HyperNap bought the land and an existing 177,000-sf building from J.C. Penney Properties Inc. A new 200,000-sf structure is planned for the second phase at an undetermined construction cost but probably in the neighborhood of $15 million, construction industry estimators familiar with comparable projects tell GlobeSt.com.

The partnership secured senior financing on the acquisition through Acme Realty Funding Inc., a Fort Lauderdale-based mortgage real estate brokerage company.

Investment partners Samuel D. Navon and William E. Ferrante signed an option about a year ago to acquire the property. Navon is a partner in the Fort Lauderdale law firm of Navon Kopelman O'Donnell & Lavin. Ferrante is a Pompano Beach businessman.

The partners identified the property as an ideal site to serve high-tech tenants because BellSouth operates a high-speed switching station on an adjoining property. "There is a tremendous amount of fiber (optic cable) at that intersection," Ferrante tells GlobeSt.com.

Once building permits are approved, the partnership expects to complete renovation work on the 177,000-sf building in about four months. Fast-track permitting should be competed in three weeks.

"One of the most important elements is speed to market," Ferrante says. "Everyone is sensitive to speed to market in the high-tech industry. You have to have all the power they'll need immediately. We already have the ability to provide 150 watts per square foot in tenant power."

Although he wouldn't talk about prospective leasing rates, Ferrante says the high-tech center would offer Internet service providers an ideal location for linking to the network access points, or high-speed Internet switching stations, that BellSouth and Terremark are building in Miami.

Average area asking rates for comparable telecom properties in Dade County are $15 per sf to $18 per sf, according to area brokers. "We working with about six different tenants right now," Ferrante says. No leases have been signed to date.

Instant Insights /

HyperNap Putting $13 Mil on Line to Develop 377,000 SF of Telecom Space

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