Highwoods Joins Bromley to Develop Midtown One in Tampa

TAMPA, FL—Highwoods Properties of Raleigh, NC has joined The Bromley Companies of New York City in developing the speculative Midtown One office project here.

Highwoods Properties announced the formation of the joint venture today with Bromley Companies to build the 150,000-square-foot office building in the Westshore submarket of the city. Highwoods now owns an 80% interest in the joint venture. The company estimates the project will involve a total investment of $72 million.

Construction of Midtown One is projected to begin in the fourth quarter of 2019 with a scheduled completion date in the first quarter of 2021. The joint venture expects a pro forma stabilization date in the fourth quarter of 2022.

Midtown One is the first of three planned office buildings for Midtown Tampa. Highwoods and Bromley will be marketing the remaining planned office space, comprising two buildings and approximately 600,000 square feet.

Highwoods Properties CEO Ed Fritsch states, “We’re excited to participate in this mixed-use development and partner with Bromley as we start Midtown One. Midtown Tampa’s fully integrated mixed-use aspect, especially at this scale, is a first for the overall Tampa market and represents an excellent long-term opportunity for Highwoods.  Having the retail, multi family, hotel and office partners all on board, fully financed and commencing construction gives us increased confidence in the successful outlook for Midtown Tampa.”

With the addition of Midtown One, Highwoods development pipeline has grown to $707 million comprising 1.7 million square that is 84.3% pre-leased.

The Midtown One office building is part of the expansive Midtown Tampa mixed-use project. The building, which will be LEED-certified, is already attracting significant interest from prospective users, Highwoods officials state.

Midtown Tampa is a new mixed-use project on 22 acres with a total projected investment of more than $500 million that will encompass 1.8 million square feet of overall development. The project is planned for 750,000 square feet of office, 220,000 square feet of retail and entertainment, 390 multi-family units and 225 hotel rooms. In addition, Midtown Tampa will feature outdoor gathering space, walking trails and a three-acre lake.  The project has excellent access to the major transportation nodes of I-275, Dale Mabry Highway and W. Cypress Street.

The retail and entertainment portion of the project is under construction and approximately 50% pre-leased to a mix of national and local customers, including Whole Foods, Burton’s Grill, Ponte Group Restaurant, True Food Kitchen and others.  The multi-family development, Novel by Crescent Communities, and a dual-branded Aloft and Element hotel by Concord Hospitality, are also under construction.  Bromley is the master developer of Midtown Tampa.

Highwoods also announced it had signed a 210,000 square foot renewal with Vanderbilt University Medical Center at 3401 West End in Nashville. This was the company’s largest lease expiration in 2020. The new lease is scheduled to expire in late 2025.In addition, Vanderbilt University Medical Center expanded its presence in Nashville’s West End submarket with Highwoods by signing an additional 20,000-square-foot lease at 3322 West End.