The price of the 10-story building at 4200 West Cypress St., directly off Interstate 275, compares with the May 2003 sale of another class A Westshore property, the 13-story Tampa Commons that went for $40.2 million or $158 per sf, the biggest office deal of 2003.
For TIAA-CREF, the acquisition of the trophy property marks its second Tampa area purchase since buying the Pointe building on nearby Rocky Point in October 2002 for $41.2 million or $165 per sf--the highest recorded price in the Tampa Bay hub, area brokers tell GlobeSt.com.
TIAA-CREF expects to be involved in another high-profile building transaction, this time as a seller, when its 36-story, Downtown SunTrust Financial Centre is sold. TIAA-CREF has had about a dozen offers for the property and has rejected the highest offer to date--$76 million or about $144 per sf, area office brokers tell GlobeSt.com. Trammell Crow Co. is managing the property for TIAA.
The Tampa office of CB Richard Ellis Inc. negotiated for Prudential which had asked the brokerage to keep its name out of press releases. CBRE will take over the building's management from Opus South Corp., the Minneapolis-based developer which had built 4200 Cypress in 1990 for an estimated $27.57 million or about $125 per sf, Tampa construction industry estimators tell GlobeSt.com.
Prudential bought the building from Opus in 1998 for $26 million or $117.87 per sf, below replacement cost, area brokers familiar with the Westshore submarket tell GlobeSt.com. Prudential added the building to the portfolio of its US Property Investment Fund LP. The Hillsborough County property appraiser's office puts the building's market value at $27.5 million which is the estimated hard construction cost of the property. Prudential invested about $500,000 in building renovations.
Corporate tenants Xerox, Bank One subsidiary Paymentech AmeriGroup make up 75% of the rent roll. The asking average base rent is $21.77 per sf, according to the most recent market analysis by the Tampa office of Colliers Arnold. CBRE brokers Ronald J. Rogg, Kyle S. Burd, Anne-Marie Ayers and Jane Dizona negotiated for Prudential.
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