Tampa Assets Trade for $146M
- Aug 28, 2019
IP Capital Partners, a Boca Raton, Fla.-based private real estate investment and asset management firm, teamed up with an institutional capital partner to buy two assets in Tampa, Fla. The partnership paid $145.8 million for the Grand Hyatt Tampa Bay, a luxury 444-key hotel, and Bayport Plaza, a Class A, 265,976-square-foot office property. According to Yardi Matrix data, the previous owner was UBS Realty Investors.
The deal was the most expensive commercial sale in Hillsborough County in a year, according to the Tampa Bay Times, which also reported that the previous owner bought the hotel and office property in 2010 for $55.6 million.
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Located along Tampa Bay near the Tampa International Airport, the properties are in the epicenter of the Rocky Point and Westshore submarkets. The Grand Hyatt Tampa Bay has nearly 33,000 square feet of meeting space, three food and beverage outlets, two tennis courts, an outdoor resort-style swimming pool and a 24-hour fitness center. Bayport Plaza features a tenant roster that includes numerous Fortune 500 and global companies, including Boeing, Chubb, Fidelity, Colonial Life, Mutual of America, Paycor, Savills Studley and Baird Investments. Built in 1985 by The Wilson Co., the 11-story building underwent a cosmetic renovation in 2004. It has 1,332 square feet of retail.
JLL Hotels & Hospitality advised on the sale of the two properties. JLL advised on behalf of the seller and also secured acquisition financing for the buyer. JLL Senior Director Preston Reid and Director Wyatt Krapf led the hotel transaction while Senior Managing Director Hermen Rodriguez led the office transaction. Senior Managing Director Chris Drew and Director Maxx Carney led the financing effort. The deal was secured by HFF prior to being acquired by JLL on July 1. Co-brokerage services were provided by Jones Lang LaSalle Americas Inc.
Noting waterfront properties in Tampa are increasingly rare, Drew said in a prepared statement there was significant interest in financing the transaction of two premier assets. Rodriguez noted office investors were attracted to Tampa’s job growth and Reid cited the strong interests in Tampa as a business and leisure travel destination. Reid also pointed to the $2.64 billion airport expansion and the increasing number of direct flights to the market.
Busy markets in Tampa
In other Tampa hotel news, Hilton opened Hampton Inn by Hilton Tampa Downtown Channel District and Home2Suites by Hilton Tampa Downtown Channel District, a 10-story, 213-key dual-branded hotel in downtown Tampa in July. The property is close to the Tampa Convention Center, the Florida Aquarium, Amalie Arena, Water Street and Port Tampa Bay. Less than a mile southwest from the dual-branded property, a 502-key Hilton hotel changed ownership in May.
In Tampa office news, Transamerica sold 570 Carillon Parkway, a 245,000-square-foot office building in St. Petersburg, Fla., to the Feil Organization for $36.8 million in May. Transamerica did a partial leaseback, taking back about 52,000 square feet of property. Located in the Carillon Business Park, it is close to the Tampa central business district.