Case Study
719 North Franklin Street, Tampa, FL 33602
Purchased 10/06 for $1,475,000.
Current value: $2,600,000, based on income and replacement cost.
Time of Purchase: This 15,000SF, 2-story retail/ office building in the core of downtown Tampa's CBD is located on the corner of North Franklin Street and Polk Avenue. The anchor tenant was The Hub Bar, Inc., and it was on a month-to-month lease. The only other tenant was a Thai restaurant that had 2 years of term remaining. Both were at sub-market rates. Given this, the occupancy rate was only approximately 50%.
The construction was predominately concrete and steel, which secured our long-term vision for the asset. The second floor was completely vacant and unconditioned space. Old lighting fixtures suggesting a sweatshop were hung throughout the space, and graffiti dominated the interior walls. No energy saving improvements or other capital improvements had been made in a discernible amount of time.
Stabilization Work: We increased the Hub lease to 10 years in term and brought them to market rents with rent escalations, and the upstairs was leased to a local gym, the Sweatshop, that only needed the space cleaned out and painted and no other tenant improvements. The Thai restaurant lease was extended to a 5-year term at market rates. All lighting on the second floor and in common areas was converted to energy saving fixtures and bulbs. Most interior walls and the full exterior was physically sealed, repaired, and repainted. Water heaters were replaced with Energy Star appliances. Although tenant's pay for their own utilities, the water meter was submetered to help them better control usage and control costs. We worked with the City and Downtown Tampa Partnership to get better streetscaping and exterior lighting to the building.
Purchased 10/06 for $1,475,000.
Current value: $2,600,000, based on income and replacement cost.
Time of Purchase: This 15,000SF, 2-story retail/ office building in the core of downtown Tampa's CBD is located on the corner of North Franklin Street and Polk Avenue. The anchor tenant was The Hub Bar, Inc., and it was on a month-to-month lease. The only other tenant was a Thai restaurant that had 2 years of term remaining. Both were at sub-market rates. Given this, the occupancy rate was only approximately 50%.
The construction was predominately concrete and steel, which secured our long-term vision for the asset. The second floor was completely vacant and unconditioned space. Old lighting fixtures suggesting a sweatshop were hung throughout the space, and graffiti dominated the interior walls. No energy saving improvements or other capital improvements had been made in a discernible amount of time.
Stabilization Work: We increased the Hub lease to 10 years in term and brought them to market rents with rent escalations, and the upstairs was leased to a local gym, the Sweatshop, that only needed the space cleaned out and painted and no other tenant improvements. The Thai restaurant lease was extended to a 5-year term at market rates. All lighting on the second floor and in common areas was converted to energy saving fixtures and bulbs. Most interior walls and the full exterior was physically sealed, repaired, and repainted. Water heaters were replaced with Energy Star appliances. Although tenant's pay for their own utilities, the water meter was submetered to help them better control usage and control costs. We worked with the City and Downtown Tampa Partnership to get better streetscaping and exterior lighting to the building.