The seller was represented by Tom Robinson, of Northstar Realty, and Chris Lee, of CB Richard Ellis, Inc. UrbanAmerica had acquired the two-story building in December 2000 for $35.6 million when the property was 88% occupied. The company embarked on a capital program to enhance the property through physical improvements and aggressive leasing.
At the time of the most current sale, tenant roster included the Department of Education, the Department of Children and Families, Sprint and Pro Financial, among others, UrbanAmerica president and CEO Richmond McCoy tells GlobeSt.com.
"We're liquidating our assets in our first fund," McCoy says, of the decision to sell the property. "We had stabilized the asset and given what the capital markets have been, we felt it was a good time to sell."
The property has an approximately $14.4-million return rate, one of the reasons it was attractive for acquisition. "Ajax acquired it for the steady cash flow," McCoy says. "They view this asset as a long-term hold."
McCoy stressed that the sale does not reflect a desire by UrbanAmerica to exit the Tallahassee market. On the contrary, the company is still seeking investments in office, retail and student housing.
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