WALTER T KRUMM VENTURES INC
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Walter T. Krumm
VENTURES INCORPORATED
985 Bethel Road'Columbus, Ohio 43214.(614) 457-8000
May 20, 1993
Jerry Sternstein
City of Clearwater Bid Coordinator
Third Floor
Clearwater City Hall
Re: Atrium at Clearwater Square
(Sun Bank Building)
Dear Mr. Sternstein:
In response to your recent invitation to bid on the Atrium Office Building which
the City of Clearwater presently owns, we are prepared to purchase the building
and parking structure for a price of:
$6,900,000 (Six Million Nine Hundred Thousand Dollars)
Your bid did not ask for a cash deposit, but it did include the form of Purchase
Contract that the City intends to use for the sale. This form of Contract which
anticipates an "all cash" closing is an "as is" status without representation from the
City as the Seller is acceptable to us as Buyers with only slight modifications.
"All Cash" quick closings are standard operating procedure for us as evidenced by
the enclosed West Palm Beach newspaper article that refers to our last three office
building acquisitions in Palm Beach County. All of these three closings were "all
cash", one pursuant to a similar bid procedure with FDIC. (See enclosed Black's
Guide editorial article and full-page photos of these properties.) We are also
closing a fourth building in Palm Beach between June I, 1993, and June 22, 1993,
making a total cash investment of $35 million.
We look forward to including the Atrium in our June closing schedule. We would
be willing to post a deposit upon mutual execution of a Purchase Contract or
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Jerry Sternstein
May 20, 1993
Page 2
proceed to an almost immediate closing as soon as the attorneys can work out the
title issues after execution of a Purchase Contract similar to the City's recent
purchase structure.
We would like to work with the City to help revitalize the Clearwater Downtown
Area including the creation of some green spaces and park areas to soften the
concrete look of the Downtown area and make it more hospitable to pedestrians
and workers alike. In addition to our cash closing proceeds, we are also
committing $1.5 million of extra funding towards future tenant finish work,
exterior repairs and renovation of the two-story atrium entryway.
Weare anxious to work with the City on this Property and look forward to a
mutually-beneficial relationship should the City elect to work with us on the
Atrium.
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Enclosures
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Walter T. Krumm
VENTURES INCORPORATED
985 Bethel Road"Columbus, Ohio 43214"(614) 457-8000
May 20, 1993
Jerry Stemstein
City of Clearwater Bid Coordinator
Third Floor
Clearwater City Hall
Re: Atrium at Clearwater Square
(Sun Bank Building)
Dear Mr. Stemstein:
Should the City elect to sell the Atrium office building to my company, I will be using
the Justice Corporation to handle our on-site management and leasing. Al Justice will
also coordinate our efforts to create a park area for a portion of the land between the
office building and the parking garage.
Please handle any communications regarding our offer through Al Justice by phone at
(813) 531-4600 or by mail to:
Albert N. Justice, President
Justice Corporation
19329 U.S. 19 North, Suite 100
Clearwater, FL 34624-3156
Thank you for considering our offer of $6,900,000 tendered in the accompanying letter.
Please be advised that the Buyer is responsible for all brokerage commissions, if any are
due and payable to the Justice Corporation for this transaction.
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Walter T. Krumm
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PAST AND CURRENT PROJECTS
WALTER T. KRUMM AND RELATED ENTITIES
Walter T. Krumm, Projects, 2/1/93
Page 1
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IV. Commercial
Enterprise Building Worthington, Ohio 30,200 sf
Executive House Worthington, Ohio 88,000 sf
Corporate Center Worthington, Ohio 20,000 sf
Commerce Center -
Busch Industrial Park Columbus, Ohio 79,000 sf
Worthington Prof. Bldg. Worthington, Ohio 24,000 sf
Springs Office Longwood, Florida 1. 30,000 sf
Holden Self Storage Orlando, Florida 86,000 sf
Florida National
Bank Branch Orlando, Florida 3,800 sf
Sanctuary Centre Boca Raton, Florida 180,000 sf
1400 Centrepark West Palm Beach, Florida 94,000 sf
Centurion Tower West Palm Beach, Florida 145.000 sf
Subtotal 780,000 sf
V. Shopping Centers
Curry Ford East Orlando, Florida 78,000 sf
Westgate Square Orlando, Florida 129,000 sf
Casselton Corners Orlando, Florida 29,000 sf
Lake Conway Woods Orlando, Florida 79,000 sf
Union Park Orlando, Florida 50,000 sf
Ocoee Center Orlando, Florida 78,000 sf
Winter Springs Orlando, Florida 78,000 sf
Tavares Center Orlando, Florida 40,000 sf
Lake Mary Center Orlando, Florida 60,000 sf
Port Orange Orange City, Florida 80,000 sf
Port Charlotte Pt. Charlotte, Florida 165,000 sf
Siler Crossing Siler City, N.C. 132,000 sf
Village Marketplace Asheboro, N. C. 87,000 sf
HiIlsborough Common HiIlsborough, N.C. 107,000 sf
Piney Grove Plaza Kernersville, N.C. 50,000 sf
Foothills Market Jonesville, N.C. 38,000 sf
Anson Station Wadesboro, N.C. 128,000 sf
Roxboro Square Roxboro, N.C. 95,000 sf
Roanoke Landing Williamston, N. C. 213,000 sf
Crossroads Center Statesville, N.C. 250,000 sf
Granville Corners Oxford, N.C. 135,000 sf
Kinston Point Falling Rock, N.C. 205,000 sf
Subtotal 2,306,000 sf
Walter T. Krumm, Projects, 2/1/93 Page 2
VI.
VII.
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Condominium Projects
Palacio Del Sol
Worthington Woods
Worthington Park
Worthington Heights
Hilliard Heights - 1
Hilliard Heights - 2
Bethel Village - Phase I
Subtotal
Recapitulation
Single-Family Subdivisions
Single-Family Homes
Apartment Projects
Commercial
Shopping Centers
Condominium Projects
Walter T. Krumm, Projects, 2/1/93
Punta Gorta, Florida
Worthington, Ohio
Worthington, Ohio
Worthington, Ohio
Hilliard, Ohio
Hilliard, Ohio
Columbus, Ohio
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44 units
420 units
120 units
253 units
180 units
200 units
484 units
1,701 units
3,677 lots
5,000 + homes
2,613 units
780,000 sf
2,306,000 sf
1,701 units
Page 3
Builder's purchase
of Centurion tower
is third within year
A partnership that includes builder
Walter Krumm paid $6.6 million.
By JANE VICTORIA SMITH
Palm Beach Post Staff Writer
The Centurion became the third Palm Beach
County office project bought within a year by home-
builder Walter Krumm and partners when they recent-
ly paid $6.6 million for the West Palm Beach tower.
In September, Krumm and other investors paid
$6.25 million for the 1400 Centrepark building in West
Palm Beach, following a $12 million purchase in
December 1991 of the Sanctuary Centre in Boca
Raton. '.
Krumm, who has offices in Columbus, Ohio, and
Naples, did not want to cpmment Wednesday about
buying the financially troubled buildings.
Neil Merin, a West Palm Beach broker who mar-
keted the Centurion, said the Krumm group was one of
a number of potential buyers approached about it. The
group made an offer in August and signed a sales
contract in late October, he said. The sale closed Dec.
12, according to Palm Beach County property records.
The 145,225-square-foot Centurion, on Forum
Place near the Palm Beach Mall in West Palm Beach,
was built by a joint venture of New Hampshire
developers and a bank, Amoskeag Bank. The develop.
ers had to turn over their share to the bank, which was
later seized by the Federal Deposit Insurance Corp.
The Centurion was about 50 percent occupied in
early December when the FDIC planned to auction it.
The building's auction price was expected to be
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FILE PHOTO
Homebuilder Walter Krumm and his partne'rs
have bought the Centurion in West Palm Beach.
. between $5.95 million and $9.35 million, according to
the FD~C auction brochure. Earlier this year, the
Centurion was; marketed at $9.5 million.
Owners of the 14-story building, among the last
generation of office towers built in West Palm Beach
,
had a hard time finding tenants in a market where the
vacancy rate was about 30 percent.
The Centurion's largest tenant is the Oxbow Corp.,
an energy conglomera te led by millionaire Bill Koch,
whose yacht won the America's Cup race in Mav. .
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Cover Story
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Our front page cover photo portrays "a new dawning" at the
Centurion Tower, a 145,000 square foot office building located in
West Palm Beach, just north of Palm Beach Lakes Boulevard at
1601 Forum Place Boulevard. Centurion's two-tone reflective
glass exterior and its unique "stairstep" architectural relief with
night lighting highlighting this
"stairstep" design, distinguishes Cen-
turion in the West Palm Beach sky-
line.
The year 1993 will mark the "new
dawn" for Centurion Tower as it
emerges with a new owner from a
murky past of developer loan de-
faults, recession, litigation, and
government (FDIC) ownership.
Centurion's future is bright again
now that Walter T. Krumm, a well-
financed and experienced owner, has
acquired Centurion.
Centurion Tower represents the
latest of three Palm Beach County
office building acquisitions of Walter
T. Krumm and his related entities, all
of which are "all cash" investments.
In addition, cash reserves for new
tenant fInish andrenovation costs have
already been set aside!
Mr. Krumm's four immediate objectives for Centurion are:
CENf'bmON TOWER'
To Establish positive Tenant Relationships. The on-site
ownership team will develop the strong tenant relationships which
are Mr. Krumm's trademark. The partnership between Landlord
and Tenant should benefIt both from a business perspective and
create an improved work environment for the tenants.
TRACK RECORD
With over 35 years of real estate
experience, mostly in central Ohio,
Florida, and North Carolina, Mr.
Krumm has accumulated an exten-
sive development track record which
includes more than a dozen Central
Florida shopping centers (one million
plus square feet) and eleven recently
completed shopping centers in the
Carolinas (two million plus square
feet mostly anchored by Wal Mart).
Mr. Krumm has developed more
than 350,000 square feet of offIce and
commercial buildings in Columbus,
Ohio and Orlando.
Walter Krumm is the president
and CEO of The Qualstan Corpora-
tion--production builders of single-
family residences in central Ohio
priced from $50,000 to $85,000 to target frrst-time home buyers.
All sales are from fully-furnished model homes, and construction
begins only after the sale is fmal and all fInancing is approved.
From 1989 through 1992, Qualstan has been one of the three
largest residential home builders in Central Ohio. In addition, he
has developed (i) more than 1,800 condominium units; (ii) 2,600
multifamily apartment units; and (iii) more than 3,700 single
family subdivision lots, most of which were improved with homes
constructed by one of his affiliates.
Centurion lnten'or
To Create an Inventory of Class "A" Leasable Office Space:
In the past the non-responsive FDIC government ownership and
its inability to fund tenant improvements resulted in a 50% vacancy
level. This situation now presents very attractive leasing opportunities
for prospective tenants which Mr. Krumm is preparing for by:
_ immediately completing approximately 30,000 square feet of
"ready to move-in" space for smaller tenants who need approxi-
mately 1,500 to 5,000 square feet for immediate occupancy; and
_ reserving approximately 40,000 square feet of existing unfm-
ished space for larger "build-to-suit" users who prefer to develop
their own concept of an efficient and pleasant work environment.
To Develop a "New Look "for the Common Areas, Centurion's
interior hallways and common areas will be remodeled, as will the
exterior entryway between Centurion's l4-story office building
and its adjoining fIve-story parking deck. New marble, mirrored
glass, wood trim, and wall coverings will rejuvenate most of the
existing interior common areas and accent future tenant suites.
To ~hA Resurgence in Leasing Activity. Initially, a portion
of Centurion will be leased under a new, more aggressive leasing
program to be implemented by Neil Merin and Steve Paige of
Merin, Hunter, Codman, Inc. (407-471-8000) in conjunction with
the owners who will be on site to accelerate the decision-making
prcx;ess. This program will be targeted towards both the small and large
~, with attractive pricing designed to generate a prompt influx of
new tenants.
Centurion lnten'or
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Mr. Knnnm's interest in Palm Beach llUlty office buildings
started with be and several partners acquiring the Spanish River Office
Building in Boca Raton from Amerifirst Spanish River is a two-story,
38,000 square foot office complex at the northeast comer of Spanish
River Blvd. and BocaRaton Blvd. The project was renamed Century
Financial Plaza and is presently over 90% leased.
hI early 1992, Mr. Knunm purchased the Sanctuary Centre
office building complex at Yamato and U.S. #1 in Boca Raton
from Bank America for $12 million. Sanctuary has 180,000
square feet in five separate buildings, all constructed over a central
covered parking deck. During 1992, more than 45,000 square feet
of office space has been leased in Sanctuary, or about 25% of the
total rentable area. With this amowltof tenant leasing activity, Mr.
Knunm fmds support to his view that the local office market may
have "bottomed out" in late 1992. Mr. Knunm's organization has
taken over the on -site management and leasing responsibilities for
Sanctuary (407-394-2323) and is actively soliciting local broker
participation in Sanctuary's on-going leasing activities, offering
full commissions to such brokers.
The 94,000 square It Class "A" office building, 1400
Centrepark, at the northwest quadrant of Australian and Belvedere
in West Palm Beach was added to Mr. Knunm's portfolio in
September, 1992. This building is located in the 94 acre Centrepark
Office/Commercial Park Development adjacent to 1-95 and the
Palm Beach International Airport. Tenants at 1400Centrepark
include ESIEnergy, an affiliate ofFPL; the home office of Eastern
Portland Cement; the Eastern Regional office of Laird Plastics,
Inc.; and several local businesses and law finns. Presently over
80% leased and occupied, 1400 Centrepark's exclusive leasing
and managing agent, Walters/Gottlieb (407-655-4100), reports
that this successful lease-up is due to the property's park-like
setting, diverse tenant mix, and superior tenant improvement
finishes.
With Mr. Knunm at the hehn, with his track record and
resources, Centurion is truly in strong hands, and the building is
now ready to assume a prominent position in the marketplace.
Centurion Tower
ANew Ihy, ANew Owna; A Grfflt 1ime to Linse
Centurion's full complement of Class" A" Building Services include:
1. Class "A"building interiortenantfmishes available as the Building
Standard create an attractive working environment.
2. Efficient floor plans with as little as a 4.57% "add-on" factor for a
full-floor user.
3. Small suites from 1,000 sf to full floor offices with 11,000 sf -- up
to 40,000 sf available on contiguous floors.
4. Below-market operating expenses and lower occupancy costs.
5. Close proximity to:
. The County Judicial Center
. Palm Beach International Airport
. 750,000 sf of businesses in the Palm Beach Lakes corridor
. 1-95 interchange at Palm Beach Lakes Boulevard
. DeBartolo's 1.3 million sf Palm Beach Lakes Mall
. Restaurants, Food Court Mall and shopping
. Retail banking facilities
6. Manned 24-hour-per-day security plus abundant covered parking
in adjacent 5\-2 story parking garage--no long or unprotected walks
for tenants or visitors plus convenient fourth-floor connecting
walkway bridge.
7. Each tenant has its own individually controlled air conditioning
systems not dependent on any central building controls. NO
EXTRA HVAC CHARGES FOR OVERTIME USE~ Control your
own envirorunent yet still benefit from the efficiency of a central
water cooling tower.
8. Views from virtually all offices - of Ocean, Lakes, Golf Course,
and Downtown Skyline.
9. Strong ownership entity with on-site personnel available to re-
spond to Tenants' needs -- no absentee owner problems.
10. Centurion is the home of attorneys, a national accounting finn, a
major insurance company and Oxbow, an international energy and
management company.
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AN AFFILIATE OF WALTER T. KRUMM VENTURES
CENTURION LEASING INFORMATION
CALL MERIN, HUNTER, CODMAN, INC. (407) 471-8000