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Industry Publication Trends

​Franklin Street and Ally Capital Group Unveil Mural at Westshore City Center

Franklin Street and Ally Capital Group Unveil Mural at Westshore City Center in Tampa, FL

Tampa, FL (April 8, 2020) –  Ally Capital Group commissioned local mural artist, Illsol, to create the largest mural to-date in the Westshore business district at Westshore City Center in Tampa, FL.

Over the last 6 months, Franklin Street and Ally Capital Group worked closely with Illsol on a design for the main building of the property that faces Westshore Boulevard. 

“This mural is a representation of the Westshore Business District moving forward as a hub of transportation and innovation” said Andrew Wright, CEO and Managing Partner of Franklin Street and a partner in Ally Capital. “The leadership at Tampa International Airport, Westshore City Center and throughout the Westshore Business District are committed to following through on initiatives that improve our community and make Tampa a top city to live and work.”

“Creating a sense of place that the community can connect with is something that is done so well through public art initiatives, like murals” said Matt Chadwick, Director for Ally Capital Group. “The mural at Westshore City Center adds vibrant character to the Westshore Business District and supports a dialogue for development, innovation and progress.”

For more than 35 years, the Westshore Alliance has been the voice of Westshore.   The Alliance and its members focus on initiatives designed to help transform Westshore into a walkable urban district.  Installing wider sidewalks, adding green spaces and establishing a bike network are among the organization’s initiatives to develop the Westshore District of the future.

“The vibrant and eye-catching Illsol art installation serves as a modern focal point in the Westshore District. It’s a welcome addition to West Shore Boulevard and one we hope will serve as a catalyst for other community arts projects for all residents and employees in the area to enjoy.” – Ann Kulig, Westshore Alliance Executive Director

The mural covers the west façade of 1311 Westshore Boulevard, and is only the first of several art installations to be included in the redevelopment of the property.  Formerly the Austin Center, the business park consists of five office buildings on a 10.4-acre parcel. Owned by Ally Capital, and managed by Franklin Street, the property has already started undergoing a capital improvement campaign of at least $10 million in building and campus upgrades.

“The title of the mural is 7:44 and the design represents growth and renewal,” said Tony Kroll, Illsol.  “It’s meant to show that the impact of our community is monumental. Tampa is full of creators and problem solvers who believe in making the world a better place.”

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Trends

Pivot: Where Tampa’s Commercial Real Estate Development Goes from Here

Excerpted from South Tampa Magazine (June 22, 2020)

Tampa residents have become accustomed to seeing cranes lifting steel beams onto downtown apartment towers and bulldozers clearing land for new office buildings in the Midtown Tampa development.

That won’t go away anytime soon, says Andrew Wright, the CEO and managing partner of the commercial real estate firm Franklin Street. But don’t expect to see any new projects get underway in the next six to 12 months.

“In terms of real estate projects themselves, for the most part, the trains are on the tracks. You don’t see that immediate adjustment like you would see, maybe, in a restaurant,” he says.

For full story, visit: https://tampamagazines.com/pivot-where-tampas-commercial-real-estate-development-goes-from-here/

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Trends

5 Shopping Center Trades that Went Through During COVID-19

Excerpted from ICSC (June 17, 2020)

Verdi River Way bought The Shoppes At Terra Bella (pictured at top) — a new-construction, 16,057-square-foot retail strip — for $7.6 million. “We were able to attract an all-cash investor who was able to see the future beyond COVID-19 and a return to normalcy,” said Ryan Derriman, director for Franklin Street, which represented the seller. “They understood the tenants were less effected by the virus, as opposed to sit-down casual dining restaurants or big-box retailers.

For full story, visit: https://www.icsc.com/news-and-views/icsc-exchange/5-shopping-center-trades-that-went-through-during-covid-19?utm_source=sctweek&utm_medium=newsletter&utm_campaign=SCT%20Week

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Uncategorized

Franklin Street Brokered Financing of Physicians Medical Center in Baton Rouge

Franklin Street Brokered the Financing of Physicians Medical Center in Baton Rouge, LA

Medical Office and Hospital Financing for $12.4MM

Tampa, FL (June 16, 2020) – Franklin Street has brokered the acquisition and renovation financing of Physicians Medical Center, a hospital and medical office building located in Baton Rouge, LA. 

Franklin Street’s Capital Advisory team Ben Miller and Casey Siggins represented the buyer New Era Companies, in the $12.4MM transaction. 

“With a short purchase and sales agreement window, we were able to structure this loan in phases allowing for the purchase of the property and then additional funding for tenant improvements and the build out. This was an ideal structure for the sponsors business plan.” said Ben Miller, Director, Debt and Equity Origination.

The Physicians Medical Center is a 76,370 square foot facility located at 7855 Howell Blvd, in Baton Rouge, LA.  Comprised of a single-story hospital and three-story medical office building, the property features 44,984 rentable square feet.  Once renovations are complete, the medical center will be anchored by Oceans Healthcare Outpatient Services and home to a local ophthalmology office, a division of the Louisiana Departments of Health and Capital Area Human Services.  Several other medical practices are being recruited including primary care and other specialists to serve the local community.

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Uncategorized

Franklin Street Brokers $7.5M Sale of The Shoppes At Terra Bella in Lutz, FL

Franklin Street Brokers $7.5M Sale of The Shoppes At Terra Bella in Lutz, FL
The Shoppes at Terra Bella sold for $471.76 per square foot

Tampa, FL (June 11, 2020)  Franklin Street has brokered the sale of The Shoppes At Terra Bella, a new construction 16,057SF retail strip near Tampa’s Premium Outlets located in the city of Lutz, Florida.

Franklin Street’s Retail Investment Sales teams, Bryan BelkJohn Tennant and Ryan Derriman represented the seller, Paradise Ventures, in the $7,575,000 transaction.  The buyer, Verdi River Way Limited Partnership, paid $471.76 per square foot.

“We were able to attract an all cash investor who was able to see the future beyond COVID-19 and a return to normalcy.  They understood the tenants were less effected by the virus as opposed to sit down casual dining restaurants or big box retailers,” said Ryan Derriman, Director for Franklin Street Real Estate Services.   

“Buyer’s continue to flock towards well location retail strips with carefully curated tenant mixes.  This center fronted a heavily trafficked corridor with 75,000 VPD.  The properties new construction and long-term leases from strong guarantees attracted multiple Real Estate Funds and private investors to bid on the asset, and we ultimately selected an all cash West Coast 1031 buyer,” said Bryan Belk, Senior Director for Franklin Street Investment Sales. 

As many multi-tenant retail centers have fallen out of contract because of the investor concerns due to the COVID-19 crisis, this one found it’s way to the closing table.

The Shoppes at Terra Bella is located at 23641 SR 54, Lutz, FL a suburb of Tampa.  A new construction retail strip, the Shoppes at Terra Bella has a large national tenant base including AT&T, Firehouse Subs, Tropical Smoothie Cafe, Sport Clips, First Watch, & Dental Care Alliance.

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Ask The Expert COVID-19

Ask the Expert: How Has The Market Sentiment Changed Over the Last 90 Days and How are Equity Providers Feeling

Ask the Expert: Ask the Expert: How Has The Market Sentiment Changed Over the Last 90 Days and How

Ask the Expert: Ask the Expert: How Has The Market Sentiment Changed Over the Last 90 Days and How are Equity Providers Feeling About Beginning to Invest Again?

90 days ago equity capital was looking for opportunity.  Institutional investors had been successfully raising equity for the promise of mid teen returns and 1.6+ multiples.  Acquisitions and ground up development were getting serious looks from those fund managers looking to put their bundled capital to work in a strong market. With low vacancies and few issues, 2020 would be a great year for investors and there was more on the horizon.

Then COVID-19 hit.  The market took a collective pause and for the next 75 days sat on its hands and waited.  They waited to see where this was going, how severe it would be and what property types would be the most and least affected. Pending deals were sometimes put on hold or dropped altogether and nobody had a solution.

Over the next 2 months the bad news continued to chill any appetite for investors to invest.  Some were and are holding capital for distressed assets, others just stopped investing wondering how long before the market would try to make a comeback.  Senior Housing, Retail, Hospitality, and ancillary services like paid parking, public events, schools and gathering and sports facilities were closing down with little or no end in sight.

Now we know much more about the virus, its characteristics and contagiousness.  There’s light at the end of the tunnel for many property types.  Multifamily is still going strong with both acquisitions and ground up development getting serious looks from equity capital.  Atlanta landlords report high occupancy and very low delinquencies.  Office properties are also getting strong interest from equity.  Hospitality, Senior living and Retail are struggling to get back to favor as senior COVID deaths and limited non-essential travel cause Airlines woes, hotel closures and retail bankruptcies. But there’s still demand for opportunities.  Investment groups are sitting on a lot of cash and for investment managers to get paid well, they need to invest.  Many are more cautious today and rightfully so. Nevertheless, most think we are through the worst of this which maybe was the unknown, and are looking to stronger demand and opportunity for the 3rd and 4th quarter of 2020 and high expectations for 2021. Given that deals like that take time to put together many investors and working diligently now to focus their equity capital on strong sponsors who have relevant expertise and control a site or property in a good market.

Bob Boyd
Director, Franklin Street Capital Advisors
Bob.Boyd@FranklinSt.com
404.832.1250
Ext. 0450