Florida’s waterfront commercial development boom is being driven by migration, demographic shifts and evolving tenant preferences, creating a surge in demand for mixed-use, lifestyle-driven spaces.

According to Ryan Shaw, first vice president of investments at Marcus & Millichap, “waterfront development in Florida is shifting away from traditional, single-use zoning, instead evolving into multi-functional destinations where people can live, work, relax and socialize in one integrated space.”

These waterfront developments in Florida are attracting both residents and tourists by offering vibrant, sustainable communities that cater to modern lifestyles. The appeal of these waterfront spaces has grown in the post-pandemic era, with tenants prioritizing amenities like food, beverage and entertainment as key features of new projects, Shaw added further.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

Florida continues to attract a significant number of residents, especially from the Northeastern U.S. Many newcomers are downsizing from single-family homes and seeking access to resort-style amenities without the burden of maintenance, elaborates Dominic Pickering, executive director at BTI Partners. This trend, coupled with growing demand for waterfront living in Florida, has led to a shift in the types of commercial developments that are taking root along Florida’s shores.

The natural human connection to water also plays a critical role in driving demand for Florida’s waterfront development.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place, making them ideal for dining, leisure and community interaction,” said Andrew Hellinger, principal at URBAN-X. However, in areas like Miami-Dade County, limited available waterfront land has increased competition and demand among developers.

Despite a recent slowdown in demand due to rising construction costs, increased supply and the impacts of natural events, the overall outlook for Florida waterfront commercial developments remains strong. Mika Mattingly, executive vice president at Colliers, emphasizes that Florida’s business-friendly environment and high livability ratings continue to support demand for premium waterfront properties, particularly in South Florida, where luxurious new projects remain highly sought after.

In response, developers are adapting to these market shifts by creating Florida waterfront developments that blend convenience, walkability and vibrant amenities, while prioritizing long-term sustainability in the face of climate challenges.

Florida’s transformative waterfront developments

This adaptability is evident in Florida’s waterfront commercial developments. The state’s coastline is undergoing a remarkable transformation, with an influx of commercial waterfront developments that blend office, retail, hospitality and entertainment spaces with scenic waterfront access. From Miami to Tampa, these waterfront developments are harnessing the state’s natural beauty and booming growth to create vibrant, mixed-use destinations that appeal to both businesses and residents alike.

In Miami, the Miami River Landing project exemplifies this shift, offering a dynamic combination of office, retail and residential spaces along the river. Its proximity to key urban amenities and waterfront views makes it a highly desirable location for businesses looking to establish a presence in Miami’s growing commercial waterfront development district.

READ ALSO: How Coral Gables Is Cementing Its Status as a Top Office Market

Similarly, the $2 billion Bahia Mar redevelopment in Fort Lauderdale is positioning itself as a commercial waterfront hotspot, offering luxury amenities, a marina and retail outlets. This ambitious project aims to transform the area into a “Mini Monaco,” further enhancing its appeal as a waterfront commercial development destination, while hosting events like the Fort Lauderdale International Boat Show, which draws millions annually.

On Tampa’s waterfront, the Water Street Tampa project stands out as a major Florida commercial waterfront development. This mixed-use project combines office spaces, retail, hospitality and public areas with a walkable design, aiming to become the city’s new economic hub. Nearby, 401 East Jackson is an office tower offering sweeping views of the waterfront and proximity to downtown amenities, reflecting Tampa’s increasing appeal as a commercial waterfront center along the Gulf Coast.

The Westshore Marina District in Tampa also blends commercial and luxury waterfront living, featuring high-end retail, dining and office spaces. This 52-acre development is anchored by the exclusive Marina Pointe, with a private marina offering access to the Gulf of Mexico, making it a prime location for businesses that value both luxury and waterfront accessibility.

North Bay Village, situated between Miami and Miami Beach, is another area drawing significant commercial waterfront development interest. MG Developer’s revitalization of this location includes a variety of new office, hotel and restaurant concepts that cater to the area’s growing demand for Florida waterfront commercial spaces.

Tackling challenges, seizing waterfront opportunities

Florida’s waterfront development is a balancing act, with developers navigating a complex landscape of rising costs, environmental concerns and evolving regulations. According to Alex Zylberglait, executive managing director of investments at Marcus & Millichap’s Miami office, Florida’s waterfront development faces significant challenges due to escalating land prices, rising construction costs and higher insurance premiums.

Additionally, the demand for infrastructure improvements—such as upgraded transportation and water systems—adds complexity to projects, often resulting in impact fees. Stricter building codes, implemented after the Surfside building collapse, are also reshaping how developers approach planning and execution, further influencing the development landscape.

Environmental sustainability is a critical factor influencing Florida waterfront projects. Developers must protect fragile ecosystems like mangroves and coral reefs, which play vital roles in biodiversity and storm protection.

Shoreline stabilization and sea-level rise adaptation are now standard considerations in project planning. MG Developer emphasizes the importance of incorporating eco-conscious features, while also ensuring compliance with stringent environmental regulations. Pollution control is another pressing issue, with initiatives to maintain clean waterways becoming a priority for long-term project viability.

“Waterfront spaces offer relaxation, connection to nature and a unique sense of place.”

—Andrew Hellinger, Principal, URBAN-X

At the same time, waterfront commercial projects are evolving to meet growing demand for vibrant, multi-use destinations. Developments like Tampa’s Water Street and Riverwalk are setting new standards by integrating retail, dining and entertainment into dynamic urban spaces. Miami River projects similarly combine hospitality, nightlife and marina access, offering both functionality and luxury.

The focus is expanding beyond traditional oceanfront locations to include riverfronts and bayfronts, as seen in Jacksonville and Fort Lauderdale, which offer untapped potential for innovative Florida commercial waterfront hubs.

Looking ahead, resiliency will shape Florida’s waterfront developments. Elevated construction, stormproof designs and sustainable materials are becoming the norm, ensuring projects can withstand rising sea levels and extreme weather. As Shaw notes, emerging markets like Cocoa Beach and North Bay Village are poised for growth, driven by improved infrastructure and accessibility. According to Hellinger, “rising sea levels and extreme weather events are reshaping development strategies, with a focus on resiliency and long-term viability.”

Florida’s waterfronts are not just about scenic views—they are evolving into dynamic commercial waterfront centers that balance economic opportunity with environmental responsibility, setting the stage for sustainable growth over the next decade.

Read the February 2025 issue of CPE.

Wave are images by Magnilion/iStockphoto.com

The post What’s Propelling Florida’s Waterfront Development Rush? appeared first on Commercial Property Executive.

Coworking and flexible office provider Venture X has signed a 30,262-square-foot lease at Cousins Properties’ Harborview Plaza in Tampa, Fla. The company will occupy the entire sixth floor at the property and is expected to move to Harborview Plaza in January 2026.

The present lease is Venture X’s ninth coworking location in Florida and the first in the Tampa Bay area.

JLL Executive Vice President Jim Moler and Senior Vice President Deana Beer worked on behalf of the ownership, while CBRE Senior Vice President K.C. Tenukas represented Venture X.

Harborview Plaza

Atlanta-based Cousins Properties owns and manages Harborview Plaza since its acquisition in October 2015 from Highwoods Properties. The office mid-rise traded for $49 million, according to CommercialEdge information.

Completed in 2002, Harborview Plaza is a Class A, 205,049-square-foot property covering a 6.7-acre site. The tenant roster includes Milner Inc., Mercer, HCA West Florida Division Office and First American Title Insurance Co., the same data provider shows.

The office building is at 3031 N. Rocky Point Drive West in the Westshore submarket, just off Florida State Road 60 and near Tampa International Airport. Downtown Tampa is some 8 miles east. Major thoroughfares in the area include interstates 275, 4 and 75.

Amenities at the property feature an on-site café, a fitness center, a conference facility, multi-level parking and free shuttle service to Tampa International Airport.

To address the demands of today’s hybrid workforce, coworking spaces are evolving. Operators are increasingly adopting business models similar to those in the hospitality industry, incorporating a diverse range of workspace types under consolidated networks.

The post Cousins Properties Secures Coworking Tenant in Tampa appeared first on Commercial Property Executive.

Onicx Group has acquired Trinity Oaks Medical Arts Building, a two-story, 31,000-square-foot medical office building in Trinity, Fla., in the Tampa Bay area. The Graham Group sold the asset, according to Pasco County public records.

First American Bank provided the buyer with a $4.8 million note that matures in 2027, the same source shows. Fairfield Asset Advisors represented the seller.

This acquisition represents Onicx’s second investment through its Healthcare Real Estate Fund launched in August. The first closed in September, when the firm purchased Lafayette Medical Building, a 25,000-square-foot Class A facility in Lafayette, Ind.

READ ALSO: Healthy Medical Office Spaces

Trinity Oaks Medical Arts Building came online in 2008 and was more than 91 percent leased at the time of sale. Its tenants include the Orthopaedic Associates of West Florida, a subsidiary of the Florida Orthopaedic Institute, Women’s Care and Academic Alliance in Dermatology.

The facility is part of a three-building BayCare Health System complex totaling about 99,000 square feet. The property is at 2044 Trinity Oaks Blvd., some 34 miles from downtown Tampa, Fla. Medical providers in the surrounding area include Orange Blossom Women’s Group, East Lake Pediatrics. HCA Florida Trinity Hospital is less than 3 miles away.

MOB investment stays strong

The medical office real estate sector continues to remain robust, with outpatient volumes expected to increase by 26 percent in the following 10 years, according to a Savills white paper. Additionally, favorable economic factors such as the interest rate cuts are expected to lead to a rise in MOB investments.

In October, MedCraft Investment Partners acquired Sisters Grove Pavilion, a 108,204-square-foot medical office building in Colorado Springs, Colo., for $31.2 million. CommonSpirit Health sold the 2008-completed asset.

The post Onicx Group Acquires Tampa-Area MOB appeared first on Commercial Property Executive.

This is the first development venture between Rockpoint and Greystar, a Charleston, S.C.,-based global real estate company focused on rental housing, logistics and life science projects. The firm manages and operates more than $320 billion of real estate in approximately 250 markets around the world.

Located on a 17.5-acre infill site at the intersection of Interstate 275 and Gandy Boulevard, the 622,200-square-foot Gateway Logistics Center is the largest industrial development in Pinellas County in more than two decades. It’s part of Greystar’s broader 93-acre project that also includes a 412-unit garden-style community.

READ ALSO: Why Things Are Looking Up for Ports, Supply Chains

Building B will encompass about 93,000 square feet with a depth of 180 feet. Buildings C and D will each comprise about 119,500 square feet with 200-foot depth. All three rear-load facilities will have 32-foot clear heights, ESFR sprinklers and include spec office space.

Greystar broke ground on Gateway’s first phase, totaling some 290,000 square feet, in 2022. Phase One’s Buildings A and G have been completed and are fully leased. Building H, a facility of 147,000 square feet, is slated for completion in spring 2025.

Greystar industrial assets

Greystar currently has more than 13 million square feet of industrial space in various stages of development around the U.S.

In April, the developer completed the first phase of Gateway Grand, a 2.1 million-square-foot industrial development in Mesa, Ariz. Situated in a Foreign Trade Zone, the project is Greystar’s first industrial foray in the state.

In August 2023, Greystar broke ground on the second and last phase of a five-building industrial development in San Marcos, Texas. The campus is 30 miles from Tesla’s giga factory and within 10 miles of two Amazon distribution centers.

Rockpoint investment activities

Earlier this month, Rockpoint and Portman Industrial sold Building D at Camp Hill Commerce Center, Campus 4, a 1.2 million-square-foot industrial property in Ridgeville, S.C., to Stockbridge. The warehouse came online last year and is occupied by Volvo in support of the car manufacturer’s nearby factory, which opened in 2018.

In January, Rockpoint raised $5.1 billion in aggregate equity capital commitments in the current fundraising cycle, including the close of Rockpoint Real Estate Fund VII with $2.7 billion in total equity capital. Fund VII targets opportunities in the U.S. across a range of real estate classes, including industrial, multifamily, single-family rental, hospitality and select office investments.

The post Rockpoint, Greystar Partner on Tampa-Area Project appeared first on Commercial Property Executive.

LG Electronics USA has signed a 348,740-square-foot lease for Building 400 at Stonemont Financial Group’s Lakeland Commerce Center in Lakeland, Fla., a Tampa submarket.

The campus consists of four rear-load facilities that broke ground in July 2022 and came online in the first quarter of this year. Partners on the development comprised architecture firm Ware Malcomb and general contractor Frampton Construction, as well as civil engineer Kimley Horn.

Building 400 has 36-foot clear heights, 95 dock-high loading doors, four drive-in doors and a 130- to 185-foot truck court. Additionally, the distribution center has more than 200 parking spaces and 68 trailer stalls.

READ ALSO: 3 Strategies for Net Lease Industrial Success

Following the deal, the 905,550-square-foot campus is 51 percent leased. The other facilities range from 148,100 to 258,000 square feet and have 32-foot clear heights, as well as a total of 173 dock-high loading doors.

Located at 5135 Drane Field Road, the facility is less than 3 miles from the Lakeland Linder International Airport. Downtown Lakeland is within 12 miles northeast.

LG’s recent U.S. expansion

LG has been expanding its U.S. footprint in the last months. In June, Geis Cos. completed the company’s LG Chem Ohio, a two-building, 248,000-square-foot campus in Ravenna, Ohio. The complex consists of a 100,000-square-foot office building and a 148,000 square foot manufacturing facility.

Earlier this year, the firm also announced plans for the construction of a $5.5 billion battery manufacturing campus in Queen Creek, Ariz. Representing the largest single investment for a stand-alone battery manufacturing facility in North America, the development will consist of a 1.4 million-square-foot plant that will produce cylindrical EV batteries.

The post LG Leases 349 KSF Facility Near Tampa appeared first on Commercial Property Executive.

A joint venture between an affiliate of Equus Capital Partners and a U.S.-based public pension plan has acquired a two-building, 299,241-square-foot industrial campus in Lakeland, Fla., a Tampa submarket. An affiliate of High Street Logistics Properties sold the asset for $38 million.

CBRE arranged the deal on behalf of the seller. The Class A park was fully leased at the time of sale to two tenants: Gruma—a subsidiary of Mission Foods—and Safelite.

The campus previously traded in February 2022, when Crescent Communities sold it for $25.9 million to High Street Logistics Properties, according to CommercialEdge information.

READ ALSO: Shallow Bay Industrial’s Deep Potential

Building 100 measures 178,702 square feet, the same source shows, and features 45 dock-high loadings doors, two drive-in doors, 53 trailer stalls and 150 car parking spaces. The 120,539-square-foot Building 200 comprises 27 dock loading doors and two drive-in doors, 97 parking spots and 36 trailer stalls. Additionally, both facilities have 32-foot clear heights.

The campus is at 900 and 920 N. Chestnut Road, close to Interstate 4 and about 4 miles from Downtown Lakeland. Downtown Tampa is within 32 miles, while the Tampa International Airport is 36 miles southwest.

CBRE Vice Chairs Frank Fallon and Jose Lobon represented the seller in the deal. Equus Vice President Tim Feron and Analyst Tucker Scaringe oversaw the acquisition on behalf of the buyer.

Tampa facilities trade on par with U.S. figures

Year-to-date through July, Tampa’s industrial sales volume amounted to $621 million, according to the latest CommercialEdge industrial report. Assets in the metro changed hands for $135 per square foot on average, on par with the U.S. figure.

At the beginning of the year, PCCP LLC sold Tampa Airport Logistics Center, a 297,254-square-foot industrial campus. Clarion Partners acquired the two-building property for $55.6 million—or about $187 per square foot.

The post Equus Pays $38M for Tampa-Area Industrial Campus appeared first on Commercial Property Executive.

Basis Industrial has acquired Pinellas Business Center, a six-building office campus totaling 206,275 square feet in St. Petersburg, Fla., within the Gateway submarket.

CBRE negotiated on behalf of the seller, Taurus Investment Holdings. At the time of the deal, Pinellas Business Center was 93 percent occupied by a diverse tenant roster that includes PharmaLabs, Litewave Media, NDH Medical Inc., Curant Health Florida and The Symphony Agency, according to CommercialEdge.

The business campus last changed hands in 2021, when Taurus Investment Holdings paid $19.9 million to seller Denholtz Properties, the same source shows.

The office transaction volume in the Tampa market reached almost $400 million as of July, with properties trading at an average of $146 per square foot, a recent CommercialEdge report shows. The metro’s office vacancy rate clocked in at 13.3 percent, down 110 basis points over a 12-month period.

READ ALSO: Investors Find Office Bargains

Completed between 1985 and 1986, Pinellas Business Center underwent an exterior and landscaping renovation project totaling $3 million in 2022 and 2023. The property encompasses single-story office and flex buildings with rear-face loading through dock-high doors, grade-level doors and ramps. Additional features include floorplans ranging between 24,756 and 68,684 square feet, controlled access, building signage options and a total of 632 vehicle parking spots.

Located at 11001 and 10901 Roosevelt Blvd. N., the approximately 18-acre property is 7 miles from downtown St. Petersburg and has access to Interstate 275. St. Pete–Clearwater International Airport is 4 miles northwest of the business park while Tampa is 15 miles northeast.

The CBRE Capital Markets team representing the seller included Senior Vice President Dale Peterson, Associate Joe Chick and Transaction Manager Courtney Snell.

Recent deals in Tampa

This isn’t the first deal closed between Taurus Investment Holdings and Basis Industrial. In late 2023, North Lake Business Park, a 15-building business campus in Altamonte Springs, Fla., changed hands for $49.6 million. The property was part of Basis Industrial’s $220 million portfolio acquisition and refinance deal, which included the purchase of four industrial assets in Florida and Texas, and the refinancing of two additional Florida properties.

Recent office deals in Tampa include Saxum Real Estate Partners’ acquisition of NetPark Tampa Bay, the largest office property in the metro. The 947,176-square-foot, two-story asset changed hands for $45 million and marked the buyer’s first purchase in the area.

One month earlier, PGIM Real Estate sold Tampa’s tallest office tower. The 572,111-square-foot asset previously traded for nearly $152 million.

The post Basis Industrial Picks Up Tampa-Area Campus appeared first on Commercial Property Executive.

Dalfen Industrial has sold Building 100 within Midpoint Florida Logistics Center, a 423,000-square-foot industrial facility in Auburndale, Fla. The state of Florida acquired the asset.

The city’s Division of Emergency Management is planning to use the warehouse for the storage and movement of emergency supplies during emergency activation and response.

The Class A building is part of an 896,799-square-foot industrial campus that broke ground in August 2022 and came online in the second quarter of last year.

READ ALSO: Top 5 Markets for Industrial Deliveries

The company acquired the almost 74-acre development site in November 2021 for $25.7 million from Mancini Cos., CommercialEdge data shows. Dalfen financed the construction with two notes originated by First Horizon Bank a year later, totaling $61.5 million.

The facility features 36-foot clear heights, 68 dock-high loading doors and four drive-in doors, as well as 83 trailer stalls. Additionally, the warehouse has 33 pit levelers and 386 car parking spots. The other property within the campus is a 474,600-square foot building with 116 dock loading doors and 49 pit levelers.

Located at 660 C. Fred Jones Blvd., the building is within the Tampa – St Petersburg – Clearwater market and provides easy access to Interstate 4. Downtown Auburndale is some 7 miles away, while downtown Tampa is 46 miles southwest and Tampa International Airport is within 51 miles.

Tampa’s industrial sector remains steady

Year-to-date through June, Tampa’s industrial transaction volume stood at $401 million, with assets changing hands at $132 per square foot on average, the latest CommercialEdge industrial report shows. The metro’s vacancy rate that same month clocked in at 7.0 percent, 90 basis point above the national figure.

In January, PCCP LLC sold Tampa Airport Logistics Center, a 297,254-square-foot industrial park in Tampa, Fla. Clarion Partners purchased the two-building asset for $55.6 million.

The post Tampa-Area Warehouse Changes Hands appeared first on Commercial Property Executive.

The Dilweg Cos. has signed a 15,541-square-foot lease with Qualifacts at WestLake Corporate Center, a two-building Class A office campus totaling 179,966 square feet in Tampa, Fla. JLL negotiated on behalf of both parties.

The company, a leader in electronic health records and data solutions for behavioral health and human services organizations, will be located at the 90,531-square-foot WestLake Corporate Center I, where it will establish one of its main offices in the country. Move-in is scheduled for October this year.

The current ownership picked up both three-story assets in 2017, in an $101 million portfolio deal from seller Osprey, according to CommercialEdge. The same source shows that in 2018 the office properties became subject to a portfolio loan totaling $41.7 million, originated by PNC Bank.

WestLake Corporate Center I is an office building is at 9119 Corporate Lake Drive. Originally completed in 1999, the property includes two passenger elevators and 509 vehicle parking spots. Westlake Corporate Center II is at 9009 Corporate Lake Drive dates back to 2001. The 89,435-square-foot building includes 29,400-square-foot floor plates, two passenger elevators, first-floor retail space and 571 vehicle parking spots. Under Dilweg Cos.’ ownership, the two-building campus underwent significant improvements and renovations, such as upgraded HVAC systems, elevators and roofs.

The approximately 14-acre office campus is close to multiple bus stops and retail options, while being 6 miles from Tampa International Airport, 12 miles from downtown Tampa, 20 miles from Clearwater, Fla. and within 31 miles of St. Petersburg, Fla.

The JLL team that worked on behalf of Qualifacts included Executive Managing Director Caleb Lewis and Vice President Brad Knop, while the company’s Executive Vice President Jim Moler, Senior Vice President Deana Beer and Vice President Hans Kaunath represented the landlord.

Tampa’s low office vacancy rate

As of June, Tampa’s office vacancy rate clocked in at 13.3 percent, below the national figure of 18.1 percent, according to a recent CommercialEdge report. Across Southern markets, Tampa had one of the lowest rates, with Orlando’s reaching 15.6 percent, Austin at 22.9 percent and Miami leading with 12.0 percent.

In March, JLL was tapped as exclusive leasing agent at RD Management’s 100-acre mixed-use, multi-story urban development in Tampa’s Uptown District. The brokerage was appointed to handle leasing at the project’s healthcare, life science and office spaces.

The post Dilweg Inks Lease at Tampa Office Campus appeared first on Commercial Property Executive.

CBRE represented the seller, Bluett Capital Realty Inc., of Sacramento, Calif., and their tenants-in-common ownership group. The purchase price was $45 million, according to CommercialEdge data.

CBRE reported that the deal not only involved the Tampa market’s largest office property, but that this was the biggest office asset sold in the whole Southeast since 2022.

NetPark Tampa Bay is at 5701 E. Hillsborough Ave., on a 98.7-acre site in the East Tampa/I-75 Corridor submarket. The property’s on-site amenities include a fitness facility, dining hall, conference center and auditorium, on-site day care facility and a HART bus transfer station.

READ ALSO: Top 5 Office Transactions in the US

The property is 60 percent occupied by a diverse tenant roster including a variety of public and private-sector firms, in spaces ranging from 1,250 to nearly 150,000 square feet.

Formerly known as East Lake Square Mall, the property was Tampa’s original regional mall when developed in 1976, according to CBRE.

Dale Peterson, Joe Chick and Courtney Snell with CBRE Capital Markets represented the seller.

Warm to cold

The metro Tampa, Fla., office market is seeing limited overall absorption so far this year. That’s in part because of a handful of major corporate relocations, according to a first-quarter report from JLL. Despite this, the report states, “many large deals have been inked throughout the past six months, signaling the continued need for large blocks of space.”

Overall office vacancy across the metro is 17.2 percent, about where it has stayed for two-plus years. Approximately 430,000 square feet of space is under construction, about three-quarters of it preleased.

In contrast to subtropical Tampa, some of Saxum’s recent moves have been in the cold storage sector. Last December, the company, with its equity capital partner BGO, completed the recapitalization of an approximately 1.5 million-square-foot cold storage portfolio. The six recently delivered properties are in Phoenix; Atlanta; Dallas–Fort Worth; Hazleton, Pa.; and Reno, Nev.

And in April, Saxum and Arcadia Cold Storage & Logistics announced plans to build two cold storage facilities in the Chicago metro, with one of them to begin construction by the end of this year.

The post Saxum Buys Tampa’s Largest Office Property appeared first on Commercial Property Executive.

The tallest office tower in Tampa, Fla., has changed hands. PGIM Real Estate previously owned the 572,111-square-foot 100 North Tampa, according to CommercialEdge data. JLL represented the seller and procured the buyer.

The asset last traded in June 2007, when PGIM Real Estate acquired it from AIG Global Real Estate for $151.9 million, the same source shows.

Metro Tampa registered $184 million in sales year-to-date as of May, according to the latest CommercialEdge office report. Assets traded for $172 per square foot on average, slightly above the $165 national threshold. The metro’s office vacancy rate stood at 13.1 percent, a 160-basis-point drop over a 12-month period.

READ ALSO: Sizing Up the Prime Office Building Landscape

The JLL Capital Markets team representing the seller included Senior Managing Director Hermen Rodriguez, Managing Director Ike Ojala, Senior Directors Matthew McCormack and Robbie McEwan along with Associates Blake Koletic and Max Lescano and Analyst Hunter Smith.

Tallest office building in Tampa

The LEED Gold-certified high-rise is at 100 N. Tampa St. in downtown Tampa and less than 8 miles from Tampa International Airport.

The tower came online in 1992 and was 83 percent leased at the time of sale by multiple blue-chip tenants, with a 17.7-year weighted average tenant tenure. Some of the companies that occupy space at the property include Foley & Lardner, J.P. Morgan, Morgan Stanley and Cushman & Wakefield, based on CommercialEdge information.

Formerly known as the Regions Building and the AmSouth Building, the tower rises 42 stories and was designed by HKS Inc. The high-rise went through cosmetic renovations in 2013 and, more recently, underwent a $21 million upgrade that included a new lobby and tenant lounge, as well as updates to the conference and fitness centers.

Other amenities at the property include a bank branch, sundry shop and dry cleaning, along with some 11,000 square feet of retail space and 12 passenger elevators. The building also features floorplates averaging 22,000 square feet and EV charging stations.

The post Tallest Tampa Office Tower Changes Hands appeared first on Commercial Property Executive.

Midtown East is part of the $1 billion Midtown Tampa mixed-use, master-plan development that connects Westshore and downtown with another central neighborhood, and that has been in the making for years.

Commercial Property Executive sat down with The Bromley Cos. CEO Nicholas Haines to chat about the Midtown East Tower and its impact on Tampa’s skyline and office sector.

Midtown East Tower will be the anchor building within the larger Midtown Tampa project. Besides its height, what else will make the tower unique?

Haines: Midtown East is a 430,000-square-foot, Class A office space and serves as a beacon of sustainability and innovation. With column-free floorplates, advanced tech systems, sustainable amenities and indoor-outdoor connectivity, the 18-story tower offers an ideal workplace experience for modern office tenants. It has unsurpassed 360-degree views of downtown Tampa’s skyline, the Airport/Westshore Business District, downtown St. Petersburg and Tampa Bay to the west and south.

As the largest office tower in the Midtown Tampa neighborhood, Midtown East offers a timeless modern design with an energy-efficient glass curtain wall. It was important to create a meaningful addition to Tampa’s skyline while offering a desirable workspace to recruit and retain national, regional and local talent.

Midtown East will have signage visible from over 300,000 cars per day passing by the building.

Can you expand on the amenities that will be available to Midtown East tenants?

Haines: Within the building, tenants can enjoy sustainable and tech-enhanced amenities, including 26,000-square-foot floorplates offering flexibility and office customization, covered outdoor terraces with furniture, a specially designed customer lounge with private breakout rooms, a podcast studio and ground-floor retail and restaurants. On the ground floor, we have created a conservatory which will be a 3,000-square-foot event, conference and coworking space that can be used by all tenants or reserved for special events.

An additional amenity for office tenants is immediate access to the surrounding 23-acre commercial and residential district. Midtown Tampa offers a robust retail, restaurant and entertainment scene, with national brands like REI, Sephora, Shake Shack, True Foods Kitchen, Whole Foods and The Escape Game—opening later this year—as well as local and regional favorites. The entirely walkable destination allows residents, hotel guests, office tenants and visitors to conveniently and seamlessly enjoy an array of experiences.

Our master-planned development is home to more than 700,000 square feet of office space, 390 rental apartments, 225 hotel rooms and 185,000 square feet of retail space. Midtown Tampa also encompasses a Midtown Commons public space, a dog park, a 3-acre lake and a recreational trail open to the public.

Sustainability is a huge focus for this project. Tell us more about the less common elements that will help Midtown East achieve several certifications.

Haines: Once completed, Midtown East will feature smart energy management systems, a heat-reflective roof, floor-to-ceiling high-performance glass, high-speed destination elevators and floorplans that are adaptable across uses and work formats. It will be the only office building in Tampa with outdoor space incorporated into every single office floor—there are 19 different outdoor spaces in total—including a wrap-around rooftop deck overlooking Raymond James Stadium and downtown Tampa and a third-story terrace connecting to fitness and common spaces.

Midtown East will be home to Tampa Electric and Peoples Gas’ new headquarters, chosen in large part for its energy efficiency and storm resistance with an inland location away from flood areas, new construction with significantly improved hurricane resiliency, modern design and enhanced technology, and location central to major transportation routes.

Besides the two companies that you mentioned, Bromley and Highwoods will also be among the tenants of the building, jointly owning floors 10 through 15 and ground level retail. Are there any other tenants that will be occupying space at the upcoming building?

Haines: In addition to Tampa Electric and Peoples Gas, staffing and recruiting agency Insight Global will relocate to Midtown East from its current office space in the Westshore Business District. The firm will occupy a 20,000-square-foot lease with plans to move in in the first quarter of 2025.

We’re confident that the building’s centralized location will draw both local and out-of-market tenants to Midtown East, similar in nature to what we experienced at Midtown West, our first office building in the development. We have leases out with additional global tenants which we look to finalize shortly. These tenants will join our existing roster of national, regional and local tenants which includes Nestle, Greystar, PGIM and Savills, among others, at the existing 100 percent leased Midtown West and Loft Office buildings.

What are the next major milestones in the construction process leading up to the expected completion in 2025? Do you see any challenges on the horizon for the remaining phases of construction?

Haines: While this can be a challenging environment for development, our construction is moving along on schedule to achieve a certificate of occupancy in the first quarter of 2025. Our general contractor, Brasfield & Gorrie, has done a terrific job advancing the project and they are in the process of building out the interior space for TECO simultaneously. The project’s financing is fully in place and our GMP contract with Brasfield has helped insulate us from recent material and labor inflation. With the completion of the office tower, we are also building 1,400 parking spots on an adjacent lot, which is also on schedule.

The office market has been under immense pressure lately, but modern assets in prime locations continue to be in demand. How has office demand evolved in Tampa?

Haines: Despite turbulent conditions across the office sector more broadly, we have seen that there is still great demand for top-tier office space with significant pedestrian-proximate amenities in attractive markets, which is why we felt confident forging ahead with Midtown East. And companies have responded—the two currently completed office properties within Midtown Tampa, Midtown West and The Loft, are 100 percent leased, with tenants including K-Force, Prudential, Primo Water, Gresham Smith, Compass and Kast, among others.

How will Midtown East cater to the needs of the local community and the city of Tampa at large?

Haines: In addition to offering 8,000 square feet of new retail and restaurant space for visitors to explore, Midtown East will further develop the greater Midtown Tampa development, which is already enriching Tampa as a family and pet-friendly, live-work-play-stay community of the future.

We are working with city officials and Tampa’s Economic Development Corp. to attract new businesses to Tampa with the new available office space.

Additionally, Midtown East will continue to strengthen tax revenues and job creation for Tampa through economic growth and by attracting top-tier businesses to the area, along with the ancillary services to support them, just as the Midtown development project has, creating more than 3,000 construction jobs and increasing real estate tax to the city by more than 20 times.

Once Midtown East and other key components are completed, what are your longer-term plans for the Midtown Tampa mixed-use project?

Haines: Our top objective is to make Midtown Tampa a thriving community hub where residents and visitors can live, work and play in style. Midtown sits at the geographic center of the Tampa Bay region, adjacent to major highways and local roads, making it highly accessible to the entire 3-million-person local market. That means ensuring that its workplace offerings are always on the leading edge of what companies and their employees seek out while maintaining a robust ecosystem of shops, restaurants and experiences that make this area a fun place to explore for all of Tampa, even for those not living in or working on the campus itself.

We believe Midtown Tampa can be the beating heart of the wider Tampa community and an exciting, continually reinventive center for guests, residents and workers alike.

The post Inside Midtown East, Tampa’s Tech-Savvy New Tower appeared first on Commercial Property Executive.

A joint venture between The Bromley Cos. and Highwoods Properties has topped out Midtown East, an $83 million, 430,000-square-foot Class A office building in Tampa, Fla. The project is part of the $1 billion Midtown Tampa mixed-use development.

Designed by Rule Joy Trammell + Rubio, Midtown East rises 18 stories—making it the tallest building in Westshore. The developers broke ground in 2022 and completion is expected in 2025.

Seeking LEED, Fitwel and Wired certifications, the development will feature smart energy management systems, outdoor access on every floor, a heat-reflective roof and floor-to-ceiling windows, as well as column-free floorplates.

READ ALSO: Where Office Work Is Heading Now: CoreNet Global Survey

Upon Midtown East’s completion, Bromley and Highwoods will jointly own 134,000 square feet of the property, encompassing five office floors and ground-level retail. The rest of the building will be occupied by Tampa Electric and Peoples Gas, set to own 11 floors—equating to 298,000 square feet—and relocate their headquarters for the first time since 1981.

Located at 1 Midtown Place, at the intersection of Interstate 275 and North Dale Mabry Highway, the project rises next to Tampa’s first True Food Kitchen, a restaurant backed by Oprah Winfrey and Andrew Weil.

Exploring Midtown Tampa’s office component

Midtown Tampa will include more than 700,000 square feet of office space, 390 multifamily units, 225 hotel keys, as well as 185,000 square feet of retail space. Additionally, a public space, dog park, 3-acre lake and recreational trail will be available.

The mixed-use development sports a strong office leasing demand, with the existing office space being fully leased. Bromley and Highwoods also own Midtown West, a 152,000-square-foot office building completed in 2021.

Last year, the joint venture secured a $45 million loan for the property. New York Life Insurance Co. originated the financing. The fully leased property includes tenants such as Nestle, Prudential, Primo Water, Kforce, South State Bank, Kast Construction and Savills.

A recent CommercialEdge report reveals that Tampa had 412,350 square feet of office space under construction as of March 2024, representing 0.5 percent of stock. The metro’s office vacancy rate clocked in at 12.7 percent, decreasing 350 basis points year-over-year.  

The post Bromley, Highwoods Top Out $83M Tampa Office Tower appeared first on Commercial Property Executive.

Anchor Health Properties, in partnership with BGO, has acquired a 70,418-square-foot medical office building in Sarasota, Fla. Casto sold the asset for $31.8 million, according to Sarasota County records. The purchase was made through a programmatic acquisitions joint venture that was recently launched.

Anchor Health will also provide asset and property management services. The property came online in 2020 and was previously subject to a $17.7 million construction loan in 2019, provided by Truist Bank, with a maturity date set for 2029. The outpatient facility was fully occupied at the time of the sale. JLL provided capital evaluation and advisory services for the asset.

READ ALSO: Medical Office to Perform Well in 2024: Report

Since the beginning of this year, Anchor Health has expanded its footprint with the acquisition of a three-property medical office building portfolio in the Seattle and Charlotte, N.C. markets, paying $62 million for the collection. More recently, the company topped out its 100,000-square-foot medical campus in Peoria, Ariz.

A clinic on the Southwest Florida Coast

Manatee Physicians Alliance, Advanced Surgery Center of Sarasota, Fresenius and Radiology Regional are among the property’s tenants. A variety of medical services are available at the facility, including family medicine, pediatric radiology, pain management, plastic surgery, dentistry, behavioral health, neurology, dialysis services and diagnostic imaging, among others. An upcoming ambulatory surgery center at the property will feature two operating rooms for orthopedic, joint replacement, podiatry and spine surgery procedures.

Located at 6600 University Parkway E., the three-story building is within Lake Wood Ranch, a master-planned community situated between Tampa and Fort Myers, with access to Interstate 75. The facility is part of the Southwest Florida Coast market. Other medical service providers in the area include Sarasota Urgent Care, Health Point, Lakewood Ranch Medical Center and Concentra Urgent Care, among others.

The post Anchor Health JV Pays $32M for South Florida MOB appeared first on Commercial Property Executive.

Strategic Property Partners has unveiled the expansion plans for Water Street Tampa.

The 56-acre walkable live-work-play neighborhood under development in downtown Tampa, Fla., will feature a build-to-suit office tower, together with a condominium high-rise and a mixed-use entertainment center with a hotel.

The office and residential towers will be along an extension of Water Street that’s currently under construction north of the 900 and 1000 blocks of East Cumberland Avenue.

The entertainment destination, just north of Amalie Arena between South Morgan and South Jefferson streets, will feature a hotel, an event parking garage and a variety of entertainment-oriented uses.

Kohn Pedersen Fox is designing the office tower, which will feature ground-floor retail and green areas. Plans also call for green space along Water Street, to allow open-air markets, outdoor concerts and other activities.

The road and utility infrastructure work for this next phase of Water Street Tampa is underway and expected to be completed by spring 2025. Construction of the two high-rises will start shortly after.

Long horizons

Water Street Tampa got underway in fall 2017. The project was slated to include 9 million square feet of space across 10 city blocks: 2.6 million square feet of office space, 3,500 new rental and for-sale residences and two hotels totaling more than 650 guestrooms, along with retail and cultural space. The first phase was to be completed by 2020, and subsequent phases by 2027.

The project’s first trophy office tower—also the first of this kind to be built in downtown Tampa in nearly 30 years—opened in July 2021. The 20-story Thousand & One has 375,000 square feet of Class A office space and is certified WELL Gold, LEED Silver and WiredScore Platinum.

Northern Trust Corp. leased more than 10,000 square feet at the office building in August 2022, and Gensler signed a lease for 10,803 square feet on the second floor in July 2023. Thousand & One is currently 90 percent leased.

The post $3B Tampa Mixed-Use Moves Forward appeared first on Commercial Property Executive.

A joint venture between Stonemont Financial Group and PCCP is developing TIA Executive Center in Tampa, Fla. Construction on the 100,620-square-foot facility is anticipated to start next month, with completion scheduled in the first quarter of next year.

The developer acquired the land for $3.6 million from Chestnut Hill Investments and received a $10 million construction loan from Byline Bank, according to public records.

Partners on the project include general contractor Frampton Construction, architecture firm Harley Commercial Architecture and engineer Kimley-Horn. JLL is handling leasing efforts.

The distribution center will rise in the Tampa Airport submarket and will feature 32-foot clear heights and speculative office suites. The space will be divisible to 33,000 square feet, to cater to smaller users.

Located at 6101 Johns Road, the facility will be 2 miles from the Tampa International Airport, providing easy access to highways 589 and 580. Downtown Tampa and Port Tampa Bay will be within 11 miles. The development will also be 1 mile from a two-building, 297,254-square-foot industrial park that recently changed hands.

Stonemont’s industrial expansion across Florida

Stonemont Financial Group’s portfolio currently comprises more than $5 billion of assets under management. The firm focuses on developing facilities in Florida, with more than 1.5 million square feet of industrial space underway in Groveland and an approximately 457,000-square-foot project in Ocala.

Last month, the company also completed South Florida Logistics Center 95, a 1.3 million-square-foot complex in Fort Piece, Fla. The speculative industrial park comprises a 1.1 million-square-foot cross-dock facility and a 245,000-square-foot rear-load warehouse.

Tampa’s industrial demand remains steady

Tampa’s industrial pipeline as of February comprised almost 5 million square feet of space under construction, according to a recent CommercialEdge industrial report. The metro’s vacancy rate clocked in at 6.4 percent, 140 basis point higher than the national average.

In February, a joint venture between Clarion Partners and Seefried Industrial Properties broke ground on the first phase of Park 4 Logistics Center in Plant City, Fla. The four-building, 860,120-square-foot logistics development will sit on 72 acres.

In December, Hines started construction on the last phase of Tampa Commerce Center, its first project in the market. The development, which will measure some 600,000 square feet upon full buildout, is already preleased by Ball Corp.

The post Stonemont, PCCP Launch Tampa Project appeared first on Commercial Property Executive.

RD Management, owner and developer of a 100-acre mixed-use, multi-story urban development site in Tampa’s Uptown District, has chosen JLL’s Central Florida Healthcare Practice Group to lease the health-care, life science and office components of the project known as RITHM.

The developer, which acquired the site along East Fowler Avenue and Club Drive in 2014, is converting the former University Mall into at least 1.1 million square feet of mixed uses featuring health-care and medical uses, life science, research and development and technology space. It will also have retail and entertainment, coworking space and corporate offices.

Once complete, RITHM—which stands for Research, Innovation, Technology, Humanity & Medicine and is derived from the word ‘algorithm’—could encompass more than 7 million square feet of development, including several thousand residential units. The largest development in Tampa, RITHM is expected to become one of the largest innovation districts in the state.

READ ALSO: Turning a Textile Mill Into a Modern Mixed-Use Destination

Completed developments at RITHM include a mix of multifamily, student housing and Sprouts Farmers Market, a 23,000-square-foot natural food grocery store that opened in August 2023. Recent additions include new headquarter locations and related spaces for the USF Institute of Applied Engineering and Vu Studios.

Hub Tampa, a $65 million, 359-unit, 890-bed off-campus student housing project serving students at the University of South Florida, was completed in August 2022. Core Spaces is planning a second phase with 900 additional beds at Hub Tampa, for a total investment of about $200 million. An extended-stay Marriott hotel is scheduled to break ground early this year along the newly constructed University Square Drive extension that connects RITHM to the USF campus.

The 103,151-square-foot shopping center anchored by the Sprouts store is under construction and will also include a 49,412-square-foot Burlington retail store and an additional 30,000-square-foot user.

RITHM is one of approximately 32 mall conversion projects across the country as developers seek to reposition underutilized shopping malls to better suit the demands of their communities.

JLL’s team effort

The JLL team is led by Lucia Hedke, managing director and Florida Healthcare Lead, and Bryan Rodriguez, vice president.

Hedke told Commercial Property Executive a minimum of 500,000 square feet of existing space will be converted to health-care and life science uses.

“During the last two weeks we have had 150,000 square feet of active negotiations,” she said. “There is a great demand, which speaks to the growth of the area.”

In October, a team led by Hedke and Managing Director Micah Strader was tapped by Onicx Group to lease Nona Medical Center, a new 45,000-square-foot facility located within the 23-acre mixed-use development East Park Village in Orlando, Fla. Nona Medical Center will be less than 1 mile from AdventHealth’s new 67.28-acre mixed-use campus and will be near Lake Nona Medical City, a premier location for medical care, research and education.

The post RD Management Taps JLL to Lease 1 MSF Mall Conversion appeared first on Commercial Property Executive.

Clarion Partners and Seefried Industrial Properties have started construction on the first phase of Park 4 Logistics Center, a four-building, 860,120-square-foot Class A logistics park in Plant City, Fla. Avison Young will handle leasing for the campus.

Clarion purchased the 72-acre property, at Park Road and North Frontage Road off of I-4, in 2023 and partnered with Seefried to develop the project in two phases. Phase one will deliver in the fourth quarter of this year and will comprise Building 100, of 218,960 square feet, and Building 200, of 247,520 square feet.

The schedule for phase two, of Building 300 (169,000 square feet) and Building 400 (224,640 square feet), has yet to be determined.

The site is immediately off of Exit 22 of I-4, just 16 minutes to I-75 in Tampa.

READ ALSO: The Rise of Design Aesthetics in Industrial Architecture

In a prepared statement, Clay Witherspoon, principal & managing director of Avison Young’s Tampa operations, said that most of the industrial inventory that has come to market over the past three years has focused on 100,000- to 500,000-square-foot users, causing large spaces to sit vacant for longer periods of time. She added that Park 4 Logistics Center aims to meet the demand of businesses seeking spaces between 40,000 and 75,000 square feet.

Clarion Partners owns more than 5.5 million square feet of stabilized industrial space in Central Florida and has another 4.75 million square feet in the development pipeline.

Size matters

In the second half of 2023, tenant demand in the Tampa Bay industrial market changed quickly, according to Avison Young. Deals in the 100,000- to 250,000-square-foot range dropped by nearly two-thirds versus 2022. In 2023, by contrast, the largest share of leasing activity was in spaces from 50,000 to 100,000 square feet, constituting 29 percent of leasing activity.

Meanwhile, asking rates for industrial product in Tampa Bay rose 11 percent year-over-year in 2023 to $10.68 per square foot triple-net, Avison Young reported.  

This past October, Trammell Crow Co. and partner STAG Industrial broke ground on a 300,000-square-foot, two-building project in Gibsonton, Fla. The development is scheduled for delivery in the third quarter.

In December, Hines started construction on the second and final phase of its Tampa Commerce Center, a four-building industrial development. Ball Corp., a provider of sustainable aluminum packaging, had preleased the entire campus in late 2022.

And in early January, Clarion acquired the two-building, 297,254-square-foot Tampa Airport Logistics Center from PCCP LLC for $55.6 million, on behalf of a separate account client. The property is fully leased.

The post Clarion, Seefried Break Ground on Tampa-Area Project appeared first on Commercial Property Executive.

PCCP LLC has sold Tampa Airport Logistics Center, a two-building, 297,254-square-foot industrial park in Tampa, Fla. Clarion Partners acquired the asset for $55.6 million on behalf of a separate account client. Cushman & Wakefield represented the seller.

The 2022-completed campus was fully leased at the time of sale. Tenants at the 19.2-acre property include Veho Tech and Peak Nutritional Products, CommercialEdge data shows.

NorthPoint Development started construction on the project in 2021, with WELBRO Building Corp. serving as general contractor. Each facility features two drive-in doors, an ESFR sprinkle system, 52-by-50-foot column spacing and share a 192-foot truck court, along with some 300 parking spaces. The 100,936-square-foot Building 1 has 32-foot clear heights and 15 dock-high loading doors, while the 196,318-square-foot Building 2 has 24 loading doors and 36-foot clear heights.

Located at 5450 Johns Road and 5416 W. Sligh Ave., the industrial park provides easy access to Interstate 275, Veterans Expressway and Tampa International Airport. Downtown Tampa is some 12 miles southeast, while downtown St. Petersburg, Fla., is 24 miles away. Port Tampa Bay is within 10 miles.

The Cushman & Wakefield team which represented the seller included Vice Chair Rick Brugge, Executive Vice Chair Mike Davis, Senior Director Rick Colon and Executive Managing Director Dominic Montazemi, together with Associates Chloe Strada and Ryan Jenkins. In July, Brugge, Davis, Colon and Montazemi were part of the team that assisted Vital Pharmaceuticals in the sale of a 224,650-square-foot warehouse in Pembroke Pines, Fla.

PCCP’s recent industrial projects

At the end of December, PCCP formed a joint venture with Panattoni Development Co. and Hunt Cos. for the construction of a 939,612-square-foot industrial campus in El Paso, Texas. The two-building park is already underway, with completion expected later this year.

The firm is also working with Rockefeller Group on a 656,904-square-foot campus in Philadelphia. Other projects in the pipeline include a 672,533-square-foot logistics park, developed in partnership with BBX Logistics Properties.

The post Clarion Partners Pays $56M for Tampa Industrial Park appeared first on Commercial Property Executive.

Upon completion, Tampa Commerce Center will total some 600,000 square feet. Image courtesy of Miller Construction Co.

Hines has commenced construction on the second and last phase of Tampa Commerce Center, a four-building industrial development in Tampa, Fla.

The development team consists of general contractor Miller Construction Co., architect Powers Brown, civil engineer Genesis Haff and MEP engineer TLC, together with Pinnacle Structural Engineers. Completion is slated for next spring.

Ball Corp.—a sustainable aluminum packaging provider—has preleased the entire Tampa Commerce Center in October 2022.

Hines’ first industrial project in Tampa

Tampa Commerce Center marks Hines’ first industrial project in the area. Phase one, comprising roughly 400,000 square feet across two facilities, broke ground last year.

In 2021, Hines obtained a five-year, $25.5 million construction note for the project from Associated Bank, public records show. The following year, the developer increased the loan amount to $42 million.

Tampa Commerce Center’s second phase will encompass two industrial buildings totaling more than 200,000 square feet. Both warehouses are set to have 32-foot clear heights, 60-foot speed bays, two dock ramps and tenant office buildouts. The 78,640-square-foot Building 200 will feature 24 dock-high loading doors, while the 122,850-square-foot Building 300 will include 28 dock doors.

Rising on 46 acres at 7918 Harney Road, the campus will provide easy access to interstates 4 and 75. Downtown Tampa is some 11 miles from the site, while Port Tampa City and Tampa International Airport are within 20 miles. Lakeland Linder International Airport is less than 28 miles southeast.

A growing industrial pipeline

Hines recently teamed up with Key Group for the development of a $500 million industrial campus on Florida’s Space Coast. The 3 million-square-foot project is expected to come online in three phases, starting in early 2024.

In November, Hines broke ground on a 684,344-square-foot industrial center in Austin. The developer is also working on the first phase of an 868,360-square-foot industrial park in Denver, which is expected to be delivered in the second quarter of next year.

The post Hines Kicks Off Phase 2 of Tampa Industrial Project appeared first on Commercial Property Executive.

2118 California Crossing in Dallas, another Zenith IOS property. Image courtesy of Zenith IOS and J.P. Morgan Global Alternatives

Zenith Industrial Outdoor Storage is set to develop an industrial outdoor storage property in Clearwater, Fla. The 20-acre project is expected to come online in the first quarter of next year.

The Pinellas County site was part of Sunshine Industrial Park, an 83-acre property that Zenith IOS acquired in September of last year for $27.5 million, according to CommercialEdge data. The deal closed through the national IOS platform established in partnership with J.P. Morgan Global Alternatives.

Upon completion, the property will feature automatic gates, advanced lighting, a fenced-in boundary and a stabilized surface solution. Franklin Street will assist with leasing at the storage asset.

Situated in the Tampa Bay metro, the site is close to Interstate 275 and U.S. Highway 19. St. Pete-Clearwater International Airport is less than 3 miles away. The Bayside and Gandy Bridges are also nearby.

Zenith’s mega partnership

Zenith IOS and J.P. Morgan Global Alternatives created the $700 million IOS platform in early 2022, hoping to build a $1 billion portfolio within two years of partnership. The joint venture’s first move was a four-property Dallas acquisition that also included a nearly 27-acre site.

In an earlier interview with Commercial Property Executive, Daniel Laub, co-founder & COO of Zenith IOS, said the company now owns assets in some 20 markets spanning from California to New York and down from Chicago and Minneapolis to Texas and Florida. In terms of investments, the firm will continue to focus on major metros as well as on “strategic secondaries”.

The post Zenith IOS to Develop Tampa Bay Property appeared first on Commercial Property Executive.

Rendering of 200 Powell Road, part of the 300,000-square-foot project. Image courtesy of Trammell Crow Co.

Trammell Crow Co., in partnership with STAG Industrial, has broken ground on a 300,000-square-foot, two-building project in Gibsonton, Fla. The industrial buildings are scheduled for delivery in the third quarter of 2024.

Welbro Building Corp. is the general contractor, C4 Architecture serves as architect of record and Atwell as civil engineer. The development team also includes DMS as the LEED consultant and CBRE as the leasing agent.

STAG purchased the adjacent land parcels for a total of $8.9 million, according to Hillsborough County records.

This is TCC’s first Florida project developed with STAG Industrial, the company’s Senior Vice President Brendon Dedekind said in prepared remarks. The project will comprise two adjacent buildings, measuring 160,000 and 140,000 square feet, that will be located at 100 and 200 Powell Road. The one-story facilities will include 32-foot clear heights, office space, a truck court and trailer parking.

The two development sites total 30 acres, near Interstate 75, roughly 15 miles from downtown Tampa, Fla., and within 24 miles of Tampa International Airport.

Tampa remains solid for industrial owners

Tampa’s in-place rents stood at $7.23 per square foot as of August, and new leases were signed at an average rate of $8.35 per square foot over the past 12 months, a recent CommercialEdge report shows. The metro was outpaced by Baltimore, which had in-place rents at $7.53 per square foot and $9.73 per square foot in new leases, the same report shows.

Recent developments in Tampa include Sansone Group’s Tampa Cold Logistics, a 108,544-square-foot cold storage project in Ybor City, Fla. In May, the development received $26.6 million in construction financing and $13 million in equity from BentallGreenOak.

The post Trammell Crow, STAG Kick Off Tampa Industrial Project appeared first on Commercial Property Executive.

While the volume represents a significant drop from the $4 billion recorded during the same timeframe in 2022, this decrease is contextualized as a moderation from the exceptionally active previous year, coupled with pandemic-induced changes in work dynamics.

Investors focused their attention on the Tampa market, where transaction volume totaled $473 million. West Palm Beach came in second with $256 million in office sales. In contrast, Miami saw a significant decline in sales volume, with only $227 million worth of office assets trading hands.

The top five deals, as outlined in the table below, account for $302.6 million, which translates to 22.2 percent of the total investment volume, according to CommercialEdge. Here are the five largest office single-asset sales closed in Florida between January and August.

1. 6600 North Military Trail, Boca Raton

In April, a PEBB Enterprises and BH Group joint venture purchased 6600 North Military Trail in Boca Raton, Fla.

In April, ODP—the corporate entity behind Office Depot and Office Max—sold its headquarters building to a joint venture between Boca Raton-based PEBB Enterprises and Miami-based BH Group. The $104 million sale-leaseback deal was the largest single-property office sale year-to-date through August in Florida. The sale was funded by a 63 million loan provided by City National Bank of Florida.

ODP's recent transaction serves as a strategic move in their ongoing efforts to navigate the challenges brought about by supply chain disruptions during the pandemic. The property previously traded in 2017, when ODP purchased it from Equity Commonwealth for $132 million, CommercialEdge data shows. Completed in 2008, the 639,830-square-foot office building spreads across 29 acres at 6600 North Military Trail in Boca Raton, Fla.

2. Museum Tower, Miami

The second-largest office deal closed in the first eight months of the year was Mana Group’s $73.5 million acquisition of Museum Tower in Miami’s central business district. Bridge Investment Group sold the 266,697-square-foot asset at the end of April, with Starwood Capital Group providing $47 million in financing, according to CommercialEdge.

Located at 150 W. Flagler St., the 29-story building features 7,000 square feet of first-floor retail and 12 levels of parking. While originally completed in 1983, the previous owner—which acquired the asset in 2019 for $64.6 million from Gaedeke Group—invested some $4.5 million in building improvements since its purchase.

3. 101 East Broward Blvd & Corporate Center, Ft. Lauderdale

Homegrown company PEBB Enterprises kept active in the first half of 2023, closing another major office deal in May. The firm acquired 101 East Broward Blvd & Corporate Center, a 342,465-square-foot office complex in Fort Lauderdale, for 43 million. Amerant Bank funded the sale with a $48.5 million loan.

The seller was Stockbridge Capital Group, which previously bought the property out of foreclosure in 2018 for $41 million. Originally completed in 1982, the asset encompasses a two-story and a 24-story structure and features 3,200 square feet of retail. Tenants include Fort Lauderdale Downtown Development Authority, Truist and multiple law firms.

4. Ryder Headquarters, Medley

Earlier this year, transportation and logistics company Ryder sold its headquarters in Medley, Fla., in a sale-leaseback deal.

In another sale-leaseback deal closed in March, Bridge Industrial paid $42.1 million for Ryder‘s 248,989-square-foot headquarters building in Medley, Fla. The transportation and logistics company purchased it from Flagler in 2014 for $41 million, CommercialEdge data shows, but has been using the building as its flagship location since 2005. The four-story building sits on 17 acres at 11690 NW 105th St. and features 996 parking spaces.

Although Ryder employs over 48,000 individuals across North America, its Miami base hosts 800 South Florida office employees, a significant portion of whom have been working remotely or adopting a hybrid work model since March 2020. The sale comes as a response to these changes.

5. Bridgeport Center, Tampa

Early in 2023, NAI Merin Hunter Codman acquired Bridgeport Center, a Class A office building at 5201 W. Kennedy Blvd. in Tampa, Fla. The 183,031-square-foot building was sold by America's Capital Partners for $40 million, while the transaction was funded by a $27 million loan provided by Manufacturers and Traders Trust Co.

The property was built in 1980 and underwent significant improvements in 2011, according to CommercialEdge. Additionally, it previously changed hands in 2013 for $25 million, when America's Capital Partners purchased it from Flagler. Tenants include Troy University, Harvard Jolly Architects, America's Capital Partners and United Way Suncoast, among others.

The post Top 5 Office Transactions in Florida appeared first on Commercial Property Executive.

The Class A Trinity Medical Arts Building came online in 2011. Image courtesy of CommercialEdge

Onicx Group has secured a $29 million refinancing loan for two medical office buildings totaling 132,000 square feet in Trinity, Fla., and Kissimmee, Fla. First Citizens Bank‘s Healthcare Finance business, part of the CIT division, provided the loan.

Both medical offices were subject to previous financing in 2020. Trinity Medical Arts Building received a five-year, $21.8 million cash-out refinancing from ServisFirst Bank, while Poinciana Medical Arts Building was subject to a $7.9 million loan, due in 2025, originated by Ameris Bank, CommercialEdge data shows.

The properties are part of Florida Trinity Hospital and Poinciana Hospital campuses. The 90,000-square-foot Trinity Medical Arts Building came online in 2011 on 0.6 acres. The four-story, Class A facility features 23,000-square-foot floorplates, controlled access, four passenger elevators and offers 540 parking spaces.

Located at 9332 State Road 54, the property is within the Tampa St. Petersburg Clearwater market, some 30 miles Northwest of downtown Tampa. Its tenant roster includes Fresenius Kidney Care Seven Springs, New Port Richey Surgery Center and Women’s Care Center.

Delivered in 2013, Poinciana Medical Arts Building encompasses 42,000 square feet on 10.2 acres. The two-story, Class B building features a passenger elevator, controlled access and shares parking space with the hospital campus. The property at 339 Cypress Parkway has access to State Route 580 and is 35 miles South of downtown Orlando, Fla.

First Citizens Bank recently provided a $14.5 million refinancing loan for Holly Pond Plaza, a 73,060-square-foot medical facility in Stamford, Conn.

The post Onicx Secures $29M Refi for Florida MOBs appeared first on Commercial Property Executive.

Sunstate Industrial Park’s acquisition represents the company’s third investment in Tampa, Fla., this year. Image courtesy of CommercialEdge

In a $27.3 million deal, CIP Real Estate has acquired Sunstate Industrial Park, a 180,367-square-foot property in Tampa, Fla. Colliers represented the seller, a joint venture between Birtcher Anderson & Davis and Belay Investment Group.

Cushman & Wakefield negotiated the transaction on behalf of CIP Real Estate, which closed on its third acquisition in Tampa this year.  The property last changed hands in 2021, for $17.1 million, CommercialEdge data shows.

Sunstate Industrial Park is a one-story flex industrial building at 4899 W. Waters Ave., featuring 18-foot clear heights, sky lights, HVAC climate control systems, ample column spacing, loading doors, dock levelers and bumpers, as well as 379 parking spots, the same data provider shows.

READ ALSO: CIP Real Estate’s CEO Is Still Keen on Industrial. Here’s Why.

Sunstate Industrial Park covers 15 acres, 7 miles from Tampa International Airport, 12 miles from downtown Tampa and within 21 miles of Clearwater, Fla. The property is leased to 32 tenants, including companies such as Rezalo Health & Performance, ATI Restoration, DesignCraft Kitchen & Bath and Universal Screen Graphics, according to CommercialEdge. The new ownership plans to invest in interior improvements, while also enhancing the property’s exterior appearance, to bring the Class B industrial asset to a high-quality status.

Cushman & Wakefield’s team of Jason Hochman, Ron Granite and Seam Campbell assisted CIP Real Estate in securing acquisition financing. With this purchase, the company has expanded its Tampa industrial footprint to more than 585,000 square feet. Last year, CIP Real Estate picked up Center Point Business Park and Hampton Oaks Business Park, two industrial complexes in East Tampa totaling 405,772 square feet. The $74.3 million deal marked the company’s entry in the Florida market.

The post CIP Real Estate Buys Tampa Asset appeared first on Commercial Property Executive.

Thousand & One at Water Street Tampa. Image courtesy of Seamus Payne

Gensler inked a 10,803-square-foot lease with Strategic Property Partners at Thousand & One in Water Street Tampa, a 387,000-square-foot office tower in downtown Tampa, Fla. The tenant will relocate to its new, second-story space of the WELL Gold-certified trophy building by the end of the year.

Located at 1001 Water St. within the $3.5 billion, 56-acre Water Street Tampa mixed-use district, the building is the city’s first to achieve WELL Core and Shell certification. Rising 20 stories, Thousand & One is also LEED Silver and WiredScore Platinum certified.

Cushman & Wakefield is the leasing broker at the property. After the current deal, the building came closer to being 90 percent leased, Executive Vice President at Strategic Property Partners David Bevirt said in prepared remarks.

Designed by COOKFOX Architects and completed in 2021, the Class-A office building features flexible floorplates, a fitness center, an open-air conference room, a townhall, a rooftop terrace, seven passenger elevators, 12,000 square feet of ground-floor retail, controlled access and approximately 1120 parking spaces.

The tenant roster includes Citadel, Walker & Dunlop, ReliaQuest, Sila Realty Trust, Weatherford Capital, Synovus Financial Corporation, RSM, Suffolk Construction and USA Rare Earth. Roughly one year ago, Northern Trust Corp. signed a 10,000-square-foot commitment at the property’s ninth floor.

The post Gensler Signs Lease at Tampa Trophy Tower appeared first on Commercial Property Executive.

Lakeside Village. Image courtesy of Continental Realty Corp.

Continental Realty Corp. has purchased Lakeside Village, a 460,000-square-foot super-regional retail center in Lakeland, Fla. CASTO sold the asset for $78 million, according to CommercialEdge data. JLL’s Danny Finkle and Eric Williams brokered the off-market deal on behalf of the seller.

CRC bought the lifestyle center on behalf of Continental Realty Opportunistic Retail Fund I LP, a close-ended fund focused on neighborhood, grocery-anchored, lifestyle and power centers. Since its creation, the firm purchased 10 retail properties comprising nearly 2.4 million square feet and deployed nearly $150 million of equity.

The acquisition of Lakeside Village brought CRC’s Florida retail portfolio to 17 properties totaling nearly 2 million square feet.

A super-regional retail center

Completed in 2005, the retail center encompasses 20 buildings on an 88-acre site. The property also features approximately 46,000 square feet of Class A office space. The new owner plans to invest $3 million in renovations, providing upgrades to shopping center’s roof, exterior paint and revitalizing the commercial office space.

Anchored by Belk, Cobb Theatre, Books-A-Million and shadow-anchored by Kohl’s, the open-air center has more than 70 national and local tenants. Lakeside Village was 91 percent leased at the time of sale. The roster includes Burger 21, Chico’s, Fish City Grill, Ideal Image, Pearle Vision, Saigon Bistro, Starbucks Coffee, Versona and Victoria’s Secret.

Located at 1479 Town Center Drive, the retail center is right off Polk Highway, which provides direct access to Interstate 4. The property is in an area with many residential homes and more than 900 multifamily units planned for development on an adjacent property.

The retail center is 3 miles from Lakeland Linder International Airport, 33 miles from Tampa, Fla., and 60 miles from Orlando, Fla. More than 5.5 million people visit the area annually.

The post Continental Realty Corp. Buys 460 KSF Retail Center for $78M appeared first on Commercial Property Executive.

One Urban Centre. Image courtesy of CommercialEdge

Ally Capital Group has paid $123 million for Urban Centre, a two-building office complex totaling 548,054 square feet in Tampa, Fla., according to Tampa Bay Business Journal. The buyer purchased the Westshore asset, as well as the adjacent seven-story parking garage, from Starwood Capital Group. Valley Bank provided financing for the acquisition.

The new owner plans to replace the previous property manager, JLL, with Franklin Street. The buildings were 88 percent leased at the time of sale.

Inside Tampa’s Urban Centre

Located at 4830 and 4890 W. Kennedy Blvd., One and Two Urban Centre came online in 1984 and underwent cosmetic renovations in 2008, according to CommercialEdge information. Starwood had purchased the office buildings in 2018 from the Teachers Insurance and Annuity Association for a combined $143.1 million and completed renovations worth $3.5 million to the common areas, amenity spaces and restaurants in 2022.

READ ALSO: Why Well-Being in CRE Projects Is a Must

Two Urban Centre. Image courtesy of CommercialEdge

The nine-story buildings have 32,000-square-foot floorplates and full-height atriums, as well as ground-floor retail. Amenities include private conference facilities, a fitness center, a café with a lounge, a dining and event space, landscaped outdoor courtyards and EV charging stations.

Urban Centre also includes an 11-floor, 325-key luxury hotel that was not part of the current transaction.

Situated adjacent to the WestShore Plaza shopping mall in one of the city’s largest business districts, Urban Centre provides quick access to many of Beach Park’s dining, retail and entertainment options. Downtown Tampa is some 4 miles to the east, while Tampa International Airport is 4 miles north.

Trey Korhn, first senior vice president & head of Valley Bank’s commercial real estate division, worked to secure the financing for Ally Capital.

Tampa’s temperate office market

Despite an unpredictable leasing and investment environment, Tampa’s office market retains solid fundamentals, particularly as the city’s professional sectors expand. The metro ranked sixth in the nation for office-using employment growth on a year-over-year basis as of February, according to data from a recent CommercialEdge report. The development pipeline amounted to 850,000 square feet as of March, while the vacancy rate clocked in at 16.3 percent, 40 basis points below the national average.

The same data provider shows that nearly 2 million square feet of office space have changed hands in the metro since the beginning of the year. In one of the more significant transactions, a joint venture between MHCommercial Real Estate Fund II and Siguler Guff purchased a 180,247-square-foot office property located within walking distance of Urban Centre.

The post Ally Capital Pays $123M for Tampa Office Complex appeared first on Commercial Property Executive.

Convergent Capital Partners has tapped CBRE as exclusive leasing agent in charge of a 160,000-square-foot office building in Clearwater, Fla. The company recently acquired the Class A asset from Mercury Insurance Co., for $19.6 million, according to Pinellas County public records. Kennedy Wilson Brokerage negotiated on behalf of the seller. The property last traded in 2005 for 24.9 million, CommercialEdge data shows.

The new owner plans to upgrade the property and to reposition it, changing it into one of the most attractive locations for office users in the Tampa Bay area, added Convergent Capital Partners’ CEO, Santosh Govindaraju, in prepared statements.

Located at 1901 Ulmerton Road, the eight-story building includes three passenger elevators, 820 covered parking spots, an on-site cafe and a fitness center. Improvement plans include an upgraded lobby, a conference room, a renovated fitness center and other common-area renovations.

Situated on a 7-acre lot, the asset is close to Interstate 275 and to St. Pete-Clearwater International Airport, 10 miles from downtown St. Petersburg, 12 miles from downtown Clearwater, Fla., and within 14 miles of downtown Tampa.

Office repositioning strategy in Tampa Bay area 

CBRE’s team of Senior Vice President K.C. Tenukas, Vice President Kristin Kenney and Associate Nick Baldwin are in charge of the 100,000 square feet of space available for lease, with sizes between 1,200 and 60,000 square feet. With significant capital improvements refreshing the asset, the ownership plans to attract companies working in the health-care, law, engineering and financial services fields, looking for relocation or a new office, noted CBRE’s Tenukas in prepared remarks.

In December 2022, Tampa Electric and Peoples Gas announced plans to move at Midtown East, a 1.8 million-square-foot mixed-use development in Tampa’s Westshore submarket. The companies will occupy 298,000 square feet of office space across 11 floors, while the developers, The Bromley Cos. and Highwoods Properties Inc., will own floors 10 through 15.

The post CBRE to Lease Revamped Tampa Office Building appeared first on Commercial Property Executive.

Tampa Cold Logistics site. Image courtesy of JLL

Sansone Group has received $26.6 million in construction financing for Tampa Cold Logistics, a cold storage development in the Ybor City area of Tampa, Fla. JLL Capital Markets worked on behalf of the company in closing on the financing, in the form of a three-year, floating-rate construction loan. Additionally, the company also secured $13 million in joint venture equity from BentallGreenOak.

Sansone Group purchased the land for $3.3 million in June 2022, and partnered with Mandich Group and BGO, appointed Indiana-based Tippmann Construction as general contractor in charge, according to Hillsborough County public records.

Tampa Cold Logistics will total 108,544 square feet and will include 45-foot clear heights, 17 dock doors, temperature capabilities between -10 and 34 degrees Fahrenheit, and a split HVAC system designed for multi-tenant occupancy.

The 7.3-acre site is located at 3601 E. Third Ave., close to interstates 4 and 275, 2 miles from Port Tampa Bay and downtown Tampa and 10 miles from Tampa International Airport. Additionally, the property will be near Tampa’s CSX Railway Systems, to the CSX Intermodal Terminal and to Interstate 75, allowing easy access to Port Charlotte, Fla., and Fort Myers, Fla.

A JLL Capital Markets advisory team including Senior Managing Director John Huguenard and Managing Directors Melissa Rose and Luis Castillo, together with Director Michael DiCosimo, negotiated on behalf of Sansone Group. Last fall, the same company assisted IDS Real Estate Group in securing $124 million in post-close acquisition financing for its 1.2 million-square-foot cold storage facility in Riverside, Calif. Northwestern Mutual provided the 10-year fixed-rate loan.

The post Tampa Cold Storage Project Gets $40M appeared first on Commercial Property Executive.

Southwood Shops. Image courtesy of Marcus & Millichap

Southern Management & Development has sold Southwood Shops, a 107,697-square-foot grocery-anchored retail center in Bradenton, Fla. Institutional Property Advisors, a division of Marcus & Millichap, brokered the $12.1 million transaction.

The brokerage firm also procured the buyer, Manage Solutions. According to CommercialEdge, the property last changed hands 27 years ago.

READ ALSO: Retail Net Lease Cap Rates Reach Highest Level Since 2020

Anchored by a Winn-Dixie store, which has been operating at the property for more than 40 years, the shopping center is currently fully leased. Premier Nursing Academy, Ideal Barber Supply, Unique Market Place and Value Furniture are also part of the tenant roster.

Built in 1981 on a 5-acre site, Southwood Shops is located at 5838 14th St. W., at the intersection of 14th Street and 57th Avenue, being exposed to a daily traffic of 54,000 vehicles. The presence of First Horizon Bank, Truist Bank and a Chevron gas station in the vicinity attracts more traffic to the property, according to IPA.

The post Grocery-Anchored Retail Asset Trades South of Tampa appeared first on Commercial Property Executive.

Gas Worx rendering. Image courtesy of KETTLER

A joint venture between Darryl Shaw and KETTLER has broken ground on Gas Worx, a 50-acre mixed-use development in the historic Ybor City neighborhood of Tampa, Fla.

The new development is set to include more than 500,000 square feet of office space, along approximately 140,000 square feet of retail space and 5,000 residences.

Plans for the development, named after a gas works plant, include restoring the street grid and adding in additional outdoor green spaces. Other community benefits planned for the project are miles of reconstructed sidewalks, new CSX rail crossings and multi-use trails.

Situated between the Ybor Historic District and the Channel District, the project’s tenants are in proximity to dining, entertainment and retail options. Located northeast of downtown Tampa, the Ybor Historic District has historical experiences and attractions centered around its Cuban and cigar manufacturing history. The Channel District features boating docks, the Amalie Arena and the Sparkman Wharf.

In prepared remarks, Bob Kettler, CEO of KETTLER, said that the project is committed to protecting and enhancing Ybor City’s history.

The development’s residential component will also include more than 300 units of affordable housing. An initial phase of 317 apartments is scheduled for delivery in 2024.

Tampa’s office market remains stable

As of the end of 2022, Tampa’s office market saw a negative absorption of 252,119 square feet year-over-year, according to a recent Avison Young report. Nevertheless, Tampa’s direct asking rents for office space saw a 3.9 percent increase on the same year-over-year basis, demonstrating the area’s market stability.

Other recent office activity in Tampa includes the sale of the Bridgeport Center, a 180,247-square-foot Class A property. An entity connected to America’s Capital Partners sold the building to a joint venture for $40 million.

The post Major Tampa Mixed-Use Development Breaks Ground appeared first on Commercial Property Executive.

Bridgeport Center. Image courtesy of NAI/Merin Hunter Codman

MHCommercial Real Estate Fund II, in a joint venture with Siguler Guff, has purchased Bridgeport Center, a Class A 180,247-square-foot office property in Tampa, Fla., for $40 million, or $222 per square foot. M & T Bank provided acquisition financing.

Cushman & Wakefield worked on behalf of the seller, FDG Bridgeport LLC, an entity connected to America’s Capital Partners, according to CommercialEdge. The property previously traded in 2013, for $25 million.

Bridgeport Center marks the third property acquisition for MHCommercial Real Estate Fund II, bringing its total holdings to $120 million. The fund’s goal for the next 12 to 18 months is to purchase $200 to $300 million worth of real estate assets across the Southeastern U.S.

READ ALSO: Office Sector Shifts to Continue in 2023

MHCommercial Real Estate Fund II’s team of Director of Acquisitions Corey Winsett and COO Matthew Brown managed the acquisition on behalf of the partnership, with the assistance of Shutts & Bowen Partners Elizabeth Jones and John Strickroot. Cushman & Wakefield Executive Vice Chairman Mike Davis, Vice Chairman Rick Brugge, Executive Managing Director Dominic Montazemi and Director Rick Colon negotiated on behalf of the seller.

A Westshore office property

Completed in 1980 and renovated in 2011, Bridgeport Center is a nine-story office building that features four passenger elevators, 19,806-square-foot floorplates, ground floor retail space and 732 parking spots, CommercialEdge data shows. Anchored by Delta Air Lines, the property’s tenant roster includes AFS Technologies, Harvard Jolly Architecture and Troy University, among others.

The new ownership has planned significant improvements for Bridgeport Center in order to enhance the tenants’ workplace experience, MHCommercial Real Estate Fund II Principals Jordan Paul and Neil Merin said in prepared remarks. NAI/Merin Hunter Codman will serve as property manager while CBRE Senior Vice President Barry Hanerfeld will be the exclusive leasing agent.

Located at 5201 W. Kennedy Blvd. within Tampa’s Westshore submarket, the 4-acre property is close to Interstate 275 and WestShore Plaza, 2.5 miles from Tampa International Airport, 5.5 miles from downtown Tampa and within 19 miles of downtown St. Petersburg, Fla.

Earlier in 2023, another partnership purchased an office asset in Tampa: Torose Equities and Merrimac Ventures paid $31 million for the 350,000-square-foot office building, marking Torose’s first purchase since its launch in late 2022.

The post Tampa Office Asset Commands $40M appeared first on Commercial Property Executive.

6302 Corporate Center

Torose Equities and Merrimac Ventures have purchased 6302 Corporate Center, a 350,000-square-foot office building in Tampa, Fla., for $31 million. The seller was B&L Investments, which had acquired the property in 2014 for $27.5 million, according to CommercialEdge data.

Centennial Bank provided a $20.8 million loan to 6302 Torose LLC for the acquisition and improvements of 6302 Corporate Center. The Tampa asset represents Torose’s first purchase since the company launched in late 2022, an acquisition that can generate a strong return on investments. The firm focuses on value-add, urban retail, office and mixed-use properties in the Southeastern U.S.

READ ALSO: Where to Find Opportunities as Economy Slows

According to a recent CommercialEdge report, office transactions slowed down in the second half of 2022. Tampa closed the year with $847 million in deals at an average $256 per square foot, followed by Atlanta ($197 per square foot), Dallas ($188 per square foot) and Orlando ($176 per square foot). In one of the late-year deals, FLRE Investors acquired a 171,752-square-foot, fully occupied office property in Odessa, Fla., for $38.9 million.

Torose’s first investment

Originally built in 1984 as an outlet mall, the asset was converted into a multi-tenant office building in 1998. The one-story building at 6302 E. Doctor Martin Luther King Jr. Blvd. has large floorplates, an atrium lounge and recently upgraded common areas. The 50-acre property also includes two lakes and 1722 parking spots.

In the last year, leasing activity at the property totaled some 95,000 square feet. The tenant roster features companies such as Health Plan One, Concentrix and Public Consulting Group, CommercialEdge shows.

Situated in East Tampa’s growing hub, the property is 6 miles from downtown Tampa, adjacent to Interstate 4. Tampa International Airport is 12 miles west.

The post Torose, Merrimac Buy 350 KSF Tampa Office Asset appeared first on Commercial Property Executive.

Midtown East. Image courtesy of Highwoods Properties

Highwoods Properties Inc. and The Bromley Cos. are building Midtown East, an 18-story, 432,000-square-foot office building that will be the latest addition to the $1 billion Midtown Tampa mixed-use project in Tampa, Fla.

The tower in the city’s Westshore submarket will also become the new headquarters of Tampa Electric and Peoples Gas, which will own 11 floors, or about 298,000 square feet of the building. Bromley is the lead developer of Midtown Tampa, a 23-acre mixed-use development at the intersection of Interstate 275 and N Dale Mabry Highway.

READ ALSO: Top 5 Southeast Markets for Office Deliveries

Construction is slated to begin early next year and be completed by the first quarter of 2025. The Highwoods and Bromley joint venture will own the remaining 134,000 square feet of the building upon completion. The space will include five floors of office (floors 10 through 15) and ground-level retail. The total anticipated investment for the joint venture’s share of the overall project is $83 million. Further details on how much Tampa Electric and Peoples Gas will be investing in the building were not disclosed. The two utilities are part of TECO Energy and subsidiaries of Emera Inc.

Highwoods, a Raleigh, N.C.,-based office REIT, and Bromley, a New York City-based developer, are also joint developers and partners on Midtown West, a $71 million, 150,000-square-foot office building completed in the second quarter of 2021 at Midtown Tampa. Highwoods owns an 80 percent interest in the Midtown West joint venture and also manages the office leases.

As of Sept. 30, Midtown West was 92.5 percent leased with tenants including professional staffing services firm Kforce and Primo Water, a water dispenser company, that both relocated their headquarters to the new building. Other tenants include South State Bank, Kast Construction and PGIM Inc.

Ted Klinck, president & CEO of Highwoods, said in a prepared statement the proven success of Midtown West, which broke ground in late 2019 shortly before the pandemic hit in early 2020, demonstrates how quickly Midtown Tampa has become an office destination for Tampa-area companies.

Reasons for HQ relocation

Nicholas Haines, Bromley Cos. CEO, said in a prepared statement Midtown Tampa is serving as a catalyst for growth across the city as well as a place for the community to live, work, shop, dine and connect. He noted as the home of two nearly fully leased office towers and the new headquarters for Tampa Electric and Peoples Gas, Midtown has established itself as a dynamic location with innovative and sustainable building designs and best-in-class amenities.

Tampa Electric and Peoples Gas will be moving from their joint space at TECO Plaza, 702 N. Franklin St. in downtown Tampa, where they have been since 1981. Their lease expires in 2025 just as the new space at Midtown East will be ready. The companies will have more than 900 employees at Midtown East.

Archie Collins, president & CEO of Tampa Electric, said in prepared remarks the new space will be energy-efficient and storm-resistant enabling the utility to better serve its customers. Collins said the companies are making an investment in resiliency because the new location is on higher ground and further inland, away from potential flood zones.

Other reasons cited for choosing Midtown East include construction that meets modern codes and efficiency standards with significantly improved hurricane resiliency; modern design with enhanced technology and sustainable elements that align with the companies’ clean energy goals; open office designs to foster collaboration and space to accommodate future growth with ample parking and a location close to the interstate.

The post Highwoods, Bromley JV to Develop Tampa Office Tower appeared first on Commercial Property Executive.

Midtown East. Rendering courtesy of Bromley Cos.

Tampa Electric and Peoples Gas have announced plans to establish their new Tampa headquarters at the upcoming Midtown East office building, which is part of the Midtown Tampa mixed-use development in the city’s Westshore submarket.

Developed by a joint venture between The Bromley Cos. and Highwoods Properties Inc., the high-rise building is set to break ground in early 2023, with an estimated 2025 completion date.

Tampa Electric and Peoples Gas are set to own and occupy 298,000 square feet across 11 floors at the property, while the developers will own floors 10 through 15. The new high-rise will also feature ground-floor retail space.

Upon the 2025 lease expiry date, the firms will be relocating their corporate headquarters from TECO Plaza, where both companies have been operating since 1981.

According to the Tampa Bay Times, local companies Primo Water and Kforce have also relocated their primary offices from downtown Tampa to Midtown Tampa. The companies leased space at Midtown West, another newly completed joint development by Highwoods Properties and The Bromley Cos.

Seeking office resilience

Midtown East terrace. Rendering courtesy of Bromley Cos.

Midtown East will be an energy-efficient and storm-resistant building in a less flood-prone inland location that will allow the firms to serve their customers regardless of weather conditions. With more than 900 active employees, they will become the largest employers in Midtown Tampa.

To span 23 acres, the award-winning Midtown Tampa office campus will encompass 1.8 million square feet of retail, residential, Class A office space, as well as entertainment and hospitality options. The $1 billion Tampa Bay-area development will connect Tampa’s Westshore and downtown districts.

To deliver the array of live-work-play amenities at Midtown Tampa, Bromley Cos. partnered with Concord Hospitality, Crescent Communities, CASTO Southeast Realty and Jeffrey R. Anderson Real Estate, among others.

While other Southern markets posted some of the lowest vacancy rates nationwide, with Miami’s at 12.72 percent, Tampa’s office market vacancy rate stood at 17.2 percent year-to-date, as of October, according to a recent CommercialEdge report.

The post Tampa Electric, Peoples Gas to Relocate Tampa HQ appeared first on Commercial Property Executive.

The Clearwater Collection. Image courtesy of Avison Young

An affiliate of the Philadelphia Phillies has acquired a 134,362-square-foot retail center in Clearwater, Fla., a distressed asset that recently went into bankruptcy. The seller was Clearwater Collection 15 LLC, an entity handled by Avison Young Principal Michael Vullis, who acted as the court-appointed receiver.

An Avison Young team brokered the $22.5 million sale. Before reevaluating the property and putting it up for sale, the company was in charge of the management and leasing activity at the location.

Dubbed as Clearwater Collection, the property has a Floor & Décor store as sole tenant, occupying 49 percent of the total rentable area under a remainder 5-year lease. The new owner intends to reposition the distressed retail asset in the future.

Located at 21800 U.S. Highway 19 N., the 13-acre retail center is adjacent to baseball stadium BayCare Ballpark, where the Phillies Spring Training and the Clearwater Threshers teams reside. Downtown Tampa, Fla., and northern St. Petersburg, Fla., are some 19 miles away.

Repurposing a retail asset

The Avison Young Florida Capital Markets team which marketed the property and brokered the transaction was led by by Principals John Crotty, Michael Fay and David Duckworth, together with Senior Vice President Nick Robinson and Vice President Brian de la Fé.

As mentioned in PwC and Urban Land Institute’s Emerging Trends in Real Estate 2023 report, next year’s retail market will witness more repurposing of redundant assets. The report also reveals that the Tampa and St. Petersburg areas are among the top 10 U.S. markets investors should watch in the year to come.

In a prepared statement, Crotty mentioned that the location of the underused property and the in-place zoning permits provide the new owner with the possibility to develop a mixed-use project comprising residential, office, retail and entertainment uses.

Besides repositioning and leasing opportunities, the value-add investment provides land redevelopment potential for the owner of the adjacent sports stadium.

The post Distressed Tampa-Area Retail Center Changes Hands appeared first on Commercial Property Executive.

5904 Hampton Oaks Pkwy.

CIP Real Estate has completed its $74.3 million off-market purchase of Center Point Business Park and Hampton Oaks Business Park, two East Tampa, Fla., industrial complexes located at 1907-1911 N. 301st Highway 301 and 5903 Hampton Oaks Parkway, respectively.

CIP bought the properties from Albany Road Real Estate Partners. Two teams from Cushman & Wakefield brokered the transaction, marketing the property and procuring acquisition funds through BankUnited. CIP is planning to invest an additional $6.3 million in upgrades and renovations for the buildings over the next two years.

Center Point Business Park was built in 1986, and totals five buildings and 146,229 square feet. Albany Road had acquired the property in 2020, according to CommercialEdge information. The campus’ tenants include TEM Systems, Osprey Construction, AXYZ, and Care Wise, the same data shows.

The Hampton Oaks Business Park was built in 1987, and hosts six buildings totaling 259,543 square feet. Albany Road purchased the park in 2020 for $36.7 million, using a $27.5 million loan from Regions Bank, CommercialEdge data shows. The park’s tenants include PdMA, Numotion, Hivelocity, Affinity Group and Heidt Design.

Both properties feature 37-foot dock heights, 58 grade level and 22 ramp loading depots. Located within 3 miles of each other, both properties are within 8 miles of downtown Tampa, and near numerous highways, including Interstate 75, U.S. Routes 301 and 400, allowing for quick shipping and logistics access to other cities around North and Central Florida.

Cushman & Wakefield Vice Chair Rick Brugge represented the seller, and a debt team consisting of Executive Director Jason Hochman and Director Ron Granite acted on behalf of the buyer.

Tampa’s tepid returns

Despite a slow rent growth rate of 2.2 percent, Tampa has remained a highly sought-after market for industrial investment and development, in part due to its location and an in-migration of workers, according to data from an October 2022 CommercialEdge report. As of September 30, the city had seen $1.1 billion in industrial property sales, with 5.7 million square feet of space in its pipeline, far below that of many other cities in the Sun Belt.

Another high-profile industrial real estate headline in the city is Hines’ ground breaking of the Tampa Commerce Center, a four-building Class A project exceeding 600,000 square feet.

The post CIP Real Estate Buys Industrial Portfolio for $74M appeared first on Commercial Property Executive.

16400 State Route 54. Image courtesy of JLL

FLRE Investors has acquired 16400 State Route 54, a 171,752-square-foot, fully leased office building in Odessa, Fla., for $38.9 million. Pasco County public records reveal that Southstate Bank financed the acquisition with a $23 million loan.

JLL Capital Markets brokered the deal on behalf of the seller, identified by CommercialEdge as a private investor. According to the same data provider, the property last traded in 2017 for $4.9 million.

Completed in 2006 on a 13-acre site and fully renovated last year, the single-story asset is anchored by two long-term tenants: Rasmussen University and Santander Consumer.

The building is located at the intersection of Suncoast Parkway 589 and Highway 54, providing access to downtown Tampa and the Tampa International Airport, which is situated roughly 20 miles south. Additionally, the site has an array of commuting and dining options nearby.

Florida’s allure

According to a recent CommercialEdge report, during the first three quarters of the year office deals in Tampa amounted to a total of $729 million. Registering an average sale price of $269 per square foot in that period, the market outperformed other southern metros, such as Orlando ($180 per square foot), Dallas ($193 per square foot), Atlanta ($235 per square foot) and Houston ($168 per square foot). The 16400 State Route 54 property changed hands at $226 per square foot, below Tampa’s average year-to-date through September.

JLL Senior Director Robbie McEwan and Directors Michael Brewster and Matthew McCormack, together with Managing Director Gary Godsey arranged the transaction on behalf of the seller. Earlier this year, McEwan and McCormack were part of the JLL team representing The Prudential Insurance Co. of America in the sale of 701 San Marco, a 19-story Class A office tower at 701 San Marco Blvd. in Jacksonville, Fla.

The post Fully Leased Tampa-Area Asset Fetches $39M appeared first on Commercial Property Executive.

Tampa Oaks. Image courtesy of TerraCap Management

TerraCap Management has sold Tampa Oaks, a 104,000-square-foot office building in Tampa, Fla. According to CommercialEdge data, a private investor paid $14.5 million for the asset.

StanCorp Financial Group backed the deal with a $10 million acquisition loan, with a maturity date set for 2025, according to the same data provider. CBRE brokered the transaction for the seller, which picked up the asset in 2016 for $13 million.

Constructed in 2008 on roughly 10 acres, the three-story building is situated at 12906 Tampa Oaks Blvd. During its six-year ownership, TerraCap completed several upgrades at the property, including improvements to the parking lot lighting, elevator repairs and HVAC replacements. Additionally, the company recently added a self-serve canteen to the amenity list.

Tampa Oaks is situated just off Interstate 75 and near Interstate 4, while downtown Tampa is roughly 15 miles away. The property’s current tenant roster includes BAE Systems, Fieldstone A&E and HomeRiver Group Tampa.

CBRE Senior Vice President Dale Peterson represented TerraCap in the sale of Tampa Oaks. During TerraCap’s ownership, the CBRE team in charge of leasing the property included First Vice President Philip Weber and Senior Vice President Barry Hanerfeld, while Harvard Pacific acted as property manager.

Naples, Fla.-based investment manager TerraCap, with offices also in Tampa, Atlanta and Denver, has more than 11 million square feet of commercial property within its portfolio. Earlier this year, the company secured a 50,000-square-foot lease at its 253,300-square-foot 3100 Breckenridge office park in metro Atlanta.

The post TerraCap Management Sells Tampa Office Asset appeared first on Commercial Property Executive.

1001 Water St. Image courtesy of Seamus Payne.

Northern Trust Corp. has signed a lease for more than 10,000 square feet of office space at Thousand & One, a newly built 20-story mixed-use development at 1001 Water St. in Tampa, Fla.

Cushman & Wakefield is exclusively handling leasing efforts on behalf of Strategic Property Partners, the building’s owner and developer. Northern Trust will move into the new space on the ninth floor of the office tower in the next few months.

Thousand & One is part of Strategic Property’s $3.5 billion Water Street Tampa mixed-use district. The company is building the megaproject in a joint venture with Cascade Investment, an entity controlled by Microsoft founder Bill Gates, and Tampa Bay Lightning owner Jeff Vinik.

Upon completion, Water Street Tampa will be one of the largest downtown real estate developments in the U.S. The upcoming 56-acre neighborhood is set to include 9 million square feet of office, residential, retail and public space. Completion of the full development is slated for 2027.

READ ALSO: H1 Net Lease Volume Up Across Sectors: JLL

Construction on Thousand & One began in 2019 and was completed in 2021. Designed by COOKFOX Architects, the tower offers 375,000 square feet of Class A office space. The building is WiredScore Platinum and LEED Silver certified, and anticipates receiving WELL Core and Shell certification, which would be a first for the region.

Suffolk Construction, ReliaQuest, Sila Realty Trust and RSM are among the property’s tenants. Amenities include floor-to-ceiling windows, a rooftop terrace, a fitness center and a ground floor with 12,000 square feet of retail space. The building is situated adjacent to the city’s central business and waterfront districts.

Tampa’s office market trends

Northern Trust’s relocation takes place as the city’s office market recovers amid a widespread corporate downsizing of space during the pandemic. Despite such trends, Tampa, for its part, has seen increasing demand for new office space, as more than 15 companies have announced plans to relocate to the city, according to a second quarter 2022 report from Avison Young. The city’s office market has 46.7 million square feet of space in its inventory, with 2.5 million available; pricing for space is at an all-time high of $161 per square foot, with demand directed particularly toward Class A assets, the same report shows.

Putting these market trends in context, Strategic Property Executive Vice President of Corporate Leasing and Strategy David Bevirt told Commercial Property Executive: “The new lifestyle opportunity we’ve created here is the best tool for recruiting and retaining talent, and we’re seeing robust interest from financial service companies like Northern Trust looking to expand to Water Street Tampa to become part of this newly established financial center in the city.”

The post Northern Trust Inks Downtown Tampa Office Lease appeared first on Commercial Property Executive.

Bank of America Plaza. Image courtesy of CIM Group

The owners of the 42-story Bank of America Plaza mixed-use office tower in downtown Tampa, Fla., have refinanced the trophy building with a $175 million whole loan provided by a CIM Group-managed fund.

Details on the transaction were not disclosed. The refinancing appears to replace a $134.3 million loan provided by Metropolitan Life Insurance Co. to an affiliate of Banyan Street Capital and funds managed by Oaktree Capital Management when they acquired the tower in December 2015, according to CommercialEdge data. The 2015 loan was set to mature Dec. 18, 2020, but may have had extensions.

A joint venture of Banyan Street Capital and Oaktree Capital Management purchased the Class A office tower located at 101 E. Kennedy Blvd. from MetLife Inc. for $194.4 million, CommercialEdge reported.

READ ALSO: How High Inflation Could Impact REITs

Built in 1986 and renovated in 2018, Bank of America Plaza spans two city blocks making it one of the largest office developments in the Southeast. The 795,944-square-foot tower also has 23,500 square feet of retail space and an adjacent 14-level, 1,260-space parking structure connected to the building by a covered, climate-controlled skybridge. The building has a newly renovated lobby, full-service fitness center, tenant business lounge and conference facility. In July 2020, the owners began preparing the LEED Gold-certified asset for post-pandemic leasing by building out 17,000 square feet of speculative office space into new suites that would provide sanitary measures, more private offices, larger workstations and less open space.

CommercialEdge reports the building currently has 52 leases with 78,066 square feet of space available. In July 2020, two tenants had recently signed for a total of 24,000 square feet, bringing the occupancy to 92 percent at that time. The building scored a major headquarters relocation lease in October 2018, when The Mosaic Co., a producer and marketer of concentrated phosphate and potash fertilizers, moved from Minneapolis to the Bank of America Place.

Banyan Street Capital owns two other Tampa office properties—the Rivergate Tower, a 515,965-square-foot building acquired in 2015, and Tampa City Center, a 38-story, 757,425-square-foot tower also purchased with Oaktree.

In addition to being a commercial real estate owner, operator and developer, CIM Group is an active lender. Through its CIM Real Estate Debt Solutions business, CIM Group recently closed a $148 million loan for a 461,000-square-foot office campus in Tysons Corner, Va. CIM Group continues to pursue opportunities to provide senior and subordinate transitional bridge loans for commercial real estate projects with strong sponsors.

The post Trophy Tampa Tower Secures $175M Refi appeared first on Commercial Property Executive.

Heights Union – East Building. Image via Google Street View

Cousins Properties continues to add to its Sun Belt portfolio with the acquisition of Heights Union, a 294,000-square-foot office property in downtown Tampa, Fla. The company paid $144.8 million for the Class A asset. According to CommercialEdge data, the seller was TPA Group.

The two-building campus is the first office phase of The Heights, a 3.2 million-square-foot mixed-use development stretching on 50 acres that also encompasses multifamily, hospitality and retail elements.

TPA Group completed Heights Union in late 2020. The developer had secured $61 million in construction financing from Pinnacle Bank in 2019, CommercialEdge shows.

Located within an Opportunity Zone at 2002-2004 N. Tampa St., Heights Union–East and West include a 42,000-square-foot retail component, while the East Building features a fitness center available to all tenants. The six-story buildings are seeking LEED certification.

Solid tenant roster

The complex was 93.4 percent leased at the time of sale, with a weighted average lease term of 11 years. More than 60 percent of the tenancy is comprised of life science companies—this February, Pfizer signed a 106,000-square-foot lease for one of its six Global Capability Hubs. The biopharmaceutical giant joined Axogen, which rents 75,000 square feet as lab space and utilizes the space as its second headquarters. Additional tenants include White & Case and DoubleLine.

Heights Union is roughly a mile north of downtown Tampa, with major street exposure to North Tampa Street/U.S. Route 41. The office complex is within walking distance of Armature Works, an adaptive reuse commercial project that anchors The Heights neighborhood.

Sun Belt deals

The Heights Union acquisition marks Cousins’ fourth deal in a string of Sun Belt ventures: In August, the company acquired a fully leased office property in Atlanta, entered into a joint venture to develop a mixed-use project in Nashville, Tenn., and sold an office tower in Charlotte, N.C.

In December 2020, Cousins also closed on The RailYard, a mid-rise office building in Charlotte. Beacon Partners sold the 326,253-square-foot property for $201 million.

The post Cousins Properties Closes $145M Tampa Office Buy appeared first on Commercial Property Executive.

The first trophy office tower to be built in downtown Tampa, Fla., in nearly 30 years has opened in the $3.5 billion, 56-acre Water Street Tampa mixed-use district with the completion of Thousand & One. Strategic Property Partners LLC is behind the 20-story project offering 375,000 square feet of Class A office space.

READ ALSO: New Plan at $1B Nashville Yards

Thousand & One is also expected to be the first office building in the city to receive WELL Core and Shell certification from the International WELL Building Institute, which in May 2019 designated Water Street Tampa as the first pre-certified WELL neighborhood in the world.

Designed by COOKFOX, the tower has wellness features expected to attract tenants looking to upgrade their offices in the post-COVID-19 work environment. The building, located at 1001 Water St., features floor-to-ceiling windows with water-facing views, flexible floorplans and lushly landscaped terraces offering outdoor access. The floorplates have been designed to accommodate a range of tenant sizes. They also have double-height terraces to boost natural light and fresh air while offering indoor-outdoor office setups. Wellbeing initiatives include providing a higher standard for air filtration that offers more fresh outdoor air than traditional office buildings and implementing rigorous cleaning protocols.

SPP broke ground on the office tower in July 2019. The building, which has 12,000 square feet of ground-floor retail, also has a town-hall-style gathering place, open-air conference space and employee fitness center. SPP plans to unveil the public plaza and interactive art installation later this summer, all part of its efforts to create a collaborative community with the other assets within the district and attractions along Water Street’s thoroughfare.

David Bevirt, executive vice president of corporate leasing and strategy for SPP, said in a prepared statement employers and employees are seeking healthier workspaces that focus on the wellbeing of tenants. He said the Tampa-based real estate development firm created a best-in-class office space that is giving companies room to expand in the city and national companies a reason to relocate.

Leasing underway

In November, SPP selected Cushman & Wakefield to handle property management and leasing for both Thousand & One and 400 Channelside Drive, a 19-story, 500,000-square-office building that will be built in a future phase. SPP said Thousand & One has received strong interest from prospective tenants across a variety of industries, including professional services, technology, health sciences and coworking. The developer has already signed leases with RSM, a global accounting firm that is taking approximately 15,700 square feet in a 10-year lease; Suffolk Construction, which has leased about 8,500 square feet also in a 10-year lease; and Sila Realty Trust Inc., which has leased approximately 10,500 square feet for 10.5 years. Naked Farmer, a fast-casual dining chain, will occupy 1,900 square feet in the ground-floor retail space.

Water Street Tampa, which will eventually have about 2 million square feet of office space, is also leasing space at Sparkman Wharf, which offers 150,000 square feet of waterfront loft-style office space.

All buildings in Phase One are either completed or under construction and slated to deliver by early 2022. Planning is underway for Phase Two with details to come at a later date. Water Street Tampa is slated to have a total of 9 million square feet of commercial development, including 1 million square feet of retail/entertainment space, 3,500 apartments and nearly 1,600 guestrooms.

The post First Trophy Office Tower Opens at Water Street Tampa appeared first on Commercial Property Executive.

Tampa Airport Logistics Center. Rendering courtesy of Avison Young

NorthPoint Development has acquired a 19.2-acre site in Tampa, Fla., where it will break ground immediately on Tampa Airport Logistics Center, an approximately 297,250-square-foot master-planned industrial project. Avison Young is in charge with leasing the property.

READ ALSO: GID, Ivanhoé Cambridge Form Industrial Platform

The two Class A buildings, at 5450 Johns Road and 5416 W. Sligh Ave., are slated for delivery in the fourth quarter of 2021. Building 1 and Building 2 will be about 100,936 square feet and 196,318 square feet, respectively. WELBRO Building Corp. is the general contractor.

The location offers easy access to the Veteran’s Expressway (State Road 589), Dale Mabry Highway and I-275, reportedly making the logistics center appropriate for freight forwarding, last-mile and light assembly users, in a market with a high demand for large blocks of space.

In a prepared statement, Tim McElroy, NorthPoint Development’s director of industrial development, said that because of land constraints, new development in the area has been minimal for more than a decade.

Tampa Airport Logistics Center is NorthPoint’s first industrial project in Tampa.

Avison Young Principals Clay Witherspoon, who is also managing director of the brokerage’s Tampa operations, and Tim Callahan will oversee leasing services for Tampa Airport Logistics Center.

Witherspoon noted in a prepared statement that “demand for industrial space over 50,000 square feet has remained consistently high near the airport” for more than a decade.

Stable industrial market  

Unsurprisingly, with its economy heavily reliant on leisure and hospitality, the Tampa Bay region saw unemployment continue to edge up in late 2020, according to a fourth-quarter report from Cushman & Wakefield. The industrial space market ended 2020 with a slight decrease (20 basis points) in overall vacancy, to 6.9 percent.

Tampa Bay’s West Side submarket had an overall vacancy of 5.5 percent on an inventory of 12.8 million square feet. The submarket was generally stable, with only a small amount of negative absorption in 2020 and just 60,000 square feet of space delivered, also according to Cushman & Wakefield.

In February, Home Depot opened a 1.5-million-square-foot distribution center at NorthPoint’s two-building, 2.3 million-square-foot Dallas Global Industrial Center.

The post NorthPoint Development Begins First Tampa Project appeared first on Commercial Property Executive.

Florida’s industrial developers have taken note: CommercialEdge shows nearly 14.9 million square feet underway, or roughly 2.3 percent of completed inventory, with close to one-third slated for delivery by year-end. That’s on top of the 17.6 million square feet already delivered through mid-November. Last year’s completions, by comparison, totaled 16.6 million square feet.

The table below uses CommercialEdge data to highlight the five Florida markets with the highest levels of industrial development.

5. Jacksonville

JAXPORT. Image courtesy of Jacksonville Port Authority

Jacksonville’s industrial market has long been a strong performer, bolstered by its major shipping port and further augmented this year by the rapid growth of e-commerce. Although only a handful of major projects are underway, industrial completions this year have hit a record high. Through mid-November, 2.9 million square feet delivered, the highest level since 2009.

The largest project underway was VanTrust Real Estate’s 1.1 million-square-foot Building E at Imeson Park. Located at 10501 Cold Storage Road in the North Jacksonville industrial corridor, the asset is fully leased to Amazon with delivery slated for late 2021.

4. Fort Lauderdale

Bridge Point 595. Image courtesy of Bridge Development Partners

Development has picked up in Broward County this year, with industrial deliveries topping 1.5 million square feet and 11 projects underway totaling an additional 1.7 million square feet. Even though passenger cruises have completely halted at the county’s Port Everglades, the facility remains one of the U.S.’s busiest shipping ports, with a volume of more than 1 million TEUs (20-foot equivalent units) per year.

Bridge Point 595 was the largest industrial development underway. Bridge Development Partners broke ground on the three-building, 677,310-square-foot park in October 2019, with delivery expected in the first quarter of 2021. The structures will have 32-foot clear heights, ESFR sprinkler systems and a combined 132 dock-high loading doors. Wells Fargo provided the developer with $60.3 million in construction financing.

3. Orlando

Infinity Park. Rendering courtesy of McCraney Property Co.

Although Orlando’s economy has taken a substantial hit this year, the industrial sector has come back to life. Area employers added 11,500 trade and transportation jobs between April and September, according to the Bureau of Labor Statistics, reflected by growing demand for modern distribution space. Developers are moving forward with projects totaling 2.6 million, more than 80 percent of which is speculative.

Building 800 at Infinity Park is the largest property underway. McCraney Property Co. and Tavistock Development Co. broke ground on the 433,404-square-foot speculative project in August at 2500 Consulate Drive, with completion set for early 2021. The building is one of four within the 206-acre park’s second phase.

2. Tampa Bay

Port Tampa Bay. Image courtesy of Tampa Port Authority

Florida’s largest industrial market continued to expand, with 3.8 million square feet underway across 16 projects. Deliveries through mid-November totaled 6.1 million square feet and may finish the year beyond the 2016 peak of 6.3 million square feet. In addition to a diversified port, shifts from retailers toward e-commerce operations have driven much of the market’s activity, with Ace Hardware and The Home Depot moving forward with distribution centers.

Brennan Investment Group’s 1 million-square-foot Building 400 at CenterState Logistics Park East in Lakeland broke ground in August, becoming the market’s largest development underway. Upon completion, the cross-dock spec facility will have 40-foot clear heights, 238 loading doors, 190-foot truck courts and 70-foot speed bays. Citizens Financial Group provided $42.6 million in financing.

1. Miami

PortMiami. Image by zopalic via Pixabay.com

Topping our list, Miami has some 4.2 million square feet underway, equal to 3.3 percent of inventory. The metro’s role as a major international trade hub remains intact even amidst the backdrop of economic uncertainty: In the 2020 fiscal year, PortMiami reported only a slight decrease in sea cargo volume from the previous year to 1.1 million TEUs. In addition to port traffic, e-commerce growth is also pushing industrial demand higher, particularly for well-located, last-mile distribution centers.

Nearly 90 percent of the metro’s industrial development activity was concentrated in Hialeah, northwest of Miami. The largest project underway is a two-building, 1 million-square-foot build-to-suit facility for The Home Depot. Florida East Coast Industries began construction in January with an anticipated delivery this winter.

The post Top 5 Florida Markets for Industrial Development appeared first on Commercial Property Executive.

8585 126th Ave. N. at Starkey Lakes Industrial Center

Monin has closed the $14 million disposition of its 101,075-square-foot distribution center at Starkey Lakes Industrial Center in the Tampa Bay area, according to public records. GID acquired the property and will lease the building back to the syrup and sauce manufacturer.

Located at 8585 126th Ave. N. in Largo, Fla., the property opened its doors in 2017, CommercialEdge data shows. The structure, along with two industrial developments from Harrod Properties, replaced an approximately 215,000-square-foot dated office building, which was demolished in 2016. GID’s acquisition has 15 covered loading docks fitted with bumpers and levelers along with one grade-level, drive-in door and a 115-foot truck court. 

The property is within 10 miles of central St. Petersburg and Clearwater, 7 miles west of the Howard Frankland Bridge to Tampa. The St. Pete-Clearwater International Airport is 5 miles to the east. 

The importance of well-located industrial assets in the Tampa Bay area continues to grow. In November, Dalfen Industrial traded a nearly 425,000-square-foot Amazon-leased property for close to $48 million.

The post GID Buys Tampa Bay Warehouse for $14M appeared first on Commercial Property Executive.

Tampa Commons. Image courtesy of Bridge Investment Group

Tampa Bay commercial real estate produced its fair share of headlines in November. Both investment and development showed signs of life across asset classes, with a focus on industrial and mixed-use properties. Work at the 9 million-square-foot Water Street Tampa megaproject is also moving forward, although the developer is laying off some of its staff and focus mainly on leasing and management at nearly completed buildings, according to Tampa Bay Times. Catch up with our November selection of Tampa must-knows:  

1. DEAL – Bridge Investment pays $56.5 million for office property.

The company acquired the 253,900-square-foot Tampa Commons from Angelo Gordon through subsidiary Bridge Office Fund Manager. The buyer financed the purchase with a $28.9 million loan from Wells Fargo Bank. Completed in 1985 and most recently renovated in 2018, the 13-story building occupies 3.4 acres at 1 N. Dale Mabry Highway in Westshore. The new owner plans to further improve the property and rename it 1 North Dale Mabry.

READ ALSO: Top Projects That Will Reshape Tampa

2. DEAL – AEW Capital Management buys Amazon-leased Seffner asset.

Dalfen Industrial sold I-4 Logistics Center, a 424,550-square-foot property, for $47.9 million, according to Tampa Bay Business Journal. Dalfen had acquired the speculative building last year for $29.1 million. Situated on 37 acres at 1003 N. Taylor Road, the 2019-competed facility features crossed docked loading, 36-foot clear heights and 70 dock-high positions. Amazon leased the entire warehouse this June. Cushman & Wakefield brokered the sale.

3. DEVELOPMENT – Work starts on Yuengling Tampa Campus revival.

Alliant Partners broke ground on the mixed-use project meant to enhance the 43-acre brewery site of D.G. Yuengling & Son Inc. Alfonso Architects designed the $65 million development to include a restaurant featuring a tasting room, an outdoor recreation area and beer garden as well as a concert and entertainment pavilion. In addition, Alliant teamed up with Capstone Development for the construction of an on-site 200-key hotel. Delivery is slated for early 2022.

4. OPERATIONS – Cushman & Wakefield to lease, manage Water Street Tampa buildings.

The company will handle all management and leasing activities at Strategic Property Partners’ 1001 Water Street and 400 Channelside Drive. Totaling 880,000 square feet and designed to achieve LEED and WELL certifications, the two office buildings are under construction, with expected completion in May 2021. At full build-out, Water Street Tampa is set to include 2 million square feet of office and 1 million square feet of retail/entertainment space, as well as 3,500 apartments and 1,593 hotel rooms.

5. LEASING – Nestle Waters signs Plant City warehouse lease.

The Nestle subsidiary will occupy 282,639 square feet at the 1.1 million-square-foot County Line Logistics Center, according to Tampa Bay Business Journal, bringing the park’s Building 300 to full occupancy. Nuveen Global Investments purchased the 2019-built property in October, in a $272 million portfolio transaction. The facility at 4181 Rice Road has 92 dock-high and four grade-level loading doors. JLL represented the landlord, while Colliers International assisted the tenant.

The post Tampa Commercial Real Estate Wrap-Up – November 2020 appeared first on Commercial Property Executive.

Office building at Water Street Tampa. Image courtesy of Cushman & Wakefield

Strategic Property Partners has tapped Cushman & Wakefield to handle management and leasing for 1001 Water Street and 400 Channelside Drive, two office projects in Tampa, Fla. Slated for completion in May 2021, the buildings are part of the owner’s 56-acre, mixed-use development dubbed Water Street Tampa.

The leasing team consists of Mercedes Angell, Barry Oaks, James Garvey and Ashley James. Hank Brenner, Sandy Ballestra, Chris Brown and Brett Angarola will be in charge of property management.

COOKFOX Architects designed the 380,000-square-foot 1001 Water Street to WELL and LEED specifications. The property will feature a 10,000-square-foot penthouse on the 20th floor with meeting rooms, event space, an outdoor terrace and a gym. Consulting firm RSM has already signed a lease for 15,000 square feet in the building.

The brokerage will also oversee leasing and operations for 400 Channelside Drive, a 500,000-square-foot office property within the same campus. The building will have a 30,000-square-foot Sky Garden, a gym, private rooftop lounges and retail space on the ground floor. Gensler serves as the architect for the proposed WELL and LEED-certified project.

The cost of the Water Street Tampa development is estimated at $3 billion. Upon completion, the property will have 2 million square feet of office and 1 million square feet of retail/entertainment space, 3,500 apartments and 1,593 hotel rooms.

The post Cushman & Wakefield To Lease, Manage Tampa Office Projects appeared first on Commercial Property Executive.

READ ALSO: Tampa Commercial Real Estate Wrap-Up – October 2020

Carrying the address of 11111 N. 30th St., the Yuengling Tampa Campus sits near Busch Gardens within the Innovation District of the growing Tampa area. A multi-structure industrial site with a 400,000-square-foot facility as its centerpiece, the property came under the ownership of Yuengling in 1999 when the family owned and operated company acquired it from the Stroh Brewery Co. for $6 million. “They saw an opportunity and are now investing $65 million in that facility,” Mark Sharpe, executive director of the Tampa Innovation Partnership, said during a Tampa City Council meeting on June 25, 2020. “So that’s a significant investment from one family, seeing the vision.”

Experiential evolution

Yuengling plans to transform the Tampa Campus into an immersive experience, capitalizing on the area’s tourism and local craft beer markets. Alliant Partners is on board to serve as developer of the Alfonso Architects-designed Tampa Campus revitalization. The project will enhance the brewery site with a restaurant featuring a tasting room, an outdoor recreation area and beer garden, a concert and entertainment pavilion and an approximately 200-key, 15-story hotel developed in a partnership between Alliant and Capstone Development.

The expansion endeavor will also increase the size of the campus’s existing gift shop and coffee bar and display the brewery’s state-of-the-art pilot brewing system. Miller Brothers is serving as general contractor for the Yuengling Tampa Campus redevelopment. The project is on track to reach completion in early 2022.

The post Brewer Breaks Ground on Tampa Mixed-Use Destination appeared first on Commercial Property Executive.

James Garner, First Vice President of Investments, Marcus & Millichap. Image courtesy of Marcus & Millichap

Marcus & Millichap has promoted James Garner to first vice president of investments at the company’s Tampa office. He is specialized in the retail sector, focusing on single-tenant, net-leased properties.

Before joining Marcus & Millichap, Garner worked for Ingersoll Rand, participating in New York commercial projects including high profile developments such as the new World Trade Center towers. He also worked for Coupon Connex, a fund raising company based in Indianapolis, and Africa AIDS Fund, a non-profit organization. He is also the founder of Mind Right Media.

The newly promoted vice president has a bachelor’s degree in sales management from Purdue University. He also has a certificate in entrepreneurship from the Krannert Management School, at the same university.

Last month, Marcus & Millichap hired Daniel Taub as a senior vice president & national director. Taub has more than 25 years of retail experience and joined the company from New York-based DMT CRE Advisors, where he served as managing director.

The post Marcus & Millichap Appoints New Vice President in Florida appeared first on Commercial Property Executive.

Tampa Commons. Image courtesy of Bridge Investment Group

Bridge Investment Group has acquired Tampa Commons, a 253,922 square-foot office building in Tampa, Fla., through its subsidiary, Bridge Office Fund Manager. The acquisition marks the firm’s return to the metro Tampa Bay market, after selling its last local property in 2019.

Angelo Gordon sold the Class A property for $56.5 million, according to Yardi Matrix data, with the assistance of Eastdil Secured. The buyer also took out a $28.9 million loan from Wells Fargo Bank for the purchase. The asset last traded in 2017, in a 1.3 million-square-foot portfolio transaction involving seven office buildings across Florida, Pennsylvania and the Carolinas.

Situated on 3.4 acres at 1 N. Dale Mabry Highway in the Westshore submarket, the 13-story building came online in 1985 and was most recently renovated in 2018. The $3 million improvements included the parking garage renovation, first-floor lighting, floors and furniture upgrades, as well as the addition of a tenant conference room and concierge desk.

The new owner intends to make more investments at the property to be renamed as 1 North Dale Mabry. Planned improvements and amenities include a new fitness center, an upgraded outdoor seating area and move-in-ready suites. CBRE’s Ryan Reynolds, John Heald and Jackson Kilcoyne will spearhead all leasing activity at the building that is currently 83 percent occupied, according to Bridge.

Tampa Commons is some 3 miles west of downtown Tampa at the intersection of Dale Mabry and Kennedy Boulevard. Midtown Tampa, the $500 million mixed-use project slated for a February 2021 delivery, is roughly one mile north.

The post Bridge Investment Pays $57M for Tampa Office Building appeared first on Commercial Property Executive.

1401 N. Westshore Blvd. Image courtesy of Franklin Street

Tampa Bay’s commercial real estate sectors showed some significant activity in October, building on the Florida economy’s uptick during summer and early fall. As investors focused nationwide on industrial assets, one local property changed hands in one of the largest deals this year in the Southeast. Even the office sector saw some leasing deals despite a current trend toward subleasing, with 1.4 million square feet of space in Hillsborough and Pinellas counties available for sublease at the end of the third quarter, according to a JLL report. Catch up on our October selection of Tampa must-knows: 

1. DEAL – Plant City warehouse trades in $272 million portfolio deal.

The 1.1 million-square-foot County Line Logistics Center is one of six assets sold by McCraney Property Co. and Northwestern Mutual to Nuveen Global Investments, according to Tampa Bay Business Journal. The 3.5 million-square-foot portfolio consists of Florida, Georgia and North Carolina properties. Other Sunshine State assets included 810,648 square feet in Davenport and 45,340 square feet at the I-4 Commerce Center in Lake Mary.

2. LEASING – Heritage Insurance inks 89,000-square-foot Westshore lease.

The company will move its corporate offices to one of the five buildings of the 300,000-square-foot Westshore City Center under a full-building lease. Located at 1111, 1211, 1311, 1401 and 1411 N. Westshore Blvd., the 1975-completed office park underwent cosmetic renovation in 2000. The owner, Ally Capital Group, is currently implementing $10 million in building upgrades. The 10-acre property is 3 miles from Tampa International Airport and 5 miles west of the city center.

3. DEAL – The Arden Group, Avistone make $31.8 million industrial purchase.

With the assistance of JLL, MLG Capital sold the 15-building, 334,000-square-foot Breckenridge Park. A JLL Capital Markets team provided the buyer with a $26.3 million loan from BlackRock. The new owner will use part of the proceeds for capital improvements. Situated on 30 acres at 5402-5460 Breckenridge Parkway, the park comprises single-story buildings completed between 1982 and 1998.

4. DEVELOPMENT – Self storage facility debuts in Clearwater.

Cedarwood Cos. completed the 60,000-square-foot property at 1000 S. Myrtle Ave. and Westport Properties will oversee the facility’s operations through its US Storage Centers subsidiary. The developer broke ground on the project in 2019, financing construction with a $6.6 million loan from KeyBank. The three-story building houses 585 climate-controlled and non-climate-controlled units with sizes between 25 square feet and 300 square feet.

5. OPERATIONS – Gulf Coast brokerage launches.

Brad Berzins and Andy Georgelakos teamed up to form NAI Thor Commercial Group. The full-service firm will cover investment sales, appraisal services, tenant and landlord representation for industrial, flex, office, retail and health and wellness sectors in Tampa, Sarasota, Fort Myers and Naples. Both professionals possess more than 20 years of industry experience and previously occupied executive roles within NAI KLNB.

The post Tampa Commercial Real Estate Wrap-Up – October 2020 appeared first on Commercial Property Executive.

From left to right: Andy Georgelakos and Brad Berzins, Principals of NAI Thor Commercial Group. Image courtesy of NAI Thor Commercial Group

Brad Berzins and Andy Georgelakos, two former members of a NAI Global affiliate, have teamed up to form NAI Thor Commercial Group, a brokerage firm that will cover the Gulf Coast sections of Florida.

READ ALSO: Marcus & Millichap Buys Mission Capital

The new full-service brokerage firm will cover investment sales, appraisal services, tenant and landlord representation for industrial, flex, office, retail, and health and wellness sectors in Tampa, Sarasota, Fort Myers and Naples.

“NAI has not had a major presence in Tampa and this is an incredible opportunity to firmly plant the NAI brand and Thor in the Tampa market while also ensuring a first in class presence in Sarasota, Fort Myers and Naples,” Berzins told Commercial Property Executive. “Industrial and overall commercial growth [of the area] was taken into account and positive population growth, rooftops, employment, airports, road networks and infrastructure numbers all support this.”

Berzins has two decades of experience in the industrial and investment sales sectors and was a former principal with NAI KLNB, where he covered the Baltimore, northern Virginia and Washington, D.C. markets. Berzins completed more than $1 billion in transactional value during his time at NAI KLNB, including a transaction where he represented the seller of a 46,838-square-foot mixed-use building in Maryland.

Berzins will lead NAI Thor with Georgelakos, who Berzins said has been one of his key mentors. Georgelakos, former president of NAI KLNB, spent 17 years leading the previous NAI affiliate and grew it to four offices and 80 full-time brokers.

Georgelakos said in prepared remarks that NAI Thor will be “extremely aggressive” in getting top brokers to kick off the firm’s momentum. So far, NAI Thor has recruited Kevin Fitzgerald, a 35-year veteran with expertise in corporate services and strategic planning, Brandy McAdams, who has more than 10 years of retail experience, and Andrew Fox, an associate with five years of experience. Berzins told CPE that there are more planned hires in the coming weeks and that NAI Thor expects to have 20 to 30 brokers within the next 24 to 30 months.

NAI’s presence in Florida

NAI Thor has also formed a strategic alliance with NAI Miami, a nearby affiliate that is run by Jeremy Larkin. Berzins told CPE that the partnership between the two affiliates will cover both Tampa and Miami and serve multi-market clients.

Jay Olshonsky, president & CEO of NAI Global, said in prepared remarks that Berzins and Georgelakos identified a need for a NAI presence in the south Florida market to take advantage of expected business growth and expansion. NAI Thor makes the 12th affiliate of NAI Global in Florida, with other outposts covering Miami, Orlando, Jacksonville and Fort Lauderdale.

The post New NAI Global Affiliate Launches in Florida appeared first on Commercial Property Executive.

1000 S. Myrtle Ave. Image courtesy of Cedarwood Cos.

Cedarwood Cos. has finalized the construction of a 60,000-square-foot self storage property in Clearwater, Fla. Westport Properties will oversee the facility’s operations through its US Storage Centers subsidiary. This is the developer and manager’s first location in the market.

Cedarwood paid $1.8 million to acquire the 3-acre site at 1000 S. Myrtle Ave. from two private investors in 2019, according to Pinellas County records. KeyBank provided a $6.6 million construction loan for the three-story development, Yardi Matrix shows.

The property has 585 climate-controlled and non-climate-controlled units with sizes between 25 square feet and 300 square feet. The facility has an on-site manager, drive-up access, security cameras, both auto and RV parking and provides truck rentals. The site is a short distance from downtown Clearwater. Additionally, there are at least 13 other self storage properties encompassing 704,800 square feet within a 3-mile radius, according to Yardi Matrix data.

This is the second property that US Storage Centers manages for Cedarwood Cos. In April, the developer opened a 117,000-square-foot facility in Orlando, Fla. In 2018, Huntington Bank originated an $8.5 million construction loan for the project. 

The post Cedarwood Cos. Debuts 1st Clearwater Storage Property appeared first on Commercial Property Executive.

Breckenridge Park. Image via Google Street View

JLL Capital Markets has arranged the $31.8 million sale of Breckenridge Park, a 334,000-square-foot office and flex property in Tampa, Fla. Senior Director Bret Felberg, Senior Managing Director Jeff Morris, Managing Director John Dunphy and Associate Peter Cecora negotiated on behalf of the seller, an entity affiliated with MLG Capital. A joint venture between The Arden Group and Avistone purchased the 15-building asset.

Additionally, a JLL Capital Markets Debt Placement including Director Jillian Mariutti, Senior Director Brian Gaswirth and Associates Michael DiCosimo and Drew Jennewein provided the buyer with a floating-rate, $26.3 million loan from BlackRock. The joint venture will use part of the proceeds to implement capital improvements at the property.

Breckenridge Park occupies 30 acres at 5402-5460 Breckenridge Parkway. The single-story buildings, completed between 1982 and 1998, range from 6,000 to more than 50,000 square feet, featuring grade-level and dock-high loading doors. The campus is leased to a diverse mix of national and local tenants.

The property is roughly 9 miles northeast of downtown Tampa, just west of U.S. Route 301 and north of Interstate 4 and Freeway 400. Less than 2 miles north is a 3.2 million-cubic-foot cold storage asset recently purchased by Americold in a $107.5 million buying round.

If you’d like to be featured in Brokers’ Corner, simply fill in our short form or send your deal to deals@cpe-mhn.com.

The post JLL Brokers $32M Tampa Industrial Sale appeared first on Commercial Property Executive.

1401 N. Westshore Blvd. Image courtesy of Franklin Street

Heritage Insurance will move its corporate offices to Westshore City Center, a 300,000-square-foot office property in Tampa, Fla. The company has signed an 88,643-square-foot, full-building lease in one of the five buildings in the campus.

Franklin Street Director Matt Alexander and Managing Director Chad Rupp negotiated the 10-year lease on behalf of the owner, Ally Capital Group.

Completed in 1975, the park occupies 10 acres at 1111, 1211, 1311, 1401 and 1411 N. Westshore Blvd. The complex is 3 miles from Tampa International Airport and 5 miles west of the city center.

The owner acquired the asset from Redstone Investments for $29 million in January 2019, according to Yardi Matrix data. At the time of that transaction, the property was 35 percent leased. Since then, the occupancy rate has risen to 85 percent.

The tenant will relocate from a 75,300-square-foot building at 2600 McCormick Drive in Clearwater, Fla. The tenant paid U.S. Bank $4.7 million for the property in 2013, Yardi Matrix shows.

Additionally, the owner is implementing a $10 million renovation program on the park. Upgrades include cosmetic improvements and installing new energy-efficient windows. By year’s end, every building on the campus will have remodeled common areas, restrooms and elevators.

The post Heritage Insurance Signs 89 KSF Tampa Lease appeared first on Commercial Property Executive.

Tampa Bay. Image by Michelle Maria via Pixabay.com

Toward the end of September, following an overall decline in new COVID-19 cases, Governor DeSantis moved Florida to its third and final stage of reopening. Businesses were permitted to operate at full capacity with safety protocols in place, and these new measures ensure bars and restaurants cannot be limited to less than 50 percent capacity by local regulations. Although the metro’s commercial real estate showed some signs of reduced activity, major developments moved forward while some investments closed. Here’s our September list of Tampa must-knows:

1. DEAL – Americold acquires St. Pete facility in $107.5 million buying round.

The company purchased Caspers Cold Storage’s 3.2 million-cubic-foot asset at 6815 Maple Lane for $25 million. The facility opened in 2017 with 12,400 pallet positions and blast freezing capabilities. The new owner plans to invest $500,000 in initial capital expenditures at the property. The transaction closed simultaneously with the $82.5 million acquisition of two Texas facilities, adding a total of 17 million cubic feet to Americold’s U.S. portfolio.

2. DEVELOPMENT – Moss Construction to build $109 million jail expansion.

The company will serve as general contractor for the expansion of the Pasco County Detention Center in Land O’ Lakes, according to Tampa Bay Business Journal. Designed by HOK, the development will include additional housing beds and a new centralized intake and booking center. Renovations are also planned for the property’s medical center and support facilities. Moss is expected to break ground on the project in the fourth quarter of 2021, with completion in the second quarter of 2024.

3. DEAL – Crow Holdings trades self-storage portfolio.

Strategic Storage Growth Trust II purchased the two properties totaling 1,580 units across 150,000 square feet in St. Petersburg and Lutz. Completed in 2018 at 289 34th St. N., the 790-unit St. Petersburg property has a mix of climate-controlled units ranging from 25 to 260 square feet. The Lutz facility delivered earlier this year on 5 acres at 16900 State Road 54. The 750-unit asset includes indoor, climate-controlled units with sizes from 25 to 300 square feet as well as 50,400 square feet for RV, boat and car parking.

4. DEVELOPMENT – TownePlace Suites to come to Clearwater.

Menna Development & Management Inc. plans to build TownePlace Suites by Marriott Tampa Clearwater, a 92-key extended-stay hotel adjacent to SureStay Plus Hotel by Best Western. Public records show the company intends to finance the development on U.S. Highway 19 with an $8.8 million construction loan from Synovus Bank. Upon completion, the property will be 5 miles from the city center.

The post Tampa Commercial Real Estate Wrap-Up – September 2020 appeared first on Commercial Property Executive.

289 34th St. N.

Strategic Storage Growth Trust II, a private trust affiliated with SmartStop Self Storage REIT, has completed the acquisition of a two-property portfolio totaling 1,580 units spread across 150,000 square feet in St. Petersburg and Lutz, Fla. The seller, Crow Holdings, had owned the assets in two separate partnerships with private capital firms, according to public records.

The St. Petersburg facility was completed in 2018 on 2 acres at 289 34th St. N. The 790-unit property has a mix of climate-controlled units ranging between 25 and 260 square feet. A joint venture between Crow Holdings and Broome Capital sold the asset, Pinellas County records show. In 2017, Republic Bank & Trust originated a $6.5 million construction loan for the property.

Located on 5 acres at 16900 State Road 54, the Lutz facility was delivered earlier this year. The 750-unit property provides indoor, climate-controlled units with sizes from 25 to 300 square feet, as well as 50,400-square-foot parking spaces for RVs, boats and cars. A partnership between Crow Holdings and Steadfast Capital sold the property, according to Pasco County records. Veritex Community Bank backed the project with a $6 million development loan in 2019.

In June, SmartStop Self Storage finalized the $16.9 million purchase of a 106,169-square-foot facility in Punta Gorda, Fla. The sold asset was a retail building converted into self storage space in 2017.

The post Crow Holdings Sells Tampa-Area Storage Portfolio appeared first on Commercial Property Executive.

CenterState Logistics Park East. Image courtesy of Brennan Investment Group

Tampa Bay showed some signs of recovery in August as the coronavirus slowed its spread in the metro. However, various economy sectors continued to feel the health crisis’ effects: Ports will remain closed for cruise ships at least until winter, and many of the region’s major employers kept employees at home, stifling activity in the office sector. Despite the metro’s challenges, the industrial sector emerged as a prime driver, fueled by the growth of e-commerce, as Amazon moves forward with plans for two more facilities in Temple Terrace and Lutz. Here’s our August list of Tampa must-reads: 

1. DEVELOPMENT – Central Florida’s largest spec industrial project begins in Lakeland.

Brennan Investment Group and Grandview Partners started construction on the three-building, 165-acre CenterState Logistics Park East. Located at 8565 State Road 33 along the Interstate 4 corridor, the park will offer more than 1.5 million square feet of warehouse space at full build-out. The project’s first phase—the 1 million-square-foot Building 400—is slated for delivery in the first quarter of 2021. Site work began shortly after the joint venture sold the neighboring, 440,000-square-foot CenterState West to Nuveen Real Estate for $41.2 million.

2. DEAL – CTO Realty Growth pays $26.9 million for Tampa office building.

The company purchased the 120,000-square-foot Sabal Pavilion from Pacer Partners in a 1031 exchange. Ford Motor Credit Co. has been the building’s sole occupant since Highwoods Properties developed it at 3620 Queen Palm Drive in 1998, and the tenant’s lease has been extended through March 2026. The Class A, four-story asset features 30,125-square-foot floorplates and parking at a ratio of roughly 7.5 spaces per 1,000 square feet, according to Yardi Matrix.

3. DEAL – New Lakeland facility changes hands for $15.1 million.

Blue Steel Development sold the 222,134-square-foot speculative industrial building in Lakeland to Bobeck Real Estate shortly after completion. The rear-load facility at 5275 Drane Field Road was more than 50 percent leased at the time of the sale, with the tenant planning to occupy its space in December. The 20-acre property is 3 miles from Interstate 4 and less than 3 miles west of Lakeland Linder International Airport.  

4. FINANCING – Denholtz Properties refinances St. Pete business park.

Thorofare Capital provided a $13.1 million loan for the 206,000-square-foot Pinellas Business Center. The six-building property occupies 18 acres at 10901 to 11001 Roosevelt Blvd. and 1000 112th Circle N. in the Pinellas Gateway District. Developed between 1985 and 1986, the park has single-story office and industrial facilities with grade-level and dock-high doors and showroom space. Denholtz has owned the asset since 2001, Yardi Matrix shows.

The post Tampa Commercial Real Estate Wrap-Up – August 2020 appeared first on Commercial Property Executive.

Right before the pandemic hit the U.S., you broke ground on Marina Pointe. How has the new economic situation impacted this part of the project?

Andersen: We celebrated our formal groundbreaking ceremony at the end of February, but preliminary marina and site work commenced in late 2019. Construction is well underway for Marina Pointe’s luxury condominiums, as well as the 159-slip marina and retail town center for Westshore Marina District. We are fortunate to still be on schedule, with initial tower move-in anticipated to take place 24 months from groundbreaking and the retail component delivery expected in the fourth quarter this year.

Scott Andersen, Vice President West Coast, BTI Partners. Image courtesy of BTI Partners

For many in the U.S., it is more important than ever to have access to open spaces. Not only do our luxury condominiums offer plenty of interior space, but there is also access to the waterfront and a variety of outdoor activities. As a result of initial stay-at-home orders confining many people to their homes, we have seen renewed interest from buyers in the Northeast looking to relocate not only for access to larger spaces but also for the benefits of Florida having no income tax.

The first of the three 17-story condominium buildings is expected to open in 2022. How is the presale process going?

Andersen: More than 40 percent of the 120 condos in the first tower are presold. Designed by world-renowned architect Kobi Karp, Marina Pointe underlines the new level of sophistication that the Tampa condo/multifamily market is seeing in this real estate cycle and is attracting buyers from around the world.

READ ALSO: Retail’s Flexibility, Versatility in Pandemic Times

How would you describe the typical Westshore Marina District resident?

Andersen: For the most part, BTI Partners is catering to buyers in the Tampa market looking to upgrade their quality of life. Marina Pointe provides a unique luxury waterfront lifestyle with direct access to boating services, boutique shopping and dining, and high-end retail. Another portion of the buyers is coming from California, New York and outside the country.

The area is attracting starchitects who are behind some of Miami’s most spectacular waterfront condominiums. Many of these architects are known around the world, so their brand is helping us bring international buyers to a market that has been traditionally dominated by local buyers.  

Residential developers, such as the Related Group and Bainbridge, have already welcomed their first residents to their new market-rate apartment buildings within the district. WCI Communities also opened its townhome project within Westshore Marina District last year.

Once the master-planned community and neighboring residential projects are completed, the area will have nearly 2,400 new residences, injecting new life into the waterfront. Many buyers are still intending to work, as opposed to retiring, and they are looking for a residence that enables them to work and play without having to travel far or commute.   

Marina Pointe. Image courtesy of BTI Partners

What elements of the Westshore Marina District project set it apart from other waterfront developments in Florida?

Andersen: Our project offers specialty retail, restaurants, luxury water-inspired living, access to 1.5 scenic miles of waterfront, green space, a marina and an open bay. The magnificent view has been the inspiration behind the design of Marina Pointe. 

Marina Pointe is a new marina-front development under construction in Tampa Bay, with prices currently ranging from the mid-$800,000s to over $2 million. Each contemporary, flow-through floorplan features floor-to-ceiling glass walls and windows with breathtaking views of the bay and city, as well as premium European-style cabinetry, world-class Sub-Zero and Wolf kitchen appliances, spa-like owner’s suites and much more.

Residents of Marina Pointe will enjoy exclusive amenities such as an elevated pool deck, world-class fitness center, private club and entertaining room. The ideal location at the intersection of Gandy and South West Shore boulevards places residents a few moments away from the vibrant downtowns of both Tampa and St. Petersburg.

Marina Landings, the retail town center of Westshore Marina District, places Tampa’s finest in-town, on-the-water lifestyle just moments from residents’ doorsteps. It includes Cru Cellars wine bar and restaurant, Duckweed Urban Grocery, DRNK coffee shop + QWENCH juice bar, Crave Spa, Salon Color Bar, Sand Surf Co. and more. A boat-up dining destination will also be a short stroll away from the condominiums via a waterfront promenade.

Marina Pointe. Image courtesy of BTI Partners

Tell us about the health and wellness components of the master-planned project.

Andersen: Westshore Marina District offers three community parks with miles of waterfront trails and a full-service marina, allowing residents to embrace an outdoor lifestyle. Unrestricted access to Tampa Bay provides endless opportunities for water-inspired recreation, from Tampa’s western shoreline to the Gulf of Mexico and beyond. People are increasingly interested in driving less and enjoying life more. That means they want to live in areas where they can work, live and play without having to get in a car and fight traffic. People want to live and walk down the street to shop or dine.

What do you most like about this project? 

Andersen: Finding inspiration in the breathtaking views of the bay, Kobi Karp designed the condos to feature expansive open living areas with floor-to-ceiling windows, deep terraces and verandas offering panoramic sunrise and sunset views from nearly every residence. We also designed state-of-the-art amenities to include elegant clubrooms and social areas, fitness facilities, spa treatment rooms and a tropical resort-style pool.

When we acquired the vacant industrial land, we had a vision for what it would be, and seeing that transformation happen has been very fulfilling. We are excited to provide a connection to the waterfront with all of the activities and experiences that it offers.

Westshore Marina District. Image courtesy of BTI Partners

How much do you expect the Westshore Marina District to influence the surrounding neighborhoods?

Andersen: I think it is fair to say that the success of Westshore Marina District has sparked a residential construction boom south of the district along West Shore Boulevard. This wave of construction in south Tampa highlights the demand for market-rate housing opportunities close to downtown Tampa and MacDill Air Force Base.

How do you imagine this area of the metro 10 years from now?

Andersen: Tampa has grown tremendously in the last five years and the current construction boom is transforming areas that had been neglected for decades. There is currently $13 billion in new development underway that will transform the Tampa Bay area in the next few years and create a more urban environment, according to the Tampa Bay Economic Development Council. Most of these long-term investments are happening along the waterfront, which until recently had gone largely untapped. The demand for housing in this area will continue to grow in the next 10 years.

The post Injecting New Life Into Tampa’s Western Waterfront appeared first on Commercial Property Executive.

6815 Maple Lane, Tampa, Fla. Image via Google Street View

Americold Realty Trust has reinforced its status as the largest publicly traded REIT focused on temperature-controlled warehouses with the acquisition of three cold storage facilities totaling 17 million cubic feet in Florida and Texas. The company purchased the assets in two separate transactions valued at an aggregate $107.5 million.

Pandemic-induced economic uncertainty has not hindered Americold’s efforts to enhance its holdings across the U.S. and around the world. “The scale and diversity of our portfolio, combined with our strong market share, provides stability in our business,” Marc Smernoff, CFO of Americold Realty Trust, said during the company’s second quarter 2020 earnings conference call on August 6.

READ ALSO: COVID-19 Fuels Growth in Cold Storage

Americold bolstered its footprint in metropolitan Tampa, Fla., with the purchase of Caspers Cold Storage’s 3.2 million-cubic-foot property located at 6815 Maple Lane. The company paid $25 million for the asset, which opened in 2017 with 12,400 pallet positions and blast freezing capabilities, and it expects to invest an additional $500,000 in initial capital expenditures.

In Texas, Americold acquired AM-C Warehouses in an $82.5 million transaction that increased the REIT’s Dallas-Fort Worth major-market capacity by roughly 30 percent. The AM-C assets include an 8.6 million-cubic-foot facility built in 2018 in Mansfield. The property features 27,000 pallet positions and 18 acres of developable land for future expansion. The second AM-C asset, located in Grand Prairie, joins the Americold portfolio under the assumption of a lease with an expiration in 2023 and a single 4-year extension option. The facility offers 5.2 million cubic feet and 18,000 pallet positions. Americold will invest $2.5 million of initial capital expenditures in the AM-C properties.

Americold financed the acquisitions of the Tampa and Dallas-Fort Worth warehouses with cash on hand. The REIT is well-positioned to continue to invest globally, having recorded total liquidity of approximately $1.2 billion, including cash and borrowings available under its revolving credit facility, as of the close of the second quarter. During the first quarter, the company entered into a joint venture allowing for the purchase of 15 percent of Brazil-based SuperFrio Armazéns Gerais SA, which operates a 35.1-cubic-foot portfolio of 16 temperature-controlled storage facilities.

Hot Market for Cold Storage

According to a second quarter 2020 report by Elion Partners, the pandemic expedited trends that were already in motion in the U.S. industrial sector well before the appearance of COVID-19—and the rise in demand for cold storage accommodations is one of those trends. “With online grocery and delivery services becoming an integral part of how consumers shop, cold storage in and near large population centers is projected to generate the highest demand for logistics real estate space,” the report said.

For its part, however, Americold does not believe its business is contingent on any pandemic-related patterns. “Whether purchased just online or in person, groceries still move through the traditional supply chain infrastructure,” Fred Boehler, CEO of Americold Realty Trust, said during the conference call. “As food travels from food manufacturer all the way to the grocery store, Americold is a key player at each stage of the supply chain along the way,” he added.

The post Americold Pays $108M for Cold Storage Trio appeared first on Commercial Property Executive.

5275 Drane Field Road. Image courtesy of Colliers

Bobeck Real Estate has acquired a 222,134-square-foot speculative warehouse and distribution center in Lakeland, Fla., from Blue Steel Development. The asset traded for $15.1 million.

The developer completed construction of the facility this month. The property was more than 50 percent pre-leased before completion. The tenant, which is slated to use the space as a regional distribution center, will start operating at the property in December. Features at the property include insulated ceilings and ESFR fire sprinklers. 

Located at 5275 Drane Field Road, on roughly 20 acres, the development is 3 miles from Interstate 4. The asset is within a few miles of Lakeland Linder International Airport and 6 miles southwest of downtown Lakeland.

Ryan Vaught, Robyn Hurrell, and Oliver Vaubois of Colliers International represented the seller in the transaction, and the landlord in the lease deal. Jack Brown of Graham & Co., represented the tenant. Recently, another Colliers team represented the seller of a three-property industrial complex encompassing 198,000 square feet in Oviedo, Fla. The sale closed for $22.2 million.

The post Tampa-Area Industrial Facility Trades for $15M appeared first on Commercial Property Executive.

Sabal Pavilion

CTO Realty Growth, of Daytona Beach, Fla., has acquired an approximately 120,000-square-foot Class A office property in Tampa, Fla., for about $26.9 million. The four-story building is fully leased to a single tenant, Ford Motor Credit Co. LLC, and has been since Highwoods Properties developed the 12-acre project in 1998.  

READ ALSO: Stressed Out: Are Commercial Properties Close to Default?

Located at 3620 Queen Palm Drive, the building is known as Sabal Pavilion, according to information provided to Commercial Property Executive by Yardi Matrix. That information also indicated that the seller was Pacer Partners, of Miami.

CTO Realty reported that the lease with Ford was recently extended through March 2026. The transaction was arranged as part of a 1031 like-kind exchange using about $27 million of the approximately $37 million of the CTO’s restricted cash generated from unspecified previously announced property dispositions primarily sales of single-tenant retail assets. The company further noted that the initial investment yield is about 8.4 percent, or above the high end of CTO’s 2020 guidance.

In a prepared statement, John Albright, CTO’s president & CEO, said the acquisition represents an attractive cash flow–accretive transaction in a high-growth MSA. He added that the company has so far this year completed more than $164 million of income property acquisitions, at a weighted average cap rate of about 7.9 percent.

Tampa trends

Tampa’s office market ended the second quarter with an overall vacancy of 12.8 percent, which represents a rate increase of 120 basis points from last year, as well as an increase of 50 basis points for the first half of 2020, according to a second-quarter report from Cushman & Wakefield. Class A vacancy increased by 80 basis points year-over-year, to 11.0 percent.

The I-75 Corridor submarket specifically had an overall vacancy of 18.9 percent on an inventory of nearly 7.8 million square feet. Fortunately, no further office space is under construction in the submarket. The average asking rent for Class A space in the I-75 Corridor is $24.46, again according to Cushman & Wakefield.

Last November, a Swiss-American joint venture bought a five-building, 756,000-square-foot office portfolio in Tampa for $156.9 million.

CTO also announced that it has collected about 90 percent of its August 2020 contractual base rents. Of the remainder, the company reportedly agreed to defer about 3 percent, while about 7 percent remains “unresolved.”

The majority of the unresolved contractual base rent is related to a property in Falls Church, Va., that’s leased to 24 Hour Fitness. CTO reports that it’s in discussions with 24 Hour Fitness and “is hopeful to reach an agreement on current and past due rents in the coming weeks.”

The post CTO Realty Growth Buys Tampa Office Building appeared first on Commercial Property Executive.

Sunny Grove Mobile Home Community. Image courtesy of Marcus & Millichap

Marcus & Millichap has arranged the sale of Sunny Grove Mobile Home Community, a 120-site senior manufactured home community in Clearwater, Fla. Investment specialist Dan Mulkey arranged the $10 million deal, which was closed shortly after the disposition of another Clearwater property, Far Horizons. The park was nearly 98 percent occupied at closing.

Sunny Grove Mobile Home Community is located at 3463 Gulf to Bay Blvd. Completed in the 1970s, the community provides 2-bedroom, open-floor sites featuring vinyl wood floors. The property is situated across the street from SPC – Clearwater Campus and next to a Costco, Target and Sam’s Club. The area includes a number of active senior housing communities, including Boulevard I.

Earlier in July, Marcus & Millichap completed a hotel deal very close to Sunny Grove Mobile Home Community. SureStay Plus Hotel by Best Western Clearwater Central sold for $10.5 million.

The post Marcus & Millichap Arranges $10M Sale of Florida MHC appeared first on Commercial Property Executive.

9343 E. Fowler Ave. Image courtesy of Marcus & Millichap

A partnership between Flagship Cos. Group and Blue Vista Capital Management has completed the disposition of an 83,270-square-foot self storage property in an Opportunity Zone in Tampa, Fla. Extra Space Storage, the current property manager, acquired the facility.

The seller and developer purchased the 6-acre land parcel at 9343 E. Fowler Ave. for $1.1 million in 2016 from Hide-Away Storage, Hillsborough County records show. Synovus Bank provided a $5.8 million construction loan for the property, which encompasses four buildings delivered in 2017.

The facility has 713 climate-controlled units and 27 covered RV parking spaces, ranging from 20 to 600 square feet. The store features a covered loading bay, security cameras and drive-up access. The site is a short distance from Interstate 75 and roughly 12 miles northeast of downtown Tampa.

Marcus & Millichap Executive Managing Director Charles LeClaire and Senior Vice President Adam Schlosser facilitated the transaction on behalf of the seller. In May, LeClaire and colleague Dave Knobbler completed the disposition of a CubeSmart-managed, two-property self storage portfolio totaling 85,700 square feet in Texarkana, Texas.

The post Extra Space Storage Acquires Suburban Tampa Asset appeared first on Commercial Property Executive.

Florida’s economic growth has been fueled by substantial population increase, employment gains in high-paying industries and a business-friendly environment. The coronavirus outbreak, however, has impacted Florida’s positive fundamentals, leaving the state in distress. But despite economic uncertainties, following the national pattern, self storage projects have continued to push through in Florida.

As of July, some 6.8 million square feet—4.4 percent of existing stock—of storage space was under construction in the Sunshine State, according to Yardi Matrix. We have identified the top five Florida markets based on underway projects as a percentage of total inventory, using Yardi Matrix data.  

5. Tampa

Tampa. Image via Pixabay.com

Tampa has been one of the fastest-growing cities in Florida over the past few years, having gained 51,438 residents in 2018, up 1.7 percent year-over-year and well above the 0.6 percent national figure. Tampa is favored by downsizing retirees, a population cohort that is a major demand driver for self storage.

As construction in Florida was deemed essential during the statewide lockdown, development activity in the self storage sector remained elevated. As of July, 16 projects were under construction, totaling 1.3 million square feet. These developments accounted for 4.5 percent of the market’s existing 29 million-square-foot stock.

4. Miami

Miami’s self storage market has been benefiting from the market’s diversifying economy and rapidly expanding housing stock. Although the metro started to feel the effects of the coronavirus outbreak, self storage development has not yet been visibly affected.

Year-to-date, five storage facilities encompassing a total of 582,562 square feet came online in Miami. Some 777,200 square feet—across seven projects—was underway as of July, accounting for 5 percent of existing inventory. With a completed stock of 15.4 million square feet, the market has around 6.3 net square feet of storage space available per capita, slightly below the 6.6 national figure.

3. West Palm Beach – Boca Raton

West Palm Beach. Image via Pixabay.com

Economic growth in the West Palm Beach-Boca Raton market has been underpinned by a tax-friendly climate and relocating businesses from the Northeast. Around 70 financial services firms have moved from New York City to the county in the last three years, according to the Palm Beach County Business Development Board.

Self storage construction picked up in 2016, and over the past four years, the metro’s inventory has grown by more than 1.5 million square feet. As of July, West Palm Beach-Boca Raton had four facilities under development, encompassing 605,951 square feet and accounting for 5.1 percent of total stock.

2. Fort Lauderdale

Fort Lauderdale. Image via Pixabay.com

In line with other South Florida markets, Fort Lauderdale’s economy experienced strong growth in recent years. Healthy market fundamentals resulted in demand for self storage—over the past decade, Fort Lauderdale has added more than 3.3 million square feet of storage space to its inventory.

Although the pandemic has taken a toll on the metro’s fundamentals, self storage projects did not come to a halt. As of July, Fort Lauderdale had nearly 970,000 square feet of storage space underway, accounting for 5.4 percent of existing stock. The metro had nine projects under development, all slated for completion in 2020.

1. Pensacola

Despite a decade of limited deliveries, when it comes to the share of space under construction as a percentage of existing inventory, Pensacola ranked No. 1, with six properties underway, totaling more than 550,000 square feet. The projects represented 5.9 percent of total inventory as of July.

Three of the six facilities underway are conversion projects that were formerly retail structures, including an Absolute Storage-branded property totaling more than 127,00 square feet, just off Freeway 98, and two U-Haul assets encompassing some 150,000 and 113,000 square feet, respectively. 

The post Top 5 Florida Markets for Self Storage Development appeared first on Commercial Property Executive.

8706 Harney Road. Image courtesy of Amazon

Amazon is planning to open its eighth facility in Florida, a 600,000-square-foot fulfillment center in Temple Terrace. The project is expected to bring 750 full-time jobs to the Tampa Bay area upon completion in 2021.

READ ALSO: Amazon Adds El Paso to Fulfillment Center Lineup

An Amazon spokesperson told Commercial Property Executive that the company will own the upcoming facility at 8706 Harney Road. Many jobs will be shipping-related, but Amazon will also hire employees for its human resources, operations management, safety, security, finance and information technology departments.

8706 Harney Road. Image courtesy of Amazon

The company spokesperson also told CPE that Amazon’s Temple Terrace facility is responding to customer demand, ensuring that the company’s fulfillment centers are close to its customers for Prime service and fast shipping. The Amazon fulfillment center will also have nearby access to Interstates 4 and 75 and Route 301, while being near the Tampa Executive Airport and the City of Tampa.

“We also strategically look for locations that provide robust public infrastructure, a strong dedicated workforce and great local support and we’ve found all of those factors in Temple Terrace, Fla.,” the Amazon spokesperson told CPE.

Back-to-back building plans

Roughly 12 miles away, Amazon also has plans for a new delivery station in Lutz, Fla., that will similarly open in 2021. The Lutz facility will be used to speed up Amazon’s last-mile delivery network for the surrounding Pasco County.

Besides the recently announced locations in Temple Terrace and Lutz, Amazon currently has seven other fulfillment and sortation centers across Florida, in Jacksonville, Davenport, Orlando, Miami, Ruskin and Lakeland.

A company spokesperson told CPE that Amazon does not comment on future developments. However, in recent months, Amazon has announced plans for an 855,000-square-foot distribution center in Mt. Juliet, Tenn. and another 625,000-square-foot facility in El Paso, Texas, while also signing a 307,840-square-foot lease for a sortation center in Kyle, Texas.

“Amazon is a dynamic business and we are constantly exploring new locations and weighing a variety of factors when deciding where to develop future sites to best serve customers,” the Amazon spokesperson told CPE. “This new fulfillment center in Temple Terrace, Fla., provides us with the flexibility to quickly respond to our future network needs.”

The post Amazon to Open 8th Florida Distribution Center appeared first on Commercial Property Executive.

Chris Stewart, Market President, Tampa Bay Region, Centennial Bank. Image courtesy of Centennial Bank

In light of the ongoing health crisis and ensuing economic fallout, some lenders have taken a step back. Those wanting to stay active have adjusted their approach and underwriting standards to align with current economic circumstances.

In this interview, Chris Stewart, market president of the Tampa Bay Region at Centennial Bank, explains how his institution has forged ahead and continued to close deals since the onset of COVID-19.

READ ALSO: CMBS Delinquencies Appear to Stabilize—For Now

How has Centennial Bank maintained its lending activity?

Stewart: Fortunately, due to technology, we can keep deals moving forward. Being a relationship-based bank, however, in-person interaction with customers and prospects is also important. The pandemic has altered this course of action, and customers have been understanding. But with tools such as Zoom, we are still able to connect on some ‘face-to-face’ level to maintain that personal element.

Can you tell us about any deals your bank has closed since March?

Stewart: March and April were heavily dedicated to preparing and processing Paycheck Protection Program loans for our existing and new customers. Locally, in my market and company-wide, we provided financial assistance to some of the area’s small businesses and non-profit organizations. Outside of PPP loans, we recently closed on a self storage deal for $5.5 million. It’s an industry we’ve seen remain resilient over the past few months. We have several other deal types in the pipeline, including an owner-occupied commercial real estate space for medical use and a deal with a company involved in the marine industry at the Port of Tampa Bay.

How do you expect commercial real estate financing to perform in Florida and Tampa in the next 12 months?

Stewart: Although there are levels of uncertainty surrounding the pandemic, Florida continues to be a strong market for commercial real estate investment. Many investors are in a better position to weather a downturn than in previous years due to lessons learned in the Great Recession. As a result, borrowers have more equity in deals and stronger cash flow. In a downturn, that excess cash-flow coverage has more room to fall from either increased vacancies or lower rents and still cover their loan obligation. 

In the next year, I anticipate that lenders will be more selective with the asset classes that they fund. For example, industrial, self storage and, to some extent, multifamily deals will still be in favor vs. retail shopping centers comprised primarily of restaurants. As a bank, we always stress test for scenarios with increased vacancies, lower rents and higher interest rates to be prepared for unpredictable situations, such as COVID-19. This will remain a key strategy for Centennial moving forward in the evaluation of new deals.

Which are some of the steps taken by Centennial Bank in terms of preserving revenues and loan portfolio quality?

Stewart: At Centennial Bank, we are open for business whereas other institutions may have put a pause on lending. For every new deal we look at, we consider the current economic conditions caused by the pandemic. As a result, we may require more equity in a deal. There is an increased perceived risk. From an underwriting standard, there is additional stress testing being done to evaluate how much a project can withstand in the case of additional vacancies or lower rents in the future.

How has your organization processed requests for forbearance and loan term modifications? 

Stewart: Centennial Bank has an existing system in place that allows for a 90-day deferment, which has traditionally been utilized for communities impacted by hurricanes. It was a streamlined process for us to quickly implement and adapt that same protocol at the onset of the pandemic. We have long-term relationships with most of our clients that further eased the customer experience. Given the uncertainty surrounding COVID-19, many of our borrowers in Tampa Bay accepted the deferment. Locally, only about 10 percent of our loan clients requested the initial deferment.

In terms of a second deferment, nearly all banks will require a much more extensive process, including providing current detailed financial and market information that shows a definite need for additional assistance. Fortunately, we’ve been in communication with our clients regularly since the first deferment, so we already have an understanding of their needs. In Tampa Bay, we anticipate that less than a quarter of customers that took the initial deferment will seek a second deferment. 

What are some best practices for assessing the creditworthiness of new real estate borrowers? What about existing clients?

Stewart: Some of the best practices across the board will be the need for lenders to have real-time information, especially for industries most severely impacted by COVID-19. We will likely request monthly financial reporting for 2020 to determine when clients were first impacted and when they began to recover. As always, and equally important, we will be evaluating the quality of the parties involved in the deal. For new and existing clients, we want to see who has staying power in the market, the experience and financial strength of the developer and the general contractor.

What is your take on the economy’s reopening in Florida and how do you see recovery unfolding in the upcoming months?

Stewart: When the economy in Florida reopened, we witnessed pent-up demand from Tampa Bay locals seeking to get out of the house in an effort to resume a sense of normalcy. Many of our customers along the coast in the most impacted industries such as restaurants and hotels experienced a strong boost in business and immediate traffic. With recent changes in some counties requiring masks and an uptick in COVID-19 cases, however, consumer behavior is now shifting to a shelter-in-place mode, which may have an adverse impact on recent gains.

With coronavirus cases surging again in the market, the near-term future remains uncertain. The vitality of many local businesses is dependent upon being open and in full operation. With the new restrictions that may be imposed over the next couple of weeks, consumers will likely be more inclined to stay home, negatively impacting local businesses.

The post Lending Amid COVID-19: Q&A appeared first on Commercial Property Executive.

CenterState Logistics Park East. Image courtesy of Brennan Investment Group

The development of CenterState Logistics Park East gets underway in Lakeland, Fla., as Brennan Investment Group and Grandview Partners commence construction of the Tampa-area project‘s first phase, the 1 million-square-foot Building 400.

READ ALSO: Tampa Commercial Real Estate Wrap-Up – July 2020

Carrying the address of 8565 State Road 33, the centrally located CenterState Logistics Park East sits roughly 40 miles East of Tampa and approximately 50 miles from Orlando, allowing for same-day delivery throughout the Sunshine State. Brennan began laying the groundwork for the logistics park in the fourth quarter of 2019, with the purchase of 165 acres of land adjacent to Florida Polytechnic University, along the bustling Interstate-4 corridor in Polk County.

CenterState Logistics Park East. Image courtesy of Brennan Investment Group

“Supported by geography, economic and demographic shifts, the I-4 corridor has evolved into a distribution corridor serving the distribution and manufacturing needs of Florida and increasingly, the southeastern U.S.,” Edward Miller, executive managing director for Colliers International, told Commercial Property Executive.

Colliers, which managed the 2019 land sale to Brennan, is serving as exclusive leasing agent for CenterState East. “This process is due to a number of factors: maturing e-commerce, tourism, growth of consumer markets and access to transportation infrastructure are a few,” Miller added. “It is best summarized as the next phase in Florida’s growth. Our project was chosen to be at or near the geographic center of this pathway.”

Building 400 will ultimately be joined by two other facilities at CenterState East—the 364,000-square-foot Building 500 and the 140,000-square-foot Building 600—for a total of approximately 1.5 million square feet of industrial offerings.   

All the right numbers

Brennan asserts that CenterState East’s Building 400 is the largest speculative industrial development to enter the Central Florida market to date. Despite the economic uncertainty spurred by the COVID-19 pandemic, numbers indicate that Building 400 will find a warm reception in the Tamp Bay-area market. According to a second quarter 2020 report by Colliers, “Although the true long-term impacts of COVID-19 across the broader economy remain unknown, the local industrial market in Tampa Bay remained poised for growth.”

The Tampa Bay industrial market recorded more than 1.8 million square feet of positive net absorption in the second quarter, marking nearly 10 consecutive years of positive quarterly net absorption throughout the metro area. Polk County played a large role in maintaining the encouraging statistics, having logged in excess of 900,000 square feet of positive absorption year-to-date.

CenterState East’s Building 400 is on schedule to deliver in the first quarter of 2021. In addition to welcoming market conditions, Brennan’s track record in Polk County indicates likely success for the project. Brennan and Grandview developed neighboring CenterState Logistics Park West as a speculative project and leased the approximately 605,400-square-foot property in advance of its 2017 completion before selling it the following year for $59.6 million.

The post Work Begins on 1 MSF Tampa Spec Industrial Project appeared first on Commercial Property Executive.

St. Pete Pier. Image courtesy of Skanska

The Tampa Bay area continued to be impacted by the COVID-19 health crisis, with the pandemic slowing down real estate activity in June. Meanwhile, construction work powered through, not only for developments slated to be ready for the Super Bowl, and culminating last month with the opening of the largest waterfront entertainment district in the Southeast. On the other hand, investment activity remained timid, mirroring June levels. Here’s our July list of Tampa must-reads:

1. DEVELOPMENT – Skanska completes work at St. Pete Pier District.

The largest waterfront entertainment district in southeastern U.S. is a 26-acre experiential redevelopment including an 1889-built structure. The development includes a 1,400-foot pier, a park, a beach, restaurants, shops and artwork, as well as various buildings: the Spa Beach Pavilion, the Marketplace, a 35,000-square-foot plaza, the five-story Pierhead building and the Tampa Bay Watch Discovery Center. Rogers Partners, ASD | SKY and landscape architect Ken Smith Workshop designed the $92 million project.

2. OPERATIONS – Bank of America Plaza prepares for post-pandemic leases.

Banyan Street Capital started building out 17,000 square feet of speculative office spaces at the 42-story tower at 101 E. Kennedy Blvd., according to Tampa Bay Business Journal. Banyan Managing Director Zac Gruber said in a prepared statement that the new suites will provide new sanitary measures, more private offices, larger workstations and less open space. Two new tenants recently signed for a total of 24,000 square feet at the property, bringing it to 92 percent occupancy. Banyan bought the LEED Gold-certified asset in 2015.

3. DEVELOPMENT – New industrial park coming to Lakeland.

Crescent Communities, in partnership with Native Development Group, started construction on Lakeland North Business Center, a two-building, 299,241-square-foot distribution facility. According to Yardi Matrix data, BBVA USA provided the developer with a $14.7 million construction loan for the project. The spec buildings will sit on 28 acres at 900-920 N. Chestnut Road. Located near U.S. Road 92, the property has direct access to Interstate 4. Delivery is slated for the third quarter of 2021.

4. DEAL – Lingerfelt CommonWealth sells northwest Tampa office asset.

Continental Capital Partners paid $10.4 million for the 77,568-square-foot Buschwood Park III, according to Yardi Matrix information. The two-story, Class B office building last traded two years ago for $9.7 million. Situated on 7.6 acres at 3350 Buschwood Park Drive, the recently renovated property is 3 miles from Interstate 294 and 9 miles from Tampa International Airport.

5. DEAL – SureStay Plus Hotel changes hands in Clearwater.

Marcus & Millichap arranged the $10.5 million sale of the 178-key SureStay Plus Hotel by Best Western Clearwater Central. Senior Vice President Ahmed Kabani negotiated on behalf of the seller, a private investor. Completed between 1964 and 1973 at 21030 U.S. Highway 19 N, the property is 6 miles north of the St. Pete-Clearwater International Airport. The hotel operated under HRC’s Hampton Inn brand until 2018.

The post Tampa Commercial Real Estate Wrap-Up – July 2020 appeared first on Commercial Property Executive.

SureStay Plus Hotel by Best Western Clearwater Central. Image via Google Street View

Marcus & Millichap has completed the $10.5 million sale of SureStay Plus Hotel by Best Western Clearwater Central, a 178-key property in Clearwater, Fla. Senior Vice President Ahmed Kabani negotiated the deal on behalf of the seller, a private investor. According to public records, the asset last changed hands in 2018, when HRC Hotels sold it for $7.7 million.

Located on a 5-acre parcel at 21030 U.S. Highway 19 N, the property was completed between 1964 and 1973. SureStay Plus Hotel by Best Western Clearwater Central is close to the retail corridor along Gulf to Bay Boulevard and 6 miles north of the St. Pete-Clearwater International Airport. The hotel used to operate under HRC’s Hampton Inn brand, but following the 2018 sale it was renamed. Amenities include a swimming pool, fitness center and laundry facility.

Last December, Kabani, along with colleague Juan Alzate, spearheaded the $21 million sale of CoCo Key Hotel and Water Resort, a 396-key property in Orlando, Fla. InSite Group sold the asset to a private investor.

The post Marcus & Millichap Brokers Tampa Hotel Deal appeared first on Commercial Property Executive.

Moffitt Cancer Center. Image courtesy of Moffitt Cancer Center

At the start of June, the pandemic took its toll on the Tampa Bay area as COVID-19 cases spiked well above previous highs, both at the local and state level. The impacts of the health-care crisis on the metro’s commercial real estate began to come into sharper focus: Investments slowed to a trickle and, highlighting the future impacts on the region’s tourism, Tampa International hit the brakes on much of its $906 million expansion plan. Even as some activity slowed, however, plenty moved forward, as a cancer center expansion broke ground and a major investment manager opened its first East Coast hub in the metro. Here’s our June selection of Tampa must-reads.

1. DEVELOPMENT – Moffitt Cancer Center starts $400 million expansion.

The health-care development will add a 498,000-square-foot inpatient surgical hospital, a 26,000-square-foot central utility plant and a three-level parking garage. The project’s 20-acre site is linked to the existing Richard M. Schulze Family Foundation Outpatient Center at 10920 McKinley Drive in Tampa. Hammes Co., Barr and Barr and Horus Construction Servces are collaborating on the expansion, which is slated for completion in 2023.

2. DEVELOPMENT – Tampa International Airport puts $906 million project on hold.

All new on-site construction will be either delayed or canceled over the next five years, according to Tampa Bay Times. This includes Airside D, a $690 million project envisioning 16 additional gates for domestic or international flights, initially slated to deliver by late 2024, now pushed back by four more years. Work will continue, however, on the airport’s ongoing projects that are part of its $2 billion, master-planned expansion, such as the 270,000-square-foot SkyCenter One office building which broke ground late last year.

3. LEASING – Industrious inks first coworking deal in downtown St. Petersburg.

The shared space operator will occupy 37,000 square feet across three floors at 200 Central Avenue, the tallest office building in Pinellas County. The 26-story, 295,000-square-foot tower is steps away from the city center with direct access to Interstate 275. In partnership with owner Third Lake Capital, Industrious will open its space in the second quarter of 2021, bringing its Tampa Bay footprint to more than 120,000 square feet.

4. DEVELOPMENT – Choice Hotels opens 125-key Cambria in Madeira Beach.

The Cambria Hotel St. Petersburg – Madeira Beach Marina was initially slated for a March opening, but coronavirus-related delays pushed completion out to early June, according to Tampa Bay Newspapers. The 18-month, $40 million waterfront project, just off Gulf Boulevard at 15015 Madeira Way, opened as the flag’s third Florida location, together with locations in Fort Lauderdale and near Miami International Airport.

5. LEASING – Fisher Investments opens major Tampa hub.

The company chose Highwoods Properties’ LakePointe One in Tampa Bay Park for its first East Coast office that will bring a total of 600 employees to the area. The investment manager already has 30 employees in place at 3109 W. Dr. Martin Luther King Jr. Blvd. in the Westshore business district, according to RIABiz. The firm employs 3,800 people, with most working out of its Camas, Wash., headquarters.

The post Tampa Commercial Real Estate Wrap-Up – June 2020 appeared first on Commercial Property Executive.

Boosted by strong demographics and above-trend employment gains, Tampa was among the fastest-growing multifamily markets in the U.S. when the coronavirus pandemic began to strengthen its grip on the country’s economy. Despite the disruption caused by the statewide lockdown and shelter-in-place order, large real estate and infrastructure projects not only moved forward but even accelerated due to low traffic volumes. Construction was deemed essential across Florida, which created a silver lining for several transformative developments.

READ ALSO: CRE’s Cautious Road to Recovery

We’ve put together a list of projects that have the potential to redesign the metro for future generations. Both private developers and local authorities have billion-dollar projects in the works, which are set to change Tampa’s skyline.

1. Westshore Marina District

Nestled between Tampa and St. Petersburg, the 52-acre master-planned project will reshape the Tampa Bay area. Plans for the $600 million development call for a 1,750-unit residential component, shops, offices, restaurants, nearly 2 miles of waterfront parks and walking trails, as well as a 150-slip, deep water marina for vessels up to 100 feet.

Westshore Marina District. Image courtesy of BTI Partners

Fort Lauderdale-based developer BTI Partners and its associates are behind this new western gateway to Tampa. At the end of February, BTI broke ground on Marina Pointe, a component of the Westshore Marina District that includes three residential towers, the marina and a retail center. The first of the 16-story condominium buildings is expected to open in 2022, with 40 percent of the units already presold. Other elements of the luxury mixed-use community are also moving forward. BTI Partners intends to deliver the retail component of the district, Marina Landings, later this year.

To accommodate growth in this waterfront area, several infrastructure changes and investments were needed. The Tampa Hillsborough Expressway Authority is investing $220 million in the Selmon Extension, a roughly 2-mile toll lane, and BTI Partners has spent close to $10 million for several road improvements in and around Westshore Marina District, according to Scott Andersen, vice president for BTI Partners’ Marina Pointe project.

“Simply put, Westshore Marina District is injecting life into South Tampa, where we are now starting to see a wave of development along Westshore Boulevard. The demand for housing in this area will continue to grow in the next 10 years, so developers will become creative to provide new products and the local government will continue to invest in infrastructure to accommodate that growth,” Andersen told Commercial Property Executive.

2. Midtown Tampa

Another area undergoing a dramatic transformation is the intersection of Interstate 275 and Dale Mabry Highway. The Bromley Cos.’ Midtown Tampa is connecting Westshore and downtown with another central neighborhood. At full build-out, the $500 million urban development is set to include 1.8 million square feet of retail, residential, hospitality, entertainment and office space.

Midtown Tampa is on track to open prior to the February 2021 Super Bowl at Raymond James Stadium, half a mile away, according to Bromley Cos. CEO Nick Haines. The retail portion of the project is 80 percent leased, with Whole Foods, REI Co-op, True Food Kitchen, Burtons Grill & Bar, Shake Shack and Joffrey’s Coffee & Tea Co. among the tenants. In March, construction crews topped out two buildings: Midtown One, a $72 million, 151,845-square-foot speculative office building built in partnership with Highwoods Properties, and a dual-branded hotel developed with Concord Hospitality. Work is also underway at the 390-unit luxury NOVEL Midtown by Crescent Communities.

“Across the 22 acres of Midtown Tampa, everything we’ve built is 100 percent new. It’s basically the size of more than 16 football fields. We’ve essentially created an entirely new city,” Haines said.

Midtown Tampa. Image courtesy of Bromley Cos.

Coordinating the construction work on a project of this scale is no easy feat. Eleven buildings are rising up at the same time with help from four co-developers, four contractors and dozens of commercial tenants. “The closing of all the construction financings on such a massive project was a challenge. We worked with 10 law firms, four different banks and six different equity providers, and secured $350 million in financing,” Haines added.

Haines is convinced that Tampa Bay is growing into an attractive destination for Millennials and Gen Z residents. “With Midtown as a centerpiece that connects two of the city’s busiest districts, we expect to see expansion of the entire region for many decades to come,” he concluded.

3. Water Street Tampa

Known as the largest downtown real estate development underway in the U.S., the $3 billion Water Street Tampa redevelopment is a massive project revitalizing the metro’s core and connecting its central business district with the waterfront. The 56-acre neighborhood is the first in the world to achieve the WELL Design & Operations designation.

Water Street Tampa. Image courtesy of Strategic Property Partners

When completed in 2027, Strategic Property Partners’ 9 million-square-foot Water Street Tampa is set to include two hotels, 3,500 residential units, 1 million square feet of cultural and retail space, 2.6 million square feet of office space and 13 acres of public space. The megaproject is being built in a joint venture with Cascade Investment, an entity controlled by Microsoft founder Bill Gates, and Tampa Bay Lightning owner Jeff Vinik.

4. Uptown District

Another project that has the potential to impact businesses across Tampa Bay is the transformation of the University Mall area into a research village. Uptown District includes 25,000 acres in North Tampa, bound by Busch Boulevard to the south, Bearss Avenue to the north and interstates 75 and 275 to the east and west; it also includes parts of the city of Tampa, Temple Terrace and unincorporated Hillsborough County. “The project will bring innovation to an area that has not experienced the economic growth of the Tampa Bay area,” said Bob Rohrlack, president & CEO of the Tampa Bay Chamber of Commerce.

And innovation is not the only ingredient that leads to evolution. Drawing inspiration from others’ best practices can also boost a community. Business leaders from the Tampa Bay region travel regularly to other cities to learn what those municipalities are doing right and where they fall short.

READ ALSO: The Projects That Will Reshape Charlotte

“We have been to several cities, seeing how light rail has helped the city prosper. The Achilles’ heel for Tampa Bay is our transportation system. While we must improve our roadways, we need to be able to have choices that enable the residents to get to work easier without hours of delays due to traffic,” Rohrlack said.

5. Streetcar Extension

Connecting downtown Tampa and Water Street Tampa to the Ybor City historic district, the 2.7-mile long streetcar transportation network has been mainly used by tourists. The City of Tampa intends to extend the system by 1.3 miles and transform it to better serve the mobility needs of residents, workers, visitors and students.

The Tampa Streetcar Extension Plan. Image courtesy of the City of Tampa

“The City’s investment into the streetcar system will do more than enhance downtown mobility. It will fuel economic growth by promoting development, raising property values and attracting businesses and residents,” said Danni Jorgenson, chief transportation planning engineer in the City of Tampa’s Mobility Department.

Additionally, local authorities also plan to improve the city’s water and wastewater systems. Officials recently launched the Progressive Infrastructure Planning to Ensure Sustainability program, which is set to replace or fix Tampa’s 100-year-old underground pipes.

6. Howard Frankland Bridge

The $864 million Howard Frankland Bridge is among the largest infrastructure projects underway in the metro and is expected to generate a completely different flow of traffic into the city.

Howard Frankland Bridge. Image via Google Street View

Plans call for four non-tolled general-use lanes, two tolled express lanes in both the northbound and southbound directions and a 12-foot shared-use path adjacent to the non-tolled lanes. The existing northbound bridge has reached the end of its serviceable life and will be demolished once the new bridge is completed.

Road construction accelerated due to light traffic during the statewide stay-at-home order issued by Florida officials to slow the spread of the virus. Work at the Howard Frankland Bridge is now four weeks ahead of schedule.

READ ALSO: Why Millennials Prefer Central Florida’s High-Tech Corridor

7. Tampa International Airport

The Tampa International Airport is in the midst of a renovation and expansion. When air travel paused in the wake of the coronavirus crisis, roughly $150 million in essential projects moved forward more rapidly, preparing the airport for future growth. According to the airport’s website, TPA accelerated work on eight different projects, including widening the main entrance and exit roads, modernizing the restrooms and adding new express curbside lanes. Parts of these projects are now weeks ahead of schedule.

“The Tampa International Airport has been working on major expansion plans for a few years. They are currently building their own first office building that connects to the transportation system. There will be a second building built later,” Rohrlack said.

The post Top Projects That Will Reshape Tampa appeared first on Commercial Property Executive.

READ ALSO: How Medical Offices Fuse With Mixed-Use Projects

The expansion will be developed in two phases, with the first phase including 128 inpatient beds with the capacity to expand to 400 beds. It will be connected to the existing Richard M. Schulze Family Foundation Outpatient Center on the same campus via a bridge over McKinley Drive. The hospital expects the new facility to expand its patient capacity by 65 percent and allow for about one-third more procedures over the next 10 years. Calling it a state-of-the-art facility that will revolutionize the way patient care is delivered, hospital officials said in a prepared statement the new building will house dozens of operating rooms and additional technology, including MRIs and computerized tomography scan machines.

In February 2013, Moffitt Cancer Center began construction of the 200,000-square-foot outpatient facility at its McKinley campus, which opened in 2009 about a mile from the cancer center’s main campus.

Hammes tapped

Hammes Co. Healthcare, one of the nation’s leading health-care facility developers, has been selected as the program manager for the new development. The Milwaukee, Wis.-based company has managed more than 57 million square feet of projects valued at more than $23 billion for hospitals and health systems across the U.S. The company has numerous regional offices throughout the U.S., including Tampa, Denver, Los Angeles, Seattle, Boston and Washington, D.C. In addition to the Moffitt Cancer Center, Hammes is currently providing project management services for several hospitals and health-care systems throughout the Southeast including Beaufort Memorial Hospital in Beaufort, S.C.; Emory Healthcare in Atlanta; Morsani College of Medicine at the University of South Florida in Tampa; Northeast Georgia Health System in Gainesville, Ga.; and Orlando Health. In December, Hammes participated in a groundbreaking ceremony for the Mohawk Valley Health System replacement hospital in downtown Utica, N.Y., where the company is serving as project manager for the 702,000-square-foot, 373-bed replacement medical center.

Hammes is an affiliate of Hammes Partners, a private equity platform that invests in health-care real estate and initiatives. In November, Welltower Inc. acquired a 1.5 million-square-foot medical office building portfolio from Hammes Partners. In June 2019, Hammes Partners purchased Spectrum Medical Commons, a 43,355-square-foot medical office property in Gilbert, Ariz., for $17.8 million.

The post Florida Cancer Center Starts $400M Expansion appeared first on Commercial Property Executive.

Cambria Hotel St. Petersburg – Madeira Beach Marina interior. Image courtesy of Choice Hotels

Choice Hotels International has opened the Cambria Hotel St. Petersburg – Madeira Beach Marina. The five-story property represents the brand’s third location in Florida, joining the Cambria Hotel Ft. Lauderdale Airport South & Cruise Port and the Cambria Hotel Miami Airport – Blue Lagoon. In December 2019, Choice and Reddy Hotel broke ground on a 106-key hospitality asset in Orlando, Fla. The project is slated for completion by early 2021.

The St. Petersburg property comprises 125 rooms, with modern fixtures and spa-style bathrooms. Common-area amenities include a fitness center, rooftop pool, rooftop bar and onsite dining. 

Located at 15015 Madeira Way, in Madeira Beach, Fla., the hotel is just off Gulf Blvd. The asset is within 3 miles of War Veterans Memorial Park and Bay Vines VA Healthcare System. There are several beaches within walking distance, including Archibald Beach Park and Redington Beach. 

The post Choice Hotels Opens Third Cambria Property in Florida appeared first on Commercial Property Executive.

Image via Pixabay.com

In May, Tampa moved one step closer to completing its preparations for Super Bowl LV, despite social distancing and sanitation guidelines established for all construction in April. Many of the city’s largest ongoing projects linked to the NFL event, according to Tampa Bay Business Journal. Commercial real estate activity was varied across sectors: A Fortune 500 company inked a large office lease amid declining nationwide demand, and a major hospital expansion project reached a milestone. Here’s our May selection of Tampa must-reads.

1. LEASING – Bausch Health signs Northeast Tampa industrial lease.

The company will occupy 127,254 square feet at Cabot at Aprile Farms, Cabot Properties’ two-building, 390,395-square-foot distribution center. Located on 22 acres at 8963 E. Sligh Ave., the Class A property delivered in 2019. The warehouses feature 30-foot clear heights, ESFR sprinklers, ample dock-high loading doors and on-site trailer storage. The location at the corner of Interstate 4 and U.S. Route 301 provides easy access to the city center, 9 miles southwest. 

2. LEASING – Centene Corp. leases spec building at Renaissance Center.

The health insurance company will fully occupy Renaissance Center 7, Vision Properties’ $40 million, 118,808-square-foot office project underway within its 71-acre business park, according to Tampa Bay Business Journal. Work on the four-story development kicked off in early 2019. Itasca Construction Associates is the general contractor for the Horton, Harley and Carter-designed building. Centene plans to begin tenant improvements in June.

3. DEVELOPMENT – Largest hospital expansion in Tampa Bay history tops off.

AdventHealth’s 300,000-square-foot Taneja Center for Innovative Surgery hit the milestone, on track for completion in 2021. The developer broke ground on the $256 million project at the corner of Fletcher Avenue and Bruce B. Downs Boulevard in 2018. The six-story facility will have 24 operating rooms, a new hospital entrance and more than 100 dedicated post-surgical patient rooms.

4. DEAL – SRS Real Estate Partners closes 7-Eleven property deal.

A 1031 exchange investor paid $5.6 million for the 3,109-square-foot retail building at 9401 49th St. N. in Pinellas Park. SRS’ National Net Lease Group First Vice Presidents Frank Rogers and Michael Carter represented the seller, a merchant developer. The 2019-completed property is at the intersection of Ninth Avenue and 49th Street North, with direct access to Highway 19.

The post Tampa Commercial Real Estate Wrap-Up – May 2020 appeared first on Commercial Property Executive.

University of South Florida Research Park. Rendering courtesy of Skanska

Even with a shelter-in-place order in full effect, Tampa’s commercial real estate market saw a fair amount of activity in April. On the transaction side, several industrial and office assets changed hands. Developments also continued to move forward, as construction was deemed to be an essential service. Tampa Bay Times reported that seven projects with a combined cost of $1 billion are nearing completion in preparation for Superbowl LV, coming to the metro in February. Here is our selection of Tampa’s April must-knows: 

1. DEAL – Birtcher Anderson Realty trades last-mile industrial asset.

Dogwood Industrial Properties acquired the 90,037-square-foot distribution center in Center Point Business Park for $8.9 million. Colliers International assisted the seller. Located on 8 acres at 1909 North U.S. Highway 301, the warehouse was built in 1985 and renovated in 2018, according to Yardi Matrix. It has 18-foot clear heights and a mix of 33 dock-high and 22 grade-level loading doors.

2. PEOPLE – Colliers strengthens Southeast Retail Services team.

Nancy Erickson brings 25 years of experience to the brokerage’s Tampa Bay office, previously serving as executive managing director of the firm’s New York Tri-State office. Prior to joining Colliers in 2016, she worked as a senior director for Cushman & Wakefield for 12 years. Erickson holds an MBA from Monmouth University.

3. DEAL – NDC Asset Management pays $8.6 million for Bradenton office property.

Transwestern represented U.S. Bank, which sold the 78,553-square-foot Plaza Del Rio. ServisFirst Bank provided $6.9 million in financing for the new owner, Yardi Matrix shows. At the time of the deal, the building was 86 percent occupied. Located at 101 Riverfront Blvd., the seven-story property delivered in 1986 and is subject to a ground lease held by the City of Bradenton.

4. DEVELOPMENT – Skanska to lead construction of University of South Florida’s Research Park.

The company received the $27 million contract for the fall 2021 delivery of the three-story, 120,000-square-foot life sciences project. The Gensler-designed development has a total cost of $42 million, and Skanska will oversee the construction of an office and laboratory building on the university’s campus. Additionally, the firm is close to finalizing USF Health’s Morsani College of Medicine and Heart Institute in downtown Tampa.

5. DEAL – SunCap trades East Tampa industrial asset.

The property changed hands as part of a larger, $13 million sale of nine assets occupied by Hydraulic Supply Co. SRS Real Estate Partners represented the seller. The 12,500-square-foot structure, located at 7200 E Dr. Martin Luther King Jr. Blvd., delivered in 1973 and sold for $1.7 million. The portfolio disposition also included seven other buildings in Florida and one in Georgia.

The post Tampa Commercial Real Estate Wrap-Up – April 2020 appeared first on Commercial Property Executive.

Benjamin Landes, Research Analyst at JLL. Image courtesy of JLL

Until early this month, when the entire state of Florida went under lockdown, Central Florida’s High-Tech Corridor—the Interstate 4 corridor—hadn’t been showing any signs of slowing down. A dynamic technology sector, as well as the area’s more traditional economic engines—tourism and the entertainment industry—were fueling its resurgence.

According to a recent JLL report, more than 265,000 people filled tech positions in 2019 in Central Florida and the number was expected to continue to grow, before the coronavirus outbreak. However, around the same time, the Walt Disney Resort closed, travel was restricted and companies such as OneWeb Satellites in Merritt Island, Fla., announced workforce cuts. Time will tell if this is just the beginning of more layoffs in the area of tech.

READ ALSO: How Coronavirus Is Impacting Office Leasing

JLL Research Analyst Benjamin Landes, who has been tracking the Millennial migration phenomenon and the impact of increased tech activity in the region, pointed out that, as a result of these two trends, there has been a significant change in leasing and development activity in Central Florida in the past two years. He expects the resurgence to continue, despite the fact that, at this point, firms are delaying any big decisions in terms of leasing and development. 

What was the state of leasing activity among tech firms across Central Florida prior to the COVID-19 crisis?

Landes: Over the 12 to 24 months before the outbreak, we saw a dramatic increase in leasing by technology companies in Central Florida. The number one reason a firm chooses any location is almost always talent. The High-Tech Corridor is home to over 500,000 students enrolled in a diverse set of programs across dozens of universities, colleges and technical schools. With programs ranging from certifications in production technology for manufacturers on the Space Coast to the world’s foremost entomology program at the University of Florida, employers find filling positions much easier when they have a large, diversified talent pool to hire from.

Secondly, new firms were also attracted to the area’s low cost of living and burgeoning talent pipeline. Finastra, a British fintech firm founded in 2017, found everything they were looking for in Lake Mary, Fla., and leased 109,000 square feet, which represents the entire Phase I of The Edison at Primera. Existing firms were also finding success and expanding their Central Florida operations. Fattmerchant opened its doors with less than 3,500 square feet back in 2015, but expanded to over 18,000 square feet in 2019, after announcing plans to expand its staff to nearly 200 workers.

Have you noticed any changes in activity since the coronavirus pandemic started?

Landes: Social distancing has been a huge disruption in a lot of ways and could have lasting impacts on the way we live, work and socialize. Due to the unknowns about the duration and extent of the disease spread, it’s hard to predict the impact on the local economy. Firms are generally delaying big decisions, as they look for signals on where their business is headed this year.

Which real estate sectors were benefiting the most from growth in the high-tech sector, and why?

Landes: The growth of the high-tech sector has had the strongest impact on office real estate in Central Florida. Over the 12 months prior to the pandemic, technology companies leased more than 1 million square feet of office space across the High-Tech Corridor. Additionally, many tech firms and startups were working out of flex office spaces, which came with a lower price tag and more flexibility to do light manufacturing or lab work, as well as administration and research.

Additionally, Central Florida’s supply of office space has been constrained by a pronounced lack of big-block spaces, with almost nothing over 50,000 square feet available in the region. This spurred more development, as rental rates were finally beginning to rise to levels that merit new construction. While raw land can hardly be called “scarce” in Central Florida, desirable raw land is becoming more and more so.

READ ALSO: CPE’s Coronavirus Coverage

Give us an example of a recent or upcoming office project making an impact in the region. Why are these appealing to Millennials and Gen Zers?

Landes: Water Street Tampa is a perfect example. First of all, it’s located right in the heart of downtown, a few blocks outside of the main central business district. Rather than being lost in a forest of corporate silos, Water Street stands out. Just off the bay, the site extends from the Tampa Marriott Water Street to the Sparkman Wharf retail and office venue, both near completion of extensive renovations. 

1001 Water St. Image courtesy of JLL

Secondly, the building at 1001 Water St. was designed to “wow” today’s modern workforce with a biophilic design, which integrates natural materials with access to daylight, and expansive views of beautiful Tampa Bay. Floor-to-ceiling windows and double-height terraces with gardens fill the offices with natural light and connect people to nature. This design extends throughout the entire district and has been proven to improve wellness for workers, which, in return, is expected to increase productivity.

Finally, the amenities are virtually unprecedented in Central Florida. The 20-story penthouse floor, usually reserved for top-dollar tenants, is an amenity floor designed for use by all tenants, featuring a lounge, a terrace and a large meeting room.

For Brevard County, Tampa Bay and Orlando—do you see a different recipe for success in each of these markets or do they rely on the same fundamentals for attracting a younger workforce?

Landes: Brevard, Tampa and Orlando are three completely different animals. While they all lie along the High-Tech Corridor and they all boast thriving technology sectors, each has unique characteristics that define their appeal, growth and specialization.

Brevard County was built on the water and around the space industry. It offers an unparalleled quality of life, paired with a plethora of unique opportunities to work on a revolutionary technology that will forever alter the course of human history. From rocket scientists to production technicians, Brevard had the most highly concentrated high-tech economy in Florida, according to a 2018 report from the Milken Institute.

Orlando’s draw is the ultimate live-work-play arrangement. Imagine living 20 minutes away from six of the world’s top 25 theme parks, in an affordable home that is also only 20 minutes away from work. That is the reality for hundreds of thousands of people who live in and around Orlando. The city also boasts the nation’s second-largest university, which offers not only a world-renowned hospitality program but an engineering school that provides the most engineers to the aerospace industry in the country.

Tampa’s beautiful bay and glimmering coastline have made it a prime target for domestic migration, pretty much since the invention of air conditioning. Now, over 80 colleges, universities and technical schools in the region contribute to a robust talent pipeline. What’s more, an average of 75 percent of graduates end up staying in Florida—a majority within the Tampa MSA, where they find a rich history, cultural diversity and an amazing quality of life.

Let’s talk about demographic data. How much of the Millennial talent is locally educated and how much of the younger workforce is coming from other states?

Landes: The vast majority of younger talent in Central Florida was educated locally. Two-thirds of University of Central Florida graduates and three-quarters of University of South Florida graduates stay in Florida after graduation, according to the schools. Many of the young professionals who live and work in the area originally migrated from another state to attend university, but decided to stay. That is not to say, however, that the same is true of older Orlando professionals. Ordinarily, Florida gets over 1,000 new residents every day—many from colder climates along the Rust Belt and in the Northeast. Puerto Rico has also contributed significantly in recent years, partially due to the devastation caused by Hurricane Maria in 2017.

Will the trend of Millennials flocking to Central Florida’s High-Tech Corridor evolve going forward? 

Landes: I don’t see this trend reversing anytime soon, or even in my lifetime, to be frank. The draw of the Sun Belt is undeniable and Central Florida is more appealing than the competition. The weather is nicer for longer periods, the cost of living is lower and there are so many fun things to do.

To bolster the trend, firms simply need to keep investing in the region. As the population continues to grow across the High-Tech Corridor, we’ll need more housing, more office space and more retail centers. Millennials love transit-oriented development and amenity-rich environments that enable the live-work-play experience, while giving them the feeling of community. Finally, they will want to see sustainable investments that won’t spoil Florida’s natural beauty for the next generation. 

How do you see the region’s commercial real estate market developing further, given the challenges posed by the pandemic?

Landes: In times of uncertainty, we often see delays in decision-making for leasing and investment, as well as moderate demand, as short-term cost reduction can overtake long-term planning. Real estate investment has fluctuated during previous crises, but the overarching trend over time has been for increased allocations to the sector and we see no reason for this to change. We will know more about potential longer-term impacts on real estate when we have greater clarity on the extent and duration of the outbreak and the related response from consumers, businesses and government.

The post Why Millennials Prefer Central Florida’s High-Tech Corridor appeared first on Commercial Property Executive.

Sarasota City Center. Image courtesy of Feldman Equities

Tampa had an active start to March: Several major deals closed, and construction work kicked off at a new corporate headquarters in Lakeland. Coworking also continued on its growth trajectory, with another lease inked in the city’s Channel District. However, uncertainty is on the horizon as the novel coronavirus’ impact on the market has yet to be fully realized. Here is our list of Tampa Bay’s March must-knows:

1. DEVELOPMENT – Summit Holdings breaks ground on new headquarters.

The company plans to spend $50 million on the Lakeland project, scheduled for delivery in fall next year. The project’s 1.3-acre site is located at 117 N. Massachusetts Ave. Upon completion, the eight-story, 135,000-square-foot property will house approximately 500 of Summit’s 750 employees. The workers’ compensation insurer’s current headquarters is at 2310 Commerce Point Drive.

2. DEAL – DSH Hotel Advisors completes sale of Zephyrhills hotel.

The brokerage represented the buyer and the seller, both private investors, in the $4 million transaction of the 63-key Microtel Inn & Suites by Wyndham. The pet-friendly property has a range of guest amenities including an outdoor pool and laundry facilities. Located at 7839 Gall Blvd., the hotel is positioned alongside Highway 301 at the northern end of a busy retail corridor.

3. DEAL – The Dilweg Cos. sells two-building Sarasota office asset.

A joint venture between Feldman Equities, Tower Realty Partners and Equity Street acquired Sarasota City Center, a 248,000-square foot, Class A property, for an estimated $50 million. JLL represented the seller and assisted the buyers with acquisition financing. The asset’s two buildings, located at 1819 Main St., were constructed in 1989 and last renovated in 2019. 

4. LEASING – IP Capital Partners adds tenant to Airport Executive Center.

Florida Blue has signed a 49,500-square-foot lease at the 235,700-square-foot office building. Cushman & Wakefield represented the landlord, while JLL assisted the tenant. The health insurance company will occupy the 10th and 12th floors as well as part of the ninth floor at 2203 N. Lois Ave. The tenant is relocating from Meridian One at 4350 W. Cypress St.

5. LEASING – Coworking firm extends Tampa footprint.

Industrious has signed a 44,000-square-foot lease at Sparkman Wharf, a mixed-use development at 615 Channelside Drive. The tenant and the landlord are partnering to convert a former movie theater into shared workspace. Industrious will occupy the second floor, which includes a 3,500-square-foot private terrace. The space—the firm’s second in Tampa—is slated to open in the third quarter. A third location in Centro Ybor is set to open before the end of the year.

The post Tampa Commercial Real Estate Wrap-Up – March 2020 appeared first on Commercial Property Executive.

Airport Executive Center

Florida Blue has signed a 49,500-square-foot lease at Airport Executive Center, a 235,700-square-foot office building in Tampa, Fla. The health insurance firm is relocating from Meridian One and will occupy the 10th and 12th floors, as well as a part of the ninth floor. Cushman & Wakefield represented the landlord, IP Capital Partners. JLL assisted the tenant with the negotiations.

Completed in 1985, IP Capital and Blue Vista Capital Management acquired the 13-story property in 2016. The landlord implemented a $5.5 million renovations plan in 2019, which included upgrades to the lobby, restrooms, elevators and cafe. Additionally, future improvements will include a 3,000-square-foot fitness center.

Airport Executive Center had an occupancy rate of 89 percent at the time of sale, with about 26,400 square feet of vacant space. Located on 3 acres at 2203 N. Lois Ave., the building is 2 miles from Tampa International Airport. The surrounding area includes several retail options, such as International Plaza, which is within walking distance of the property.

Cushman & Wakefield’s team included Senior Director Mercedes Angell and Director Lauren Coup. Brent Miller, managing director for JLL, represented Florida Blue.

The post IP Capital Partners Welcomes New Office Tenant in Tampa appeared first on Commercial Property Executive.

Grand Oak Plaza. Image courtesy of The RMR Group

The U.S. Department of Veterans Affairs has renewed its 11,090-square-foot lease at Grand Oak Plaza, a 67,916-square-foot office building in Tampa, Fla. Joseph Brennan of JLL assisted landlord Office Properties Income Trust in negotiating the 10-year contract.

According to Yardi Matrix data, OPI has owned the Class B asset since 2010, when the REIT purchased it for $13.5 million from Capital Realty Investors.

Located at 8900 Grand Oak Circle in the Northeast submarket, the property features 22,639-square-foot floorplates and a parking ratio of 3 spaces per 1,000 square feet. Developed in 1984 on 5.7 acres and renovated in 2008, the three-story office building is currently fully occupied. The RMR Group is the asset’s property manager.

Grand Oak Plaza is 16.5 miles from downtown Tampa near Interstate 75, within walking distance of James A. Haley Veterans’ Hospital. 

The RMR Group currently manages more than 1,400 properties totaling more than 97 million square feet of commercial office, industrial, medical office, life science and retail space. The firm recently signed a full-building lease renewal for one of its Houston assets.

The post Dept. of Veterans Affairs Renews Lease in Tampa appeared first on Commercial Property Executive.

Rendering of Novel Coworking’s new space. Image courtesy of Novel Coworking.

The month of February was an active one in Tampa, with a diverse mix of deals closed or announced. A coworking provider made its first acquisition in the metro, and a nationwide, $3.6 billion retail deal will change up ownership at two Class A malls in the market. Here is our February wrap-up of Tampa’s must-reads:

1. DEAL – Tampa International Plaza to trade as part of $3.6 billion portfolio.

Simon Property Group is slated to acquire an 80 percent interest in Taubman Realty Group. The latter owns 24 Class A malls across the country, including International Plaza at Tampa International Airport and University Town Center in Sarasota. The 25 million-square-foot portfolio transaction is scheduled to close by the middle of this year.

2. FINANCING – Coworking firm enters St. Petersburg.

Novel Coworking has received $8.2 million in acquisition and development financing from Bank OZK for the acquisition of a 53,000-square-foot, five-story office building located at 333 Third Ave. N. The shared space provider plans to upgrade the property with fiber internet and customizable suites. Novel’s Florida footprint also includes three locations in Jacksonville, Orlando and Miami.

3. PEOPLE – Marcus & Millichap names new investments VP.

James Shiebler joined the company in 2016 as an associate and earned sales awards in 2017 and 2018. During his tenure, he has been involved in more than 75 transactions, valued at more than $200 million. Before joining Marcus & Millichap in Tampa, Shiebler held various executive roles in the hospitality industry, operating hotels, restaurants and resorts.

4. DEVELOPMENT – Carrollwood retail center commences overhaul, signs anchor tenant.

Barclay Group has kicked off renovation work at West Village Commons, a suburban retail center. The landlord plans to upgrade the facade and signage. Barclay has also signed EOS Fitness as the anchor tenant. The gym will occupy 41,700 square feet at 5360 Ehrlich Road and plans to open this year. NorthBridge Commercial Real Estate is handling leasing at West Village.

5. DEAL – Clearwater office portfolio changes hands.

Colliers has sold a 36,000-square-foot building as part of a $9.2 million portfolio transaction. Public records show that the buyer received roughly $7 million in financing for acquiring the Class B property at 29245 US Highway 19 N. The portfolio transaction also included a 50,000-square-foot office asset, located at 29399 US Highway 19 N.

The post Tampa Monthly CRE Wrap-Up (Feb. 2020) appeared first on Commercial Property Executive.

Sarasota City Center. Image courtesy of Feldman Equities

Feldman Equities, together with Tower Realty Partners and Equity Street, has purchased Sarasota City Center, a two-building, 247,947-square-foot office asset in downtown Sarasota, Fla.

The Dilweg Cos. sold the Class A property for an estimated $50 million, according to Business Observer. The business center last changed hands in 2017, in a $115.5 million portfolio transaction.

JLL assisted the seller in the current deal and also procured financing for the buyer through NXT Capital. Loan proceeds went toward the acquisition and future property upgrades.

Located at 1819 Main St., Sarasota City Center comprises a 13-story tower and a three-story building, both completed in 1989 and renovated in 2019. The office building features a six-story parking garage and almost 7,000 square feet of retail. Amenities include a tenant lounge, on-site restaurant, fitness center, hair salon and spa, shoe repair and bank with drive-thru and ATM.

Renovation plans targeting Class A+

The joint venture plans to invest approximately $10 million in extensive renovations at the property that was 80 percent leased at the time of sale. Upgrades will target common corridors, main lobby and vacant suites. According to Feldman Equities CEO Larry Feldman, the new ownership aims to bring the asset to Class A+ standards.

The 2.2-acre property is across from Sarasota Main Plaza one block west of Washington Boulevard, within walking distance of shopping, dining and entertainment venues. Sarasota-Bradenton International Airport is roughly 5 miles northwest. Sarasota City Center is also located close to a four-building, 246,941-square-foot office asset that traded for $45.2 million in September.

JLL Senior Managing Director Hermen Rodriguez, Senior Director Ike Ojala and Director Matthew McCormack were part of the Capital Markets team representing the seller in the deal. Managing Director Bryan Clark and Analyst Daniel Pinkus led the firm’s debt placement team.

The post Dilweg Cos. Cashes In on Sarasota Office Sale appeared first on Commercial Property Executive.

Water Street Tampa’s cooling station Image courtesy of Strategic Property Partners

Compared to other elements of the $3 billion Water Street Tampa development, the building at the corner of East Cumberland and South Nebraska avenues is modest in scale. Yet the  facility is essential to one of the nation’s largest current mixed-use projects.

The 12,500-square-foot structure houses a central cooling plant that will serve the air conditioning needs of Water Street Tampa’s first phase, which is scheduled for completion in 2021. With an initial capacity of 8,000 tons, the district cooling plant is designed with an eye toward future expansion.

At full buildout, Strategic Property Partners’ project will comprise 9 million square feet, including two hotels, 3,500 residential units, 1 million square feet of cultural and retail space, 2.6 million square feet of office space and 13 acres of public space.

Another distinction: Water Street Tampa is the world’s first neighborhood to earn the WELL Design and Operations designation from the International WELL Building Institute. The certification recognizes neighborhoods that implement strategies to improve residents’ health and well-being.

The Water Street Tampa will comprise 9 million square feet of office, residential, hotel and retail. Image courtesy of Strategic Property Partners

Such systems are more commonly found on large college campuses or government and hospital complexes and are often developed through public utilities, noted Darren Morse, SPP’s senior manager of development. “Ours is unique because it is privately owned and operated,” he said.

Seeking Savings, Sustainability 

The new cooling plant will serve several components of the Water Street Tampa’s first phase. 

• USF Morsani College of Medicine and Heart Institute, which opened in January.
• 1001 Water St., a 20-story, 380,000-square-foot office and retail project. Under construction since July 2019, it is the first new trophy office tower in downtown Tampa in almost 30 years.
•  815 Water St., the development’s first residential community, which broke ground in November 2018. When completed later this year, the 420-unit community will consist of 21- and 26-story towers connected by 35,000 square feet of retail and five levels of parking.

SPP’s mission to make sustainability and wellness a top priority is behind the decision to build the cooling plant. The facility will produce and distribute chilled water along 8,500 linear feet of underground steel piping. Water will loop through each building and back to the central plant.

The plant reduces redundant mechanical systems, including the cooling towers which would have to be installed in each building, taking up valuable roof space and raising noise levels in the neighborhood. By keeping the roofs free of HVAC equipment, SPP can offer more green and amenity space to tenants and visitors.

The district cooling system will distribute water through pipelines extending some 8,500 feet. Image courtesy of SPP

The centralized system will also run the properties more efficiently and will cut energy costs by an estimated 30 to 40 percent once the development reaches critical mass, Morse said.  “We will start to see savings as we ramp up and more buildings come online,” he said.

Inner Workings

Tampa Bay Trane designed and installed the equipment in the cooling plant as well as the underground chilled water piping system. Because SPP was also undertaking major infrastructure and road work, installing the underground pipes simultaneously helped cut construction costs, said Morse. 

The first phase of the plant includes two 2,500-ton chillers and a 1,100-ton ice-making chiller. Outside the building stand six cooling towers and 98 thermal energy storage tanks. Each tank has a capacity of several thousand gallons. The unusually large number of storage tanks allows the operators to run the ice chiller at night when the cost of electricity is lower, Morse noted.

A second phase, when needed to serve future components of the project, will add three cooling towers and two chillers, he said. The plant will pump 39-degree water through the network of pipes and into the buildings, where water will flow through heat exchangers. After absorbing heat, the water temperature will hit 57 degrees by the time it returns to the central cooling facility.

Water Street Tampa’s district cooling plant is designed to provide efficient cooling to the $3 billion project’s first phase. Image courtesy of Strategic Property Partners

Morse noted that the system is connected to three different substations operated by Tampa Electric, the local utility. “If one substation goes down, it automatically relays to a different substation,” he said of the centralized chilling plant’s operations.

Another difference is a collection system which allows condensation from the buildings to be pumped back, primarily for use as makeup water for the cooling towers. Morse said it will save as much 10 million gallons of water annually once the plant is at full capacity.

One of the main contributors to the system’s efficiency is the diversified uses of the planned development, Morse said. Operators can balance demand and peak loads because residential units will be mostly empty during the day when the offices are in use. “We have a different mix of users so we can optimize the way the plant runs. It helps balance the load profile and energy uses.”

The post Cool Solution for a Florida Mega-Project appeared first on Commercial Property Executive.

Walden Woods. Image courtesy of Plaza Advisors

RCG Ventures has sold Walden Woods, a 73,250-square-foot shopping center in Plant City, Fla. Redman Partners purchased the retail asset that was fully leased at the time of sale. Plaza Advisors brokered the deal on behalf of the seller. Public records show the property last traded in 2014 for $4.6 million.

Built in 1984, Walden Woods sits on more than 8 acres at 2402 James L. Redman Parkway, roughly 3 miles south of downtown Plant City. The shopping center is anchored by Dollar Tree, Aaron’s and Dollar General, with Anytime Fitness, T-Mobile, Sports Clips, Beef O’Brady’s and Jimmy John’s also on the tenant roster. The property is located at the main intersection of the city’s retail trade area, home to national and regional tenants such as Walmart, Publix, Lowes, Ross, Winn Dixie, Five Below, Bealls and Ulta.

Jim Michalak and Keith Nurre of Plaza Advisors assisted RCG Ventures in the disposition. The brokerage team was also instrumental in the $22 million sale of a 43,669-square-foot Tampa retail asset that closed in December.

The post RCG Ventures Sells Tampa-Area Shopping Center appeared first on Commercial Property Executive.

Holiday Centre. Image courtesy of Aztec Group Inc.

Miami-based CF Properties Corp. has sold Holiday Centre, a 67,147-square-foot Publix-anchored shopping center in Holiday, Fla., in a 1031 exchange. A private individual paid $9.7 million for the retail asset that was fully leased at the time of sale. GLT Group Brokerage represented the seller and procured the buyer in the off-market transaction.

The property last traded in 2007, when CF Properties purchased it for $8.5 million. In 2017, the ownership refinanced the shopping center with a $6.7 million loan from BankUnited through Aztec Group Inc.

Situated at 4637-4701 Sunray Drive, the retail asset is 1 mile north of the city center, near the road’s intersection with U.S. Highway 19. The 7.2-acre property is also 3 miles north of downtown Tarpon Springs, an important tourist destination.

Built in 1994, the shopping center has Planet Fitness and Verizon Wireless as major tenants. Holiday Centre serves a population of more than 140,000 residents living within a 5-mile radius, with an average household income of more than $60,000.

The post Tampa Shopping Center Trades for $10M appeared first on Commercial Property Executive.

5332 Avion Park

Highwoods Properties has signed a 92,000-square-foot lease with Fanatics Brands at 5332 Avion Park, a 176,000 square-foot office building in Tampa, Fla.

The apparel division of Fanatics Inc. will occupy three full floors at the Class A property. The building previously served as a company headquarters and ambulatory surgery center for the Laser Spine Institute, which closed in the second quarter of 2019 and contributed to the city’s first negative net absorption in six years.

The six-story building is situated on 3.8 acres at 5332 Avion Park Drive in the city’s Westshore submarket. Completed in 2016, 5332 Avion Park features 29,500-square-foot floorplates and a parking ratio of 4 spaces per 1,000 square feet. Fanatics will immediately begin construction of tenant improvements at the leased space.

The office property is 6.5 miles west of downtown Tampa, near Memorial Highway, while Tampa International Airport is a couple miles north.The immediate area is plentiful with hotels due to proximity to the airport, but also in retail venues such as WestShore Plaza.

The post Apparel Brand Inks 92 KSF Lease at Tampa Office Property appeared first on Commercial Property Executive.

Southtown Center. Image courtesy of Plaza Advisors

An Australia-based fund advised by CenterSquare Investment Management has sold Southtown Center, a 43,669-square-foot retail asset in Tampa, Fla. The asset changed hands one year after trading for $19.8 million. Site Centers Corp., an Ohio-based REIT, acquired the property for $22 million, according to the Tampa Bay Business Journal. Plaza Advisors’ Jim Michalak and Keith Nurre represented the seller in the deal. 

Situated at 1501 S. Dale Mabry Highway in the South Tampa trade area, Southtown Center is between a Publix store and a Sprouts Farmers Market grocery. The retail asset is 4 miles from the city center, serving a population of roughly 102,000 residents earning an average annual household income of $146,000.

Built in 1985, Southtown Center has numerous national brands on the tenant roster, such as Moe’s Southwest Grill, Tropical Smoothie, Cold Stone Creamery, Weight Watchers, Massage Envy, Pure Barre, European Wax Center, Burger Monger, Davita and Century 21. The shopping center was fully leased at the time of the sale.

The post South Tampa Shopping Center Changes Hands for $22M appeared first on Commercial Property Executive.

Meridian Concourse Center. Image courtesy of Avison Young

Avison Young has brokered the $15.4 million sale of a three-building, 150,633-square-foot flex office portfolio in Clearwater, Fla. Principal Tim Callahan, Vice President Allen Henderson and Associate Michael Coppola represented seller Meridian Development Group in the deal. The buyer is Boston-based Albany Road Real Estate Partners, making its first Tampa Bay area purchase.

Developed in the mid-1980s, the value-add buildings sit at 4400, 4600 and 4800 140^th Ave. N. within Meridian Concourse Center, a 217,382-square-foot campus formerly known as Sunplex Business Center. The campus consists of approximately 60 percent Class B office space and 40 percent warehouse space.

Meridian recently invested approximately $1.3 million in capital renovations at the property. Upgrades targeted roofs, HVAC systems, exterior painting and signage. The buildings are currently 92 percent leased.

Located near St. Petersburg-Clearwater International Airport, the property is close to the Bayside Bridge and U.S. Highway 19, with easy access to Interstate 275. Downtown Tampa is roughly 16 miles east, while downtown St. Petersburg is approximately 13 miles south.

In October, an Avison Young team assisted the seller in the sale of a two-building office/industrial portfolio in Plantation, Fla. IMC Equity Group purchased the asset for $9.8 million.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com. 

The post Avison Young Negotiates $15.4M Sale of Tampa Bay Property appeared first on Commercial Property Executive.

Rivergate Tower

Steinger, Greene & Feiner has leased 26,505 square feet at Rivergate Tower, a Class A, 515,965-square-foot office building in Tampa, Fla. Banyan Street Capital acquired the distinctly-shaped office property, also known as the Sykes Building, for $70 million in 2015.

Designed by Harry Wolf and completed in 1988, Rivergate Tower underwent cosmetic renovations in 2017. The 31-story building features floor plates ranging from 13,369 to 16,672 square feet and more than 750 underground parking spaces. Common-area amenities include a 6,000-square-foot fitness center, two conference centers and a dry-cleaning service. Yardi Matrix data shows the property is 90.3 percent leased to a wide array of companies such as Sykes, Westshore Capital Partners and the Florida Museum of Photographic Arts, among others.

Rivergate Tower is located at 400 N. Ashley Drive in Tampa’s central business district, near Hillsborough River. The immediate area has several shopping, dining and entertainment venues. The 4-acre property is approximately one mile south of Interstate 275 and 7 miles southeast of Tampa International Airport. The tower is also less than half a mile away from another Banyan Street property, a 38-story, Class A office asset purchased in 2018 for $110 million.

The post Tampa Office Tower Adds Law Firm to Roster appeared first on Commercial Property Executive.

WeWork Place. Image courtesy of Cushman & Wakefield

A joint venture between Partners Group, a Swiss-based global private markets group, and Parkway Property Investors, an Orlando, Fla.-based real estate investment firm, has acquired a five-building, 756,038-square-foot office portfolio in Tampa, Fla., for $156.9 million. The seller of the properties in Tampa’s CBD and Westshore submarkets was a joint venture formed by Angelo Gordon, a New York-based private equity real estate investment firm, and Commercial Florida Realty Partners.

READ ALSO: Tampa Office Report – Summer 2019

The properties include 501 E. Kennedy Blvd., now known as WeWork Place, a 19-story, 296,082-square-foot building that occupies a city block in downtown Tampa. The other assets are: Westshore Corporate Center, Cypress Center I, II and III. The properties were all built between 1981 and 1988, and the overall occupancy was approximately 91 percent at the time of sale. The Cypress Center properties are value-add, Class B assets, while the other two are Class A office buildings. The Cypress Center properties total 287,000 square feet and include a 6.1-acre parcel with entitlements for a six-story, 200,000-square-foot office building that would be called Cypress Center IV. Westshore Corporate Center is a 12-story, 173,000-square-foot Class A tower at the intersection of Westshore Boulevard and I-275.

Parkway Properties and Partners Group also acquired REO Center at 405 N. Reo St. in Tampa’s Westshore, from Commercial Florida Realty alone. Built in 1981, the property comprises 77,414 square feet. For all six assets, the joint venture landed a $121.5 million acquisition loan from Berkadia.

The Cushman & Wakefield investment sales team of Vice Chairman Mike Davis, Executive Managing Director Rick Brugge, Director Rick Colon, Senior Financial Analyst Zachary Eicholtz and Financial Analyst Ryan Jenkins represented Angelo Gordon in the sale. The Miami-based Berkadia team of Senior Managing Director Charles Foschini and Managing Director Christopher Apone arranged the financing on behalf of Parkway Properties/Partners Group.

Davis said in a prepared statement that acquiring Class A and B properties in Tampa’s top two office submarkets offered a rare opportunity for diversification. He cited the combination of rapidly rising rents, surging employment metrics and the portfolio’s diversification as helping the firm to secure strong pricing from a variety of capital sources for the deal.

Building the portfolio

Commercial Florida, a full-service commercial real estate office investor and operator based in Tampa and Boca Raton, Fla., and Angelo Gordon formed a joint venture—Commercial Florida Westshore LLC—in July 2015 to acquire the Westshore Office Portfolio, the four buildings totaling 460,056 square feet in the Westshore submarket. Commercial Florida partnered with Angelo Gordon again in February 2016 to purchase the building at 501 E. Kennedy Blvd.

With WeWork taking about 60,000 square feet, the downtown Tampa building was renamed WeWork Place. Other tenants include GE Capital, Woodforest National Bank, BMO Harris Bank, BDO USA and Frank Recruitment. The building’s proximity to multiple courthouses has also attracted legal tenants including LaCava & Jacobson; Banker Lopez & Gassler; and the Florida Attorney General’s office.

George Sacks, president of Commercial Florida, said the firm spent $5.3 million on capital improvements including building out numerous office suites on spec, replacing atrium skylights, modernizing elevators and completing a streetscape project along Kennedy Boulevard. The improvements and new business plan resulted in taking the building from 57 percent occupancy, after a major tenant had left prior to the purchase, to 89 percent occupancy. The building also features an attached parking garage, conference/training center, fitness center and employee lounge with coffee bar. Ground-floor retail includes on-site banking, a hair salon, restaurant and bagel deli.

Commercial Florida also spent $7.5 million on capital improvements throughout the Westshore Office Portfolio. The firm spent $5.8 million at Cypress Center I, II and III located at 5404, 5310 and 5405 Cypress Center Drive. Renovations included atrium upgrades at Cypress I and III, a new fitness center at Cypress II, an innovative eating facility at Cypress Center III, new energy efficient air-conditioning systems and new monument signage. Westshore Corporate Center, located at 600 N. Westshore Blvd., received $1.7 million in improvements, including modernizing and renovating elevators and installing updated LED lighting.

The Westshore Office Portfolio has a diverse mix of tenants including Progressive, Amscot Corp., Redfin, Federated Mutual Insurance, American Express, James Albertelli Law, ADP, Healthesystems, Invitation Homes, InvestCloud, Bancorp Bank and USPS.

The post Angelo Gordon JV Sells Tampa Office Portfolio for $157M appeared first on Commercial Property Executive.

Mango Plaza. Image via Google Street View

Continental Realty Corp. has acquired Mango Plaza, a 166,465-square-foot shopping center in Seffner, Fla. A joint venture between Field Real Estate Holdings LLC and Southern Management and Development LP sold the asset for $12.5 million. Anchored by Walmart and Publix, the retail center was nearly 94 percent leased at the time of sale. Marcus & Millichap represented the seller in the deal.

CRC purchased the asset on behalf of its $210.8 million Continental Realty Fund V. This marks the fifth fund acquisition this year and increases the company’s current Florida portfolio to 16 properties. One of the properties is a 87,250-square-foot shopping center CRC acquired in May. 

Mango Plaza sits at 11724 E. Dr. Martin Luther King Jr. Blvd., at an intersection where the traffic count exceeds 52,000 vehicles per day. The 24-acre property is roughly 13 miles east of downtown Tampa, accessible via Interstate 4.

Mango Plaza’s tenant roster features 18 national and local retailers. Walmart and Publix together occupy more than 60 percent of the total leasable space and have been tenants at the property since it opened in 1986. The retail center caters to a population in excess of 70,000 living within a 3-mile radius and earning an average household income of more than $70,000.

Marcus & Millichap’s Kirk Olson and Drew Kristol negotiated the deal on behalf of the seller. The brokerage team recently arranged the $18 million sale of a 262,632-square-foot shopping center in Palm Bay, Fla.

The post Continental Realty Pays $12M for Tampa Shopping Center appeared first on Commercial Property Executive.

County Line Distribution Center. Image courtesy of Red Rock Developments

Red Rock Developments has broken ground on County Line Distribution Center, a 510,272-square-foot spec warehouse in Plant City, Fla., within the Interstate 4 industrial corridor between Tampa and Orlando, Fla. Red Rock, together with Wharton Industrial, Aspyre Properties and an institutional joint venture partner, will develop the Class A facility slated for delivery in the third quarter of 2020.

The distribution center sits on 36.4 acres at the intersection of County Line Road and Fancy Farms Road, 3.5 miles south of Interstate 4. The property is roughly 5 miles southeast of downtown Plant City and 3.2 miles west of Lakeland Linder International Airport. Other nearby warehouses are operated by Amazon, Publix, O’Reilly Auto Parts, Home Depot and Southern Wine & Spirits.

When completed, County Line Distribution Center will feature 36-foot clear height, four ramped drive-in doors and 106 dock doors, 282 parking spaces, 200-foot truck courts and 60-foot speed bays. Colliers International’s Executive Managing Director Jan Boltres and Associate Michelle Senner are the leasing brokers at the property.

According to Red Rock Developments, the Interstate 4 industrial corridor market has a 4.4 percent vacancy rate. The percentage is lower than the national 4.9 percent shown by a recent Colliers International report.

The post JV Breaks Ground on Tampa-Area Distribution Center appeared first on Commercial Property Executive.

580 Corporate Center. Image courtesy of JLL

JLL has recently worn two hats on a transaction involving 580 Corporate Center, a six-building light industrial and office portfolio in Oldsmar, Fla. The firm orchestrated the $47.1 million sale of the approximately 376,600-square-foot Tampa-area asset on behalf of Cardinal Point Management and arranged $31.8 million in financing for the buyer, Adler Real Estate Partners. 

READ ALSO: Florida’s Largest Industrial Deal

Occupying 20 acres 15 miles outside downtown Tampa, 580 Corporate consists of two flex buildings, two industrial buildings and two office structures with the addresses of 4023, 4025, 4027, 4029, 4033 and 4035 Tampa Road. The buildings, developed between 1985 and 2002, vary in size from 21,000 to 120,500 square feet. The tenant roster at 580 Corporate is nearly full; the portfolio is 91 percent leased to a list of local and credit tenants, including Konica Minolta, The Nielsen Co., Paragon Water Systems and Change Healthcare Inc.

According to JLL, the investment community’s response to 580 Corporate was overwhelming, with a notable number of investors—ranging from operators with large equity partners to high-net-worth families to international funds—ultimately submitting offers. “Creative office and light industrial product continue to become more accretive for investors due to tenant demand for direct access, parking, usable versus rentable square footage and the ability to efficiently run 24/7 operations. More investors are realizing this value as evidenced by the demand we saw for this product during the marketing process,” Robbie McEwan, senior director with JLL, told Commercial Property Executive. JLL’s Luis Castillo and Chris Drew joined McEwan in representing Cardinal Point on the deal, which HFF had organized before being acquired by JLL in July 2019.

Ticking the right boxes

Commercial real estate lending is alive and well despite market volatility, and JLL was able to bring a bevy of lenders to the table before selecting Regions Bank to provide Adler with financing for the purchase of 580 Corporate. “The lending community was very open to bidding on this asset even though it encompasses light industrial, single-story office and distribution warehouse buildings. In many ways, these different asset classes provided a diversification advantage that mitigated risk,” Paul Stasaitis, senior managing director with JLL, told CPE. “The borrower’s reputation and experience in this asset class was also a contributing factor.” Regions Bank came through with a five-year, fixed-rate acquisition loan for Adler. Stasaitis’ colleague Michael DiCosimo was part of the JLL Capital Markets team representing the borrower.

The post Cardinal Point Cashes In on Tampa’s Growing Industrial Demand appeared first on Commercial Property Executive.

Park 6. Image via Google Street View

Birtcher Anderson has sold Park 6, a six-building, 184,500-square-foot flex industrial property in Tampa, Fla., to a private investor for $15.8 million. Aegon provided the new owner with a $10.3 million acquisition loan, according to Hillsborough County records. Colliers International Tampa Bay represented the seller and procured financing for the buyer.

Park 6 was formerly part of the 20-building Tri-County Business Park, which Birtcher Anderson purchased for $40.4 million in December 2017. The company divided the asset into two smaller properties to create operational efficiencies and to suit a larger pool of buyers, according to Colliers.

Located on nearly 25 acres at 11902 to 12402 Race Track Road in the Westchase area, the asset is 2 miles north of State Route 580, less than 20 miles northwest of downtown Tampa. The metro’s airport is approximately 10 miles to the southeast.

Built in 1987 and recently renovated, Park 6 consists of both office and light industrial space. The buildings have grade-level and dock-high loading doors and 12- to 14-foot clear heights. The property was 93 percent occupied at the time of sale.

Colliers International Executive Managing Director Ryan Vaught and Director Robyn Hurrell, represented the seller in the deal, while Executive Managing Director Nathan Lynch with the brokerage’s Debt & Equity team secured the acquisition financing.

The post Tampa Industrial Park Sells for $16M appeared first on Commercial Property Executive.

Counsel Square Office Campus. Image courtesy of Transwestern

LNR Partners LLC has sold Counsel Square Office Campus, an eight-building, 111,757-square-foot office park in New Port Richey, Fla. In 2013, LNR Partners, acting as trustee on behalf of Wells Fargo Bank, foreclosed on a $9.5 million CMBS loan, according to Yardi Matrix data. Counsel Square Office Park LLC, based in Texas, acquired the asset for $9.1 million through the Ten-X online auction website. John Bell, managing director at Transwestern Commercial Services, advised the seller in the disposition.

Located at 7545-7627 Little Road, Counsel Square is 37 miles northwest of downtown Tampa, right across from the Pasco County Government Center. There are 143,000 residents within a 5-mile radius of the value-add property, as well as many shopping and dining options at the intersection of Little and Ridge roads.

Developed in 1985 and 1990, Counsel Square consists of one-, two- and three-story buildings spread across 13.7 acres. The Class C property includes 8,517 square feet of retail and features a parking ratio of 4 spaces per 1,000 square feet, Yardi Matrix data shows. The office campus is currently 71 percent leased, with a tenant roster that includes the Pasco County Sheriff, the Department of Corrections and Pace Center for Girls, as well as law firm Psetas, Moore & Tetlow.

LNR Partners has recently sold another Florida office asset. Avison Young advised the company in the disposition of a Class A building in Sunrise, Fla., for $3.9 million.

The post Tampa-Area Office Campus Changes Hands appeared first on Commercial Property Executive.

Bill Reeves, Executive Managing Director, Colliers International. Image courtesy of Colliers International

Given the strong economic fundamentals, and as a metro still in the expansion phase of the real estate cycle, Tampa’s office market is positioned for more growth. Considering this favorable environment, Tampa has become a hotspot for investors.

In the interview below, Colliers International Executive Managing Director Bill Reeves, located in the company’s Tampa office, reveals what investors are looking for in the area. He also discusses how owners of existing office properties can remain competitive in this fast-evolving sector.

What can you tell us about Tampa’s office market in terms of demand and supply?

Reeves: Overall, office vacancy in Tampa as of the end of the second quarter of 2019 has increased to 12.8 percent, slightly above the five-year average of 12.7 percent. So, the supply has been consistent. Net absorption, or the change in the supply of space over a specific period of time, however, is more telling. After 20 consecutive quarters of positive space absorption, the second quarter of 2019 recorded negative net absorption of more than 250,000 square feet. The 176,000 square feet suburban office/medical building vacated by Laser Spine Institute was the largest contributor to this statistic, but certainly not solely responsible.

Tampa currently has projects in the pipeline such as the 56-acre Water Street Tampa, which will include 1 million square feet of office space. How will this impact the market in the future?

Reeves: It’s been more than a decade since we’ve seen speculative development in Tampa and it’s an exciting time for sure. With Water Street adding 1 million square feet of office space to our downtown, and the mixed-use development named Midtown Tampa in the Westshore submarket adding 150,000 square feet in its first phase, office space users have an incredible opportunity. Both projects are mixed-use, offering employers the live-work-play environment that is critical when recruiting today’s evolving workforce. As a result of these new projects, the owners of existing office buildings are hoping to compete by upgrading building amenities and funding major renovations.

READ ALSO: SPP Breaks Ground on Tampa Office Project

What type of assets are investors looking for?

Reeves: Core and, to some extent, core plus assets with stable rent rolls and limited capital improvements needed are on everyone’s radar. Value-add properties are still a challenge. Sellers with realistic pricing expectations have a great opportunity to take advantage of market conditions, as investors looking to place capital are pushing the prices of good properties higher and higher, narrowing opportunities for yield.

What is the number one factor that investors should consider when investing in Tampa’s office market? What are the main challenges in the sector?

Reeves: Although no market is immune from fluctuations in the global and national economies, Tampa Bay’s fundamentals are strong. Our unemployment rate and cost of living index are both below the national average, and our population growth is projected to grow 8.7 percent by 2024, more than both the State of Florida and nation. But with growth come challenges, and we do not have a solid public transportation option yet to support our community. Solving the transportation riddle is on all of our civic and business leaders’ agendas.

What trends or patterns have you noticed in Tampa’s office market in the past few quarters? What are your expectations going forward?

Reeves: Tenants with upcoming lease expirations are experiencing sticker shock as they evaluate their options in this market. Leases signed five, seven or ten years ago had the advantage of negotiating in a recovering economy. At the end of the second quarter of 2019, the average rental rates in Tampa Bay increased 9.4 percent over the prior 12 months. A very significant increase. As a double whammy, the cost to construct a tenant improvement project has followed a similar increase percentage, but landlords are resisting raising their improvement allowances proportionately, forcing tenants to self-fund or scale back needed construction projects.

The post What’s on the Radar for Tampa Office Investors? appeared first on Commercial Property Executive.

Gateway Professional Center

TerraCap Management has sold Gateway Professional Center, a four-building, Class A office complex totaling 246,941 square feet in Sarasota, Fla. Taurus Investment Holdings acquired the asset for $45.2 million. JLL represented the seller and procured the buyer in this off-market transaction. According to Yardi Matrix data, the property last traded in 2015, when TerraCap purchased it for $37.1 million.

Gateway Professional Center consists of four three-story buildings located at 301, 401, 501 and 551 N. Cattlemen Road. The assets have frontage along Interstate 75 and are close to the area’s main points of interest such as The Mall at University Town Center, downtown Sarasota, Lido Key Beach and the Sarasota-Bradenton International Airport.

Built between 1999 and 2006 on roughly 31 acres, Gateway Professional Center offers on-site fitness centers and conference centers, as well as a parking ratio of five spaces per 1,000 square feet. The property is approximately 95 percent leased to a diverse tenant mix.

The JLL Capital Markets team of Senior Director Ike Ojala, Senior Managing Director Hermen Rodriguez and Director Matthew McCormack represented the seller in the deal.

In May, a four-building, 294,621-square-foot office park traded in Tampa. The Dilweg Cos. purchased the asset for $53.3 million. 

The post Tampa Bay Office Campus Commands $45M appeared first on Commercial Property Executive.

Fountain Square II. Image courtesy of CBRE

The joint venture between Owens Realty Capital and Galium Capital has tapped CBRE to lease Fountain Square II, a 133,887-square-foot Class A office building in Tampa, Fla. The property changed ownership in July, when Equus Capital Partners sold it for $29.4 million, per Yardi Matrix data. CBRE Senior Vice President Barry Hanerfeld and Associate Ashley Rosenberg will spearhead the leasing efforts at the property.

Located at 4925 Independence Parkway in the Westshore office submarket, Fountain Square II is near Veterans Expressway, roughly 4 miles west of Tampa International Airport. Downtown Tampa is approximately 8 miles east, accessible via Interstate 275.

Built in 1989 on nearly 2 acres within the Fountain Square Office Park, the four-story building features 35,000-square-foot floorplates and a parking ratio of 3.9 spaces per 1,000 square feet. Amenities include a fitness center and a café with outdoor seating area. The property was 93 percent leased at the time of sale. The tenant roster includes CarePlus, ConnectWise and the U.S. Government.

According to Hanerfeld, Fountain Square II has undergone more than $2 million of capital improvements since 2015 and renovation was completed in 2018. The new ownership intends to further implement property upgrades.

The post CBRE Selected to Lease Tampa Office Building appeared first on Commercial Property Executive.