BUSINESS OBSERVER | DECEMBER 27, 2013 – JANUARY 2, 2014
commercial real estate
TOP DEALS >>>>>> 2013 <<<<<< TAMPA BAY BY SEAN ROTH | REAL ESTATE EDITOR
imilar to the other areas of the Gulf Coast, the multifamily sector continues to be the darling of commercial real estate in Tampa Bay. The vacancy rate for multifamily, according to CoStar Group, hit a 13-year low of 4.6% in the second quarter of the year, and the effective average rent per unit reached a new multiyear high of more than $846 per month, up from around $725 in 2009. Land sales also picked up this year, driven by homebuilders and investors. One notable land sale was USAA Real Estate Co.’s $14.6 million purchase of almost 80 acres of Ruskin pastureland to be developed into Amazon.com’s new 1.1 million-square-foot fulfillment center. The Tampa Bay market also showed more diversity than its neighbors to the south in its largest transactions of the past 12 months. The $63.32 million
DETAILS: Built in 1991, the gated garden-style apartment development contains 55 buildings on a 60-acre parcel. It includes a clubhouse, basketball and tennis courts, a sand volleyball court, fitness center, playground, boat parking and four swimming pools. The property, which is being renamed the Amberly Place Apartments, will be managed by Providence Management Co. LLC.
purchase of three hospitals by HCA and the $63 million purchase of the Hyatt Regency Tampa showed companies are starting to make moves on big properties outside the multifamily sector. Tampa Bay also saw increased activity in the office sector, particularly for medical offices and trophy properties, such as the 36-story SunTrust Financial Centre and the 17-story Wells Fargo Plaza. Meanwhile, industrial space vacancies have fallen to 8.4% , from a high of 10.8% in 2010, but there has been limited building in this sector. Retail buyers tended to focus this year on freestanding, leased properties and grocery-anchored centers. Rental rates are nearing their 2006 levels at $13.91 for triple-net asking rent per square foot. *Transactions include Dec. 15, 2012, through Dec. 15, 2013.
4. $63 million — Hyatt Regency Tampa
Palms of Pasadena Hospital
Town & Country Hospital
3. $63.32 million — Memorial Hospital of Tampa, Town & Country Hospital and Palms of Pasadena Hospital HCA West Florida purchased the 307-bed Palms of Pasadena Hospital, 183-bed Memorial Hospital of Tampa and 201-bed Town & Country Hospital from IASIS Healthcare LLC. COSTAR
1. $98 million — Element Miami-based Crescent Heights purchased the 395-unit Element apartment development in Tampa’s Arts District for $98 million. LOCATION: 808 N. Franklin St., Tampa PURCHASE DATE: Oct. 15 PURCHASE PRICE PER UNIT: $248,101 PREVIOUS PRICE: $7.5 million, December 2006 DETAILS: The 35-story high-rise building, which included 15,000 square feet of retail space, was sold as part of a three-property portfolio sale, which included the Mezzo in Atlanta and The Lex in Chicago. The purchase price equated to a payoff ratio based on income (capitalization rate) of around 4%. That historically low cap rate for multifamily was seen as a strong sign that Crescent Heights plans to convert the property to condominiums sometime in the future.
2. $63.4 million — Camden Live Oaks New York City-based APH Property Holdings LLC purchased the 770unit Camden Live Oaks apartment complex for $63.4 million. LOCATION: 5100 Live Oaks Blvd., Tampa PURCHASE DATE: Jan. 17 PURCHASE PRICE PER UNIT: $82,338 PREVIOUS PRICE: $39.6 million, July 1998
LOCATION: 2901 and 2919 W. Swann Ave. and 2618, 2829 and 2835 W. De Leon St. and 5901, 5917, 5919, 5941, 5943 and 6001 Webb Road, Tampa and 1501 Pasadena Ave. S., South Pasadena PURCHASE DATE: Sept. 30 PURCHASE PRICE PER SQUARE FOOT: 91,641 PREVIOUS PRICE: $44.1 million, November 1999 (Palms of Pasadena Hospital), $34.63 million, October 1999 (Memorial Hospital of Tampa) and $23.73 million, October 1999 (Town & Country Hospital) DETAILS: HCA West Florida acquired the real estate and the business operations of the 185,000-squarefoot Palms of Pasadena Hospital, 176,000-square-foot Town and Country Hospital and the 132,119-square-foot Memorial Hospital of Tampa. The sale also included several physician practices with leased offices. Following the sale, HCA West Florida has a total of 19 hospitals, 16 ambulatory surgery centers and more than 19,000 employees in West and Central Florida.
North Palm Beach-based Driftwood Hospitality Management LLC purchased the 521-room Hyatt Regency Tampa for $63 million. LOCATION: 211 N. Tampa St., Tampa PURCHASE DATE: Dec. 18, 2012 PURCHASE PRICE PER UNIT: $120,921 PREVIOUS PRICE: $37 million, July 2000 DETAILS: The hotel, which features 30,000 square feet of meeting space, had an average occupancy of 63% prior to the sale. Driftwood Hospitality plans to spend $13 million on improvements so it can meet new brand standards as a Hilton hotel. The hotel will be renamed as Hotel Tampa – A Hilton Affiliated Property. The new owner plans to reconfigure the hotel’s first floor, update the lobby and restaurant and develop a Starbucks storefront.
5. $57 million — Plantation Key Apartments and Providence Park Apartments Tampa-based Blue Rock Partners LLC and Deerfield Beach-based Konover South LLC purchased the 712-unit Plantation Key Apartments and adjacent 270-unit Providence Park Apartments for $57 million. LOCATION: 1918 Plantation Key Circle and 401 Providence Road, Brandon PURCHASE DATE: Dec. 19, 2012 PURCHASE PRICE PER UNIT: $58,045 PREVIOUS PRICE: $1.6 million, April 1991 and $1.15 million, April 1988 DETAILS: The two apartment complexes are being rebranded together as the Park at Siena. The properties had an average occupancy of 88% to 90% prior to the sale. The new ownership will be investing $6 million in improvements, including installing a gate, landscaping upgrades and fountains and new amenities. The partnership also expects to upgrade the units, installing new flooring, cabinetry and ceilings fans.
BUSINESS OBSERVER | DECEMBER 27, 2013 – JANUARY 2, 2014
commercial real estate
TOP DEALS >>>>>> 2013 <<<<<< SARASOTA-MANATEE BY SEAN ROTH | REAL ESTATE EDITOR
fter 2012’s multitude of multifamily transactions, that sector of the area’s market has a relatively small inventory and a lack of bank-distressed properties. This has caused buyers to focus on stabilized apartment properties in 2013. According to figures provided by research firm CoStar Group, vacancy rates for multifamily in the region reached their lowest level in at least 13 years in the third quarter, at 3.9%. For the first time since 2000, the average asking rent per unit has crossed the $850 mark, to $860 per month. Competition increased in the market for land this year with several homebuilders expanding their turf. Neal Communities grew south into the Lee and Collier counties this year, while Bonita Springs-based WCI Communities logged the largest land purchase in the Sarasota area with its $48.52 million purchase of 2,400 acres
1. $48.52 million — Sarasota National
for Sarasota National. In retail, the most activity tended to focus on strip centers and freestanding buildings, such as bank branches. Although comparatively slow, office sales tended to involve users or investors for medical office space. In a number of cases this year, owners have taken the opportunity to lock in their costs moving to larger and/or more prominent office space. Similarly, industrial sales tended to attract end-users and in rarer cases investors, but the market is strengthening. Vacancy rates have tumbled from a high of around 12% in 2010 to 7.8% in the second quarter, although pricing has been flat since 2010. Average asking price per square foot has only increased 30 cents in the past three years in the area. *Transactions include Dec. 15, 2012, through Dec. 15, 2013.
Bonita Springs-based developer and homebuilder WCI Communities purchased the 2,400-acre Sarasota National golf course community in Venice for $48.52 million. LOCATION: National Boulevard south of U.S. 41 (also encompassing property on Copperleaf, Awabuki, Crooked Creek and IronBridge drives and Waverly Circle), Venice PURCHASE DATE: April 25 PURCHASE PRICE PER ACRE: $20,217 PREVIOUS PRICE: $7.79 million, March 2007 and $108.32 million, August 2005 DETAILS: WCI Communities plans to complete the golf course community, which is approved for 1,584 homes. At the time of the sale, only 30 homes had been completed. The developer also plans to create a number of community amenities including a large clubhouse, spa and fitness facility, tennis courts and pools. More than 1,300 acres of the property has been designated for preservation, conservation and open space.
2. $30.58 million — Gran Paradiso Miami-based national homebuilder Lennar Homes purchased 1,032 acres of the Gran Paradiso master-planned community for $30.58 million. LOCATION: 7001 S. Tamiami Trail, Venice and additional land PURCHASE DATE: July 19 PURCHASE PRICE PER ACRE: $29,632 DETAILS: Lennar Homes plans to complete the gated 1,999-home Gran Paradiso in Venice. Prior to the sale, only 23 homes were built there, primarily due to the impact of the real estate crash. The community was originally planned around a 40,000-square-foot clubhouse. The homebuilder acquired the property in preparation for completion of its work in its existing community, Stoneybrook at Venice.
3. $30.1 million — Champions Walk A company affiliated with New York City-based Abington Properties and Davie-based JB Howell purchased the 376-unit Champions Walk apartment complex for $30.1 million. LOCATION: 4148 53rd Ave. W., Bradenton PURCHASE DATE: Feb. 4 PURCHASE PRICE PER UNIT: $80,053 PREVIOUS PRICE: $60 million, January 2007 DETAILS: Built in 1997, the 374,156-square-foot apartment complex features one-, two- and three-bedroom units. The property includes a lake, clubhouse, fitness center, laundry facilities, lighted tennis courts and a swimming pool. It also has 65 detached garages. Located adjacent to IMG Academy and State College of Florida, the community was 94% occupied at the time of the sale.
4. $27 million — Vista At Palma Sola
5. $23.4 million —Country Club East (portion)
APH Property Holdings, also known as American Property Holdings, purchased the 340-unit Vista At Palma Sola apartments for $27 million.
A joint venture of SchroederManatee Ranch Inc. (SMR) and Starwood Land Ventures LLC purchased the remaining 475 acres in Country Club East for $23.4 million.
LOCATION: 3900, 3902, 3906, 3910, 3914, 3918, 3922, 3926, 3930, 3934, 3938, 3942, 3946, 3950, 3954, 3958, 3962, 3966, 3974, 3970, 3978, 3982, 3986 and 3990 W. 75th St., Bradenton PURCHASE DATE: April 25 PURCHASE PRICE PER UNIT: $79,412 PREVIOUS PRICE: $20.63 million, December 2011 DETAILS: The lakefront development, which was formerly known as the Colonial Grand at Palma Sola, features 23 residential buildings and a clubhouse. Built in 1991, the gardenstyle apartment complex includes one-, two- and three-bedroom units. The 25-acre property contains a swimming pool and spa, volleyball court, playground, fitness facility, laundry facilities and a lighted tennis court.
LOCATION: various lots, Country Club East, a portion of land east of Lorraine Road north of The Lake Club, Lakewood Ranch PURCHASE DATE: Sept. 17 PURCHASE PRICE PER ACRE: $49,263 DETAILS: The joint venture plans to develop more than 600 existing and undeveloped lots on the property along with the more than a 10,000-square-foot clubhouse and new driving range at the Royal Lakes golf course. LWR Communities LLC will also continue to be the project manager for the property. Country Club East, one of 10 villages in the 17,500-acre Lakewood Ranch, is a private, gated community built around a Rick Robbins-designed 18hole golf course.
DECEMBER 27, 2013 – JANUARY 2, 2014 | BUSINESS OBSERVER
commercial real estate
TOP DEALS >>>>>> 2013 <<<<<< CHARLOTTE -LEE-COLLIER BY SEAN ROTH | REAL ESTATE EDITOR
f the top 10 sales reported for Charlotte, Lee and Collier counties in the past 12 monthsby the Business Observer, half were land-related. This rush to land was led principally by investors and homebuilders, such Lennar, Minto Communities, Taylor Morrison and Neal Communities. Throughout the year, developers noted that raw land was beginning to become scarce as the housing market recovers, and prices have increased as the supply tightens. For multifamily, the focus continued to be on stabilized properties — 90%-plus occupied — and price-discounted opportunities. As with the other two regions, heavy investor demand has increased sales prices, leading more buyers to consider buying at a discount and renovating. Fundamentally, the multifamily mar-
2. $68 million — Sabal Bay Community Minto Communities purchased 2,416 acres for its planned Sabal Bay Community in South Naples for $68 million. LOCATION: between Dollar Bay and U.S. 41 East, Naples PURCHASE DATE: Dec. 27, 2012 PURCHASE PRICE PER ACRE: $28,146
DETAILS: Minto Communities plans to develop the community on the site, which is approved for more than 1,600 residential units. Site development of the first phase is expected to take a full year. The entire project is expected to take a decade to complete. More than half, 1,300 acres, of the property is being left as a preserve. The project will feature miles of exercise and hiking paths along with kayaking opportunities connected to a resortstyle pool and social/fitness complex.
3 Affiliates of New York City-based Northwood Investors purchased the 474-room Waldorf Astoria Naples resort for $140.49 million and the 18hole Naples Grande Golf Course for $8.55 million. LOCATION: 475 Seagate Drive, various units, 7760 Golden Gate Parkway and 7220 Golden Gate Parkway and 7235 Premier Drive, Naples PURCHASE DATE: Oct. 3 PURCHASE PRICE PER: $296,400 per room (Waldorf Astoria)/ $52,508 per acre (Naples Grande)
PREVIOUS PRICE: $19.5 million, December 1998 (Naples Grande) DETAILS: Northwood purchased the two properties as an investment. The resort has 474 guest rooms, including 29 suites with views of the gulf and 50 bungalow suites. The property also features three miles of beach frontage, more than 100,000 square feet of meeting and event space and six on-site restaurants and bars. Other amenities include three heated outdoor pools with a 100-foot waterslide, a full-service luxury spa, 8,000-square-foot fitness center, business center and tennis facility. Built in 2000, the Naples Grande Golf Course is a private par 72, 6,955yard course.
ket continues to lead the way in health. The vacancy rate in the three counties is currently around 5.5%, according to the CoStar Group. The average asking rental rate per unit has climbed to $845 per month, the highest rate in at least a decade and a notable improvement from a low of $720 in 2010. In the retail sector, buyers tended to target a mixture of trophy, non-REO distressed properties and leased freestanding properties. Successfully anchored grocery plazas continued to sell well. Industrial sales were rare in 2013 with the majority of those going to flex space. But, industrial could be poised for a resurgence with a regional vacancy around 6.8% and a recent slight increase in asking rent to $5.41 per square foot. *Transactions include Dec. 15, 2012, through Dec. 15, 2013.
4. $45 million — Bonita Road land/mitigation land Miami-based homebuilder Lennar Homes purchased 691 acres east of Island Walk for $44 million and mitigation land in Hendry County for $1 million. LOCATION: 17001 Bonita Beach Road S.E. and additional land, Bonita Springs PURCHASE DATE: Sept. 6 PURCHASE PRICE PER ACRE: $63,676 PREVIOUS PRICE: $18 million, April 2011 DETAILS: The property, located east of Interstate 75 at the end of Bonita Beach Road, was acquired along with roughly 640 acres of Florida panther and black bear habitat in Hendry County. The Lee County land is entitled for about 1,900 residential units. The Hendry County land south of State Road 80 and east of State Road 29 was purchased as mitigation land to develop the Bonita Springs property as a residential community.
3. $55 million — Edgewater Beach Hotel 1. $157 million — Waldorf Astoria Naples and Naples Grande Golf Course
Delray Beach-based Ocean Properties Ltd. & Affiliates purchased the 125-suite Edgewater Beach Hotel for $55 million. LOCATION: 901 Gulf Shore Blvd. N., Naples PURCHASE DATE: Nov. 26 PURCHASE PRICE PER SUITE: $440,000 DETAILS: The 78,428-square-foot, five-story Edgewater Beach Hotel occupies a 2.88-acre parcel on the Gulf of Mexico. The hotel features a swimming pool, restaurant and fitness center. The seller, an affiliate of New York City-based Blackstone, has owned the property since 1998. Ocean Properties is the largest hotel company in Florida, operating more than 30 hotels across the state.
4. $45 million — River Reach Apartments West Springfield, Mass.-based Aspen Square Management purchased the 556-unit River Reach Apartments for $45 million. LOCATION: 2131 and 2136 River Reach Drive, Naples PURCHASE DATE: Oct. 31 PURCHASE PRICE PER UNIT: $80,935 PREVIOUS PRICE: $34.6 million, June 1999 DETAILS: Built in 1987, the 505,144-square-foot, two-story development features 26 residential buildings on a 50.15-acre site. Units average 908 square feet. Located along the Gordon River, the property features boat access and a dock, basketball, tennis and volleyball courts, a business center, clubhouse, fitness center, playground and two swimming pools. The site also contains a 10-acre lake and jogging trail.