Canadian investors find high cap in North Tampa Shores purchase
BUYER: Morni Holdings LLC, Tampa
SELLER: North Tampa Shores Center LLC
PROPERTY: 4009-4013 Tampa Road, Oldsmar
PRICE: $5.15 million
LAW FIRM ON DEED: Hill Ward Henderson, Tampa
PLANS, DESCRIPTION: A Canadian investor group, operating as Morni Holdings LLC, purchased the 31,022-square-foot North Tampa Shores retail center for $5.15 million.
The price equated to $166 per square foot. That figure is higher than the two-year average price per square foot for retail space ($146) in the Tampa Bay area, according to the CoStar Group.
Built in 2007, the center was 92% occupied at the time of the sale. Major tenants include FedEx Office, AT&T Wireless, FlameStone American Grill and Moe's Southwest Grill. The purchase price equated to a payoff ratio based on income (capitalization rate) of about 9%.
Jon Graber and Rafeal Wright of Franklin Street Real Estate Services represented the seller an affiliate of Kennedy Investments Inc. called North Tampa Shores Center LLC.
“There's future upside in the vacancy and some leases that are currently below market,” Graber says. “We have been seeing a pretty significant uptick in interest for retail. It's like night and day compared to last year. I think buyers are becoming more confident in retail and with single-tenant and multifamily at all-time low cap rates, retail is where they look to for high-yield investments.”
Tampa-based RPM Realty Management will manage and lease the property. David Goldstein, managing director of RPM Realty Management, says the new owners plan to do some cosmetic work to the property and upgrade the tenants. Further, he says the group is looking to acquire other similar centers across the Tampa Bay area.