Commercial Real Estate Briefs

By Business Observer Staff
| 6:00 p.m. August 17, 2007
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Charlotte–Lee–Collier

by Sean Roth | Real Estate Editor

LEE-COLLIER

McGarvey Development

plans large office park

BUYER: Three Oaks Regional LLC (McGarvey Development Co.), Fort Myers

SELLER: Chico's Retail Services Inc.

PROPERTY: southwest corner of Alico Road and Three Oaks Parkway

PRICE: $34.39 million

PREVIOUS PRICE: $32.39 million, November 2005

LAW FIRM ON DEED: Sheppard Brett Stewart Kinsey & Hill PA, Fort Myers

PLANS, DESCRIPTION: Fort Myers-based McGarvey Development Co. purchased 105 acres at Alico Road and Three Oaks Parkway near Interstate 75 for $34.39 million with plans to develop one of the largest office complexes in Southwest Florida. Chico's sold the Three Oaks property to McGarvey Development after the specialty retailer decided to shelve its plans for a new corporate campus in favor of developing more space near its existing Metro Parkway headquarters.

McGarvey Development plans to develop 750,000 square feet of office space and 140,000 square feet of retail space on the site, in what it is calling Three Oaks Regional Center.

The project is designed around three large 180,000-square-foot buildings - six stories over one level of parking - near Three Oaks Parkway with other smaller buildings laid out around them.

"We already have our [Development of Regional Impact] approvals and approvals from the Southwest [Florida] Water Management District," says Bill Price, senior vice president for McGarvey Development. "We'll be filing for a development order later this month. We're hoping to start in the second quarter of 2008. These are going to be major tilt-up structures so they will take about a year to build. It's probably going to take seven years to build the entire development."

McGarvey Development will likely sell off the retail portion of the development, Price says. Marketing efforts for the project should start in the first quarter.

"We believe that Fort Myers is on the map now for corporate headquarters," Price says. "Fort Myers now has a population of more than half a million. Florida Gulf Coast University is up and running."

McGarvey Development's Three Oaks Regional LLC mortgaged the land to the former owner, Chico's Retail Services, for $25.8 million.

Hotel joint venture

buys Naples Courtyard

BUYER: OpRock Naples Fee LLC, (principal: OpRock Naples Mezz LLC), San Francisco

SELLER: Marpalm of Florida Inc.

PROPERTY: 3250 9th St. N., Naples

PRICE: $17.91 million

PREVIOUS PRICE: $8.16 million, March 1997

LAW FIRM ON DEED: Paul Hastings Janofsky & Walker LLP, Los Angeles

PLANS, DESCRIPTION: As we reported last week in the Sarasota-Manatee real estate section, Delray Beach-based Ocean Properties Ltd. is selling a portfolio of 24 hotels in Maine, New Hampshire, Massachusetts, South Carolina, Georgia and Florida to a new company it owns with Rockwood Capital LLC.

This week the closings hit Naples, as the joint company, OpRock, acquired the 98-room Courtyard By Marriott Naples. Last week, the Review reported that OpRock had acquired the Holiday Inn Riverfront in Bradenton and the Holiday Inn Lido Beach in Sarasota for a deed transfer value of $40 million.

The sale should not change operations or management at the hotel. The private real estate investment firm Rockwood Capital manages 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 and Lido Beach Resort.

4-M Properties, Fireservice plans industrial buildings, HQ

After sitting on a 12-acre parcel in Southwest International Commerce Park for about five months, 4-M Properties FLP and its partner Fireservice USA, have started work on two warehouse buildings with plans to also develop a new corporate headquarters for the Fort Myers-based disaster-cleanup firm Fireservice Disaster Kleenup.

The speculative warehouse space, which will total 122,000 square feet, is being marketed for lease for $7.50 per square foot triple net.

4-M Properties acquired the two parcels - 14560 Global Parkway and 14660 Jetport Loop, Fort Myers - from Southwest Florida Investment Property LLC for $3.74 million back in March.

Jerry Messonnier and Bob Johnston of CB Richard Ellis in Fort Myers are the leasing agents for the space. The warehouse building shells are scheduled for completion in the first quarter. The tilt-up buildings can be subdivided up to 25,000 square feet.

Work on the two-story, 15,000-square-foot new Fireservice facility is expected to start after the other two buildings are completed.

The 200-acre Southwest International Commerce Park is located south of Daniels parkway between Treeline Avenue and Interstate 75.

"Our market has matured to the point where large, national companies are locating satellite distribution facilities to serve Charlotte, Lee and Collier counties from this central location," Johnston said in a press release.

Etc...

• Avalon Engineering designed the building. Construction is scheduled for completion in February.

• RDM of SW Florida leased 6,000 square feet of retail space in the Langford Building Historic Downtown, at 2278 1st St. in Historic Downtown Fort Myers. Bob Pekol of VIP Commercial-TCN Worldwide negotiated the lease transaction.

• DeAngelis Diamond Construction Inc. has started construction on four projects: the 17,000-square-foot Golden Gate Library expansion in Naples that is scheduled to be completed summer 2008; the 93,500-square-foot, two-story Great Space climate-controlled storage facility in Bonita Beach Road in Bonita Springs; the three-story, 109,500-square-foot climate-controlled storage facility Lock Up on Pipe Boulevard in Naples; and the 5,900-square-foot Collection at Vanderbilt in Naples.

• Fort Myers-based J.L. Wallace Inc. started construction on a 743-square-foot guardhouse at River Strand Golf and Country Club in Heritage Harbour at 170 River Strand Blvd. Fawley Bryant Architects Inc. designed the building.

• DeAngelis Diamond Construction Inc. is nearing completion on the 289-unit, eight-building The Residences at Coconut Point in Estero.

• YMCA of the Palms Inc. purchased 6,000 square feet of retail space in the Teddy Bear Museum at 2611 Pine Ridge Road, in Naples from FPH Family Limited Partnership Ltd. for $2.25 million. Larry Foster and Bill Young, both of CB Richard Ellis, Fort Myers-Naples, brokered the transaction.

• 12700 University Drive LLC announced plans to develop a 25,500-square-foot, two-story medical or professional office building at 12700 University Drive in Fort Myers. Krise Commercial Group is the exclusive marketing agent.

• Fort Myers-based J.L. Wallace Inc. has completed construction on the sports amenities at Bella Terra, a new residential community at 20070 Bella Terra Blvd., Estero. The project included construction of four hard-surface tennis courts, two sand beach volleyball courts, one regulation basketball court with two smaller courts, a regulation in-line skating rink and two regulation bocce courts.

• Morris McGregor LLC of Fort Myers has sold 1.86 acres at the corner of McGregor Boulevard and John Morris Road to RBI Holdings for $710,000. Cliff Wiersma, CCIM of Market America Realty & Investments Inc. represented the seller in the transaction, and Ed Bonkowski represented the buyer.

• Brad and Melloe Nash purchased 0.61 acres at 1537 Brantley Road, Fort Myers from FM & PR LLC for $300,000. Eric Lahaie of Market America Realty & Investments Inc. negotiated the transaction.

• Brantlee LLC of Fort Myers purchased a 3,000-square-foot Brantley Court for $712,500. The building is located at 12401 Brantley Commons Court. Gregg A. Fous of Market America negotiated the transaction.

• Gates has completed construction of Challenger Middle School and Patriot Elementary School on the same 30-acre site in Cape Coral. The schools, which totaled 284,618 square feet, were constructed simultaneously in 13 months. BRPH Architects designed Challenger Middle School, and RS&H Architects designed Patriot Elementary School.

• Global private equity firm The Carlyle Group and real estate development firm Cameratta Properties L.P. plan to jointly develop a 5,700-acre master-planned community in DeSoto County. The proposed nine-square-mile parcel, known as the 2 x 4 Ranch, is expected to consist of more than 10,000 homes, a town center, government offices, retail stores, commercial office space, schools, houses of worship, a golf course, recreation facilities, athletic fields and walking trails. The property is located south of Arcadia, along two miles of State Road 31 frontage.

"This is a rare development opportunity that is made possible by our proven relationship with Cameratta," Robert G. Stuckey, managing director of The Carlyle Group and head of the U.S. Real Estate team, said in a press release. " Demand for planned communities is on the rise, as people seek out environments that combine housing, shopping and recreation. We are confident this development will be well received by the community."

Cameratta purchased the 5,700-acre tract in April 2006 from McCarlton Partners Ltd. During the next 24 months, Cameratta and Carlyle will plan the development and work to permit the development.

• Bonita Springs-based Heatherwood Construction has started restoration work on a historical building in the River District as part of the area's ongoing revitalization. The builder is renovating the exterior of the office condominiums at First Street Center. The three-story building, located at 2401 1st St., was originally constructed in the 1950s.

As part of the project, Heatherwood will construct exterior improvements to the building and the surrounding landscape. Heatherwood also will upgrade external visual features, modify the facade and install a new elevator tower.

• Bonita Springs-based Alexander Building Corp. has completed remodeling the Eileen Fisher store on Sanibel Island. The 1,993-square-foot store was completely remodeled with a new HVAC systems, lighting, flooring, painting and store fixtures. Alexander Building was also awarded the contract for Steel Magnolia's II, a beauty and hair styling salon to be located in The Shoppes at Verandah. Construction is scheduled for completion by the end of September.

SARASOTA-MANATEE

Pennsylvania fund buys Tuscany Apartments

BUYER: CMS Cos., Wynnewood, Penn.

SELLER: Sherwood Holdings, LDT

PROPERTY: 6001 and 6021 Medici Court and University Parkway, Sarasota

PRICE: $52.5 million

PREVIOUS PRICE: $1.5 million,

PLANS, DESCRIPTION: Wynnewood, Penn.-based private equity fund CMS Cos. purchased the 386-unit Tuscany Apartments in Sarasota for $52.5 million or $136,010 per unit. The complex on the south side of University Parkway is about a mile from Benderson Development Co.'s planned 1.5-million square foot lifestyle center University Town Center.

"That was really the determining factor," says Jeff Shumaker, vice president of real estate for the CMS Cos. "The national and local economics and demographics in the Sarasota area really make sense. There's a lot of long-term strength there. We really liked the University Parkway area in particular, but that [proposed development] really tipped the scales."

At the time of the purchase the apartment complex was 95% occupied.

"That's pretty good particular in these times," Shumaker says. "We see it as a good long-term hold. We plan to continue to operate it as a rental property. We may do a little renovation particularly to the common areas, some exterior work and to the signage."

Jamie May, chairman and CEO of JBM Realty Advisors, was the primary advisor/broker for the sale.

The CMS Cos. also owns the Colonial Grand at Palma Sola apartment complex in Bradenton.

Critical Path Development

planning Toledo Blade Center

BUYER: 163 Siesta Drive LLC (principals: Wendy Mack, William Dooley and Kenneth Smith), Sarasota

SELLER: Next Nine Golf and Grill Inc.

PROPERTY: 1201 Woodhaven Drive, North Port

PRICE: $3.2 million

PREVIOUS PRICE: $1.45 million

LAW FIRM ON DEED: Fergeson, Skipper, Shaw, Keyser, Baron & Tirabassi, PA, Sarasota

PLANS, DESCRIPTION: Sarasota-based developer Critical Path Development purchased about six acres at the southwest corner of Toledo Blade Boulevard and Woodhaven Drive for $3.2 million and plan to develop it as a 41,500-square-foot neighborhood retail center with outparcels. The project is being called Toledo Blade Center.

"They're planning three [main] buildings of retail along with two outparcels," says Loyd Robbins, of Harry E. Robbins Associates Inc., the broker in charge of marketing the development. "One of the outparcels is designed for a 4,500-square-foot bank building, and the other outparcel will most likely be a convenience store of drug store."

The developer is currently permitting the project and is expected to break ground towards the end of the year.

The outparcel sites are being marketed for sale in the range of $25 per square foot. Units in the main retail buildings will vary in size from 1,200 to 1,500 square feet and are being listed for a rental rate of $18 per square foot triple net.

DooleyMack Constructors Inc., which shares officers with Critical Path Development, will act as the general contractor.

Etc...

• Fidelity Homes was awarded a certificate as a Florida Friendly Community by Florida Yards and Neighborhoods for its University Groves project. Fidelity Homes has integrated drought-tolerant vegetation, non-invasive plant life, rain collection devices, minimal grass use, and efficient maintenance practices into University Groves. Fidelity Homes is building 68 single-family homes and 78 townhomes in University Groves. Single-family homes are priced from the $390s and range in size from 1,900 to more than 3,000 square feet.

• Bonita Springs-based Heatherwood Construction has been selected to build the planning offices of Kitson & Partners at 17841 Murdock Circle in Port Charlotte. The builder completed the original headquarters for Kitson & Partners in the Murdock Professional Center last year. Heatherwood will perform the interior build-out of an existing 3,000-square-foot building, which will be designed to function as a planning center. Olde McGuire Shook provided interior design services.

• Awareness Communications Inc. has subleased 8,655 square feet of space from ADP Screening for two years at 5632 Bee Ridge Road, Sarasota. Janet K. Robinson of Abbey Realty LLC and Anthony Homer of Hembree & Associates handled the transaction.

TAMPA BAY

Koll Development nears Tampa Intellicenter start

BUYER: Intellicenter Tampa Investments LLP, Tampa

SELLER: Verizon Data Service Inc.

PROPERTY: 12653 Telecom Drive, Temple Terrace

PRICE: $7.5 million

PREVIOUS PRICE: $5.1 million, January 1990

LAW FIRM ON DEED: Holland & Knight LLP, Tampa

PLANS, DESCRIPTION: Dallas-based commercial developer Koll Development Co. purchased several acres in Tampa Telecom Park for $7.5 million with plans to develop two Intellicenter office buildings. Construction on the first Intellicenter, a four-story, 200,000-square-foot office building, is scheduled to start later this month.

Spokesmen for Koll Development say the first building will be the developer's sixth Intellicenter and the first Leadership in Energy and Environmental Design Green certified commercial office building in Temple Terrace. The first building is scheduled for completion in Sept. 2008. No start date has been set for the second Intellicenter in Tampa Telecom Park.

"Tampa meets all the criteria we look for when selecting a market for an Intellicenter - low office vacancy rates, strong job growth and rental rate appreciation," Larry Wilson, president of KDC's Southeast division, said in a press release. "The ideal location in Telecom Park, along the rapidly growing Interstate 75 corridor, makes Intellicenter-Tampa an accessible location for corporate tenants wanting a flexible and healthy work environment."

Koll Development's Intellicenter brand emphasizes the use of high-efficiency green office building. Each building uses the same design template with 150,000 to 200,000 square feet of space and is targeted principally at larger, multi-national companies. The company has reportedly identified another 20 locations for Intellicenters with three currently under development in Charlotte, N.C.; Houston; and Riverside, Calif.

Forum Studio Inc. and Gensler are the project architects and The Beck Group will serve as contractor. Jimmy Garvey and Lara McGinty of CLW Real Estate Services Group are the leasing agents for Intellicenter-Tampa.

Koll Development mortgaged the property to Bank of America for $46.04 million.

Largo's Patel family

buys New Port Richey hotel

BUYER: Rushi Hospitality LLC (principals: Narendra, Jayesh, Jayantilal and Shok Patel), Largo

SELLER: Lodge New Port Richey Inc.

PROPERTY: 6523 U.S. 19, New Port Richey

PRICE: $3.75 million

TITLE FIRM ON DEED: Alday Donalson Title, Palm Harbor

PLANS, DESCRIPTION: The Patel family, which also owns the Swan Motel in Tampa, purchased the 118-unit Valu-Lodge of New Port Richey for $3.75 million. Calls for comment were not returned. The extended-stay motel brand also runs a property in Panama City.

Rushi Hospitality mortgaged the motel to GTE Federal Credit Union for $3.15 million.

Skin treatment center

expands, starts classes

BUYER: Tampa Laser Touch LLC (principal: Rita Moroz-Kruse), Tampa

SELLER: Lexington Office Solutions LLC

PROPERTY: 11309 Countryway Blvd., Tampa

PRICE: $1.1 million

PREVIOUS PRICE: $967,000, November 2005

TITLE FIRM ON DEED: Westchase Title LLC, Tampa

PLANS, DESCRIPTION: After leasing about 2,000 square feet in Countryway in Westchase Professional Center for five years, Tampa Laser Touch LLC purchased the entire 4,000-square-foot building for $1.1 million.

"We bought it to give us room to open a school for laser and electrolysis training," says Rita Moroz-Kruse, director of Tampa Laser Touch.

The company uses a high-energy, long-pulse laser for hair and tattoo removal along with Botox and other skin treatments.

Tampa Laser Touch LLC mortgaged the one-story building to First National Bank for $563,000.

Etc...

• The Donnelly Law Firm leased 2,312 square feet of office space in Park Tower at 400 North Tampa Street, Tampa, from Sterling American Property Inc. Claire Calzon of Colliers Arnold negotiated the transaction.

• US Industrial REIT purchased the about 480,000-square-foot FirstPark@Bridgewater in Lakeland from FirstCal Industrial LLC. Jack Fraker and Randy Baird of CBRE's Dallas Institutional Group collaborated with Ginger Gelsheimer, Rick Klepal and Brian Rettig of CBRE's Tampa office to negotiate deal.

• The commercial division of developer Crescent Resources LLC will relocate to expanded offices in the Bayshore Center Building at 2909 W. Bay-to-Bay Blvd., Tampa by Sept. 1. Sharon Bragg, leasing associate at Crescent Resources in Tampa, said the new facilities offer more square footage than Crescent's former headquarters at 2202 N. West Shore Blvd. and will allow for expansion of its Tampa operations. Crescent is currently developing Corporate Center Four at International Plaza and Crosstown Center One at Falkenburg and U.S. 301.

• Fortress Development LLC purchased a one-acre retail outparcel at Cross Creek Commons at Cross Creek Boulevard and Morris Bridge Road, Tampa from Buckley Shuler Properties for $875,000. Ben McLeish of Colliers Arnold represented the seller.

• Apparel Distribution Center leased 12,326 square feet of flex space in Thompson Center II at 5709 Johns Road, Tampa from First Industrial LP. Mary Clare Codd of Colliers Arnold represented the landlord.

• Miller/ING leased 6,332 square feet of office space in Park Tower at 400 N. Tampa St., Tampa from Sterling American Property Inc. Claire Calzon and Jeff Tolrud of Colliers Arnold represented the landlord, and Jason Carros of Stoltz Realty represented the tenant.

• Think Partnership leased 3,644 square feet of office space in Corporate Square at 28050 U.S. 19 N., Clearwater, from Corporate Square LLC. Alan Feldshue of Colliers Arnold negotiated the transaction.

• Child Protection UK Ltd leased 2,047 square feet of office space in Roosevelt Office Center at 15500 Roosevelt Boulevard, Largo from AA Shuluga Group Inc. Melanie Jackson of Colliers Arnold negotiated the transaction.