Committed Deals in Bradenton Are Still Closing
The biggest obstacle people have is getting their lender comfortable, says John Bell of Transwestern.
BRADENTON, FL—Prior to the coronavirus era, Bradenton could boast of a robust office market, buoyed by a three-pronged engine of professional tenants, government entities and medical offices. That momentum has slowed, at least for the short term.
“It has been an extremely thriving downtown market that’s been reinventing itself,” John Bell, Transwestern managing director, tells GlobeSt.com. “Over the last couple of years, there have been some pretty dramatic art walks and parks developed along the river and a lot of new multifamilies going up as well.”
Bell’s firm recently facilitated the sale of Plaza Del Rio, a 78,553-square-foot office tower in downtown Bradenton. The deal was well underway by the time the pandemic hit Florida. He says the sellers, who weren’t disclosed, did not hesitate to move forward with the transaction.
Bell says there are two different paths in the market right now. Deals that are brand new with people just getting into contract are facing challenges, but deals that people are committed to and have financing taken care of are typically moving forward.
“The biggest obstacle people have is getting their lender comfortable,” he says. “Those with existing lender relationships are getting their deals funded, but if you have to go and establish a brand new financing relationship, it will be more challenging. It doesn’t mean it won’t happen, but it certainly is more difficult.”
The current big impediment, Bell says, is the state’s shelter-in-place order that is stopping some deals from happening in terms of due diligence, vendors and inspections. He says that is a short-term obstacle.
“Once that’s lifted, we are going to see a real boom in activity,” Bell says. “Our projection is that we believe this is nothing but a pause and we believe we will be moving forward in a very strong fashion with investor interest. In the late third quarter and fourth quarter, there will be a spring forward and incredible demand. That’s all pent up from nothing going on for the last month or so and mostly likely for the next month as well. We see a great finish to the year.”
The seven-story Plaza Del Rio office tower, built in 1986, was sold to Florida-based partnership 101 Riverfront LLC for $8.6 million.