The listing is the largest retail investment opportunity in Tampa’s urban core in several years
A total of 115,899 square feet of ground-floor retail and office space in Grand Central at Kennedy, in the fast-growing north end of Tampa’s Channel District, is coming to market.
The property is currently 99% occupied by 14 tenants. Of the listed property, 60,329 retail space and 55,570 square feet is office space.
Four major tenants – retailers CVS Pharmacy and Crunch Fitness, and office users Kraft Heinz Foods and Quality Carriers (a division of CSX Corporation) – occupy 80% of the gross leasable space. Other tenants include bars and restaurants Cena, City Dog Cantina, Pour House and Maloney’s Irish Pub, as well as a Massage Envy franchise.
The Channel District has seen impressive growth in the past couple of years, with the introduction of new apartment buildings, bars and restaurants, necessity retailers and increased office activity. The area has matured into a vibrant live-work-play environment.
Grand Central at Kennedy represents the largest retail disposition in Tampa’s urban core since 2014, when Jeff Vinik purchased the 225,000 square feet that was previously Channelside Bay Plaza before being converted into what’s now Sparkman Wharf.
The Grand Central at Kennedy listing includes the usage of 862 parking spaces for retail and office users and their visitors, divided over two garages.
The owner of the offering, GCAK Tampa LLC, represented by its manager, Mercury Advisors, has engaged Mike Milano, CCIM, MAI, Nicholas Coccodrilli and Brandon Rapone with Colliers to serve as the exclusive listing agents.
“This is a rare opportunity to acquire a trophy retail asset that is part of a premier mixed-use development in the Tampa urban core,” said Milano, Executive Managing Director, Retail Investment Services, Colliers. “Given the lack of available land in the Channel District, it’s unlikely that a project of this scale, with a similar level of functionality and synergy between residential, office and retail, can be replicated.”
Originally developed in 2007, Grand Central at Kennedy was the Channel District’s first mixed-use project. Today, there are 1,650 multifamily units in the immediate vicinity, including luxury apartments Channel Club, The Fitzgerald and The Slade, as well as Grand Central at Kennedy’s 392 condominiums. Development of an additional 675 multifamily units is currently underway within a tenth of a mile of the property.
“Typically, urban retail developments contain upscale fashion and restaurant retail tenants,” Milano said. “However, Grand Central contains a mix of necessity, service and restaurant tenants that affords residents access to essential goods and services within walking distance. This makes Grand Central a desirable and active retail property in Tampa’s central business district.”
GCAK Tampa LLC completed over $1.7 million in renovations of its outdoor courtyard at the end of 2020. The seller is listing the property now to capitalize on the strong market, marked by a heightened demand for quality assets.
The property, at 1120 and 1208 E Kennedy Boulevard, is located a half-mile from both the Water Street development and the future Gas Worx development.
“The Channel District is next up to see significant increases in multifamily per-square-foot rental rates,” said Coccodrilli, Senior Financial Analyst & Florida Sales Associate at Colliers. “The increase in multifamily rental rates will trickle down to growth in both retail and office rates, positioning Grand Central and all real estate investments within the Channel District for extensive growth in value.”
Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 67 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to real estate occupiers, owners and investors. For more than 25 years, our experienced leadership with significant insider ownership has delivered compound annual investment returns of almost 20% for shareholders. With annualized revenues of $3.0 billion ($3.3 billion including affiliates) and $40 billion of assets under management, we maximize the potential of property and accelerate the success of our clients and our people. Learn more at corporate.colliers.com, Twitter @Colliers or LinkedIn.
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