Parkway Closes on $22.5M Tampa-Westshore Office Building Purchase

By Georgiana Mihaila, Associate Editor

Parkway Properties Inc.has closed on the acquisition of the Westshore Corporate Center in Tampa for a net purchase price of $22.5 million. Parkway Properties has recently been on a shopping spree.

The company has first shown interest in the 170,000-square-foot building in early October; “Westshore Corporate Center is well located within the Westshore submarket and is one of our third-party managed assets in the former Eola Capital portfolio, allowing Parkway to achieve attractive pricing given the $850,000 credit we will receive at closing,” said Parkway’s President and CEO, James R. Heistand, at the time.

Located at 600 N. Westshore Blvd., Westshore Corporate Center was built in 1988 and is currently 77.7 percent leased. Parkway expects the property to generate a 2013 estimated cash net operating income yield of approximately 8.5 percent based on the net purchase price. The company will own 100 percent of the asset and plans to assume the in-place first mortgage secured by the property, which has a current outstanding balance of approximately $14.5 million with a fixed interest rate of 5.8 percent and a maturity date of June 1, 2015.

Westshore Corporate Center is currently managed by Parkway Realty Services and was formerly part of the Eola Capital LLC portfolio before Eola merged with Parkway in May 2011. Given the agreement formed between Parkway and the former Eola principals in December 2011, 100 percent of any proceeds received by the former principals were granted to Parkway. Therefore, Parkway will only be required to pay a purchase price of $22.5 million, which is net of an $850,000 credit that would have otherwise been paid to the former Eola principals.

In its effort to pursue high-quality assets, Parkway Properties has also announced entering into a purchase and sale agreement to acquire Phoenix Tower, a 626,000 square foot office tower located in the Greenway Plaza submarket of Houston for $124.5 million; Tower Place 200, a 260,000 square foot office tower located in the Buckhead submarket of Atlanta for $56 million; and 525 North Tryon, a 406,000 square foot office tower located in the central business district (CBD) of Charlotte, N.C. for $47.4 million.

Image: Westshore Corporate Center via tampachamber.com

Parmenter Realty Buys Two Tampa Office Buildings from Prudential for $85M

By Georgiana Mihaila, Associate Editor

Miami-based Parmenter Realty Partners added 494,813 square-feet of office space to its portfolio when it purchased two Class A office buildings on Rocky Point Island in Tampa, Fla. for $85 million.

Seller Prudential Real Estate Investors first started looking for a buyer for the Island Center and Waterford Plaza buildings in mid-2009, but withdrew the properties from the market only to restart marketing efforts approximately four months ago.

Mike Davis, executive director of Cushman & Wakefield’s Southeast Capital Markets Group—the firm that negotiated the transaction on behalf of the seller—said that “The capital markets again view Tampa positively from a long-term investment perspective.  Accordingly, well-positioned core assets are in high demand.”

The Cushman & Wakefield’s Southeast Capital Markets Group sales team was formed by Mike Davis, executive director, Rick Brugge, CCIM, associate director and Michael Lerner, senior director. Cushman & Wakefield was assisted by CLW Real Estate Services.  The sale price of $85 million equates to approximately $169 per square foot.

Totaling 494,813 square feet, Island Center and Waterford Plaza are both Class A, 12-story office buildings and have been built in 1985 and 1986 respectively. The 249,797-square-foot Island Center is located at 2701 Rocky Point Drive and spans over 2.9 acres, while the Waterford Plaza, located at 7650 Courtney Campbell Causeway, encompasses 245,016 square feet.

The two buildings were 85 percent leased at the time of the sale, with a tenant roster that includes URS Corp., Cigna Healthcare, GXS Inc. and TCM Bank.

Image: Island Center via LoopNet

Richman Group Plans $45M Apt. Community on Industrial Park Site

By Georgiana Mihaila, Associate Editor

The Richman Group of Florida unveiled plans for a $45 million luxury apartment community named Gateway Centre. To be located on the 40-acre site of a former industrial park, the four-story complex will rise on Gandy Boulevard. The site was purchased by The Richman Group last month from flea-market magnate Hardy Huntley.

According to Tampa Bay Times, Winter Park-based Douglas Partners had similar plans for the property, but as the deal failed to materialize, the owner started seeking new investors for the Pinellas County property.

Gateway Centre will consist of 432 units sized between 870 and 1,500 square feet, featuring nine-foot ceilings and granite countertops, with rents ranging from $1,000 to $1,800 per month. Amenities will include a clubhouse, an outdoor kitchen, tennis courts and a nature trail.

Developer The Richman Group will break ground on the project next year. Plans call for a 2014 opening date, when the first phase of the Gateway Centre—consisting of 320 units—is scheduled for completion.

No multifamily projects were delivered in the Tampa-St. Petersburg metro area in 2011. By contrast, Marcus & Millichap predicts that market-rate rental inventory will expand by 1 percent during 2012 with the completion of 1,500 units. Also this year, permitting remains on track to increase by more than 50 percent to 3,600 units of multifamily housing. According to the same report, approximately 2,000 units were under construction at the end of the second quarter, representing a potential 1.3 percent increase in market-rate stock. The total includes 344-unit second phase of the Circle at Crosstown in the Brandon/Plant City submarket, which broke ground in the second quarter. Projects containing 1,500 rentals will come online in the metro during 2012, including more than 1,000 units in Hillsborough County.

Chart courtesy of Marcus & Millichap

Construction Starts on $225M St. Joseph’s Hospital-South in Riverview

By Georgiana Mihaila, Associate Editor

A groundbreaking ceremony marked the start of construction for the first not-for-profit hospital to serve southern Hillsborough County—the $225 million St. Joseph’s Hospital South.

St. Joseph’s Hospital-South, part of BayCare Health System— a leading community-based health system in the Tampa Bay area—will be a full-service hospital offering a wide range of services from emergency care and women’s services to surgery and intensive care. The property will be located at 6901 Simmons Loop Road in Riverview, Fla., easily accessible via I-75 and Highway 301.

The 72-acre campus will include a medical office building that connects to the four-story, 352,000-square-foot hospital for convenient access to pre-procedure testing and physician offices.  The site also will be home to a 40,000 square-foot, free-standing physician office building, which is expected to open in 2013 with imaging and laboratory services as well as primary care and specialty physician offices.

Hospital president and CEO, Isaac Mallah, said his staff has worked for more than seven years to get the necessary approvals to build the hospital.  But the idea to build in this location was conceived in the mid 1980s, when the land was acquired.

In addition to providing health care to area residents, the project is expected to be a welcome addition to the business community. “Think about it: $225 million invested here and the ripple effect that will have,” said Congresswoman Kathy Castor during the groundbreaking ceremony.  “First: construction jobs, boosting small business throughout the community. Then, the medical professionals that will move here and their families that will grow up here. This hospital is going to be an anchor for economic development for the SouthShore community and all of southern Hillsborough County.”

St. Joseph’s Hospital-South will join the other 10 not-for-profit hospitals in the BayCare Health System network in 2015.

Taubman, Benderson Break Ground on $315M Shopping Center in Sarasota

By Georgiana Mihaila, Associate Editor

The Mall at University Town Center is one step closer to fruition as developers Taubman Centers Inc. and Benderson Development Company LLC broke ground on the $315 million shopping center during a ceremony held on Monday.

The ceremony was attended by community officials including Sharon Hillstrom, Manatee Economic Development Corp.; Mark Huey, Economic Development Corp. of Sarasota County; Christine Robinson, Chair of Sarasota County Commission; and Congressman Vern Buchanan. It culminated with a $10,000 donation on behalf of the mall to the Education Foundation of Sarasota County—a non-profit organization dedicated to quality public education for all children.

The Mall at University Town Center will be a state-of-the-art, two-level, enclosed mall featuring an 80,000-square-foot Saks Fifth Avenue, a 180,000-square-foot Dillard’s and a 160,000-square-foot Macy’s. The $315 million shopping center will include more than 100 specialty stores and restaurants, approximately half of which are anticipated to be new to the market.

Located at I-75 and University Parkway, the area’s most heavily traveled interchange, The Mall at University Town Center aims at becoming the dominant fashion shopping destination in the growing Sarasota region. Analysts predict the project could even become the busiest retail hub from Tampa to Fort Myers.

“The Mall at University Town Center will be a legacy project for Sarasota County,” said Christine Robinson, Sarasota County Commission Chair. “It’s an economically diverse development offering new jobs and new job opportunities. The mall was created by a visionary public-private partnership and based on a sustainable concept that will become a national benchmark for combining a world-class rowing and recreational facility with a world-class commercial and residential center.”

Slated for completion in October 2014, the retail center is expected to pump more than $400 million a year into the regional economy, contributing significantly to the growth of nearby commercial centers, creating thousands of new jobs and boosting property values.

Images via Taubman Centers

JLL Signs Law Firm for 14K SF in SunTrust Financial Centre

By Georgiana Mihaila, Associate Editor

Florida law firm Gunster signed a long-term lease for 14,298 square feet at the SunTrust Financial Centre. The firm had recently entered the Tampa Bay market.

The transaction was mediated by Sharon Bragg, vice president at Jones Lang LaSalle on behalf of the landlord, and by Greg Katz of Studley, Inc. on behalf of Gunster.  The space represents the firm’s first permanent office in the area. No financial details of the deal have been disclosed.

“Gunster is excited about expanding to the Tampa Bay area,” said H. William Perry, Gunster’s managing shareholder. “The addition of local high-quality attorneys is Gunster’s first step in developing a full-service presence in Tampa Bay and marks the beginning of a larger growth plan for the West Coast.”

Acquired in December 2011 by an affiliate of the commercial real estate firm The Brookdale Group, the 36-story, 527,000-square-foot, Class A office building is 86 percent leased.  Designed by U.S.-based firm Cooper Carry, the building is leased exclusively by Jones Lang LaSalle and managed by Means Knaus Partners.  In 2010 and 2011, the building was designated the “Outstanding Building of the Year” by the Building Owners and Managers Association’s Tampa Bay chapter. It is located at 401 East Jackson Street in Tampa’s Central Business District.

According to a recent Marcus & Millichap office market overview, demand for Class A office space in the Tampa area has wavered following a reasonably strong second half of last year, when many tenants upgraded to higher-quality space. For the following months, a minor improvement in space demand is projected, which will generate a slight decline in vacancy.

Image Courtesy of Schwartz Media Strategies

Crescent Resources to Develop $68M Tampa Apartment Community

By Georgiana Mihaila, Associate Editor

Crescent Resources LLC has recently disclosed plans for a new $68 million Tampa apartment community called Circle Bayshore.

Designed by MSA Architects of Miami, the Spanish eclectic-style eight-story structure will be located at 319 Bayshore Blvd., providing views of the bay.  Circle Bayshore will feature studio, one-, two-, and three-bedroom floor plans. Amenities will include a two-story health club and fitness center, resort-style swimming pool, an outdoor living area with grilling stations and a fire pit, a business center and clubroom. The building will encompass a parking garage serving residents and guests.

Typical of Crescent’s other Circle communities, the 367-unit Circle Bayshore will incorporate many sustainable features and materials. The community has been designed to meet Leadership in Energy and Environmental Design (LEED) certification requirements from the U.S. Green Building Council. The first apartments are expected to be complete in the first quarter of 2014.

The apartments will feature gourmet kitchens with granite countertops, undermount sinks, a prep island and stainless steel appliances. The bathrooms will be finished with granite countertops, custom wood cabinetry, ceramic tile floors, and tub and shower surrounds. High ceilings, spacious walk-in-closets and separate linen closets are also included. Each apartment will have a private balcony and full-size washer and dryer.

Circle Bayshore is being financed by equity investment from Crescent Resources. Construction financing is supplied by Capital One and mezzanine financing by Nationwide Real Estate Investments. Moss & Associates of Fort Lauderdale will serve as general contractor. The civil engineer is King Engineering of Tampa, and the landscape architect is Land Resource Design Group Inc., of Orlando, Fla.

Image via Circle Bayshore official website

$25M Tampa Bay-Area Self-Storage Portfolio Up for Sale

By Georgiana Mihaila, Associate Editor

A three-property, 2,250-unit portfolio owned by Safeguard Self Storage is now on the market, with Marcus & Millichap Real Estate Investment Services in charge of finding a buyer.

Located in Palm Harbor, Tampa and St. Petersburg, the storage assets are listed at $25 million, or $111 per square foot, but the properties can also be acquired individually. The Palm Harbor facility is approximately 20 miles northwest of Tampa. Constructed in 2001, the property includes 83,350 square feet of space and 670 units, 551 of which are climate-controlled. In addition, the facility includes 79 boat/RV spaces. The facility is approximately 85 percent occupied. Benefiting from street presence on U.S. Highway 19, this asset is only three miles from the Gulf of Mexico and local beaches.

The Tampa facility is located in the Carrollwood area, three miles west of Interstate 275. Developed in 1999, the 705-unit facility includes 75,525 square feet of climate-controlled space. Currently 86 percent occupied, amenities include a facility wide intercom system, individual door alarms, video surveillance and a management office. The property is situated near a highly trafficked intersection, Dale Mabry Highway and West Bears Avenue, where more than 50,000 cars pass by daily.

The St. Petersburg property was built in 1987 and renovated in 2006; this 875-unit facility includes 66,694 square feet of storage space, including 593 climate-controlled units and 10 RV/boat storage units. Currently, the property is 78 percent occupied.

According to data provided by Marcus & Millichap Self Storage Group, while on a national scale self-storage supply is estimated at 7.4 square feet per capita, Florida averages below the country at 9.5 square feet per person. The Tampa metro area’s supply, however, came in at 8.3 square feet per capita.

Cassidy Turley Helps Two Clients Obtain Energy Star Designation

By Georgiana Mihaila, Associate Editor

The Northdale Executive Center I and the Tampa Electric Company building have recently received the Energy Star designation from the U.S. Environmental Protection Agency. Both buildings are managed by Cassidy Turley, a company known for helping clients to ensure their properties incorporate sustainable practices that are both cost-effective and environmentally sustainable. The two buildings join a growing number of properties managed by Cassidy Turley that have earned Snergy Star designation.

“Energy efficiency is and always has been an important part of Cassidy Turley’s strategy as we achieve results for our clients across the triple bottom line of people, planet and profit,” said Holly Hughes, senior managing director of property management with Cassidy Turley. “We are proud to have achieved the Energy Star designation of Northdale Executive Center I and of the TECO building as it represents one of the most widely recognized standards out there to evaluate a building.”

Both properties are located in Tampa. Northdale Executive Center I is an 88,745-square-foot Class-A office building set at 3820 Northdale Blvd., and the Tampa Electric Company’s headquarters is a 324,390-square-foot building at 702 N. Franklin Street.

In other local news, Institutional Property Advisors has announced closing on the sale of Runaway Bay, a 192-unit multifamily property located in Pinellas Park, a central Pinellas County city within the Tampa Bay Area. Jamie B. May, an executive director of IPA, represented the seller, AIMCO. The buyer is J.I. Kislak Inc.

Constructed in 1985 on 14.5 acres, Runaway Bay is composed of 12 two-story residential buildings with an average unit size of 862 square feet located at 4701 88th Ave. North in Pinellas Park. There are 80 one-bedroom units, 24 two-bedroom/one-bath apartments, 24 two-bedroom/one-and-a-half-bath units and 64 two-bedroom/two-bath apartments. Approximately 35 percent of the unit interiors have been renovated.

Sheraton Tampa East Replaces Crowne Plaza After $9M Renovation

By Georgiana Mihaila, Associate Editor

Following a $9 million comprehensive renovation, the former Crowne Plaza hotel is now ready to welcome its guests as the Sheraton Tampa East Hotel.

The hotel—purchased last fall by a joint venture between Interstate Hotels & Resorts, Waramaug Hospitality LLC, and a private investment group— is the Sheraton brand’s fourth hotel in greater Tampa. The renovation included upgrades to all 265 guestrooms, the property’s 30,000 square feet of meeting space, and all public areas. The hotel’s reception area was also adapted to Sheraton’s signature lobby, the Link@Sheraton® experience.

Additional amenities include the fully renovated, full-service restaurant, Panfilio’s Bar and Grille, Sheraton Club Lounge, an outdoor heated pool, tennis courts and upgraded fitness facility featuring the brand’s Sheraton Fitness programmed by Core Performance. Sheraton Tampa East Hotel provides more than 30,000 square feet of fully renovated meeting and event space, including a 5,000 square foot ballroom and a poolside pavilion for cocktail receptions.

All 265 renovated guestrooms feature oversized work desks, custom-designed ergonomic chairs, high-speed Internet, LCD flat panel televisions, MP3 docking stations and the Sheraton Sweet Sleeper bed. Sheraton Tampa East Hotel’s 30,000 square feet of meeting and event space includes a 5,000-square-foot ballroom, 24 meeting rooms and a poolside pavilion for receptions.

“We have a great team that was able to renovate all areas of the hotel in a very short period of time,” said Jay Litt, asset manager for Waramaug Hospitality Asset Management LLC. “We wanted the conversion to be completed in time for the Republican National Convention this summer, and our team was able to finish the work with time to spare.”

Conveniently located off I-75, Sheraton Tampa East Hotel boasts a prime location close to major corporations, within five miles from the Tampa Convention Center and the Seminole Hard Rock Hotel and Casino, 10 miles from downtown Tampa, and 16 miles from Tampa International Airport (TPA). The hotel is easily accessible to leading attractions including Busch Gardens Tampa Bay, Brandon Town Center and Ford Amphitheater.

Interstate operates the Sheraton Tampa East Hotel under a long-term management agreement. Waramaug Hospitality Asset Management LLC provided project and asset management for the renovation and conversion to the Sheraton brand.

Image courtesy of TripAdvisor