Commercial Florida Realty Partners announced today the sale of Westshore Office Portfolio, along with downtown Tampa’s 501 E Kennedy Blvd. building, now known as WeWork Place, to PG-PKY Fairway JV, LLC, an affiliate of Parkway Properties in partnership with Partners Group, a global investment firm.
The properties involved in the transaction total 756,138 rentable square feet, with a total sales price of over $155 million.
Commercial Florida Westshore LLC, an entity formed by Commercial Florida Realty Partners, created a joint venture with Angelo Gordon to acquire the Westshore Office Portfolio in Tampa, which totals 460,056 square feet in July 2015.
The Tampa office of Cushman & Wakefield advised Commercial Florida and Angelo Gordon in the sale of the Westshore Office Portfolio to PG-PKY Fairway JV, LLC, an affiliate of Parkway Properties and Partners Group.
Commercial Florida also partnered with Angelo Gordon to acquire the 296,082-square-foot WeWork Place at 501 E Kennedy in February 2016.
“We added significant value by securing new tenants and expanding and renewing existing tenants,” said George Sacks, President of Commercial Florida and Asset Manager, who oversaw the business plan. “As a result, we increased the portfolio’s value beyond the expectations of our financial partner.”
Westshore Office Portfolio
The Westshore Office Portfolio consists of:
• Westshore Corporate Center, a 12-story, 173,000-square-foot Class A office tower at the intersection of Westshore Boulevard and I-275, which provides high visibility in a location easily accessible to major transportation arteries, downtown Tampa, and Tampa International Airport.
• Cypress Center I, Cypress Center II, Cypress Center III and a 6.1-acre developable parcel of land with entitlements for a future 6-story, 200,000-square-foot office building, to be called Cypress Center IV. The Cypress Center I, II, and III buildings, which total 287,000 square feet, are located in a park-like setting south of West Cypress Street and east of North Reo Street, with direct access to I-275, the Veterans Expressway and the Courtney Campbell Causeway.
Since 2016, Commercial Florida has spent $7.5 million on capital improvements throughout the Westshore Office Portfolio. Cypress Center I, II, & III underwent a $5.8 million capital improvement plan, including atrium renovations in Cypress Center I & III, a new state-of-the-art fitness center in Cypress Center II, an innovative eating facility in Cypress Center III, new energy-efficient air conditioning systems, and new monument signage. An additional $1.7 million in capital improvement projects were done at Westshore Corporate Center, including modernizing and renovating building elevators and installing updated LED lighting.
A diversified mix of credit-worthy international, national, regional, and local tenants occupy the buildings in the Westshore Office Portfolio. Notable tenants include Progressive, Amscot Corporation, Redfin, Federated Mutual Insurance, American Express, James Albertelli Law, ADP, Healthesystems, Invitation Homes, InvestCloud, Bancorp Bank, and USPS.
WeWork Place at 501 E Kennedy
WeWork Place at 501 E Kennedy occupies a city block in Tampa’s central business district, adjacent to County Center, a city park and multiple courthouses, and offering exceptional views of the downtown Tampa skyline, the Hillsborough River, and the new Water Street development in Channelside.
As the joint venture took ownership of the building in 2016, a major law firm had recently vacated, dropping occupancy from 91% to 57%. Commercial Florida implemented a business plan involving effective management, aggressive leasing, and significant capital improvement projects. The result: Commercial Florida repositioned the asset while stabilizing occupancy at 89%.
Commercial Florida spent $5.3 million on a capital improvement plan that included doing spec buildouts of numerous suites, replacing atrium skylights, modernizing elevators, and completing a streetscape project that included replacing outside building panels, reconfiguring a walkway with pavers, and installing trees and park benches along Kennedy Boulevard.
WeWork Place at 501 East Kennedy’s tenant roster includes WeWork, GE Capital, Woodforest National Bank, BMO Harris Bank, BDO USA, and Frank Recruitment. The building’s proximity to nearby courthouses has also attracted tenants in the legal field, such as La Cava & Jacobson, P.A., Banker Lopez & Gassler, P.A., and the Florida Office of the Attorney General.
“We are proud of our accomplishments in downtown Tampa and the repositioning of 501 East Kennedy along the Tampa skyline,” Sacks said.
About Commercial Florida Realty Partners:
Commercial Florida Realty Partners, based in Boca Raton and Tampa, Florida, is a leading vertically integrated commercial real estate office operator and investor specializing in the asset management, property management, leasing, and acquisition and disposition of office properties throughout Florida. As a full-service boutique commercial real estate organization, Commercial Florida Realty Partners continuously seeks new and better ways to add value for clients and is committed to providing the highest level of service. Team-driven and focused on clients and partners, Commercial Florida Realty Partners brings together a command of local markets, unsurpassed research capabilities and entrepreneurial approaches to give its clients and partners every advantage in the marketplace. It continues to build its organization to be responsive to clients’ needs, adding new expertise and services where appropriate.
ABOUT ANGELO, GORDON & CO., L.P.
Angelo, Gordon & Co., L.P. (“Angelo Gordon”) is a privately held limited partnership founded in November 1988. The firm currently manages approximately $36 billion with a primary focus on credit and real estate strategies. Angelo Gordon has over 535 employees, including over 200 investment professionals, and is headquartered in New York, with associated offices elsewhere in the U.S., Europe, and Asia. For more information, visit www.angelogordon.com.
For more information:
Kyle Parks, B2 Communications