Tampa, FL – August 7, 2015 – (RealEstateRama) — CBRE has arranged the sale and financing of Rivergate Tower, a Class A, 515,965-square-foot iconic office building located at 400 North Ashley Drive in Tampa, Florida, for an undisclosed price. The sale of Rivergate Tower is the third recent Tampa CBD office tower sale that CBRE has brokered in the last year, following Wells Fargo Plaza and Fifth Third Center. CBRE represented the seller in the transaction, IR-RIVERGATE, LLC, a venture between Mount Kellett Capital Management LP and Morning Calm Management, LLC. The CBRE team included Christian Lee, Dale Peterson, Charles Foschini, Chris Apone, Jose Lobon and Marcos Minaya.
“The Tampa CBD has experienced 135,000 square feet of positive absorption over the last 18 months, filling up office buildings and motivating owners to become sellers,” said Christian Lee, CBRE Vice Chairman. “Meanwhile, with Class A vacancy approaching single digits, the investment community is confident that sharp rent growth is around the corner. This optimism has created the right environment for buyer and seller expectations to come together. This was a classic win-win transaction, and a pleasure to be involved with.”
“The influx of new residents and amenities into the urban core is driving demand for office space,” said Dale Peterson, CBRE Senior Vice President. “Class A office assets in this submarket are enjoying a market vacancy hovering around 10% and stand to benefit further from the submarket’s revitalization. Rivergate Tower will become one of the premier Class A buildings in the downtown market once the new owner completes its planned renovation program.”
“Mount Kellett Capital Management acquired Rivergate Tower as part of a 19-property portfolio in the fourth quarter of 2014, with Morning Calm Management serving as its operating partner,” said Mukang Cho, CEO and Principal of Morning Calm Management.
“The 3-million-square-foot portfolio consisted of a diverse mix of office and retail properties, and offered both the opportunity to create value via lease-up and repositioning with select assets, and the ability to immediately unlock value on certain properties that were stabilized. During the last few months, we have conducted an in-depth analysis of each asset and systematically taken properties to market when we believed there were opportunities to generate attractive returns. Rivergate Tower was the sixth property that met our criteria.”
Constructed in 1988 for $150 million, and designed by architect Harry Wolf, the 31-story Rivergate Tower’s unique cylindrical design symbolizes a lighthouse and represents optimism. It is one of the tallest limestone structures in the world and offers unobstructed 360-degree views of the Tampa skyline. Its distinctive architecture makes it an easily recognizable landmark, and earned it a National Honor Award from the American Institute of Architects (1993). Property amenities include a two-story, 735-space underground parking garage, Malio’s Prime Steakhouse, a high-quality fitness facility, an upscale breakfast/lunch emporium, a full-service branch bank and ATM, conference rooms and complimentary valet parking. The only office building located directly on the Tampa Riverwalk, it is located within a two-block radius of 90% of downtown amenities including the University of Tampa and the Straz Center for the Performing Arts.
The property is currently 80% leased to a well-diversified mix of highly recognizable tenants including multinational and national/regional corporate tenants including; Sykes Enterprises, Butler Pappas, Wilson Human Capital, Digital Hands and Northstar Bank.
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 (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About Morning Calm Management, LLC
Morning Calm Management is a vertically integrated real estate management and investment firm. The company, which is headquartered in West Palm Beach, Florida with regional offices in Tampa, Jacksonville, Columbia, Memphis and Nashville, owns, through its affiliates, approximately six million square feet of office and retail properties throughout the United States.
elizabeth.cross (at) cbre (dot) com
melinda.sherwood (at) cbre (dot) com