Make us your home page

Tampa's 'Beer Can' building goes for $22 million in foreclosure sale

The Sykes building, 400 N Ashley Drive, Tampa, was bought by In-Rel Properties.

Times (2010)

The Sykes building, 400 N Ashley Drive, Tampa, was bought by In-Rel Properties.

TAMPA — Downtown's iconic "Beer Can" building recently sold for about $22 million in a foreclosure sale after fetching $35.5 million during the real estate boom in 2005.

Palm Beach County-based In-Rel Properties bought the 31-story cylindrical office tower at 400 N Ashley Drive from the Royal Bank of Scotland. Royal seized the tower in February from America's Capital Partners of Miami after it defaulted on a $48.4 million loan.

In-Rel Properties, according to its website, owns and manages about 6 million square feet of office and retail space in the United States. Twenty-two buildings are in Florida, including Manatee Village in Tarpon Springs and Plaza 66 shopping center in St. Petersburg.

An In-Rel spokesman was traveling to Tampa on Wednesday and was unavailable to comment.

The building, also known as Rivergate Tower or the Sykes Enterprises tower, was nearly 38 percent vacant at the end of 2010. The 515,965-square-foot tower fetched about $42 per square foot, about a $25 drop per square foot from the 2005 sale. The $22 million sale is a fraction of the $49.5 million price tag in 2000 and $123.2 million in 1988.

Call center company Sykes Enterprises is the building's principal tenant and its name appears at the top of the building. It also houses the Tampa Downtown Partnership and Malio's Prime Steak House.

The building's taxable value is $26 million, Hillsborough County records show. In Tampa Bay, no similar-sized buildings are for sale.

Commercial real estate values are on the upswing in Tampa.

In Tampa, the price of Class A space, the most desirable property, climbed from $139 per square foot in 2004 to its peak of $210 per square foot in 2007. The figure dropped to $129 in 2009 and rose to $164 in 2010, according to data from Cushman & Wakefield, a commercial real estate firm.

The price is at $182 this year.

Mike Davis, executive director of Cushman & Wakefield, has been involved in two of Rivergate's earlier sales. Royal Bank tried selling the mortgage on Rivergate Tower before foreclosing on the property.

"This sale is not typical of commercial real estate values in Tampa," he said. "This was a distressed sale."

Although experts predicted the demise of commercial real estate a few years ago, it never happened. There are several reasons why large towers haven't been sold or lapsed into foreclosure. Davis pointed out that lenders are more willing to work with commercial borrowers to restructure loans, low interest rates have enabled borrowers to reduce payments and some businesses are expanding and demanding more for space.

Values, he said, should continue to rise as demand increases. "They've come back from the trough," he said.

Mark Puente can be reached at or (727) 893-8459. Follow him at Twitter at

Tampa's 'Beer Can' building goes for $22 million in foreclosure sale 06/29/11 [Last modified: Thursday, June 30, 2011 12:12am]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Walmart expands grocery delivery service to Tampa


    TAMPA — Walmart is expanding its grocery delivery service to Tampa, the company announced Monday. Five locations will offer delivery for online grocery orders.

    Walmart is expanding its grocery delivery to Tampa, the company announced Monday. | [Times file photo]
  2. Marina at Hudson Beach poised to become 24-unit condominium-hotel


    HUDSON — One of the mainstay businesses at Hudson Beach is poised for redevelopment into a 24-unit condominium-hotel.

    The owners of Skeleton Key Marina in Hudson have filed preliminary plans with Pasco County to redevelop the site into a 24-unit condominium-hotel.
  3. Have your say Tampa Bay on the region's future transit options

    Mass Transit

    TAMPA — It's time, yet again, for Tampa Bay residents to tell officials what kind of transit options they want for their region.

    The Cross-Bay Ferry docks at the Tampa Convention Center on its maiden voyage on Nov. 1, 2016. A regional premium transit study will determine whether a ferry, or other options such as express buses or light rail, would be a good addition to Tampa Bay. [SCOTT KEELER  |  Times]
  4. SOCom seeks civilian drone pilots to develop new technology through ThunderDrone


    TAMPA — For the last three years, Nicole Abbett has been using drones as part of her photography business, with clients like the city of Tampa and construction companies.

    Josh Newby, 31, Palm Harbor, of Tampa Drones fly's a drone in England Brothers park, Pinellas Park, 8/25/16. As drone popularity increases as a hobby and business, local governments are navigating a legal grey area- where, when, and how should drone flights be allowed?
  5. New apartment complex delivers unique floor plans


    RIVERVIEW — A new luxury apartment community has opened in the Progress Village area touting itself as a distinct living option just 10 miles from downtown Tampa.

    Alta at Magnolia Park dubs its new apartment community, that opened earlier this year in Riverview, a modern and distinct option for living just 10 miles from downtown Tampa.