By Chris Wille | Original Source
Office building’s price is $4.85 million higher than what was paid for it in 2014
SARASOTA — Often described as one of downtown’s signature office buildings, the 10-story Kane Plaza has been sold for $16.35 million.
The 77,089-square-foot Class A office building at 1 S. School Ave. is the tallest office building on the east end of downtown Sarasota. The property features a parking garage, renovated lobby and other improvements.
Built in 2000 by real estate investor David S. Band and retired businessman Stanley Kane for $7 million, the office tower has direct frontage and signage on Fruitville Road. The building occupies the site of a former train depot.
Bonita Springs-based TerraCap Management LLC bought the building from the original developers in 2014 for $11.5 million.
TerraCap and the new owner, Key Biscayne-based JLK Global Fund U.S. 2 Inc., closed on the transaction on May 1.
“We were very pleased with the asset and its performance during our ownership,” Steve Good, director of acquisitions for TerraCap, said in a press release. “The results are a favorable outcome for our investors and that is always our goal.”
Mike Davis, TerraCap’s managing director, said that “We executed our strategy for this iconic downtown property by repositioning with high-quality tenants and increasing occupancy; a nice blend for investment success. We are still very bullish on Sarasota, as evidenced by our ongoing investment in Sarasota Gateway office park.”
Institutional Property Advisors, a division of Marcus & Millichap, handled the transaction.
“Sarasota’s office market is in expansion mode,” said Douglas K. Mandel, senior managing director with Institutional Property Advisors. “Employment growth is strong, vacancy is decreasing and rents are on the rise.”
Mandel and Nicholas Hanson, senior associate, represented TerraCap and procured the buyer.