IP Capital Partners pays $49M for nine of Parkway Properties' buildings

BUYER: Sabal Venture LLC (manager: IPCP Sabal Management LLC), Boca Raton
SELLER: FLA Owner LLC
PROPERTY: 9720, 9950, 10002 and 10117 Princess Palm Ave., 3632 Queen Palm Drive and 3901, 3922, 3929 and 3923-3925 Coconut Palm Drive, Tampa
PRICE: $48.7 million
PREVIOUS PRICE: $46.78 million, July 2005
LAW FIRM ON DEED: Driver McAfee Peek & Hawthorne PL, Jacksonville

PLANS, DESCRIPTION:
Boca Raton-based real estate investment and asset management firm IP Capital Partners LLC purchased nine Tampa office buildings for $48.7 million.

The price equated to $93 per square foot. That figure is less than the two-year average price per square foot for office space ($118) in the Tampa Bay area, according to the CoStar Group.

The about 519,000-square-foot properties include the five-story The Atrium, three-story Registry One, three-story Registry Two, Registry Square, three-story Sabal Corporate Center and Sabal Business Center I, II, III and V. The buildings, which were all previously owned by Parkway Properties, were 74% occupied at the time of the sale.

“We love the location and the turnaround story that's occurring in Tampa,” says Josh Procacci, chief investment officer for IP Capital Partners. “It was also a little bit of a value-add play. We plan to turn them around and inject some new capital to bring them back to stabilization.”

The new owner has hired Taylor & Mathis to manage the buildings.

Parkway Properties has turned most its recent attention locally to the Corporate Center I, II, and III at International Plaza. In late September, it acquired a 22-office-building portfolio that included the three Corporate Center buildings for $475 million and has since sold off the other 19 office building for $237 million. Parkway Properties retained ownership of the 252,364-square-foot Sabal Business Center IV and also owns Buschwood Park I, II and III, Corporate Center Four at International Plaza, Cypress Center I, II, III and IV, The Pointe, West Shore 500 and Westshore Corporate Center.

IP Capital Partners also owns the M&I Bank Plaza in downtown Tampa.