The deal is structured as a joint venture agreement with Australia-based Macquarie Office Trust with option rights which Stiles plans to exercise in the coming months. Macquarie acquired the property on Monday from Chicago-based CMD-WIND. Stiles will exercise its options in the property in March 2008, Corlew says.
The property, which consists of 25 stories of office space above a 10-story parking garage, includes an adjacent parcel with a small parking garage that could de demolished to make room for future development. Stiles has no immediate plans to develop the site, which may be suitable for a variety of uses, such as office, retail, hotel or residential, Corlew says.
Effectively immediately, Stiles will serve as property manager for the building. The occupancy level in the property is in the mid-90s. "We think Downtown Tampa has a lot of growth potential in terms of occupancy and rental rates," Corlew says. "There are good quality tenants in the building, but we think there are some rental rollovers with potential over the next 10 years."
Stiles plans to spend $3.5 million to $4 million on capital improvements to the property, including a complete elevator modernization and upgrades to the mechanical systems.
With the acquisition, Stiles increases its Florida portfolio to approximately $750 million, including office and retail properties with a total of over four million sf. In addition to Tampa, the company owns properties in Miami, Fort Lauderdale, Naples, Fort Myers and Orlando. Other recent acquisitions include the 194,671-sf Maitland Green I & II office complex and the 136,963-sf Southpoint at Maitland Center building in Orlando.
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