New York-based Sentinel Real Estate Corporation has acquired Preserve VII, a Class-A, 115,000s/f office building in Tampa, Florida, from Highwoods Properties, Inc.
Sentinel paid $43 million for the building, which is fully leased to MetLife Corporation through October 2031.
“Preserve VII provided us with an opportunity to acquire a well-stabilized asset with a tenant that has made significant commitments to both the property and the surrounding area,” said Martin Cawley, Managing Director of Sentinel. “We expect the asset will generate steady returns and an opportunity for growth and appreciation due to its location in the quickly-growing Tampa market.”
Preserve VII is located in Highwoods Preserve, a mixed-use campus comprising office and multifamily properties that is situated in close proximity to regional thoroughfares and residential centers, as well as dining, shopping and other recreational activities.
Developed as a build-to-suit property in 2007, the property projected to generate $2 million of annual cash net operating income in 2021, according to a statement from the seller.
Ted Klinck, President and Chief Executive Officer of Highwoods Properties, said, “This sale is the first closing in our plan to substantially fund our planned portfolio acquisition from PAC with proceeds from non-core asset sales. We are pleased with the execution of this sale and buyer interest in the non-core properties we currently have in the market. We’re looking forward to redeploying disposition proceeds into high growth BBDs in Charlotte and Raleigh via our planned portfolio acquisition.”
Highwoods has agreed to acquire a portfolio of office properties from Preferred Apartment Communities (PAC) for $769 million. The acquisition is expected to close during the third quarter of 2021.
The company’s plan is to ultimately fund the acquisition primarily by accelerating the sale of $500 to $600 million of existing non-core assets by mid-2022, approximately half of which is planned to close by year-end 2021.
Established in 1969, is a New York City-based independently owned real estate investment management firm. The firm currently has $7.8 billion of institutional-quality real estate assets under management on behalf of more than 100 domestic and international clients. Sentinel maintains offices throughout the United States, the Netherlands, Germany and Australia. The firm’s portfolio currently comprises over 26,000 apartment units and 5.5 million square feet of commercial real estate.