Prudential Warms Up to Tampa
- Sep 04, 2015
Prudential Real Estate Investors has acquired five Class A buildings in East Tampa’s Highland Oaks office park, a 1-million-square-foot suburban office park in Tampa, for $111 million.
CBRE arranged the transaction on behalf of the seller, who was not disclosed.
The portfolio consists of five Class A office properties totaling 575,852 square feet and boasts seven Fortune 500 tenants and the highest overall occupancy rates in the suburban market.
“They are high-quality, Class A buildings in a fantastic location, and the tenant base included significant tenancy from Fortune 500 companies, so it’s a phenomenal investment property,” Christian Lee, CBRE’s vice chairman, told Commercial Property Executive. “It’s a classic opportunity for the win-win situation, good for the seller, good for the buyer. The buyer has acquired an institutional-quality asset located in a supply-constrained market at well below replacement cost.”
The properties included in the sale are the 124,597-square-foot Highland Oaks I, located at 10150 Highland Manor Drive; the 125,318-square-foot Highland Oaks II, located at 10210 Highland Manor Drive; the 99,089-square-foot Highland Oaks III, located at 4041 Park Oaks Blvd.; the 128,376-square-foot Highland Oaks IV, located at 4042 Park Oaks Blvd.; and the 98,472-square-foot Highland Oaks V, located at 10401 Highland Manor Drive.
The portfolio is currently 96 percent occupied by 46 tenants, including Cognizant, McDonald’s, Mosaic, ConAgra, The J.M. Smucker Co. and John Deere. According to Lee, it’s not that common to see so many Fortune 500 companies in the same place.
“There’s a lot more demand for the Tampa market than product available,” Lee added. “Certainly, assets like this don’t become available too often in the area.”
Lee added that the property is in fantastic condition and the buyer has no plans to make any renovations or immediate changes at this time. CBRE will remain as the exclusive leasing agent for the property.
Located just off of Interstate 75, one exit south of the Interstate 4 interchange, Highland Oaks is home to eight Class A office buildings, including three that are owned and occupied by J.P. Morgan Chase, along with a 150-key Hilton Garden Hotel.