Tampa businessman ups bid on Rivergate Tower to $70 million
By Ashley Gurbal Kritzer
Tampa Bay Business Journal
Published: May 12, 2015

A Tampa businessman says he's increased his bid on Rivergate Tower to $70 million, but he's not "getting much of a response" from CBRE Group Inc., which is marketing the property.

Tom Frederick, who was a partner in Zeno Office Solutions before selling the company to Xerox in 2013, bid $60 million on the tower in mid-April.

He said he was told shortly after that he was outbid by "at least three" other parties, so he upped his offer to $67 million.

On May 7, he upped it again, to $70 million. He said CBRE hasn't told him when a buyer will be selected.

"We've really not been getting much of a response from CBRE," Frederick said. "I understand they want the management and leasing, and I would consider giving it to them as they obviously have a very good reputation. I just hope that's not the reason why I don't seem to be getting the kind of cooperation I would get on a transaction of this size."

A CBRE spokesman declined comment Tuesday.

Frederick, as a local individual, is an unlikely suitor for the tower. Most prospective buyers are large investment firms.

Listing brokers typically look for the highest offer and the most qualified bidder - an experienced buyer with a track record of closing deals. Frederick said he prequalified through CBRE to submit an offer.

He said he was told the asking range was between $65 million and $69 million.

"I submitted $70 million to be over the [asking] price and shortened my due diligence period," he said, "and I'm hopeful that this is going to get the attention of the current ownership."

The 515,965-square-foot tower, which is 77 percent occupied, sold in late 2014 as part of a 19-property portfolio. It's common in commercial real estate for the new owner to spin off certain properties after buying a large portfolio.

The tower's $59.6 million sale price recorded in county property records reflected an allocation within the portfolio, making it difficult to gauge what it would have sold for individually.

"I have a lot of great ideas on things we can do to bring it to the next level," Frederick said. "I think there's nothing better than having local ownership."