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Movement on downtown buildings is no trend
By ALEX ORLANDO
Tampa Tribune
Published: Jul 21, 2011

With one of Tampa's iconic skyscrapers sold and another coming onto the market, downtown commercial real estate values might seem to be headed skyward. But real estate experts aren't looking up.

Downtown's Rivergate Tower, commonly known as the "beer can building," 400 N. Ashley Drive, changed hands for the second time this year. But it's most recent sale was a foreclosure sale.

The previous owner, Royal Bank of Scotland, seized the building in February from America's Capital Partners in Miami. The building sold for $35.5 million in 2005. In-Rel Properties, based in Palm Beach, bought the tower last month for $22 million. Taxable value on the skyscraper is $18,828,700.

In addition to office space, the building holds Malio's Prime Steakhouse on its first floor, a gym and Sykes Enterprises, whose name appears in red letters at the top. The building is also often called the Sykes Building.

The 31-story, cylinder-shaped building was built in 1988. It first sold for $123 million.

Earlier this year, the SunTrust Financial Centre, 401 E. Jackson St., popped up on the commercial real estate market. Charter Hall Properties, the Australian company selling the 36-story building, has not disclosed the amount it is asking for the property.

The skyscraper, recognizable in the night sky for its multicolored lighted roof, sold for $73.5 million in 2004. Just before the housing bust in 2007, it fetched $114.5 million. The skyscraper was built in 1992 and holds 527,237 square feet of leasable space. Its taxable value is $53,221,100.

Mike Davis, executive director at commercial real estate firm Cushman and Wakefield, said these examples shouldn't be taken as a trend.

"This was a distress sale, and I don't think it's indicative of property sales in the downtown district," he said, referring to the sale of the Sykes Building.

But the possibility of an interest rate spike might be what's driving away buyers. Davis said such a spike could mean businesses would get a lower return on investment on the properties.

"I don't think it's the most opportune time to sell a building in downtown Tampa," he said.



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