Miami firm closes $35 million purchase of downtown Class A office building, targets future investments in growing market
MIAMI and SARASOTA, FL – Jan. 29, 2021 – Tricera Capital, the Miami-based real estate investment firm, made its initial foray into the Sarasota market with the $35 million acquisition of BB&T Financial Center in the heart of the city’s downtown. The 9-story, Class A office building is one of the most recognizable properties within downtown Sarasota, which has experienced significant growth as individuals and corporations increasingly relocate to the area from high-tax states.
The transaction closed on Jan. 28. Tricera obtained senior financing from Prime Finance.
Located at 1800 Second St., the two-tower, 550,000-square-foot BB&T Financial Center includes 500 covered parking spaces. Originally developed in the 1980s, the building underwent more than $1 million in capital improvements over the past three years including upgrades to the roof, lobby and elevator systems. The property spans an entire city block between Links and North Osprey avenues.
With open-air atrium common areas, separate HVAC systems and private bathrooms in each suite, BB&T Financial Center is perfectly positioned to accommodate the post-COVID demands of office tenants.
“If you are an office user in Sarasota seeking space from 1,000 to 5,000 square feet, BB&T Financial Center truly stands alone,” said Tricera Co-Founder and Managing Principal Ben Mandell. “The building checks all of the boxes when it comes to privacy and security. We are thrilled to complete this acquisition and invest in Sarasota’s growth and future potential.”
Tricera partnered with Alex Karakhanian and Merrimac Ventures on the acquisition. It plans to enhance the value of BB&T Financial Center through a variety of strategies.
The building was approximately 70% occupied at closing, so the firm has plenty of available space to lease up at present-day rental rates. The existing tenant mix is diverse, with BB&T as an anchor and a variety of legal, financial and other professional service firms.
“BB&T Financial Center could not be more in our wheelhouse when it comes to value-add urban commercial real estate investments in growing markets,” said Tricera Co-Founder and Managing Principal Scott Sherman. “We are excited to execute our strategic plan for this asset and look forward to future opportunities to invest in downtown Sarasota.”
Douglas Mandel, executive managing director of Marcus & Millichap division Institutional Property Advisors, marketed BB&T Financial Center for sale.
“It was a pleasure to work with Tricera on this transaction,” Mandel said. “We knew this asset – and the broader Sarasota market – would be a great fit for the firm’s expanding portfolio. Demand for well-located urban office product remains strong and will only intensify as we move forward from the pandemic.”
Scott Wadler, managing director of Berkadia’s Miami office, arranged the acquisition financing.
Downtown Sarasota’s evolution has been fueled by substantial new residential development over the last decade, including a new project with more than 400 units planned for the Main Plaza site directly across the street from BB&T Financial Center. An additional 300 units is in the planning stages within four blocks of the property.
For leasing inquiries, contact Kevin Robbins of Robbins Commercial at firstname.lastname@example.org or (941) 924-8346 x 42.
About Tricera Capital: Miami-based Tricera Capital is a real estate investment firm focused on value-add, urban retail, office and mixed-use investments and developments throughout the United States. Since launching in 2017, Tricera’s principals have leveraged their institutional real estate experience, relationships and entrepreneurial spirit to create off-market opportunities and quickly amass a portfolio in select target markets. The principals are seasoned real estate professionals with deep track records of success in deal sourcing, acquisitions, syndication and leasing. Their experience enables Tricera Capital to strategically identify and execute deals and move swiftly to create value by repositioning assets and upgrading the tenancy to deliver superior returns to investors. For more information, visit www.triceracap.com.