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St. Pete business park sells for $27.2 million
A South Florida-based real estate management firm recently acquired a six-building business campus in North St. Petersburg for $27.2 million.
Basis Industrial, headquartered in Boca Raton, purchased the Pinellas Business Center from Boston-based Taurus Investment Holdings. The deal closed Aug. 29.
The sprawling campus features 206,275 square feet of flex space suitable for office or industrial uses. Joe Chick, an associate with CBRE, the world’s largest commercial real estate services and investment firm, was one of three brokers who represented Taurus in the transaction.
“We’re seeing investors still gravitate to the Tampa Bay area and want to buy assets,” Chick told the Catalyst. “There’s a reason for that. They’re buying because they think demand is going to fill vacancies.”
The Pinellas Business Center opened in 1986 at the intersection of Roosevelt Boulevard and 9th St. North in St. Petersburg’s Gateway area. Taurus bought the property for $19.9 million in 2021 and launched a $3 million façade renovation project the following year.
According to an announcement, Basis plans to replace and repair all HVAC units, reseal the asphalt, upgrade landscaping and improve roofs. The property was 93% leased at the time of the sale.
“Basis has been aggressively buying these industrial-flex outfits throughout the State of Florida and, quite frankly, the Sun Belt,” Chick said. “They already have a significant presence here in Tampa Bay, and this was an exceptional opportunity for them to add an additional 200,000 square feet to their existing portfolio.”
Basis now holds 650,000 square feet of commercial property in the Tampa Bay metro area. The company’s plan is to reach a million by the end of 2024.
In a prepared statement, Anthony Scavo, managing partner at Basis, said the firm is achieving its growth and expansion goals while “others are in wait-and-see mode.”
“This complex portfolio acquisition further reflects Basis’ ability to outperform and grow in this tough economic environment,” Scavo added. “This was a tough transaction in a tough market, but we got it done.”
Many of the companies operating from the campus have a laboratory component.
Chick noted the facility has several spaces designed to accommodate laboratories. Existing tenants include Sensidyne, Leidos, and Currant Health Florida.
Chick said Pinellas has one of the state’s highest concentrations of advanced manufacturing companies. Demand for facilities that accommodate those operations remains strong, and CBRE marketed the business center to a “small audience of investors rather than going wide with the asset.”
Jeff McFadden, managing director for Taurus, called the Pinellas Business Center a “great addition” that “performed at a high level.” He said selling to Basis was a logical decision.
Taurus sold a 15-building business campus outside of Orlando to Basis for over $42 million in 2023. Chick credited the local property’s visibility on Roosevelt Boulevard and connectivity to Tampa.
“From Basis’ perspective, there was some vacancy there … and that’s a value-add opportunity for them to lease that available space,” Chick said. “No tenant currently at the property has any plans to vacate. They’re all going to remain in place.”
In addition to laboratories, Chick said the unleased space is suitable for traditional manufacturing, service contractors and offices. “That’s the beauty of the flex business park setting,” he added. “You cater to a lot of different potential users.”
Basis officials announced they closed on two commercial properties in Dallas and Houston on the same day as the Pinellas Business Center. The company acquired over one million square feet of space Aug. 29.
Chick said the local acquisition underscores regional demand. CoStar Analytics recently reported that Tampa Bay, at 6.7 million square feet, led the state in office leasing activity over the past year. Miami was the next closest market, at 5.3 million.
