TAMPA, FLORIDA – August 18, 2015 – (RealEstateRama) — Cushman & Wakefield announced today that it has brokered the sale of Westshore Center, a 216,410-square-foot, Class A office building in Tampa, Florida.
Executive Director Mike Davis, Senior Director Rick Brugge, and Senior Director Michael Lerner represented an institutional owner in the transaction. The buyer was Roseview-PMRG Fund I, LLC, a joint venture between The Roseview Group and PM Realty Group (PMRG).
Debt for the transaction was provided by Senior Managing Director Michael Ryan and Managing Director Brian Linnihan of Cushman & Wakefield’s Debt, Equity, and Structured Finance group.
Westshore Center is a nine-story office building built in 1984 offering panoramic views of Tampa Bay, Westshore, and Downtown Tampa. The building has been institutionally owned and managed and underwent extensive lobby renovations in 2014. The property was 88 percent occupied at the time of sale. The buyer will make significant capital improvements to the asset including common corridor and bathroom renovations; upgrades to building systems inclusive of elevator modernizations and new chillers; and planned exterior renovations.
Westshore Center is located in Tampa’s Westshore Submarket, Florida’s largest suburban office market. The property’s strategic position at 1715 North Westshore Boulevard provides easy access to the International Plaza and Bay Street mall, Tampa International Airport, Interstate 275, the Veterans Expressway, and Dale Mabry Highway.
The immediate area surrounding Westshore Center has recently transitioned from a suburban setting to an urban core, a trend which has attracted the interest of Millennials who desire a live-work-play environment. This demographic shift has been documented in Cushman & Wakefield’s Facing the Millenial Wave report and further substantiated by the firm’s CORE VALUES: Why Companies Are Moving Downtown compendium.
More than 1,000 high-end residential units have been built in the immediate market during the last six years and an additional 986 units are under construction with 500 more units proposed. Even with a steadily growing supply of housing, demand remains strong. Residential rents in the area range from $1.50 to $2.00 per square foot per month, some of the highest in the Tampa market.
“Market dynamics in the Westshore area continue to improve with vacancy rates trending lower and rental rates rising quickly,“ said Brugge. ”With the lack of new speculative construction and robust job growth in the office-using sectors of the economy we project rents will continue to rise.”
“The sale of Westshore Center is representative of these market dynamics and strong investor demand for quality office assets,” added Brugge.
“The Westshore submarket continued its well-deserved reputation as a top office destination, as evidence by its direct vacancy dropping a percentage point to 10.4 percent, and its 3.3 percentage-point decrease since the end of 2013,” writes Senior Research Analyst Stephen Keith in Cushman & Wakefields 2Q 2015 Tampa Office Marketbeat report. “The market posted 334,201 square feet of positive net absorption during the second quarter. This is the fourth consecutive quarter of positive absorption and a 235,301-square-foot increase from the first quarter of 2015.”
Cushman & Wakefield’s Fall 2014 Urban Development Report indicated that Miami is a prime candidate for such developments, as the fourth-fastest growing Metro Area in North America behind only Atlanta, Toronto, and Washington, D.C.
“Miami’s urban core is undergoing a transformation unlike any other seen in the market before, including the development boom of the mid–2000s,” reads the report. “The CBD is a mere 1.7-mile area with a daytime population of over 200,000 people –- and growing.”
“More than 74,000 people live in the Downtown Miami market, which is double the number from just ten years ago,” continues the report. “Specifically in the CBD, households have increased 93 percent, and a substantial portion of residents are young [57 percent in the 20–44 age range].”
About Cushman & Wakefield
Cushman & Wakefield advises and represents clients on all aspects of property occupancy and investment. Founded in 1917, it has 259 offices in 60 countries, employing more than 16,000 professionals. It offers a complete range of services to its occupier and investor clients for all property types, including leasing, sales and acquisitions, equity, debt and structured finance, corporate finance and investment banking, appraisal, consulting, corporate services, and property, facilities, project and risk management.
About Roseview-PMRG Fund I
Roseview-PMRG Fund I seeks to acquire and reposition existing office assets, which can be acquired below replacement cost, by investing capital to upgrade building common areas and mechanical systems and to fund tenant improvements and leasing commissions. The joint venture is focused on improving the tenant experience by operating buildings more efficiently, reducing waste and promoting eco-friendly consumption. The Fund targets mid-teens returns with total investment per asset of $15 to $65 million.
About The Roseview Group
The Roseview Group is a market leading real estate advisory and investment company with offices in Boston, Seattle and Philadelphia. The firm is built around a veteran team of partners from the real estate, investment and banking industries who have led investment companies, launched funds, raised and invested billions of dollars in institutional capital. The Roseview Evergreen Fund is a discretionary separate account with a major U.S. corporate pension fund. The Fund is investing up to $500 million (total capitalization) in strategic partnerships with high-quality operators. The Fund is also actively seeking acquisitions of value-added multifamily assets across the United States.
About PM Realty Group (PMRG)
PM Realty Group (PMRG) is headquartered in Houston, Texas, and is one of the nation’s leading real estate companies focusing on comprehensive property services, development and acquisitions. With a strategic presence in more than 30 markets, PMRG provides the highest quality services to its clients and investors. PMRG’s clients and investors include large financial institutions, advisors and high net worth individuals. By capitalizing on the team’s experience and expertise, PMRG has the ability to undertake large and challenging management, leasing, development and acquisition projects. Our goal is to generate exceptional returns for our clients and investors by focusing on real estate fundamentals. For additional information, visit www.pmrg.com.
mike.davis (at) cushwake (dot) com
rick.brugge (at) cushwake (dot) com
michael.lerner (at) cushwake (dot) com