- March 14, 2013
BUYER: Coconut Office Center LLC (principal: W. Stephen Hagenbuckle), Cape Coral
SELLER: Treasure Cove Development Corp.
PROPERTY: 23421 Walden Center Drive, Bonita Springs
PREVIOUS PRICE: $860,000, December 2003
LAW FIRM ON DEED: Coleman Hazzard & Taylor PA, Naples
PLANS, DESCRIPTION: TerraCap Partners' TerraCap Fund II purchased the 11,062-square-foot Coconut Office Center building for $800,000.
The price equated to $72 per square foot.
Located across the street from Coconut Point Mall, the three-story building was vacant at the time of the sale. The top floor of the building has since been rented. TerraCap Partners plans to use 3,000 square feet in building as its new Florida headquarters.
“We are renovating the lobby and upgrading tenant spaces to restore the property to its Class A, institutional potential,” says Robert Gray, co-managing partner of TerraCap Partners.
Further, he says that leases the firm is currently negotiating equate to a purchase price payoff ratio on income (capitalization rate) of between 15% and 20%. The building is being targeted to professional office users including real estate, insurance, wealth management and accounting firms.
The purchase was the fund's eighth acquisition. Its investments include more than 600,000 square feet of apartment, office, distribution and hotel space and 330 acres of land.
“This is truly a first-class office building that we were able to close very quickly at a price of less than half of its replacement cost,” W. Stephen Hagenbuckle, founder and co-managing partner of TerraCap, says in a press release. “This deal fits squarely into our overall investment strategy of buying deep value commercial real estate in high-growth markets that are supply-constrained.”