CBRE's vision from the Community Maritime PArk


  • January 14, 2014
  • /   Shannon Nickinson
  • /   community-dashboard
Where there might have been a YMCA, there ought to be a top-tier hotel at the Community Maritime Park. That is the conclusion of a report by real estate consultants CBRE, brought in by the city to study the market potential of three high-profile municipal properties. “Community Maritime Park is envisioned to be a vibrant and active part of downtown Pensacola. To achieve such goal, the Park must be more than just an office environment, which promotes only daytime use.  Its development mix must use the office to drive demand for retail and be balanced by other complementary uses,” the report says. CBRE was asked to evaluate the market potential of space at the Maritime Park, the Port of Pensacola and Pensacola International Airport. Pensacola City Council approved an agreement to let CBRE market those three areas for three years at 4 percent commission, though the Community Maritime Park Board still has to agree so that the park can be included in those efforts. Ed Spears says the CMPA board wanted some of the language in the agreement revised that relates to how co-brokers would be compensated. Typically in real estate, if another broker brings you a potential tenant and the deal works out, the two would share the fee. Spears says board member and Realtor Alexis Bolin is working with CBRE and their lawyer on refining that language to both sides’ satisfaction. “I don’t think there is anything that is a deal-breaker,” Spears says. The board’s executive committee meets today, with a full board meeting on Jan. 22 and while Spears says the agreement could come up, he hasn’t yet been directed to put it on the agenda. CBRE, the California-based consultants recommend a Hilton or Starwood branded hotel with approximately 225 rooms and 11,000 square feet of conference space within a five-story building on what is known as Site 8 at the park. “This parcel would be ideal for hotel development due to its extensive water frontage and direct access to the proposed marina,” according to the report. “Furthermore, Parcel 8 is separated from Parcel 7 by Devilliers Plaza, an open space with public walkways.” Last year, a proposal by the Northwest Florida YMCA to build a state-of-the-art facility on Site 8 -- with a seed donation of $5 million from Quint and Rishy Studer -- fell apart. The plan was approved by Pensacola City Council but rejected by the Community Maritime Park Associates Board. The Y would have paid $120,000 in annual lease fees for Site 8. Having the “branded full service hotel” imprint is key to CBRE’s recommendation, the report says. The cost to develop a hotel there is between $30 million and $38 million, the report says. “If the subject does not maintain a similar affiliation, it could have an impact on our concluded opinion(s),” the report says. Other recommendations for the park: -- A full service marina adjacent to the hotel that could be supported at an estimated 60 floating concrete wet slips. --  A waterfront restaurant pad site would support all park uses. -- Office market reports show slow absorption, therefore speculative office is unlikely. However, the Studer and Beck Properties leases provide Maritime Park with excellent momentum at good rates. -- The market does not support for-rent housing given current low replacement costs. The condominium market could be successfully developed in conjunction with previously described retail, restaurants and entertainment. -- Retail is likely last to be developed, as retail follows rooftops. PORT OF PENSACOLA, AIRPORT CBRE also was asked to look at the port to see what its best prospects might be. “Pensacola has extensive history in reviewing creating plans for potential redevelopment for its Port. It is not obvious to us that an alternative use, after the costs are vetted, can generate significant income over and above what the property is currently generating if the existing warehouse space were fully leased,” the report says. So CBRE recommends: -- Focus on companies like Offshore Inland that utilize the facility as a “home port.” -- Direct mail marketing to national users of seaports. -- Web based marketing site showing the features and benefits of the Port of Pensacola. -- Target market to manufacturers on a national basis that require a seaport to distribute non- containerized product. -- Aggressively market to existing tenants currently located in other Southeast seaports. The airport’s proximity to Interstate 10, its access to an educated talent pool and its growth prospects position it well, CBRE says, for growth. Their marketing effort would include: -- Meeting with airport personnel to develop a market strategy based upon the ideal tenant mix. -- Utilizing CBRE’s network and relationships with major cargo and aerospace companies to ensure PNS is on the radar of these firms. -- Direct marketing to Maintenance, Repair and Overall (MRO) firms nationally. -- Utilizing direct relationships with aircraft manufacturers and suppliers to market the airport. --  Collaborating with airport officials to enhance the existing airport website with information on available real estate lease opportunities. -- Targeting tenants on a national basis who typical locate near an airport.  
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