TerraCap Partners' second fund buys Kane Plaza

BUYER: Sarasota Sun Center LLC (principal: Walter S. Hagenbuckle), Bonita Springs
SELLER: Y Associates Ltd.
PROPERTY: 1 S. School Ave., Sarasota
PRICE: $11.5 million
PREVIOUS PRICE: $500,000, July 1999
LAW FIRM ON DEED: Williams Parker Harrison Dietz & Getzen, Sarasota

PLANS, DESCRIPTION: Bonita Springs investment fund TerraCap Partners II purchased the 88,178-square-foot Kane Plaza and adjacent four-story parking garage for $11.5 million.

The price equated to $130 per square foot for the office building. That figure is higher than the two-year average price per square foot for office space ($115) in the Tampa Bay area, according to the CoStar Group.

The 10-story office tower was 79% occupied at the time of the sale. The Sarasota Y currently is the building's largest tenant, leasing two floors. Other tenants include law firms and registered investment advisers.

“There wasn't much distress there, but it was still a bit of a value play,” says W. Stephen Hagenbuckle, founder and co-managing partner of TerraCap Partners, which manages the investment fund. “We plan to get leasing there into the mid- to upper 90s. We also have the adjacent piece of land across the street, which is currently a parking lot, where we could do some type of development. Maybe a mixed-use or residential project.”

Hembree & Associates Inc. will continue to market the property for the new owner.

TerraCap Partners II also assumed the seller's $7.82 million loan from U.S. Bank National Association.

TerraCap Partners is preparing to launch its third investment fund in early summer with a total capitalization of $400 million.