BY: SEAN ROTH | REAL ESTATE EDITOR | Original Source
BUYER: Lakeview Office Center LLC (principal: Walter S. Hagenbuckle), Bonita Springs
SELLER: EP East Tampa LLC
PROPERTY: 6700 Lakeview Center Drive, Tampa
PRICE: $13.74 million
PREVIOUS PRICE: $12.65 million, October 2000
BUYER: Eastpointe Center LLC (principal: Walter S. Hagenbuckle), Bonita Springs
PROPERTY: 3802 Corporex Park Drive, Tampa
PRICE: $9.16 million
PREVIOUS PRICE: $8.4 million, November 2006
LAW FIRM ON DEED: Arent Fox LLP, Washington, D.C.
Investment fund TerraCap Partners II purchased the 173,152-square-foot Lakeview Center and the 82,547-square-foot Eastpointe Center for a total of $22.9 million.
The price equated to $90 per square foot. That figure is lower than the two-year average price per square foot for office space ($115) in the Tampa Bay area, according to the CoStar Group.
Built in 1984, the three-story Lakeview Center was 84% occupied at the time of the sale. The building features food service, a shipping-and-receiving area and generators for emergency power.
The 79% occupied Eastpointe Center was built in 1987 and its adjacent two-story parking garage followed in 1999.
The seller, a joint venture partnership of Boca Raton-based Penn-Florida Cos. and New York City-based Edge Principal Advisors LLC, acquired the two properties in lieu of foreclosure from East Tampa LLC in March 2011 for $26.09 million.
“We feel these are very high-quality office buildings needing minimal investment,” says W. Stephen Hagenbuckle, founder and co-managing partner of TerraCap Partners, which manages the investment fund. “We saw it as a value-add with the lease up and some minor capital expenditures. We were buying them for well below the replacement cost for the buildings, not including the value of the land or infrastructure.”
Further, Hagenbuckle says demand is growing quickly for office space in the Tampa market because of a large absorption rate and the lack of new office product.
The purchase entity, Lakeview Office Center LLC, mortgaged the two buildings to Wells Fargo Bank for $26 million.
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