Hudson partners with Meridian to buy Fla. complex.

CLEARWATER, FLA.: Hudson Realty Capital LLC (HRC) of New York has partnered with Tampa, Fla.-based Meridian Development Group to acquire a 213,464-square-foot business park, known as Sunplex Business Center, located on 140th Avenue in Clearwater, Fla.

The subject property consists of four flex-office buildings situated on 17.54 acres. The purchase price was $17.15 million. This deal marks the second joint venture equity investment for HRC and Meridian in the Tampa Bay area in 2006. "The healthy market in the Tampa Bay Region and our proven track record with Meridian made this an attractive opportunity for us," said Spencer Garfield, managing director of HRC, a real estate opportunity fund manager. Earlier this year, HRC and Meridian partnered to acquire the 948,578-square-foot, former Winn-Dixie distribution center in Sarasota. It was the largest building sold in the Tampa Bay area in nearly a decade.

"Our immediate plan for the subject property is to make general upgrades as well as to re-lease one of the buildings, preferably to a single tenant," explained Garfield, who is responsible for business development nationwide for HRC. Since the formation of its initial two funds in 2002, HRC has closed more than $1 billion in debt and equity transactions.

Built in the mid-1980s, the property is located within the Airport Business Center on 140th Avenue between 49th Street and Roosevelt Boulevard in Clearwater. It contains approximately 60% Class B office space and 40% warehouse space.

"The submarket vacancy rate was 7% in the last quarter of 2005 and decreased to 5% in the first half of 2006," added Garfield. "Indicators point to the vacancy rate decreasing even further to approximately 3% over the next 12 months."