Capital Commerce Center was purchased vacant in 2013, and TerraCap invested in and leased the building to 98 percent.
TALLAHASSEE, Fla. (Jan. 24, 2018) – TerraCap Management, LLC (“TerraCap”), a commercial real estate investment management company based in Florida, has sold Capital Commerce Center, a 260,900-square-foot office property in Tallahassee, Florida. The buyer, CoreCivic, is a publicly traded Real Estate Investment Trust (REIT) based in Nashville, Tennessee.
Joe Rossi, CCIM, Executive Managing Director of Investment Sales with Colliers International Central Florida, and Bob Cottle, CCIM, Managing Director of GSAXCHANGE, a division of Colliers International’s Government Solutions national practice group, represented the seller, TerraCap.
TerraCap originally purchased the property, then vacant, in December 2013 through Auction.com. Currently, Capital Commerce Center is 98 percent occupied, primarily by the Florida Department of Business and Professional Regulation (DBPR), which is on a new 10-year lease. Other tenants include the Florida Department of Agriculture, CareerSource and TEKSystems.
“Our team saw an immediate value creation opportunity for our investors in this property and its location,” said Steve Hagenbuckle, Managing Partner at TerraCap. “Working with DBPR of the State of Florida as an anchor tenant and servicing the needs of its 1000+ employees has been rewarding. Turning this building around with the local team at NAI Talcor is a testament to them and our teamwork for creating, what we believe to be, winning solutions.”
Albert Livingston, Director of Asset Management at TerraCap added, “The repositioning of this building was a major project for our team, in our opinion, and is a prime example of TerraCap’s ability to implement the value-add strategy to a once distressed asset.”
CoreCivic, Inc. is the largest private owner of real estate used by government agencies. The Company is diversifying its portfolio of investment properties with large government leases in place. The Company now owns six office buildings and has more than 100 contracts with federal, state and local government agencies throughout its portfolio.
“Buildings with government leases are becoming increasingly popular among investors because of the high-quality credit of the tenant,” said Colliers’ Rossi. “This property is particularly attractive because of its long-term lease, AAA-rated tenant and its proximity to Tallahassee’s central business district and the state’s capitol complex.”
The building was originally constructed in 1990 and underwent extensive renovations during TerraCap’s ownership, with tenant improvements for DBPR continuing into 2018. The building sits on 6.5 acres and is comprised of three interconnected buildings, including a parking garage attached to the building by a covered walkway. In total, the property has 812 parking spaces, which includes surface and garage parking. The property is situated approximately two miles east of the Florida State Capitol.
Capital Commerce Center is located at 2601 Blair Stone Road in Tallahassee.
TERRACAP MANAGEMENT, LLC
TerraCap Management, LLC is an alternative investment management company focused on deep value real estate acquisitions in the southeastern United States, with an emphasis on the Florida commercial property market. TerraCap’s value-oriented approach consists of purchasing properties below replacement cost with conservative leverage. This allows TerraCap to seek to capitalize on financially distressed situations and other opportunities by preserving capital, as well as creating value and risk-adjusted returns that are positioned to outperform original targets. TerraCap has offices in Atlanta, Georgia, and Estero and Tampa, Florida.
CoreCivic is a diversified government-solutions company with the scale and experience needed to solve tough government challenges in cost-effective ways. The Company provides a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, innovative and cost-saving government real estate solutions, and a growing network of residential reentry centers to help address America’s recidivism crisis. CoreCivic is a publicly traded real estate investment trust (REIT) and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. The Company has been a flexible and dependable partner for government for more than 30 years.
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
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