iStar Financial Inc., a New York based Real Estate Investment Trust (REIT), took possession of Tampa Harbour Marina through foreclosure in 2006. The marina was originally built to operate as a club, with each of the dry racks and wet slips sold to individual owners. When that plan did not come to fruition, iStar, with the help of third-party management, began operating the marina.
As the economy improved post-recession, the marina began having great success, regularly operating at 100% occupancy with a waiting list. Consequently, iStar received several unsolicited “off-market” offers over their years of ownership and, toward the end of 2017, accepted one of those offers and went under contract. After a lengthy due diligence period and discussions of a possible price reduction from the contracted price, iStar and the buyer parted ways. On May 10, 2018, iStar listed the marina with Colliers International’s Leisure Property Advisor’s group.
iStar wanted LPA to begin the process quickly and efficiently. After analyzing and underwriting the asset, LPA and iStar agreed to take the property to the market unpriced and employ all resources for marketing. This process started with Colliers engaging its PR firm and drafting a press release. The release was picked up and the Tampa Bay Business Journal ran a “coming soon” feature story about the listing. The article ran on June 1, 2018 and the marketing campaign was officially launched on June 5th.
Through the quick engagement of the buyer pool both locally and nationally, 12-15 groups emerged as potential suitors within the first two weeks of marketing. Prospect groups were told to hold their offers until a call for offers date was set. Even with that being the message to the market, two offers were submitted before a date was even set with other groups asking what it would take to circumvent the process. While all that was happening, the buyer that initially had the property under contract before LPA was engaged began to fear losing out on the opportunity. That buyer came back to the table offering a significant non-refundable deposit, no further due diligence and a price significantly higher than what they had last offered iStar prior to falling out of contract. The deal closed on July 26, 2018, 51 days after the official launch of the marketing campaign.
“I highly recommend Matt Putnam and the Leisure Property Advisors team at Colliers International to anyone considering a sale of their marina who is seeking an efficient and transparent process that results in the optimal outcome. Having transacted more than $2 Billion in sale over the past 20 years, I have had extensive experience with brokers and recognize LPA’s unique value."
– Greg Camia, Senior Vice President, iStar Inc.