BUYER: B&L Investments Interstate LLC (principals: Brad Luger and Henry Brenner Jr., Tampa
SELLER: RREF ACP Acquisitions LLC
PROPERTY: 6302 E. Dr. Martin Luther King Jr. Blvd., Tampa
PRICE: $27.5 million
PREVIOUS PRICE: $17.25 million, February 2012
LAW FIRM ON DEED: Bilzin Sumberg Baena Price & Axelrod LLP, Miami
An affiliate of Tampa-based investment firm B&L Investments LLC purchased the 344,896-square-foot Interstate Corporate Center for $27.5 million.
The price equated to $80 per square foot. That figure is less than the two-year average price per square foot for office space ($118) in the Tampa Bay area, according to the CoStar Group.
Located on a 30.7-acre site near the Interstate 4 and Dr. Martin Luther King Jr. Boulevard interchange, the single-story, 30-year-old building is a converted former outlet mall with four building wings. It was 80% occupied at the time of the sale. Its largest tenants are Stream International Inc. and the state of Florida.
“The condition is excellent. The previous owner made a number of improvements to the property,” says Brad Luger, a B&L Investments partner. “The location obviously was key as well. There was some vacant space, so there's a little value-add in leasing it up. But most importantly we were able to get a very attractive yield on our investment.”
The purchase price equated to a payoff ratio based on income (capitalization rate) of about 12%.
The new ownership has retained Taylor & Mathis to handle the building's marketing and leasing.
B&L Investments LLC primarily targets neighborhood shopping centers in the Tampa area.
The purchase entity, B&L Investments Interstate LLC, mortgaged the property to ING Life Insurance and Annuity Co. for $17.25 million.