BUYER: Naples RB Holdings LLC (Halstatt Real Estate Partners Fund I LP), Naples
SELLER: CFC Partnership
PROPERTY: 4851 Tamiami Trail N., Naples
PRICE: $9.5 million
PREVIOUS PRICE: $1.91 million, March 1988
LAW FIRM ON DEED: Conroy Conroy Durant & Rudnick PA, Naples
PLANS, DESCRIPTION: Halstatt Real Estate Partners purchased the 50,730-square-foot Regions Bank Building for $9.5 million.
The price equated to $187 per square foot.
As its name suggests, Regions Bank anchors the four-story office building, leasing 17,500 square feet. The building also houses Coldwell Banker, which leases 8,500 square feet, and RBC Bank, which leases another 5,000 square feet.
The building's entire fourth floor, 11,200 square feet, is vacant, which served to attract Halstatt Real Estate Partners to it as an investment.
“We feel that with time and investment we can bring that building up to the occupancy level that meets our financial commitment,” says Bobby Sullivan, a principal with Halstatt Real Estate Partners. “We liked the size of the building and that is wasn't so big it would take years of absorption to deal with the vacancy.”
Further, Sullivan says the building is located in a prime area in the geographic location where the fund invests. The fund was also attracted by the building's excellent condition and core of national tenants, he says.
Halstatt Real Estate Partners is a private equity fund created and managed by Halstatt Partnership, a real estate and investment firm of the Sproul family. The purchase is the fund's first office building. It targets distressed residential and commercial projects principally in Southwest Florida.
Earlier this year, the fund purchased the 74,000-square-foot Del Prado Mall in Cape Coral. It previously invested in 19 unsold condominiums in the Manatee Bay tower at the Waterside at Bay Beach in Fort Myers Beach and a building pad for $7.35 million. It also acquired the 48,615-square-foot Tanglewood Marketplace shopping center on U.S. 41 in Naples for $6.15 million ($127 per square foot).
Raymond DeAngelis of RDI of Naples represented the seller and David Stevens of Investment Properties Corp. represented the buyer.