap rate will likely turn out to be much better long term. The rental rate for the space is being listed at $18 a square foot full service.
• CBRE Capital Markets arranged the $48 million permanent financing for Rivergate Tower, a 515,965-square-foot office building in Tampa. Charles J. Foschini, managing director of CBRE Melody's South Florida office, Christian R. Lee, executive vice president of CB Richard Ellis' Institutional Group, and Christopher Apone, vice president of CBRE Melody's South Florida office, arranged the financing through a correspondent lender on behalf of America's Capital Partners.
• Landmark Apartments LLC purchased the 128-unit Landmark Apartments at 2125 Jackson Bluff Road, Tallahassee from McKenzie Development LLC for $6.112 million. Robert Goldfinger of Marcus & Millichap represented the buyer, and Dorothy Jackman and Travis Prince of The Jackman Group of Marcus & Millichap represented the buyer.
• Armenia Avenue Investments LLC purchased the Armenia Professional Center at 4023 N. Armenia Ave., Tampa for $2.49 million. Elliott Ross and Judi Lechner of The Ross Realty Group, Inc, represented the buyer.
• Crescent Moon, LLC purchased a 5,355 square foot retail center at 2475 East Bay Drive, Largo for $915,000. Elliott Ross and Chris Bowers of The Ross Realty Group, Inc, represented the seller John Alnwick.
• The St. Petersburg Times leased 4,071 square feet of retail space in Cypress Creek Retail Center at Interstate 75 and State Road 54, Wesley Chapel, from Greenfield Builders. Jim Kovacs of Colliers Arnold represented the landlord. David Box of Colliers Arnold represented the tenant.
• Color Proof Software leased 3,840 square feet of flex space in Thompson Center Waters at 5455 West Waters Ave., Tampa, from First Industrial LP. Mary Clare Codd and Jeff Lanning of Colliers Arnold represented landlord.
• Wheel Resource Inc. leased 3,323 square feet of flex space in Executive Industrial Park at 6203 Johns Road, Tampa, from First Industrial LP. Mary Clare Codd of Colliers Arnold represented the landlord. Josh Dohring of The Dohring Group Inc. represented the tenant.