It Was the Last Value-Add Office in Westshore

TAMPA, FL—Tampa's Westshore submarket heated up in 2014, so it only seems fitting that the year would end with another transaction there. Fairlead Commercial Real Estate partnered with Bridge Investment Group to snap up Westshore 500, a class A 129,728-square-foot office building, through its investment fund.

Located at 500 North Westshore Boulevard in Tampa, FL, this deal marks the seventh office tower and the second office building acquisition in Tampa for Fairlead and its partners this year. Fairlead acquired the 19-story office building Fifth Third Center in Downtown Tampa in the summer of 2014. Financial terms of the deal were not disclosed.

“After buying several office assets in the Southeast US in 2014, we have been pleased to see the predicted business growth and confidence continue in Tampa,” says Jeff Shaw, president of Fairlead. “The Westshore submarket has arguably been Tampa's healthiest submarket.”

Indeed, in 2014 the Westshore submarket continued to tighten and as if shifted towards becoming a landlord market. Vacancy moved downward as several proposed infrastructure projects are on the boards. Significant deals this year include the SunTrust Financial Centre sale in October and JP Morgan's 185,047-square-foot lease at the class B Memorial Center in August.

“Westshore 500 is in the perfect location next to Westshore Plaza mall, and it was one of the last 'value-add' opportunities to come available there,” says Shaw. “Our ownership is committed to investing significant capital in the building to improve common areas, building systems, and amenities.”

Christian Lee, Dale Peterson, Charles Foschini and Marcos Minaya of CBRE's Capital Markets group represented the seller in both Tampa transactions. Fairlead has tapped Colliers International's leasing team of Claire Calzon and Joanne LeBlanc to lease Westshore 500.

The acquisition moves Fairlead's corporate investment fund to 50% deployed. The firm is looking to acquire another $400 to $600 million of industrial and office assets over the next 18 to 24 months in the Southeast US and Texas, according to John Ward, chief investment officer of Fairlead.