Meridian Development Corp., of Tampa, has sold the balance of its Meridian Concourse Center project to a Boston-based investment firm for $15.4 million.
The Clearwater deal for three buildings marks Albany Road Real Estate Partners’ first area acquisition.
“This was a value-add real estate investment,” says Steven Kossoff, Meridian Development’s managing director. “The idea from the beginning was to buy it, fix it, rent it and sell it within a roughly three-year cycle.
In all, Meridian Concourse Center comprises four single-story “flex” office and industrial buildings totaling 217,000 square feet. Of those, Albany Road acquired three, and a fourth building was sold in July 2019 to its tenant for $6 million.
Meridian Development acquired Concourse Center in 2006 for $17 million, and then invested another roughly $1 million to upgrade the property’s roofs, heating, ventilation and air conditioning systems, signage, exterior appearance.
At the time of Albany Road’s purchase of the 4400-4825 140th Ace. Property, Concourse Center was 92% occupied.
“With limited land sites, the high cost of construction and strong fundamentals, demand for existing office product remains strong for well-located assets,” says Avison Young Principal Tim Callahan, in a statement. Callahan worked on the Concourse Center deal together with the firm’s Allen Henderson and Michael Coppola.
With the sale, Meridian Development’s Gulf Coast portfolio is now concentrated in 13 office buildings in and around Tampa, totaling 450,000 square feet.
Kossoff says the company is actively looking to buy additional properties in both Tampa and Raleigh, N.C.
“We’re scrambling now to find assets at suitable prices that fit our program,” Kossoff says. “And in talking to other investors, it seems everyone is in the same position, which is understandable. We’re in the 10th inning of a nine-inning game, and yields are down because there’s so much competition out there for the quality deals.
“Given the environment, we’re trying to remain disciplined.”