BUYER: Hampton Oaks - Tampa LLC (principal: Dallas Whitaker), Tampa
SELLER: RREEF America REIT II Corp. VVV
PROPERTY: 5909 Hampton Oaks Parkway, Tampa
PRICE: $18.4 million
PREVIOUS PRICE: $25.75 million, June 2005
LAW FIRM ON DEED: Propst Properties LLC, Huntsville, Ala.
PLANS, DESCRIPTION: A one-year-old real-estate investment firm, Foundation Realty Advisors, and an Alabama private investor purchased the six-building Hampton Oaks Business Park off U.S. 301 and north of Interstate 4 for $18.4 million.
The 259,042-square-foot Class-A industrial and flex park was 93.7% occupied at the time of the sale. The purchase price equated to $71 per square foot.
The complex features four 30,000-square-foot buildings and two larger buildings. Network communication provider Qwest Communications, insurance firm Direct General Corp. and telecommunications technology company XO Communications anchor the park.
Mike Davis and Rick Brugge of Cushman & Wakefield's Southeast Capital Markets Group represented the seller.
Brugge confirmed there was no distress and that it was a true market-level sale.
Foundation Realty Advisors was attracted to the properties because of the park's institutional background, its stability and its location on a thoroughfare near a major interchange, according to principal Dallas Whitaker.
“It had good cash flow and very little tenant rollover,” Brugge says. “It really indicates to me that the markets are starting heal and beginning to function more normally. There is some movement of [commercial real estate]. Last year there was gridlock. Now there is more agreement on price between buyers and sellers. Buyers that have been waiting for distressed and forced selling....the incredible returns for the most part have not materialized.”
Foundation Realty Advisors will occupy space in the building and self manage it though the management services division, FRA Realty Services.
Based in both Tampa and Atlanta, Foundation Realty Advisors plans to acquire additional real estate along the Southeast United States.