Starwood Capital Group buys Tampa Commons

BUYER: IX WR 1 North Dale Mabry Highway LP (IX WR Holdings LLC), Greenwich, Conn.
SELLER: Wells REIT II — Tampa Commons LLC
PROPERTY: One N. Dale Mabry Highway, Tampa
PRICE: $43.25 million
PREVIOUS PRICE: $49.08 million, December 2005
LAW FIRM ON DEED: Troutman-Sanders LLP, Atlanta

PLANS, DESCRIPTION: Greenwich, Conn.-based Starwood Capital Group purchased the 254,808-square-foot Tampa Commons office building for $43.25 million.

The price equated to $170 per square foot.

Located at the prominent corner of Dale Mabry Highway and Kennedy Boulevard, the 13-story building features a deli, four-story atrium lobby and 990-space attached garage. Constructed in 1984, it houses among others Hardin Construction Co., Ip View Inc., Rissman, Barrett, Hurt, Donahue & McLain PA and Wilkes & McHugh PA.

The building was purchased as part of a portfolio of 1.9 million square feet of office space in Tampa, Orlando, Charlotte, Winston-Salem, Pittsburgh and Salt Lake City from Wells Real Estate Investment Trust II Inc. The properties were acquired for $260.5 million. The private investment firm says the buildings had an average year built of 1999 and were 95% occupied, excluding the Salt Lake City property. More than 80% of the in-place income is derived from investment-grade tenants.

Starwood Capital Group officials say the buildings have strong tenants and generate significant cash flow.

“This transaction is an excellent opportunity for Starwood and its investors that perfectly fits our investment strategy because it generates strong cash on cash returns, it was purchased significantly below replacement cost per square foot and is located in markets where there is limited new supply,” Chris Graham, managing director at Starwood Capital, says in a press release.

Created in 1991, Starwood Capital Group has raised more than $16 billion in equity capital and, through its various funds, has invested $13.7 billion representing $36 billion in assets. The global investment firm currently has more than $22 billion worth of assets under management.

The Tampa Commons purchase entity IX WR 1 North Dale Mabry Highway LP mortgaged the property to Barclays Bank PLC for $67.62 million.