IP Capital Partners changes partner, recapitalizes M&I Bank Plaza

BUYER: SCIP 501 LLC (principals: Jason Isaacson and Josh Procacci), Boca Raton
SELLER: 501 East Kennedy Associates LLC
PROPERTY: 501 E. Kennedy Blvd., Tampa
PRICE: $30.36 million
PREVIOUS PRICE: $45.8 million, June 2007
LAW FIRM ON DEED: Bilzin Sumberg Baena Price & Axelrod LLP, Miami

PLANS, DESCRIPTION: An investment partnership led by IP Capital Partners LLC purchased the 296,082-square-foot M&I Bank Plaza for $30.36 million.

The price equated to $103 per square foot. That figure is less than the two-year average price per square foot for office space ($115) in the Tampa Bay area, according to the CoStar Group.

IP Capital Partners previously owned the building with different partners. IP Capital Partners did not respond to a request for comment prior to deadline, but the Business Observer has learned that the change in ownership was part of a recapitalization of the property.

Located adjacent to the Hillsborough County courthouses in downtown Tampa, the 20-story Class-A office building features an attached garage. Built in 1981, the high-rise commercial structure was renovated in 1997. It sits on a 1.03-acre site at the corner of Kennedy Boulevard and Morgan Street. The building features two banks, a conference room, seven passenger- and one freight-elevator, a hair salon, restaurant and deli.

The building was 85.3% occupied, as of the CoStar Group's last review of the property.

IP Capital Partners LLC is a private real estate investment and asset management firm that was formed to co-invest with various institutional and high net-worth joint venture partners in office, retail and industrial real estate in the major growth areas of Florida. Tampa is one of its four top targeted areas for investment, and IP Capital Partners plans to hold its transactions for three to seven years.