TerraCap Partners II buys five Westlinks buildings

BUYER: Westlinks Gateway LLC (principal: W. Stephen Hagenbuckle), Cape Coral
SELLER: Cambridge Associates of SW Florida LLC
PROPERTY: 12601-12631 and 12751-12801 Westlinks Drive and 12100, 12701 and 12730 Commerce Lakes Drive, Fort Myers
PRICE: $7.2 million
PREVIOUS PRICE: $2.15 million, November 1997 and $1.28 million, June 1997
LAW FIRM ON DEED: Kevin A. Denit Esq., Naples

PLANS, DESCRIPTION:
Cape Coral-based TerraCap Partners II took ownership of five commercial buildings in Westlinks Business Park in a deed in lieu of foreclosure. The investment fund purchased the $12.4 million worth of mortgage debt from an affiliate of Miami Beach-based LNR Partners LLC for $7.2 million.

The price equated to $31 per square foot. That figure is lower than the two-year average price per square foot for industrial space ($50) in the Southwest Florida area, according to the CoStar Group.

The five buildings have a combined 230,000 square feet and feature a mixture of office, showroom, flex and light-industrial space. Combined they were 55% occupied at the time of the sale, but are currently 85% leased.

“One of the things that really attracted us was the credit of tenants that were in there,” says W. Stephen Hagenbuckle, managing principal of the fund's manager TerraCap Management Corp. “This includes Staples, Home Depot, NeoGenomics, which at 45,000 square feet is our No. 1 tenant out there and growing. There's also Nestle and Red Bull. So it's a pretty good list.”

TerraCap Partners has since signed a contract to buy another four buildings in the business park with 117,000 square feet of space.

“There's not a lot of product that competes around the airport,” Hagenbuckle says. “This would give us 350,000 square feet, which is pretty institutional.”