LWR Offices, LLC, a local investor with an existing commercial real estate portfolio in the Sarasota market, has purchased Lakewood Heart Office Building, a 21,553-square-foot Class-A office building in Sarasota, for $5.35 million. The property, located at 6771 Professional Parkway, previously traded hands in April 2020 for $3.4 million.
Jag Grewal, CCIM, SIOR, of Ian Black Real Estate, represented both parties in the transaction. The seller was Kingdom Development LWR.
â€œThis property is a classic example of how repositioning an underperforming asset and stabilizing the existing income to provide a steady long-term income can yield a profit for sellers in todayâ€™s market,â€ said Grewal, partner at Ian Black Real Estate. â€œThe timing was perfect for the buyer, who was looking to reinvest in the market.â€
When Kingdom Development LWR purchased the property in 2020, occupancy was at 94% with rental rates below market value. The owners completed several improvements to the building, including upgrades to common areas, new HVAC, landscaping and resurfacing the parking lot.
Grewal also worked to lease the remaining vacancies and update rental rates to current market value. The property is now 100% occupied by local businesses, including The Center for Skin Wellness, and Brain and Body Chiropractic.
â€œThis property was incredibly attractive to the buyer because it offers a stable long-term income in a desirable office market,â€ said Grewal. â€œCurrently, office vacancy in Lakewood Ranch is around 5% thanks to its proximity to I-75 and local housing. Itâ€™s a much different picture in downtown, and investors are jumping at the opportunity to own in this market.â€
Lakewood Heart Office Building is located less than 1 mile from Lakewood Ranch Hospital. The property overlooks a lake and has ample parking for tenants.
About Ian Black Real Estate
Ian Black Real Estate (IBRE) is a boutique commercial real estate brokerage firm located in Sarasota, Fla. The firm is one of the largest commercial brokerage firms in Southwest Florida and boasts a deep knowledge of the commercial real estate market in Sarasota and Manatee counties and the surrounding area. For more information, visit ian-black.com.
SIOR is the leading global professional office and industrial real estate organization that certifies commercial real estate service providers with the exclusive SIOR designation, based on achievement, knowledge, accountability and ethical standards. Only the industryâ€™s top professionals qualify for SIOR. Today, there are more than 3,200 members in 685 cities and 36 countries. For more information, visit www.sior.com