BUYER: Brandon Commerce Center LLC (principal: Greg Zeifman), Miami
SELLER: Family Holdings Limited Partnership
PROPERTY: 333-337 N. Falkenburg Road, Tampa
PRICE: $4.7 million
PREVIOUS PRICE: $2 million, July 1995
LAW FIRM ON DEED: Straley & Robin, Tampa
Greg Zeifman of Miami is leading an investment group that purchased several industrial/flex buildings on Falkenburg Road north of Woodberry Road for $4.7 million.
The price equated to $45 per square foot. That figure is lower than the two-year average price per square foot for industrial space ($104) in the Tampa Bay area, according to the CoStar Group.
The six buildings feature a total of 104,510 square feet of industrial space and 87 individual units. The buildings were nearly 90% occupied at the time of the sale.
“We own a similar product in South Florida, this small-bay industrial, catering to mom- and pop-service businesses,” Zeifman says. “We liked the demographics of that area and felt there was upside in the rents. It was a stabilized product at a very fair cap rate.”
The purchase price equates to a payoff ratio based on income (capitalization rate) of more than 9%.
The investor group has been priced out of the Miami/South Florida market, Zeifman says, because of the high level of international capital focused there. This purchase represents the group's first acquisition on the west coast of Florida. It is now targeting the Tampa and Orlando markets.
“This purchase affords us the opportunity to buy smaller deals,” he says. “It doesn't make sense for me to fly back and forth to own 30,000 square feet. But that we already have a stake in the market it gives us the ability to look at smaller deals. We are looking to build a portfolio.”
Elliott Ross of RMC Ross Realty represented the seller.