SARASOTA – Feldman Equities, LLC (“Feldman”) and its joint venture partners, Tower Realty Partners (“Tower”) and Equity Street announced today the acquisition of Sarasota City Center, two Class A office buildings located at 1819 Main St in downtown Sarasota. The centrally located buildings total 247,947 square feet and are connected by a common atrium.
Equity Street, a nationally recognized real estate equity syndicator, assisted in financing the acquisition.
The joint venture acquired the property at 80% occupancy and intends to make a multi-million-dollar investment in renovations. The partners expect to complete renovations and achieve lease-up over two years.
“We’ve had our eye on the Sarasota market for years now and we’re thrilled to grow our greater Tampa Bay footprint to one of the fastest growing counties in the country. Downtown Sarasota is hot right now,” explained CEO Larry Feldman. “Still, we managed to acquire these buildings at less than half of replacement cost and we don’t expect any new supply to come online in downtown Sarasota for at least four or five years.”
Thousands of new apartment units and luxury condominiums are under construction in downtown Sarasota and the city includes some of the wealthiest zip codes in Florida. Employment grew by 2.6% over the past year, far outpacing the national average.
“We’re excited to announce this investment with Larry and his team. We only partner with best in class operators who specialize in their market. In greater Tampa Bay, that’s the Feldman team. We’re looking forward to another successful deal,” said Than Merrill and Paul Esajian, founders of Equity Street Capital.
JLL marketed the property on behalf of the seller, The Dilweg Companies. Additionally, JLL worked on behalf of the new owner to obtain a loan with NXT Capital. Loan proceeds funded the acquisition and will be used by the borrower to substantially upgrade the building. The JLL Capital Markets team representing the seller included Senior Managing Director Hermen Rodriguez, Senior Director Ike Ojala and Director Matthew McCormack. The JLL Capital Markets debt placement team was led by Managing Director Bryan Clark and Analyst Daniel Pinkus.
Feldman will oversee extensive renovations to the buildings, including modernized common corridors, an energy-efficient chiller, and main lobby enhancements. The vacant suites will be dramatically upgraded, and some will be pre-fitted with offices and reception areas for tenants seeking an immediate move in.
The joint venture expects to spend approximately $10 million in capital and tenant improvements to upgrade the building. The improvements are expected to help drive leasing and improve operational efficiency. “Sarasota City Center is already the best building in downtown Sarasota. Our goal is to bring the building up in quality to a Class A+ condition,” added Larry Feldman.
About Feldman Equities, LLC
Over the past 30 years, Feldman Equities has developed or acquired over eleven million square feet of office and retail properties with an aggregate value in excess of $3 billion. Feldman is a “re-inventor” of the office building and specializes in turning around distressed office assets. Feldman Equities and its partners own and manage 2.3 million square feet of office space in the Tampa Bay area.
About Tower Realty Partners
Tower Realty Partners is a privately held, commercial real estate investment & management company based in Orlando, Florida. Founded in 1987 by principals Cliff Stein & Reid Berman, Tower Realty Partners has been involved in the acquisition, leasing, and management of over 20 million square feet of real estate totaling in excess of $1.6 billion in transactions.
About Equity Street
Equity Street Capital is a privately held commercial real estate investment company that invests in retail, apartments and office properties. The company partners with local operators and has provided equity for over $465 million dollars of commercial acquisitions in the last couple of years.