Feldman Equities and its joint venture partners, Tower Realty Partners and Equity Street announced the acquisition of Sarasota City Center, two Class A office buildings located at 1819 Main St in downtown Sarasota.
The buildings total 247,947 s/f and are connected by a common atrium.
Equity Street, a real estate equity syndicator, assisted in financing the acquisition.
The joint venture acquired the property at 80 percent occupancy and intends to make a multi-million-dollar investment in renovations. The partners expect to complete renovations and achieve lease-up over two years.
“We’ve had our eye on the Sarasota market for years now and we’re thrilled to grow our greater Tampa Bay footprint to one of the fastest growing counties in the country. Downtown Sarasota is hot right now,” said CEO Larry Feldman.
“Still, we managed to acquire these buildings at less than half of replacement cost and we don’t expect any new supply to come online in downtown Sarasota for at least four or five years.”
JLL marketed the property on behalf of the seller, The Dilweg Companies. Additionally, JLL worked on behalf of the new owner to obtain a loan with NXT Capital. Loan proceeds funded the acquisition and will be used by the borrower to substantially upgrade the building.
The joint venture expects to spend approximately $10 million in capital and tenant improvements to upgrade the building. The improvements are expected to help drive leasing and improve operational efficiency.