Tampa investor buys Verizon Wireless-leased building

BUYER: Lithia VZ LLC (manager: Myles O'Connor), Tampa
SELLER: 3300 Lithia LLC
PROPERTY: 3330 Lithia Pinecrest Road, Valrico
PRICE: $1.94 million
PREVIOUS PRICE: $950,000, April 2012
LAW FIRM ON DEED: Fanelli Law Firm PA, Tampa

PLANS, DESCRIPTION:
Tampa investor Myles O'Connor purchased a 2,400-square-foot freestanding retail building for $1.94 million.

The price equated to $807 per square foot. That figure is higher than the two-year average price per square foot for retail space ($138) in the Tampa Bay area, according to the CoStar Group.

The building, which is located at the corner of Bloomingdale Avenue and Lithia Pinecrest Road, is leased to Verizon Wireless, which has eight years remaining on its lease. The rental agreement obligates the buyer to maintain the building's roof, structure and the parking lot and has an annual rent increase throughout the initial term.

The building is adjacent to a new Wawa convenience store and across the street from the Publix-anchored Shoppes at Lithia retail center.

The purchase price equated to a payoff ratio based on income of 6.85%.

James Medefind and Armando Rodriguez of Marcus & Millichap's Tampa office handled the transaction.

“This particular asset drove several offers, but at the end of the day we were able to find a local private investor who was willing to pay the most aggressive price of over $806 per square foot, which is a record for a single-tenant net-leased Verizon building,” Rodriguez says in a press release. “This was also a win for the buyer who was looking for inflation protection and limited management responsibility.”

The purchase entity, Lithia VZ LLC, mortgaged the building to Stonegate Bank for $1.5 million.