Feldman, Tower, Second City pay $29M for First Central Tower

BUYER: First Central Tower, Vancouver, British Columbia
SELLER: Osprey S.P. Properties LLC
PROPERTY: 360 Central Ave., St. Petersburg
PRICE: $29.15 million
PREVIOUS PRICE: $17.45 million, December 2001
LAW FIRM ON DEED: Norton Hammersley Lopez & Skokos PA, Sarasota

PLANS, DESCRIPTION:
A joint venture of Feldman Equities LLC in St. Petersburg, Orlando-based Tower Realty Partners and Vancouver's Second City Real Estate purchased the 17-story First Central Tower and adjacent parking garage in downtown St. Petersburg for $29.15 million.

The price equated to $118 per square foot for the office space. That figure is in line with the two-year average price per square foot for office space ($118) in the Tampa Bay area, according to the CoStar Group.

Located at the southeast corner of Central Avenue and Fourth Street, First Central Tower is anchored by BB&T Bank, whose name tops the building. Other tenants include Abbey Adams Law, Traub Lieberman Law and United Insurance. Including known tenant move-outs, the building is 50% occupied.

Larry Feldman, CEO of Feldman Equities, will spearhead leasing and redevelopment efforts for the 247,346-square-foot tower. Tower Realty Partners will handle management of the property. The new ownership plans to invest nearly $10 million dollars in building renovations and tenant improvements.

“As with our other downtown acquisitions, this is yet another opportunity for us to do what we do best — renovating and upgrading office buildings in order to maximize their value,” Feldman says in a press release. “Downtown St. Pete is in in the midst of an impressive revitalization with thousands of new residential units planned or under construction. We are thrilled to be a part of this reurbanization trend.”

Improvements are planned to the lobby, air conditioning and mechanical systems, parking garage security and lighting, common areas and restrooms. The new ownership is also planning to create an amenity package with a concierge desk, fitness center and conference center. Some of the lower floors will also be converted to prebuilt, multitenant spaces with common lounge areas.

First Central Tower is the third downtown St. Petersburg acquisition for Feldman and Tower. The partnership also owns the 190,000-square-foot Morgan Stanley Tower and the 242,000-square-foot City Center. Both are more than 95% leased.

Larry Feldman and Feldman Equities have developed or acquired more than 11 million square feet of office and retail properties with an aggregate value of more than $2.5 billion.

Tower Realty Partners, led by Cliff Stein and Reid Berman, is a commercial real estate owner focused on value-added real estate throughout Florida. It currently owns more than 4 million square feet of office space.

Second City Real Estate is a private equity company that targets mid-market companies and distressed real estate assets across Canada and the United States.