Property details
Florida Upside Office For Sale, Southeast Region
Property Description
Florida Upside Office For Sale
The owner purchased this property in 2005 near the top of the market before the Great Recession.
At that time the building was performing well and in fact in 2007 a clinical drug trial company took the entire second floor, did a renovation and was very successful.
So successful in fact that they (clinical drug trial company) was purchased in 2010.
This left the second floor vacant and with the Great Recession happening the building went to 33% occupancy.
Work started working with the owner in 2014 trying to help lease the building.
The office market has been the slowest to recover due to changes in the dynamics of the office market.
In mid 2016 the owner was approached by the State of Florida looking for 14,000+ SF to lease.
Long story short after an 8 month bidding process the owner won the bid contingent on a substantial renovation.
The owner went through the planning stage and began construction in June 2017 with the target occupancy date of January 1, 2018 which would have made except for Hurricane Irma. The renovation was finally completed in March 1, 2018 and the State of Florida moved.
The lease is for seven years with 10 one year renewals possible. They are leasing the entire second floor (14,500+ SF) starting at $26.50/SF with 2 % yearly increases. It is a full gross lease. This year's gross income just off this lease is in excess of $400,000.00. The first and third floors are currently not leased and this would give an investor a tremendous upside once the other 60% of the building is lease out.
Based on just the income of the State of Florida lease, the owner's current expenses and a purchase price of $4,200,000 this would be a 6% cap rate purchase and give the investor a great deal of upside.
Images
Highlights
- Status:
- Available
- Price:
- $4,200,000
- PSF:
- $121
- Cap Rate:
- 6.00%
Property Information
- Building Size:
- 34,811 sq.ft.
- Property Type:
- Office
- Industry Type:
- Office
- Units/Spaces:
- 1
- Land Area:
- 1.73 acres
- Purchase Tenure:
- Fee Simple
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.