Denholtz Properties has a reputation for purchasing and relocating projects that are often overlooked in the market.
That’s when New Jersey-based Red Bank and Convergent Capital Partners acquired the 240,000-square-foot 490 First Ave. South office building in St. Petersburg for $ 19 million in 2016.
At that time, the Tampa Bay Times’ longtime home, an eight-story building, was only 46% committed. However, due to a $ 13 million refurbishment, major lease renewals, and new leases of over 100,000 square feet to Bank of the Ozarks, Taylor Media, L3 Technologies’ successors, etc., Duo will sell its property in late 2018. I was able to do. Lincoln Properties-led partnership for $ 39.35 million.
Most recently, in March 2020, Denholtz purchased nine Thompson centers for $ 26.54 million, or $ 115 per square foot. This is a significant discount on replacement costs.
“I thought this was a great location in a growing market, two miles north of Tampa International Airport and 12 miles of downtown Tampa,” said Jordan Wien, director of leasing and business development at Denholtz, Florida. say.
“The company likes this product type. It’s a one-story office and flex space. It’s very attractive and what Denholtz is familiar with. And it’s an old product and the company is properly modernized. I also know how to do it. “
The 225,651 sq ft business park (renamed Sweetwater Business Center due to its proximity to Sweetwater Creek) was completed in 1987.
According to Hillsborough County asset records, Denholtz has owned the first Industrial Titrust to acquire the 5455-5557 W. Waters Avenue Project since 1997.
Currently, the property is dominated by more than 20 tenants, including Home Depot Inc., BayCare, Eckerd Youth Alternatives, Keller and Terracon.
According to Vienna, Denholtz has invested more than $ 1 million in Sweetwater to upgrade business park windows and landscaping, change color schemes, replace façade and install new billboards.
“The idea was to make physical improvements that would actually pop at the street level, making the place more attractive to both businesses and employees,” Wean says.
He adds that properties such as sweet water fit into Denholtz’s long-standing business model throughout the state.
Currently, the company owns over 2 million square feet of commercial real estate in Tampa, Orlando and Deerfield Beach. Denholtz also has its Florida Regional Headquarters in Orlando.
In addition to Sweetwater, the company also owns the Pinellas Business Center in St. Petersburg and the Times Building in Tampa, according to the website.
“Sweetwater is a value-added project in terms of rent growth, but we also expect further market growth as a result of work dynamics,” Wean says.
“Denholtz has been in Florida for over 20 years and is looking to increase his presence in Florida in the future,” he says. “We are hungry to find a deal in a particular market we like. The state has many economic tailwinds due to the state’s growing population and employment.”
Wean, who joined Denholtz last October from North Carolina-based real estate investment trust Highwoods Properties, said the company will also consider development opportunities under certain conditions. To date, all Denholtz development activities have been carried out in New Jersey, according to its website.
To facilitate future growth in Florida and elsewhere, Denholtz is also preparing to launch a real estate fund with a $ 50 million stake, which will be used to acquire about $ 200 million. Raise funds.
The fund is expected to not only target the office and industrial sectors that Denholtz is familiar with, but also explore opportunities in multi-family rental spaces.
According to Vienna, the fund will help Denholtz complete real estate for large buyers and institutional investors.
In total, Denholtz manages 39 properties in New Jersey, Florida and Pennsylvania today, just over 5 million square feet in total, the website says.
But in Sweetwater and beyond, Florida has the most opportunities for the company to move forward.
“Central Florida is definitely growing. It’s easy for us to lag behind, partly because the company has been running here for a long time,” says Vienna.
Sweet Moves at Sweetwater | Business Observer
Source link Sweet Moves at Sweetwater | Business Observer