Texans buy flex buildings in 1031 investment

BUYER: Homeport LP, Midland, Texas

SELLER: Fifth Third Bank

PROPERTY: 700, 710, 720, and 726 Commerce Drive, Venice

PRICE: $1.58 million

PREVIOUS PRICE: $242,300, August 2000 and $272,300, February 1998

LAW FIRM ON DEED: Zimmerman Kiser & Sutcliffe PA, Orlando

PLANS, DESCRIPTION: A Texas couple purchased four flex buildings, a total of 56,307 square feet, in Sarasota County Interstate Business Center for $1.58 million.

The price equated to $28 per square foot.

Fred Kolb and Jim Garinger of Colliers International Southwest Florida handled the transaction.

Most of the buildings feature office space in the front and warehouse space behind. The property also includes 6,000 square feet of undeveloped interior space without HVAC service and another 10,000 square feet of largely undeveloped space with HVAC. Two of the buildings were built in 1998, and the other two were built in 2002 and 2004.

Tenants include shopping cart maintenance company Jimco Maintenance, a management office for Walgreens Co. and air conditioning and heating service company Mahle Inc.

Altogether the buildings were 59% occupied at the time of the sale.

“Since it closed one of the tenants has moved out, so it's closer to 40% occupied,” Kolb says. “The buildings need a bit of freshening up, but there wasn't any deferred maintenance.” Kolb says the transaction was a 1031 tax-deferred exchange.

Kolb says that while the vacancy is high, the property has a lot of potential given its location near Interstate 75.