Beacon Capital Buys Tampa’s SunTrust Building for $82M
- Dec 07, 2011
One of the most recognizable buildings on Florida’s Gulf Coast has recently traded for a reported $82 million. According to the St. Petersburg Times, the 36-story SunTrust Financial Center sold for more than $30 million less than it went for back in 2007, when Charter Hall Office REIT and Stiles Corp. purchased it for $114 million.
A few months back, Sydney, Australia-based Charter Hall Office REIT had announced the execution of binding contracts to sell its interest in 14 U.S. office buildings for $1.7 billion to entities affiliated with Beacon Capital Partners L.L.C.; the portfolio included the SunTrust building. The sale is part of Charter Hall’s new strategy of abandoning the U.S. market and focusing more on the Australian commercial market. Among the 14 properties that are part of the Charter Hall-Beacon Capital deal, there is just one other Florida office building: the SunTrust Center in Orlando.
The SunTrust Financial Center, located at 401 E. Jackson St. in downtown Tampa, extends across an entire acre and is Tampa’s fourth-largest building, encompassing 527,000 square feet. Built in 1992, with Cooper Carry Inc. as architect, the building consists of 25 floors of office space atop 10 floors of parking, with a pyramid cap that houses mechanical equipment, the cooling tower and the building’s air conditioning system. Upon completion in 1992, it was one of the tallest cement-based buildings in the world.
With a taxable value of approximately $53 million, the SunTrust Financial Center has an average rent of $26 per square foot and in July 2011 registered an occupancy rate of just 78 percent, as reported by the St. Petersburg Times.