SARASOTA, Fla., May 2, 2018 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announces the sale of Kane Plaza, a 10-story, 77,089-square-foot Class A office building located in Sarasota, Florida. The sales price is $16.35 million, or approximately $211 per square foot.
Located at 1 South School Avenue, Kane Plaza is the tallest office building on the east end of downtown Sarasota. The property features a structured parking garage, a renovated lobby and many other improvements. Built in 2000, Kane Plaza has direct frontage and signage on Fruitville Road and offers convenient access to S. Highway 301, Interstate 75 and Sarasota’s Central Business District.
TerraCap Management LLC purchased the building from Kane Plaza’s original developers in 2014.
“We were very pleased with the asset and its performance during our ownership,” stated Steve Good, director of acquisitions for Florida-based TerraCap. “The results are a favorable outcome for our investors and that is always our goal.”
“We executed our strategy for this iconic downtown property by repositioning with high-quality tenants and increasing occupancy; a nice blend for investment success,” added Mike Davis, TerraCap’s managing director. “We are still very bullish on Sarasota as evidenced by our ongoing investment in Sarasota Gateway office park.”
“Sarasota’s office market is in expansion mode,” noted Douglas K. Mandel, senior managing director with IPA. “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, JLK Global Fund U.S. 2 Inc.
TerraCap Management, LLC considers thematic factors such as business formation, employment growth and population growth on a market-by-market basis, as most metros and submarkets have different economic-based industries and therefore move through their economic cycles differently. TerraCap makes moderate strategic overweighting or underweighting to markets, depending on the specific economic drivers influencing supply and demand. The Investment Manager has been in operation since 2008 with offices located in Estero, FL, Tampa, FL, and the Atlanta, GA metro area. As operators, TerraCap believes it can make decisions more efficiently while leveraging expertise from property to property.
With a network of senior-level investment advisors located throughout the United States, Institutional Property Advisors (IPA) is qualified to meet the needs of institutional and major private investors. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, superior support services and acclaimed research offer customized solutions for the acquisition and disposition of institutional properties and portfolios.