Downtown Tampa's iconic Rivergate Tower sold for $22 million in a foreclosure sale this week. The commercial real estate building known as the "Beer Can building" previously sold for $35.5 million during the real estate boom in 2005, according to the St. Petersburg Times.
In-Rel Properties, a South Florida-based firm, purchased the 31-story building from the Royal Bank of Scotland. The company owns and operates close to six million square feet of office and retail space in the U.S., with twenty-two buildings in Florida.
The building, which is also known as the Sykes Enterprise tower, was almost 38 percent vacant at the end of last year, according to the media outlet. The $22 million price tag is a mere fraction of the $123.2 million it sold for in 1988 and the $49.5 million it fetched in 2000.
Commercial real estate values are rising in Tampa and the tower's taxable value is $26 million, according to Hillsborough County records. The price of Class A space in Tampa was $129 per square foot in 2009, but rose to $164 last year.
"This sale is not typical of commercial real estate values in Tampa," Mike Davis, executive director of Cushman and Wakefield, told the news source. "This was a distressed sale."