Denholtz Associates, Convergent Capital Partners Complete Sale / Leaseback of Tampa Bay Times Headquarters for $19 Million4.29.2016
St. Petersburg, Fla. (April 27, 2016) – Denholtz Associates, has announced the acquisition of the Tampa Bay Times Building in St. Petersburg, Florida with joint venture partner Convergent Capital Partners for $19 million. The Property, an eight-floor, 240,000 square foot Class-A office space located at 490 1st Avenue South will continue to serve as the Tampa Bay Times’ headquarters, as the publishing company subsequently signed a 15-year lease to occupy 110,000-square-feet.
“Denholtz has had a relationship with the Tampa Bay Times and the community that it serves for over 20 years and the opportunity for us to acquire such a landmark asset, while assisting Times Publishing Co. in its rightsizing will ensure it remains a fixture of this community for many years to come,” Said Steven Denholtz, CEO of Denholtz. “Our plans to further invest in the asset with a substantial capital improvements plan will continue to deliver value to the St. Petersburg community and build upon the long tradition of attracting Class-A tenants to downtown St. Pete and, in particular, this space in the Tampa Bay Times building.”
Denholtz and Convergent Capital intend to invest heavily in capital improvements in order to further modernize the building, improve upon its existing lobby, café, common spaces and mechanicals meant to raise the property’s profile in the downtown St. Petersburg market. There will be 115,000-square-feet available for lease, including high-floor and full-floor spaces with views of the bay, which can accommodate up to 40,000-contiguous-square-feet.
“This is our second major office acquisition in the Downtown St. Petersburg market in the past two years,” Said Nik Sachdev, Managing Director of Convergent Capital Partners. “We are very bullish on the growth happening in St Petersburg, and are excited to be a part of it. Being able to partner with a successful office operator like Denholtz assures us that the capital improvement plan will make this office building one of the best in the market.”
490 First Avenue South was originally constructed in 1924 and is now comprised of three modern and integrated buildings with additions being completed in 1968 and 1988. Some of the features that make the property so desirable include a 2,650 square foot auditorium on the first floor, a two-story photography studio located on the fourth floor and a flexible design allowing spaces to be built to suit.
Centennial Bank financed the acquisition and W. Kent Ihrig of Shumaker, Loop & Kendrick, LLP represented Denholtz and Convergent in this transaction.
“We could not be more pleased to be a part of this transaction and to work with partners like Denholtz and Convergent Capital,” Said Bud Stalnaker, Regional President of Centennial Bank. “Helping our customers develop a marquee asset in the heart of Downtown St. Petersburg is what community banking is all about.”
The building is within walking distance of dozens of premier and independently owned shops and restaurants, world-class museums, the Mahaffey Theater, a Publix grocery store, the St. Petersburg Yacht Club and thousands of residential units.
Mercedes Angell and Wendy Griffin of Cushman & Wakefield consulted the acquiring parties. David Box of Box Realty represented the seller, Times Publishing Co.
Questions regarding available leasing opportunities at 490 First Avenue South should be directed to Mercedes Angell and Wendy Griffin of Cushman & Wakefield.