Commercial Real Estate Briefs
by Sean Roth | Real Estate Editor
buys 15 acres on Pine Ridge
BUYER: TT of Pine Ridge Inc. (principal: Terry Taylor), West Palm Beach
SELLER: Freeland and Schuh Inc.
PROPERTY: southwest corner of Pine Ridge Road and Whippoorwill Lane, Naples
PRICE: $15 million
PREVIOUS PRICE: $9.5 million, July 2005
LAW FIRM ON DEED: Greenberg Traurig PA, Fort Lauderdale
PLANS, DESCRIPTION: Terry Taylor's West Palm Beach-based Automotive Management Services Inc. purchased 15 acres at the southwest corner of Pine Ridge Road and Whippoorwill Lane for $15 million. Ben Freeland originally had announced plans to develop the site as the new home for Naples Nissan and his financing and Internet dealership company Mobile Internet Technologies. News reports say the land purchase also involved the Nissan dealership, but the Review was unable to confirm that fact prior to publication.
Naples Nissan is currently located at 1229 Airport Road North.
Officials with Automotive Management Services declined to discuss plans for the site. Calls to Naples Nissan were not returned prior to deadline.
Automotive Management Services owns a number dealerships, including Porsche of Naples and Jaguar Land Rover Aston Martin Bentley of Naples.
South Dakota's Summit Group
plans Fort Myers Hyatt Place
BUYER: Summit Hospitality V LLC (principal: Kerry Beokelheide), Sioux Falls, S.D.
SELLER: Florida Investments of Fort Myers Inc.
PROPERTY: southeast corner of Interstate 75 and State Road 82, Fort Myers
PRICE: $3.15 million
PREVIOUS PRICE: $1.978 million, June 2005
LAW FIRM ON DEED: The Doragh Law Firm PL, Fort Myers
PLANS, DESCRIPTION: National hotelier The Summit Group Inc. purchased 6.5 acres on State Road 82 next to Interstate 75 in The Forum at Fort Myers for $3.15 million. The Sioux Falls, S.D., developer/hotel operator plans to develop a portion of the land as a 150-room Hyatt Place hotel.
"We identified Fort Myers as an area with a lot of growth in both corporate offices and retail," says Dan Hansen, chief development officer for The Summit Group. "We also liked the idea of being part of a new growing vibrant development like The Forum."
The developer has dedicated 3.75 acres to the hotel project and is debating possible uses for the remainder of the site, including possibly selling it off for a freestanding restaurant.
The developer plans to break ground on the upscale limited-services hotel in the spring, Hansen says. The developer typically builds a hotel property in a year to 14 months.
"That will be our second Florida project," Hansen says. "We have a loft project in Jacksonville that hasn't yet broken ground. Slowdowns don't bother us. In fact ,we tend to be more aggressive when times are tough. We're well capitalized and we're not developers out to sell these projects off."
The hotelier currently owns a total of 68 hotels, according to Hansen, and has another 18 hotels in various development stages.
Monmouth Real Estate
buys Charlotte FedEx warehouse
BUYER: Monmouth Real Estate Investment Corp., Freehold, N.J.
SELLER: Regional Development Group Inc.
PROPERTY: 7569 Golf Course Blvd., Punta Gorda
PRICE: $4.1 million
PLANS, DESCRIPTION: Freehold, N.J.-based real estate investment trust Monmouth Real Estate Investment Corp. purchased a 34,624-square-foot industrial building at the Charlotte County Airport in Punta Gorda, for $4.1 million. Federal Express Corp. holds a net lease on the property through June 30, 2017.
"This acquisition brings the total square footage in our portfolio to approximately 5.9 million square feet net-leased to high-quality investment-grade tenants," Cynthia J. Morgenstern, Monmouth's executive vice president, said in a press release. "It is exciting to participate in the rebuilding of Punta Gorda, which experienced extensive hurricane damage in 2005, and to help put it back on track to become one of Florida's most beautiful and quickly developing towns."
Monmouth Real Estate Investment's equity portfolio includes 57 industrial properties and one shopping center in 23 states. In addition, the company owns a portfolio of REIT securities.
The company has made a habit of owning FedEx leased facilities in the Gulf Coast. Monmouth Real Estate Investment owns a 170,779-square-foot FedEx warehouse in Tampa and a 90,020-square-foot FedEx warehouse in Fort Myers.
• Richard Milburn Academy of Florida Inc. leased 14,322 square feet at Southwest Medical Centre Plaza II, 3800 Evans Ave., Fort Myers from Healthcare Realty Services Inc. Gates D'Alessandro & Woodyard Realtors represented the landlord.
• Community Coordinated Care For Children leased 13,986 square feet in Southwest Medical Center Plaza at 2675 Winkler Ave., suite 300, Fort Myers, from Healthcare Realty Services Inc. Gates D'Alessandro & Woodyard Realtors represented the landlord.
• LC Lee Boulevard LLC purchased a vacant restaurant parcel at 800 Leonard Blvd. N. in Lehigh Acres from Tac PPC LLC for $539,000. The new owner plans to develop a Lion's Choice restaurant in the next few months. Stephen A. Cunningham, managing director of LandQwest Commercial LLC represented the buyer, and Bob Johnston, Jerry Messonnier and Derek Bornhorst with CB Richard Ellis Fort Myers-Naples represented the seller.
• Fort Myers-based civil Engineering, land planning and development consulting service firm Quattrone & Associates Inc. has broken ground on a new office building. The 5,700-square-foot building will be located at 4301Veronica Shoemaker Blvd., near the intersection with Colonial Boulevard.
•Assembly of God-Bethlehem Ministry Inc. purchased a building at 3825 McGregor Blvd. from Gulf Coast Church of Christ in Fort Myers for $2.5 million. Nathan Sheppard of D'Alessandro Gates Woodyard represented the buyer, and Stan Stouder of CB Richard Ellis Fort Myers-Naples represented the seller.
•Alpha Omega Supplies Inc. renewed its lease for 11,700 square feet of industrial space in Metro Distribution Center at 4051 Warehouse Road, Fort Myers from BLS Holdings LLC. Stan Stouder of CB Richard Ellis Fort Myers-Naples negotiated the transaction.
•ASAP Enterprises of Sarasota, Inc. has leased 11,237 square feet of at 3048 Metro Parkway, in Fort Myers from Will Fund LTD. Stan Stouder of CB Richard Ellis Fort Myers-Naples brokered the transaction.
• Honeywell International Inc. leased 5,646 square feet of industrial space in the Southwest Florida Business Center at 7800 Drew Circle in Fort Myers from Carroll Partnership LLP. Bob Johnston, Jerry Messonnier and Derek Bornhorst, all of CB Richard Ellis Fort Myers-Naples negotiated the transaction.
• Bonita Springs-based Heatherwood Construction has completed the Kitson & Partners planning offices in Murdock Professional Center at 17841 Murdock Circle in Port Charlotte. Heatherwood performed the interior build-out of an existing 3,000-square-foot building, which incorporates a unique office layout designed as a planning center. Heatherwood constructed all 10 buildings at Murdock Professional Center. Odle McGuire Shook provided interior design services.
TA Associates fund acquires 210 Watermark
BUYER: The Realty Associates Fund VIII LP (principal: Realty Associates Fund VIII Texas Corp. and Realty Associates Fund VIII LLC), Boston
SELLER: Bradenton Tarragon LLC
PROPERTY: 210 W. Third St., Bradenton
PRICE: $24 million
PREVIOUS PRICE: $38 million, October 2005
LAW FIRM ON DEED: Stutzman Bromberg Esserman & Plifka, Dallas
PLANS, DESCRIPTION: Condo converter New York City-based Tarragon Corp. has sold its 252-unit 210 Watermark apartment complex on the Manatee River to a fund managed by Boston-based real estate equity firm TA Associates Realty for a $14 million loss. Back in October 2005, Tarragon paid $150,794 a unit for the complex.
That Bradenton property sale and a second Tarragon sale of the Knights Bridge in Orlando generated the $69.25 million Tarragon needed to satisfy its largest creditor General Electric Capital Corp. The two deals let Tarragon pay back $50 million in debt to GECC, who in turn has reinstated all the loans it made to Tarragon and its affiliates.
Tarragon also plans to sell a number of other properties in Florida and Tennessee designed to remove $270 million in debt and generate $25 million.
Calls to the complex and to TA Associates were not returned prior to deadline.
TA Associates Realty has been on property buying binge lately. The company snapped up the 63,660-square-foot Punta Gorda Crossings Shopping Center for $10.75 million. In the Tampa market, it purchased a 410,000-square-foot warehouse/distribution building in Tampa East Industrial Park, the 96,491-square-foot, class-B President's Plaza II office building and the 352-unit Bermuda Lake Apartments in Brandon. TA Associates is best known in the two-county market for buying four office buildings in the Gateway Office Park in Sarasota on July 12, 2006 for $55 million.
Changes in Latitude
buys Siesta Key Storage
BUYER: Siesta Key Storage LLC, Eufaula, Ala.
SELLER: 5148 Beach Road of Sarasota LLC
PROPERTY: 1260 Old Stickney Point Road
PRICE: $1.58 million
PREVIOUS PRICE: $639,900, April 2005
LAW FIRM ON DEED: Williams Parker Harrison Dietz & Getzen, Sarasota
PLANS, DESCRIPTION: Moving company Changes in Latitude purchased the 7,000-square-foot Cubby Hole storage facility, also formerly known as Siesta Key Storage, for $1.58 million.
"A lot of our clients need storage space so we are outsourcing business all the time to local storage facilities," says Kevin Micale, owner of Changes in Latitude. "This was an opportunity to get involved in the storage business and acquire some space that we could grow the company out of."
Because of the new facility's limited size, Micale doesn't expect the storage facility to completely eliminate the moving company's storage needs. Eventually, the new ownership plans to use part of the space as a FedEx and DHL pack and shipping center. The facility will take the name Changes in Latitude Moving and Storage.
"We'll be able to handle all our customers storage needs, their shipping and even their moving, storage and packing supplies," says Micale. "We'll probably reorganize the space to accommodate bigger pieces of furniture, but other than that we aren't planning to change it a lot."
The new ownership Siesta Key Storage LLC mortgaged the property to People's Community Bank for $1.26 million.
Corona family invests
in Peridia office building
BUYER: Corona Projects Inc. (principals: Gilberto and Graciela Corona), Sarasota
SELLER: M&S Investments LLC
PROPERTY: 3910 Golf Park Loop, Bradenton
PRICE: $1.075 million
TITLE FIRM ON DEED: Barnes Walker Title Inc., Bradenton
PLANS, DESCRIPTION: Veterinarian Gilberto Corona of Sarasota's Parkway Animal Hospital & Laser Surgery Center, and his wife Graciela purchased a 6,000-square-foot office in Peridia Office Park for $1.1 million. The five-unit building was purchased as an investment, according to Gilberto Corona.
"It's 76% occupied," Corona says. "We have just one [1,400-square-foot] unit vacant. It was just in good area, and the building was very well maintained."
Current tenants in the building include: Phillips & Jordan, Olsten Staffing, Five Points Technology Group and Cozzette Accounting Corp.
The asking rate for the vacant space is $17 a square foot triple net. Corona Projects Inc. mortgaged the property to Regions Bank for $913,750.
• In a marketing move designed to bring residential buyers off the sideline, Sam Hamad's Enterprise Associates of Sarasota LLC has introduced value guarantees for his condominium project Marquee on the Bay and townhome project Marquee en Ville. Buyers of units in Marquee on the Bay can choose to have three independent appraisals performed in either one year or two years, and the developer has committed to paying any negative equity between the sale price and the appraised value. Hamad is also offering to pay buyers of Marquee en Ville for any negative equity based on three independent appraisals within 30 days of the closing.
Marquee en Ville is located at the corner of Fruitville and Cocoanut and has five units left of its original 29.
• Arch Angel Welding & Masonry Inc. signed a two-year agreement to lease 6,206 square feet at 6620 19th St. E., unit 109, Sarasota from HJB Properties. Carl Wise of Preferred Commercial Inc. marketed the property.
• Kazimerz Waliczek purchased 6,322 square feet of general commercial land at 109 Washington Ave., Osprey from Evo Business Group Inc. Rico Boeras PA of Preferred Commercial Inc. represented the seller, and Keller Williams Realty represented the buyer.
• Manatee Mattress Max Inc. leased 6,200 square feet in the former Naples Patio building at 5115 East 53rd Ave., Bradenton from Ruth Carter. Carl Wise of Preferred Commercial Inc. marketed the property.
• The Sarasota County Health Department leased 3600 square feet at Bayou Professional Center at 1751 Mound St., Sarasota. Diane Lawson of Abbey Realty handled the transaction for the landlord, and Lori Connible of Ian Black Real Estate represented the tenant.
Sea Crest Apartments
sells for $8.2 million
BUYER: NMP Seacrest LLC (principals: Elie and Ralph Rieder), Largo
SELLER: Fernwood Apartments of Largo LLC
PROPERTY: 301 Seacrest Drive, Largo
PRICE: $8.2 million
LAW FIRM ON DEED: Mcfarlane Ferguson & McMullen, Clearwater
PLANS, DESCRIPTION: New Jersey investment group NMP Seacrest LLC, headed by Elie and Ralph Rieder, purchased the 111-unit Fernwood Apartments in Largo for $8.2 million. The complex is being renamed the Sea Crest apartments.
John Burpee, president of NAI Tampa Bay and founding chairman of the NAI Global Multifamily Group, represented both the buyer and the seller, Fernwood Apartments of Largo LLC, which is owned by Michael Stadler of Fort Lauderdale.
"This was about a 6% [capitalization rate]." Burpee says. "What attracted the buyer was the potential value of the property with some added investment."
The new buyers are looking to spend a couple million dollars, Burpee says, improving the units and the entire complex. The Rieders plan to paint the complex, add tile work, improve the landscaping and change the fencing, Burpee says.
"The complex had an about 8% vacancy at the time of sale, Burpee says. "The new owners already own about 1,000 units in the Tampa market."
Gentile Group buys
11 Wyndham properties
BUYER: The Gentile Group LLC (principals: Michael Gentile Sr., Michael Gentile Jr., Jennifer Guardian, Salvitore Italiano,), Tampa
SELLER: Wyndham Office Properties Inc.
PROPERTY: 1301 Seminole Blvd. and 11350 66th St. N. in Park Centre
PRICE: $6.475 million
SELLER: Wyndham & Associates Inc.
PROPERTY: 28059 U.S. 19 N.
PRICE: $4.75 million
SELLER: Pinebrook Manor Ltd.
PROPERTY: 3980 64th St. N.
PRICE: $3.43 million
SELLER: Richey Industrials Inc.
PROPERTY: 8800 49th St. N.
PRICE: $2.84 million
SELLER: Park Place Industrials Ltd.
PROPERTY: 6240 39th St. N. in Donald Industrial Park
PRICE: $2.74 million
SELLER: Minieri Seminole Inc.
PROPERTY: 1684 Belcher Road in Clearwater Industrial Park,
PRICE: $1.46 million
PLANS, DESCRIPTION: Clearwater-based The Gentile Group LLC acquired 11 properties from Wyndham Property Management Inc. for a total of $21.7 million. Michael Gentile Sr., president and COO of Wyndham Property Management, created The Gentile Group LLC to acquire the portfolio after officials with Wyndham decided to sell the it.
'We're not planning to do anything differently initially," Gentile says. "We're just digesting them at this point."
Wyndham Property Management is said to be scaling back its operations.
The Gentile Group mortgaged the property to Branch Banking & Trust for $19.6 million.
Two partners buy
Port Richey Comfort Inn
BUYER: Perone Properties LLC (principals; Isidoro Perone and John Fritz), Port Richey
SELLER: Patmar Inc.
PROPERTY: 11810 U.S. 19, Port Richey,
PRICE: $4.5 million
PREVIOUS PRICE: $2.6 million, February 1997
LAW FIRM ON DEED: Kent Runnells PA, Safety Harbor
PLANS, DESCRIPTION: Isidoro Perone and John Fritz purchased the 97-room Comfort Inn in Port Richey for $4.5 million.
"This kind of property is very, very hard to find," Perone says. "It is almost impossible to find property in a decent location, and we thought it was a very reasonable price."
The new owners eventually expect the sale price to equate to an 11% capitalization rate, but Perone says it's going to take hands on management and a greater financial investment to reach that rate.
Perone previously owned part of the Italian Pavilion restaurant in Derby, Conn. He sold his interest in that restaurant to his business partner/brother to enter the hotel business full time.
Over the next year, the new owners plan to resurface the parking lot and change the motel's carpeting. The new owners are also considering creating an exercise room.
• The Atlanta Business Chronicle named St. Petersburg-based developer The Sembler Co. "Atlanta's Top Commercial Retail Developer." The developer was recognized based on the number of square feet of retail space developed. The award was the seventh consecutive year Sembler has won the award.
"From January 2006 through August 2007, Sembler developed 8,410,000 square feet in the greater Atlanta metropolitan area," Jeffrey S. Fuqua, president of Sembler, said in a press release, "with 4,285,000 square feet currently under construction and another 4,125,000 square feet planned."
Recent developments include Henry Town Center Phase III, Deerfield Place, Brookhaven Place, Home Depot Austell, Georgia, Canton Market Place and Lindbergh Plaza Phase II.
• Walbro Inc d/b/a GT Covers leased 6,720 square feet of flex space in Executive Industrial Park at 6203 Johns Road, Tampa from First Industrial Realty Trust Inc. Mary Clare Codd of Colliers Arnold represented the landlord. Brian Rettig of CB Richard Ellis represented the tenant.
• Shello, LLC purchased a 5,400-square-foot office building at 1281 Court St., Clearwater, from 1281 Court Street LLC for $805,500. Pat Marzulli and Carol Warren of Colliers Arnold represented the seller, and Mary Pettinger of Good Life Realty represented the buyer.
• Ames renewed its lease with WSI Sunstate Industrial IV LLC for 2,136 square feet of flex space in Sunstate Commerce Center at 4893 W. Waters Ave., Tampa. Scott Altieri of Colliers Arnold represented the landlord.