Feldman Equities, Tower Realty Repeat History
- Mar 26, 2015
Just months after completing the sale of Wells Fargo Center in Tampa, Fla., to Greenfield Partners L.L.C., a joint venture between Feldman Equities L.L.C. and Tower Realty Partners has bought back an equity position in the premier 390,000-square-foot office property.
Feldman Equities and Tower Realty are not commenting on the percentage of their new stake in Wells Fargo Center or the price paid for it. The partners first acquired the 22-story tower in 2012 for $44.8 million before investing roughly $6 million in upgrades and taking the occupancy level from 75 percent to 93 percent. Then, in late 2014, the joint venture decided it was time to say goodbye to the asset, selling it to Greenfield for $78 million. But the separation didn’t last long.
“One of our institutional partners saw an opportunity to realize a significant profit by selling their stake. The new, recapitalized partnership, sees a lot more upside in the Wells Fargo Center building and the downtown Tampa office market.,” Larry Feldman, CEO of Feldman Equities, told Commercial Property Executive.
Anchored by Wells Fargo & Co., global financial services firm UBS and law firm Phelps Dunbar, the 30-year-old Wells Fargo Center sits in Tampa’s central business district at 100 S. Ashley Dr., near the 600,000-square-foot Tampa Convention Center. At the close of 2014, the 12-month forecast for downtown and the rest of the Tampa area was for lower vacancy levels, rising rents and increased leasing activity, according to a report by commercial real estate services firm Cushman & Wakefield Inc. Investors have good reason to be drawn to Tampa, especially its CBD.
“Thousands of apartment units are being built all around the downtown area, which is converting the area into more of a 24/7 downtown,” Feldman noted. “There has always been a large concentration of affluent executives that live very close to the downtown area in South Tampa, Davis Island, and Harbour Island. These ‘lease signers’ are increasing in numbers and are a part of the national trend of re-urbanization.”
Per the new ownership agreement at Wells Fargo Center, Feldman Equities will provide leasing oversight, working with Cushman & Wakefield to fill the remaining 33,000 square feet of office space, and Tower Realty will continue to hold management responsibilities for the building.