TAMPA, FL-In a clear sign that capital is flowing to individual investors, Settler’s Pointe Office Complex has traded for $1.2 million. The clean deal involved a 1031 exchange and a triple net trade.
Moe Derbala, an investment specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Florida-based seller, a private investor. The listing agent also secured the buyers of the property, private investors based out of Seminole, Fla. The project sold at a 9.12 cap rate for $93 a foot. The buyer got traditional bank financing with a $240,000 down payment.
“This was one of the very rare normal deals out there,” Bryn D. Merrey, vice president and regional manager of the firm’s Tampa office, tells GlobeSt.com. “The owner had the asset for 23 years and didn’t want to manage it anymore so he’s 1031 exchanging into a triple net property. The buyers were a group of three doctors.”
Settler’s Pointe Office Complex was built in 1981 and is situated on 1.08 acres at 14914 Winding Creek Court near Interstate 275. Merrey says the fully-occupied multi-tenant office building lost a tenant during the due diligence phase, but the owner quickly found a new one, demonstrating how easy the project is to fill. Merrey expects a busy fourth quarter.
“When we went through the debt ceiling crisis over the summer we found that the number of offers we were getting on strong credit, well-located properties, things like Walgreens and CVS, was rising,” Merrey says. “Cap rates have compressed from the first quarter to the second quarter. When you look at all the investments out there, real estate is still the least volatile. So you are a seeing a flow to funds into real estate.”