Flex Portfolio for Sale in Tampa MSA

Thursday, January 31, 2019

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing an office and industrial portfolio for sale totaling 376,551 square feet spread out across six buildings in Oldsmar, Florida, a community in the Tampa/St. Petersburg/Clearwater MSA. The portfolio, 580 Corporate Center, is located within the North Pinellas submarket, one of the best performing industrial and office submarkets in the Tampa MSA. Considering the overall economic growth of the area paired with exceptional demographics and strong fundamentals, 580 Corporate Center provides investors with a rare opportunity to purchase a stabilized suburban office and industrial portfolio with remaining upside.

580 Corporate Center’s six multi-tenant office and industrial buildings have direct frontage on Tampa Road, which has traffic counts exceeding 55,500 vehicles per day, and the portfolio offers excellent accessibility to major thoroughfares such as Veterans Expressway, Interstate 275, Interstate 4 and Interstate 75. Additionally, the suburban office and industrial property for sale is in Oldsmar, which is about 15 miles northwest of downtown Tampa and boasts strong fundamentals with an average household income of $87,127.

The properties are currently 91.1 percent occupied by a mix of local and national tenants, including Konica Minolta, The Nielson Company, Zippy Shell, Paragon Water Systems and Change Healthcare, Inc. In addition, an abundance of amenities is directly across Tampa Road along with a newly approved pedestrian bridge that, when completed, will provide direct access for tenants.

Suburban Office and industrial Portfolio for Sale Investment Highlights

  • The office park for sale houses a strong tenant mix with both credit and local tenants, including Konica Minolta, the Nielson Company, Zippy Shell, Paragon Water Systems and Change Healthcare, Inc. (McKesson subsidiary).
  • The six-building portfolio is in one of the strongest-performing commercial submarkets, North Pinellas, which boasts vacancy rates of less than two percent for industrial and less than six percent for office.
  • There are attractive returns with significant upside through rapidly increasing submarket rental rates, boasting a five-year rent growth of 15 percent over the past five years alone.
  • Significant leasing velocity as evidenced by a 31 percent increase in occupancy since 2016.
  • In-place rental rates are well below submarket average of $21.66 (full service) for office and $8.07 triple net leased for industrial.
  • The property has been institutionally owned and managed for over 11 years with significant capital spent in building upgrades including new roofs and HVAC units.
  • A newly approved pedestrian bridge over Tampa Road will provide tenants direct access to Oldsmar Town Center shops and restaurants.
  • Current ownership has bifurcated properties into six separate parcels, giving new ownership flexibility for future individual building sales to reduce basis and improve yields.

For more information on this other office properties for sale in Florida, please contact Robbie McEwan in HFF’s Orlando office or Luis Castillo in HFF’s Miami office. To download more information on this property, please click here

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