Commercial Real Estate Briefs

By Business Observer Staff
| 6:00 p.m. August 29, 2008
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Tampa Bay-Lakeland

COMMERCIAL REAL ESTATE tampa bay by Sean Roth | Real Estate Editor

Medi-Weightloss Clinics buys new headquarters

BUYER: EJRC Hyde Park Avenue LLC (principal: Edward Kaloust), Tampa

SELLER: Bayfair Associates LLC

PROPERTY: 509 Hyde Park Ave. and a parking lot, Tampa

PRICE: $2.7 million

PREVIOUS PRICE:$2.75 million, January 2006

TITLE FIRM ON DEED: Tampa Title Co., Tampa

PLANS, DESCRIPTION: Tampa-based Medi-Weightloss Clinics LLC purchased a 14,350-square-foot office building near Bayshore Boulevard for $2.7 million, equal to an average of $188 a square foot. The building is planned as the new corporate headquarters for the medically supervised weight-loss franchise business, which is currently leasing about 5,000 square feet on two floors of an office building on Harbour Island.

"We've had our corporate offices here since we started in 2004," says Joshua Tahan, a spokesperson for Medi-Weightloss Clinics. "But after several venue changes and ending up split between floors, we went out looking for a building that could better suit us and accommodate our growth. We open up several clinics each year, and this building means we have room for a training room with better equipment."

Along with the additional office space, the building has the advantage of being in historic Hyde Park area, which is also near the home of Medi-Weightloss Clinics founder/CEO Ed Kaloust.

Medi-Weightloss Clinics is scheduled to move in the fall.

The purchase entity EJRC Hyde Park Avenue LLC mortgaged the property to Progress Bank for $ 3 million.

Apartment investor Mallah

buys Oceanside Apartments

BUYER: Oceanside Senior Apartment LLC, Largo

SELLER: Oceanside Estates Associates Ltd.

PROPERTY: 6700 102nd Ave. N., Pinellas Park

PRICE: $4.5 million

PREVIOUS PRICE: $3.22 million

PLANS, DESCRIPTION: Businessman/investor Ben Mallah of Largo continues to add to his growing portfolio of Tampa area apartments. Oceanside Senior Apartment LLC, an investment group headed by Mallah purchased the three-story 104-unit Oceanside Apartments in Pinellas Park from the Light-stone Group for $4.5 million or $43,269 a unit. The 80,797-square-foot apartment complex is a U.S. Department of Housing and Urban Development senior property. The property was 100% occupied at the time of its sale. Mallah targets distressed apartment properties with a particular focus on those that have efficiency issues or require management improvements.

John Burpee, broker president of NAI Tampa Bay handled the transaction.

"This deal is very reflective of current market trends and valuations," Burpee said in a press release. " It is a back to basics, cash is king market. We had both a sophisticated buyer and seller that understood the true value of the deal was based on actual in place income and not a project cash flow analysis." In today's market you only get credit for what you can prove not what you wish for."

Mallah owns at least 10 Florida apartments in Orlando and Tampa and two large complexes, with about 1,000 units, in Texas. Mallah-headed companies have acquired the 140-unit Castilian Lake Club apartment complex in Largo, 232-unit Altamonte Apartments, North Grady Apartments, Marquis Apartments and the Cedar Trace Apartments in Tampa and DeSoto Village Apartments in Bradenton.

Etc...

• Leaders Furniture leased 4,800 square feet of space at 11360 Cleveland Ave. Fort Myers from FM Holdings LP. Scott Miller of CB Richard Ellis, Fort Myers-Naples brokered the transaction.

• Naples-based Herman – Strackbein Construction Inc. completed the 11,000-square-foot renovation of The Keg Steakhouse & Bar at The Galleria at Vanderbilt in North Naples. On the space of the former Sanibel Steakhouse, HSC constructed an outdoor bar and seating area surrounding an outdoor fireplace, split a dining room with a fireplace, wine cellar and kitchen. The Naples restaurant is the first Florida location for the Vancouver based restaurant group.

• Mortgage Contracting Services, a preservation and inspection services provider, has significantly increased its office space in Dallas and Tampa. MCS doubled its office space and moved the corporate headquarters to the Bank of America tower in downtown Tampa. The company's Dallas operations also doubled its square footage. Thus far in 2008, MCS has hired about 92 employees. In addition, MCS has broadened its array of services to include additional REO activity and asset disposition services.

• J. Raymond Construction Corp. has awarded Fort Myers-based Eagle Concrete Systems a contract to complete concrete and masonry work for Six Mile Cypress Retail 100, a new retail center located at 8291 Dani Drive, Fort Myers. Eagle will provide concrete pads, footing, slab and walls for the 15,995-square-foot building. The Scott Partnership provided the design.

Lutgert Cos. renovating

Village on Venetian Bay

Naples-based The Lutgert Cos. has started construction on its $4-million renovation of the 115,000-square-foot specialty retail center The Village on Venetian Bay. The project, led by the firm of Boran Craig Barber Engel Construction, is scheduled to be substantially complete by the end of 2008.

The Village will remain open throughout the renovation with most of the extensive work being performed during off hours.

The renovation will include the installation of new porcelain and stone tile flooring, repainting of buildings, decorative railings and improved lighting. In addition to the architectural enhancements, there will be a new and expanded public gathering space, including a fountain and landscaped vista.• The U.S. Green Building Council has opened its 81st chapter in Fort Myers. The new chapter will be named the Southwest Florida Branch of the Gulf Coast Chapter, a branch of the Tampa-based Florida Gulf Coast Chapter.

• Workplace Resource of Southwest Florida leased 3,652 square feet of office space at 8771 College Parkway, building II in Fort Myers from Medsup Development LLC. Stan Stouder and Randal Mercer, both of CB Richard Ellis, Fort Myers-Naples brokered the transaction

• The law firm Porter Wright Morris & Arthur LLP plans to relocate its local offices to The Mercato, a lifestyle center in Naples. Porter Wright will occupy 14,000 square feet in an office building that is scheduled to open in 2009.

• with rendering

Construction has started on Dolphin Plaza, a new neighborhood shopping and dining center at the northeast corner of Santa Barbara and Davis Boulevards in Naples. The development will feature 133,000 square feet of retail, restaurant and office space. The plaza, which is being developed by Crifasi Enterprises, will feature a 40,000 square-foot anchor. Richard L. Bowen and Associates is the project architect, and Phoenix Associates of South Florida Inc. is the general contractor. Construction is scheduled to be complete by late summer of 2009.

• LA Fitness has opened a 45,000-square-foot center in Ram's Spring Plaza, a 199,992-square-foot shopping center located at the southeast corner of U.S. Highway 41 and Bonita Beach Road in Bonita Spring.

• Naples-based Herman ▪ Strackbein Construction Inc. completed the 11,000-square-foot renovation of The Keg Steakhouse & Bar at The Galleria at Vanderbilt in North Naples. On the space of the former Sanibel Steakhouse, HSC constructed an outdoor bar and seating area surrounding an outdoor fireplace, split a dining room with a fireplace, wine cellar and kitchen. The Naples restaurant is the first Florida location for the Vancouver based restaurant group.

• Trak America leased 2,395 square feet of office space at 999 Vanderbilt Beach Road, Suite 605, Naples from FTC Naples LLC. Clint Sherwood of Investment Properties Corp. negotiated the transaction.

Apartment investor Mallah

buys Oceanside Apartments

BUYER: Independence Realty-Tampa Office/Flex LLC (principals: Jerome Block and David Wilshin) and Richard M. Brand LLC (principals: Jerome Block and Richard Brand), Princeton, N.J.

SELLER: Musa at Brandywine LLC, MGSP Brandywine LLC, Joel-Min LLC, Ramaekers Brandywine LLC, Bourak Brandywine LLC, Sosin Brandywine LLC, Minor Brandywine LLC, TSL Brandywine LLC and JDL Brandywine LLC

PROPERTY: 3801 and 3803 Corporex Park Drive, Tampa

PRICE: $9.23 million

PREVIOUS PRICE: $6.2 million, April 2005

LAW FIRM ON DEED: Stearns Weaver Miller Weissler Alhadeff & Sitterson PA, Fort Lauderdale

PLANS, DESCRIPTION: Princeton, N.J.-based Independence Realty-Tampa Office/Flex LLC and Richard M. Brand LLC, headed by Jerome Block, Richard Brand and David Wilshin, have made another major purchase in the Corporex Park in Tampa. The two companies, which both include Block as an officer, purchased the two-building Brandywine Business Center, housing a total of 77,476 square feet of flex space, from The Leder Group for $9.23 million or the equivalent of $119 a square foot. The same two-company group acquired three buildings in Corporex Plaza (3902 and 3904 Corporex Park Drive) and the two-building President's Plaza on George Road for $15.07 million earlier this year.

As in the earlier transaction, Douglas Mandel and Ben Holzhauer in Marcus & Millichap's Industrial Properties Group's office in Fort Lauderdale represented the seller, and Bruce Harris and the Chicago office of Marcus & Millichap represented the buyer. The buying companies are described as a single private partnership that wants to remain anonymous.

Combined the seven buildings give the buyer a total flex portfolio of 213,294 square feet.

Units in the concrete-block Brandywine Business Center range in size from 777 to 13,488 square feet.

COMMERCIAL REAL ESTATE lee-collier by Sean Roth | Real Estate Editor

BUYER: Car Wash 10101 LLC (principal: David Stevens), Naples and GF Properties of Naples 2 LLC (principal: Guy Fracasso), Naples

SELLER: 102 Development Co. LLC (1/2 interest) and RAR-1 LLC (1/2 interest)

PROPERTY: 10101 Tamiami Trail N. and a portion of north Tamiami Trail, Naples also known as lots 9 and 10, Naples Park, unit 5

PRICE: $1.24 million

PREVIOUS PRICE: $535,200, March 2005

LAW FIRM ON DEED: Goodlette Coleman Johnson Yovanovich & Koester PA, Naples

PLANS, DESCRIPTION: Commercial broker David Stevens of Investment Properties Corp. and Guy Fracasso purchased an eight-bay self-service car wash on half an acre on Tamami Trail between Vanderbilt Beach and Immokalee roads for $1.24 million. Stevens handled the transaction.

"A client of mine has been doing some passive real estate investing," Stevens says. "We were motivated to buy it by a 1031. Another client of mine owned the property and was interested in selling it because of the operating requirements. It requires someone skilled in the mechanical stuff and involved doing things like empting the change machines. Guy's son had the time and background to operate it."

The new owners are planning to add credit card readers in the near-term, and later on, they may add an automated car wash bay or two.

"The business is still producing a fair return," Stevens says. "Plus its very well located in a good area for commercial zoned land. So we also feel the underlying land value is there as an investment. The only fundamental change is that now I love love-bugs."

The partners mortgaged the property to Huntington National Bank for $759,950.

Coral Gables banker

buys St. Pete warehouses

BUYER: Florida Seafood Properties St. Pete LLC (principal: Tom Wood Jr.), Coral Gables

SELLER: Sigma International Inc.

PROPERTY: 1501 and 1533 Third St. S., and 314 15th Ave. S., St. Petersburg

PRICE: $2 million

LAW FIRM ON DEED: The Hart Law Firm, Coral Gables

PLANS, DESCRIPTION: Florida Seafood Properties St. Pete LLC, an investment group headed by Tom Wood Jr. president of the Coral Gables-based mortgage banking firm Thomas D. Wood and Co., purchased a complex of buildings housing about 50,000 square feet of freezer warehouse space in St. Petersburg for $2 million. The investment firm has leased the buildings to Key West Fresh Frozen, a seafood fishery that plans to start fishing from Madeira Beach.

"We knew they were looking for a location on the West Coast," Wood says. "We're a big mortgage banking company, but we buy real estate from time to time based on the opportunity. We bought this building relatively cheap. You couldn't replace it for what we paid; you can't build freezer space for $100 a square foot."

Further, Wood felt the location of the buildings was also desirable because of the growth of All Children's Hospital and University of South Florida nearby.

Investment group buys

Old Dixie Highway RV Park

BUYER: Old Dixie R. V. Park LLC (principal: Charles Hogg), Hudson

SELLER: George Roberts, Trustee, Guardian

PROPERTY: 13914 Old Dixie Highway, Hudson

PRICE: $1.12 million

PREVIOUS PRICE: $400,000, May 2003

LAW FIRM ON DEED: Booth & Cook PA, Port Richey

PLANS, DESCRIPTION: Old Dixie R. V. Park LLC, a family business headed by Charles Hogg formerly of Spring Hill, purchased the 36-space Old Dixie Highway RV Park near U.S. 19 in Hudson for $1.12 or the equivalent of $30,983 a space.

Hogg says the new ownership, which previously owned other RV parks, plans to improve upon the on-site management.

"The former owners did a lot [of improvements] when they bought it," Hogg says. "We're just planning to improve upon what they did. Now, we just want to keep everybody happy, including the county and law enforcement. We're eventually planning to put up a fence along U.S. 19."

The RV Park features showers and laundry facilities.

The purchase entity Old Dixie R. V. Park LLC mortgaged the property to the seller for $1 million.

Canberra Investments adds

to White Lake park holdings

BUYER: Canberra Investments LLC (principal: Peter Radno), Naples

SELLER: Smarge Properties LLC

PROPERTY: 3600 Shaw Blvd., Naples

PRICE: $750,000

PREVIOUS PRICE: $610,000, October 2007

LAW FIRM ON DEED: Cheffy Passidomo Wilson & Johnson LLP, Naples

SELLER IN QUIT CLAIM DEED: Radno Investment Holdings LLC

PROPERTY: lot 3, White Lake Corporate Park, Naples

PRICE: $100

PREVIOUS PRICE: $675,900, March

LAW FIRM ON DEED: Michael A. Baviello Jr. PA, Naples

PLANS, DESCRIPTION: An investment group headed by Peter Radno Sr. of Naples purchased 1.51 acres of industrial land in White Lake Corporate Park for $750,000. In a quit-claim deed, the same buyer transferred a 1.68-acre parcel next door into the same ownership group, Canberra Investments, giving it a total of 3.2 acres of contiguous land running along Shaw Boulevard.

Radno declined to comment on the purchase and his plans for the property.

Canberra Investments LLC mortgaged the property at 3600 Shaw Blvd. to The Royal Palm Bank of Florida for $1.07 million. Bill Gonnering, and Christine Martin of Investment Properties Corp. negotiated the purchase.

Etc...

• Creative Contractors Inc. completed construction of the Avila Golf and Country Club in Tampa for Sierra Properties for $3.74 million. FleischmanGarcia Architects of Tampa was the project architect .

• Creative Contractors Inc. completed construction of the Lakes of Mt. Dora Clubhouse for $4.68 million and Heritage Clubhouse in Leesburg for $1 million both for Pringle Development. The architect for these projects is Burke, Hogue & Mills Associates of Lake Mary.

• Creative Contractors Inc. completed construction of the Venetian Golf Clubhouse in Venice for WCI Communities for $6.88 million. Chris Consultants of Irving, Texas, was the architect.

Pennsylvania anesthesiologists

buy Marco Island building

BUYER: Jay Soo Jung and Dennis Kwak Chyung, Quakertown, Pa.

SELLER: RCB Bank USA successor by merger/acquisition to Community Bank of Naples NA

PROPERTY: 815 Bald Eagle Drive, Marco Island

PRICE: $1.3 million

PREVIOUS PRICE: $416,000, February 2004

LAW FIRM ON DEED: Paulich Slack & Wolff PA, Naples

PLANS, DESCRIPTION: Pennsylvania area anesthesiologists Jay Soo Jung and Dennis Kwak Chyung purchased a new, 8,400-square-foot two-story medical office building north of Collier Boulevard for $1.3 million. Naples-based Poteet Properties Inc developed the building earlier this year and will stay on to market the space for lease. Heatherwood Construction Co. was the general contractor for the project.

Units in the development will start at 1,000 square feet and are being listed for $18 to $20 a square foot, triple net.

"The number one thing is that this is zoned medical, and there is a shortage of that on the island right now," says Bill Poteet of Poteet Properties. "It would also make a great bank location or real estate office especially on the first floor, which has 2,900 square feet."

Jung and Chyung mortgaged the property to Wachovia Bank for $1 million.

sarasota-manatee by Sean Roth | Real Estate Editor

Arlington Garden gets

rehab, new ownership

BUYER: Arlington Condominium Developers LLC (principals: Jimmy Driggers and Carl Heinsman), Sarasota

SELLER: APBR Inc. (parcel 1) and Four Q LLC (parcel 2)

PROPERTY: 2086, 2062 and 2040 Arlington St., Sarasota

PRICE: $1.65 million

PREVIOUS PRICE: $575,000, March 2006; $1.3 million, January 2005 and $429,400, March 2004

LAW FIRM ON DEED: Betterton Tyler & Gates LLP, Sarasota

PLANS, DESCRIPTION: Sarasota businessman Jimmy Driggers has bought out several partners in the five-building Arlington Gardens apartment complex across Tamiami Trail from Sarasota Memorial Hospital in downtown Sarasota and added another investment partner Carl Heinsman of Duluth, Ga. in a transaction valued at $1.65 million. The ownership change comes as Driggers completed more than $800,000-worth of rehab on the 23-unit property and planned to start marketing the property.

Driggers had originally started the 15-month renovation of the property with plans to combine the improved property with a future development on two lots he and partners owns next door. But with demand for condominiums at a low, he's shelved that multi-family or office project and plans to re-release Arlington Gardens as a rental.

After gutting the Arlington Gardens, the complex was fitted with new concrete-poured walls, plumbing, bathrooms, landscaping, fixtures cabinetry, railing, roofs, appliances, air-conditioning systems and in-unit washer and dryers and the parking lot was repaved.

"I plan on keeping it for the long-term," Driggers says. "I grew up in Sarasota, and one of the things I always noticed was there was never enough nice affordable housing ... and by affordable I mean less than $900. We bought them so cheap years ago that they're still cheap even after putting this money into them."

The one and two-bedroom units are being listed for $775 to $875 a month.

Greenberg & Associates Inc. oversaw the renovation and is working with Jacqui Pepper of Zing Properties to coordinate marketing the units.

The new ownership group Arlington Condominium Developers LLC mortgaged the property to The Bank of Commerce for $1.65 million.

Lowe's buys Sarasota land,

for Palmer Ranch store

BUYER: Lowe's Home Centers Inc., Mooresville, N.C.

SELLER: Quorn Hounds Inc.

PROPERTY: portion of Central Sarasota Parkway between Potter Park Drive and McIntosh Road, Sarasota

PRICE: $14.74 million

PREVIOUS PRICE: $550,000, December 1999

LAW FIRM ON DEED: Katz Barron Squitero Faust, Miami

PLANS, DESCRIPTION: Mooresville, N.C.-based Lowe's Cos. Inc. purchased 20 acres on Central Sarasota Parkway near Stoneybrook Golf & Country Club for $14.74 million equal to $736,950 an acre. The home improvement retail chain plans to develop 94,000 square feet of retail space along an adjacent 26,000-square-foot garden center. A typical Lowe's store of that size creates 120 jobs.

No construction start date has been scheduled, but the new store is set to open in the fiscal second quarter of 2009, which ends in August.

Lowe's spends an average of $12 million developing new stores.

RKM Development buys

land for Venice Walgreens

BUYER: Jacaranda Ventures LLC (principal: William Lloyd), St. Petersburg

SELLER: Southern Trust Auto Sales Inc.

PROPERTY: 4105 Pointe Plaza Blvd., Venice

PRICE: $2.98 million

PREVIOUS PRICE: $650,000, December 2003

LAW FIRM ON DEED: Wotitzky Wotitzky & Ross PA, Punta Gorda

PLANS, DESCRIPTION: St. Petersburg-based real estate developer RKM Development Corp. purchased 2.2 acres on 4105 Pointe Plaza Blvd. near Tamiami Trail for $2.98 million equal to $1.37 million per acre. RKM Development has announced plans to build a 14,820-square-foot Walgreens drug store.

Calls to William Lloyd, president of RKM Development, were not returned prior to deadline.

Walgreens currently operates three stores in Venice: 1490 U.S. 41, 1405 E. Venice Ave. and 4181 S. Tamiami Trail.

The purchased entity Jacaranda Ventures LLC mortgaged the property to Regions Bank for $5.75 million.