The Dilweg Companies has acquired a seven-building, Class A office portfolio in suburban Tampa, paying $101m, or $145 per square foot, for the 698,100-square-foot campus. HFF arranged the sale on behalf of Durham, N.C.-based Osprey East and Osprey s.a. The firm also arranged $67.82m of floating-rate acquisition financing via Benefit Street Partners Realty Trust.
A growing population that’s bolstered the city’s economy was a key factor for Dilweg. “Companies like to relocate to Tampa for the quality workforce. Tampa has affordable housing, water activities on the gulf, and great schools,” said Hermen Rodriguez, senior managing director at HFF. “This [infill] portfolio offers access to big transportation infrastructure, and very good floorplate configurations.”
The portfolio is 74% leased to a variety of tenants, with no single tenant occupying more than 11% of the rentable space. The portfolio includes Tampa Oaks One at 12802 Tampa Oaks Boulevard, Lakeview at Hidden River at 8875 Hidden River Parkway, 9000 Town Center Parkway in the Lakewood Ranch submarket, WestLake Corporate Center I and II at 9119 and 9009 Corporate Lake Drive, Orion Center at 3001 North Rocky Pointe Drive East; and Palm Court at Hidden River at 8600 Hidden River Parkway.
While some international investors – particularly from Germany – have shown interest in Tampa over the past eight years, buyers are predominately domestic pension funds and real estate investment trusts.
“Investors want functionally attractive product, good parking ratios, good infill locations, good connectivity of workforce, and retail amenities incorporated nearby – the greater Tampa area provides that and so does this portfolio. Deals are being broadly marketed in Tampa, and there are a diverse number of investors eager to acquire,” Rodriguez added. “The development of new product in the pipeline is by historical measures pretty low, due to the increased cost of development today. The existing stock is pretty good, and the recovery is taking up vacancies.”