Halstatt Partnership's second fund buys three commercial buildings

BUYER: NBF Holdings LLC, (Halstatt Real Estate Partners II LP), Naples
SELLER: JED of Southwest Florida Inc.
PROPERTY: 9130 Galleria Court, Naples
PRICE: $4.15 million

SELLER: FBCH LLC
PROPERTY: 6611-6631 Orion Drive, Fort Myers
PRICE: $2.6 million
PREVIOUS PRICE: $2.6 million, November 2001

SELLER: Colony Plaza LLC
PROPERTY: 24031 S. Tamiami Trail, Bonita Springs
PRICE: $2.15 million
PREVIOUS PRICE: $2.13 million, March 2005
LAW FIRM ON DEED: Bond Schoeneck & King PLLC, Naples

PLANS, DESCRIPTION: Halstatt Real Estate Partners II LP purchased a portfolio of three commercial properties in Collier and Lee counties, from JED of Southwest Florida Inc. for $8.9 million.

The private-equity fund purchased the 33,000-square-foot Galleria Plaza in Naples for $4.15 million, the 30,120-square-foot Orion Center in Fort Myers for $2.6 million and the 30,000-square-foot Colony Plaza for $2.15 million.

The combined price equated to $95 per square foot. That figure is less than the two-year average price per square foot for retail space ($140) and office space ($120) in Southwest Florida, according to the CoStar Group.

The 8-year-old Orion Center features London Bay Homes and executive suites on a 3.18-acre parcel. Galleria Plaza's retail tenants include Kumon Math and Reading Center, Tropical Smoothie Cafe and Domino's Pizza. The three-story Colony Plaza sits on U.S. 41 near Pelican Colony Boulevard.

“We were attracted by the quality of the assets, the location and the ability to take ownership and create value from the investments,” says Bobby Sullivan, principal of Halstatt Real Estate Partners. “Most of that income will come from leasing the vacant space. Colony Plaza is completely empty. There's a lot of room there to create upside.”

While Orion Center is 40% to 50% occupied, Galleria Plaza is fully leased. Sullivan says the income from Galleria Plaza will help to offset the carrying costs of the other less-occupied properties.

The portfolio marks the first acquisition of the second fund created and managed by Halstatt Partnership, a real estate and investment firm of the Sproul family. The first real estate fund, the $100 million Halstatt Real Estate Partners, was closed and fully invested in two years. Its local holdings include the 74,000-square-foot Uptown Center and 48,615-square-foot Tanglewood Marketplace in Naples and a building pad and condominium units in the Manatee Bay tower at the Waterside at Bay Beach in Fort Myers Beach.

The second fund will be capped at $125 million and will target commercial and residential real estate assets in Florida.