Distressed asset sells to MLB team owners of nearby sports stadium
CLEARWATER, Fla. – Avison Young’s Florida Capital Markets Group completed the $22.5 million sale of the 134,362-square-foot, 13-acre retail property at 21800 US Highway 19 N in Clearwater, Florida. The buyer, an affiliate of the Philadelphia Phillies, leases the adjacent city-owned BayCare Ballpark, home of the Phillies Spring Training and the Clearwater Threshers. Control of the land affords them the opportunity to plan for future redevelopment near the park.
Dubbed the Clearwater Collection, the property was a distressed asset that went into bankruptcy. The seller was Clearwater Collection 15, LLC, handled by court-appointed receiver and Avison Young Principal Michael Vullis. Avison Young spearheaded management and leasing before reevaluating the property and taking it to market with the Florida Capital Markets team of Principals John K. Crotty, Michael T. Fay, David Duckworth, Senior Vice President Nick Robinson, and Vice President Brian C. de la Fé leading the sale.
Floor & Décor anchors the retail center and is currently the sole tenant occupying 49% of the net rentable area with five years remaining on the lease. In addition to considering a buyer’s near-term value-add opportunities through repositioning and leasing, Crotty and team marketed the asset as a long-term covered land play with significant land redevelopment potential.
“Buyers continue to look for different infill land opportunities where they can combine multiple uses on an underutilized property that may have traditionally operated as exclusively office or retail,” said Crotty. “We saw great value in the Clearwater Collection beyond a straight-forward retail reposition, but as a full land redevelopment opportunity for various uses including multifamily, office, and retail.”
The asset’s distressed position and the nature of the receiver sale required Avison Young to navigate the deal through multiple parties, including the seller, special servicer, and the bankruptcy court.
“Resulting from running a full marketing process, we received multiple offers from retail investors and multifamily and mixed-use developers,” continued Crotty. “Ultimately, the most fitting buyer was the user of the adjacent property that will hold the property throughout Floor & Décor’s lease while determining the best redevelopment avenue to pursue.”
Located in the booming Tampa metropolitan area, one of the fastest-growing metros in the United States, the retail center sits approximately 20 minutes west of downtown Tampa and 20 minutes north of St. Petersburg. In-place zoning permits the construction of mixed-use development, including residential, office, retail and entertainment uses.
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