Ally Capital Pays $123M for Tampa Office Complex

One Urban Centre. Image courtesy of CommercialEdge

Ally Capital Group has paid $123 million for Urban Centre, a two-building office complex totaling 548,054 square feet in Tampa, Fla., according to Tampa Bay Business Journal. The buyer purchased the Westshore asset, as well as the adjacent seven-story parking garage, from Starwood Capital Group. Valley Bank provided financing for the acquisition.

The new owner plans to replace the previous property manager, JLL, with Franklin Street. The buildings were 88 percent leased at the time of sale.

Inside Tampa’s Urban Centre

Located at 4830 and 4890 W. Kennedy Blvd., One and Two Urban Centre came online in 1984 and underwent cosmetic renovations in 2008, according to CommercialEdge information. Starwood had purchased the office buildings in 2018 from the Teachers Insurance and Annuity Association for a combined $143.1 million and completed renovations worth $3.5 million to the common areas, amenity spaces and restaurants in 2022.

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Two Urban Centre. Image courtesy of CommercialEdge

The nine-story buildings have 32,000-square-foot floorplates and full-height atriums, as well as ground-floor retail. Amenities include private conference facilities, a fitness center, a café with a lounge, a dining and event space, landscaped outdoor courtyards and EV charging stations.

Urban Centre also includes an 11-floor, 325-key luxury hotel that was not part of the current transaction.

Situated adjacent to the WestShore Plaza shopping mall in one of the city’s largest business districts, Urban Centre provides quick access to many of Beach Park’s dining, retail and entertainment options. Downtown Tampa is some 4 miles to the east, while Tampa International Airport is 4 miles north.

Trey Korhn, first senior vice president & head of Valley Bank’s commercial real estate division, worked to secure the financing for Ally Capital.

Tampa’s temperate office market

Despite an unpredictable leasing and investment environment, Tampa’s office market retains solid fundamentals, particularly as the city’s professional sectors expand. The metro ranked sixth in the nation for office-using employment growth on a year-over-year basis as of February, according to data from a recent CommercialEdge report. The development pipeline amounted to 850,000 square feet as of March, while the vacancy rate clocked in at 16.3 percent, 40 basis points below the national average.

The same data provider shows that nearly 2 million square feet of office space have changed hands in the metro since the beginning of the year. In one of the more significant transactions, a joint venture between MHCommercial Real Estate Fund II and Siguler Guff purchased a 180,247-square-foot office property located within walking distance of Urban Centre.