TerraCap Management, LLC completes sale of six-building office park in Westshore submarket
Tampa, FL – November 15, 2017 – CBRE has arranged the sale of Tampa International Business Center, a six-building office park totaling 324,654 square feet located in Tampa’s Westshore submarket. Real Estate Value Advisors, LLC, acquired the property for $45.05 million. At the time of sale, the property was 98% leased to a roster of 12 high quality tenants, the largest being WellCare, a healthcare company that occupies 77% of the property, and a lease is out for signature on the remaining vacancy.
TerraCap Management targets underperforming assets in submarkets where fundamentals are solid. The Westshore submarket has seen a significant decline in office vacancy rate from 22.3% in 2010 to its current rate of 9.2%. Market rents have risen 3.2% per year over the last four years. “This investment reinforces our approach of achieving attractive returns by investing at low basis in well diversified high growth secondary markets,” said Robert Gray, managing partner and co-founder of TerraCap’s commercial property investing platform.
“In keeping with the TerraCap Management business plan, the property was acquired in distress and aggressively repositioned to attract quality tenants” said Albert Livingston, National Director of Asset Management, TerraCap Management. The six buildings were built between 1980 and 1986 and renovated between 2014 and 2017. The property offers 1,816 parking spaces, which accounts for a parking ratio of 5.61 spaces per 1,000 rentable square feet. Major tenants include WellCare (249,638 SF), Gateway One Financial & Lending (27,000 SF), and MedHOK Health Care (19,169 SF). CBRE’s Dale Peterson, Zachary Eicholtz, Courtney Snell, Philip Weber, and Hans Kaunath represented the seller, TerraCap Management, LLC, in the transaction.
“The Property’s combination of stabilized, in-place cash flow and exceptional location provides for a great long-term commitment in the midst of a continually improving office market,” said Mr. Peterson, senior vice president, CBRE Capital Markets. “Tampa International Business Center is very commuter friendly with numerous key transportation arteries connecting within a three-mile radius. Hillsborough Avenue, The Veterans Expressway and I-275 work in accord to connect the property to major locations such as Tampa International Plaza, Westshore Plaza and Tampa International Airport.”
TerraCap Management, LLC is a multi-fund value-add commercial real estate operator, focused on real estate acquisitions in the southeastern United States. TerraCap develops investment strategies based on market research, fact-based analysis, employment growth, population growth, and migratory trends. Please visit their website at terracapmgmt.com
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.