Colonial Buys Three-Building Office Package in Clearwater

Colonial's executive vice president Bo Jackson didn't respond to GlobeSt.com's request for additional transaction details. But a prepared statement from Colonial says the REIT bought the properties from Melitta USA Inc., a national coffee vending supplier based here.

The Colonial statement didn't disclose the price but Pinellas County office brokers familiar with the submarket tell GlobeSt.com the properties probably sold for about $50 per sf or an estimated total $11 million. That estimated sale price would be about $100 below current replacement cost for a class A office building, area construction sources tell GlobeSt.com. Mangrove Bay Office Center was constructed in three phases between 1988 and 1997.

Dallas Whitaker, a vice president and market officer for the REIT, says in the statement the acquisitions "fit well in our portfolio. The buildings have convenient access from US 19 and great visibility, along with many nice amenities, such as tenant signage opportunity, a deli and covered parking."

Whitaker didn't disclose the asking gross average rent range but says he is "confident" the assets "will be solid performers." He says the REIT is "actively seeking opportunistic ways to expand our holdings" in the Tampa Bay market. Colonial selected Grubb & Ellis Co. as the properties' leasing agent.

Colonial entered Tampa Bay's largest office submarket, Westshore, in January with the estimated $52 million purchase of the 370,000-sf Westshore Place I and II class A office buildings, as GlobeSt.com previously reported. Like its Clearwater deal, Colonial also didn't disclose the price of the Westshore buildings. The properties were purchased from Miami-based America's Capital Partners.