Michigan investors buy Central Avenue building

BUYER: Sarasota BGB Properties LLC, Sarasota

SELLER: Rizpoc LLC

PROPERTY: 435 Central Ave., Sarasota

PRICE: $1.15 million

PREVIOUS PRICE: $80,000, February 1998

LAW FIRM ON DEED: Norton Hammersley Lopez & Skokos PA, Sarasota

PLANS, DESCRIPTION: Two Lansing, Mich., businessmen purchased a 15,122-square-foot mixed-use building in downtown Sarasota's Rosemary District for $1.15 million.

The price equated to $76 per square foot and a payoff ratio based on current income (capitalization rate) of 7.8%

The 3-year-old building features six two-story townhomes, ranging in size from 1,404 to 1,880 square feet, and four retail units on the bottom level.

David McLaughlin and Susan Garrabrant of Elite Real Estate Properties handled the transaction.

“All of the [residential units] were European designed and really high-end,” McLaughlin says. “The former owner was originally planning to sell those units for between $600,000 and $700,000 a unit before the real estate market collapsed. I would estimate the replacement cost for the building would be $3.4 million, including land costs.”

At the time of the sale, all of the residential space was leased and all but one of the retail units was occupied.

The new owner has reached an agreement to lease the final retail space to a high-end salon. The retail space currently houses The Naked Florist and Frieler Construction Inc.

The purchase entity Sarasota BGB Properties LLC mortgaged the property to Insignia Bank for $750,000.