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Tampa Bay Industrial Outlook

The Tampa Bay regional industrial market is one of many nuances. There are some systematic similarities, but as real estate goes, location makes a difference.

As a whole, the industrial market has continued to see strong growth as increased demand has resulted in higher property values and lease rates. As a result, new construction has continued throughout the region with most new products geared towards the institutional-grade building types, which is generally defined as tilt wall, large-scale developments geared towards large regional or national tenants. With interest rates still low and financial institutions still willing to fund industrial deals, the sales market has become extremely competitive.

Hillsborough County is home to two robust industrial cores: the East Tampa and Airport markets. These two areas combine to total over 75 million square feet of inventory and with just over 5.6 million vacant or a single digit vacancy rate of 7.46% the sales prices and lease rates have continued to climb. Institution-grade warehouses have been trading above the $100 psf threshold with A/B grade masonry buildings trading at $80-95 psf and metal buildings topping out at an average of $70-85 psf. Manufacturing NNN lease rates are around $8.00 psf, flex properties at $11.00 psf and storage warehousing at $5.65 psf.

Jumping across the bridge to Pinellas County the trends continue, but the numbers differ slightly. Pinellas has three industrial markets, the South, Mid and North Markets. The Mid-Pinellas market is the largest at over 25 million sf, followed by the South at 5.7 million and then the north at 5.3 million. The vacancy rates for each are as follows: Mid – 6.6% South – 9.2% and North at a historic low of <1%. NNN lease rates are detailed for each market below:

Mid Pinellas

  • Manufacturing – $6.25 psf  
  • Flex – $11.30 psf  
  • Storage Warehouse – $5.50 psf

South Pinellas

  • Manufacturing – $6.35 psf  
  • Flex – N/A
  • Storage Warehouse – $5.00 psf

North Pinellas

  • Manufacturing – $10.00 psf
  • Flex – $12.75 psf  
  • Storage Warehouse – $8.10 psf

In regard to Pinellas industrial sales, the property values mimic much of the same values seen in Hillsborough, with some new construction block buildings being sold for over $115 psf. The tight market has made bidding on sales listings highly competitive and properties are being sold routinely over asking price. 

On the investment side, industrial buildings have typically traded for double digit cap rate returns, however in the recent years those rates have compressed. Industrial investment deals are now trading in the 7.5-9% range, dependent upon type of structure, lease terms, and quality of tenants. 

With the shift of online retail and the consumer need to have their goods in the fastest means possible, last-mile distribution and the manufacturing of these items will continue to drive demand and we may continue to see values climb for our regional industrial properties. The scarcity of land and limited resources to build new buildings will work to only push existing structures’ values higher. 

QA Team

Daniel Quarles & Austin Karrick

Office and Industrial Specialists

Our agents are licensed professionals that specialize in searching, evaluating and negotiating the purchase and lease of industrial and flex property. We have an extensive track record of done deals and satisfied clients. Call us today.



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CPR Team Member Closes 123 Acre Land Sale in Pasco County

Commercial Partners Realty is pleased to announce the sale of 123 acres of retail and multifamily land in the first phase of a mixed-use development on the State Road 54 corridor in Pasco County. CPR Team member Jim Engelmann represented the sellers, Smith HV & Smith MV Co-Trustees & Dolcimascolo MM et al, in the $6,282,000 transaction.

According to Engelmann, “This property is one of the last large development sites along the State Road 54 corridor.  When COVID disrupted the commercial real estate market, there were definite concerns that the retail users and residential developers would walk away from this site, as well as other properties under contract.  However, the Pasco market is very strong, and demand is high for convenience, quick service restaurants and new homes.  All of the intended users stayed under contract and are now preparing to start construction.  As the Pasco momentum continues, we will see more mixed-use developments come online.”

While the virus was definitely a concern, it did not ultimately stop the project’s developer, the Ferber Company, from moving forward.  The Ferber Company, is a privately held real estate development and investment company that is involved in a broad array of commercial real estate projects. Their clients range from local businesses to large national brand retailers. The company was pleased to close on the first phase of the project.

Ryan Plate, Vice President of the Ferber Company, praised the CPR Team for their efforts in getting the deal done.

“Jim Engelmann, with the CPR team, was an integral part to the success of this first closing. He was diligent in his efforts throughout and helped facilitate many constructive conversations with his client, which ultimately helped us get to the finish line. I’ve really enjoyed working with Jim because he helps find solutions and isn’t someone who sits on the sidelines. I know that Ferber will do many more deals with Jim and the CPR team in the future.”

The second phase of the development, which includes 41 acres of residential land, is expected to close by the end of the year.

Commercial Partners Realty is a full service Commercial Real Estate brokerage specializing in Office, Industrial, Retail, Land and Investment sales and leasing. Representing landlords, tenants, buyers and sellers of commercial real estate in Tampa Bay, Pasco County and West Central Florida, they have negotiated hundreds of millions of dollars in transactions in the region.

Commercial Partners Realty is a proud member of the George F. Young corporate family. Our parent company is a full-service professional consulting firm offering engineering, planning, landscape architecture, environmental, and surveying services throughout Florida. Established in 1919, George F. Young, Inc. has been serving the Tampa Bay area and beyond for over 100 years.

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CRE Market Insights – Land

The Land Outlook

The last several months have created a tremendous amount of rethinking, retooling and reacting due to COVID-19.  Many of the usually strong commercial real estate products have been hit hard by the pandemic and its effect on different industries. Hotels, bars, assisted living facilities, as well as an already compromised retail sector, have all suffered a downturn.

When COVID caused the first stay at home orders, nearly every land transaction in process went through reevaluation, with many developers looking for significant extensions to keep the deals going.  Some went to the extent of canceling contracts that were still in due diligence, unsure of how their product would be impacted. 

Thankfully, as developers have put a pause on certain segments, others have already come back to the table to reengage their projects.  The housing market has continued to be strong through the last several months, providing confidence in the segment and bringing many of those shelved developments back online.  Though the full story is yet to be told, migration from the northeast appears to be accelerating, creating the need for more inventory, while the multifamily market has been somewhat cushioned in the Tampa MSA.  There is a lot to be said for the momentum of our region and how it has kept growth cautiously on track throughout the pandemic.

Landowners have remained confident that there will be a full rebound in new projects as well…based on the fact that land values have not tumbled during COVID.  Sure, there are some that are in a hurry to trade now, however many that I have talked to are content to wait out the reshuffling of the product mix to see which will still be popular moving forward.  Most sellers remain hopeful that they will be able to capture top dollar for their property as the developers reemerge.   The key will be in identifying how to position those properties – either through rezoning or modifying entitlements – to better match the new trends.  Owners would be well suited to work with their county planning departments and trusted real estate professionals to prepare their property for quicker sales and higher returns.

Pasco and Polk counties are seeing strong growth in industrial and distribution projects with new spec spaces as well as projects for companies like Amazon.  This is a trend that will continue as even more people are ordering products to be delivered to their homes vs. venturing out.  The industrial sector has risen to the top as our country has “hunkered down”.

While the market may have changed, and the direction of developers will most likely follow suit, one thing is certain – they all need land on which to build.  Positioning your property to appeal to developers and builders is key to keeping the momentum in your favor.

Jim Engelman
Land Specialist
Commercial Partners Realty, Inc.

Jim Engelmann is a land specialist in the Northern Tampa Bay and Pasco County markets. His key areas of focus include site selection and demographic analysis for ALFs, multifamily and mixed-use developers,  as well as vacant land disposition. He is a dedicated customer advocate who works hard to negotiate the best possible deal for our clients.

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CRE Market Insights – Retail


Uncertainty = Opportunity

broker Scott Clendening

Market conditions always change, it is inevitable. However, the pace of change has been greatly accelerated due to the pandemic, creating uncertainty in the commercial real estate and Capital markets.  

  • Users of office space have been uncertain as to how their needs of space will change. Recent data indicates that only 12% of the workforce would consider working at home on a full-time basis. The majority of respondents to a survey of 2,300 office workers said they would prefer coming back to the office on either a full time or flex schedule in order to be mentored, collaborate with colleagues and to be a part of their company’s community. We are social beings.  Employers are now very sensitive to their employees comfort in returning. Companies will undoubtedly be providing larger work spaces and will invoke social distancing in common areas. Users of office space may be facing a need to reconfigure and possibly expand their footprint. 
  • Industrial users are facing ever tightening market conditions, wherein available buildings and space are becoming increasingly harder to find. Lease rates and property values continue their steady rise. Investors of this product type are experiencing compressed cap rates/lower returns, buyer competition and higher pricing on their entry point. 
  • Retailers are having their own unique challenges. As described in this newsletter’s article, consumer behavior has shifted dramatically, thus causing a need to reshape the product/service delivery system. Small retailers to large box national stores are reassessing their customers desires and their real estate to meet the changing demand. 

These uncertain times will not only create challenges, but it will provide opportunities. The brokers of Commercial Partners Realty help provide current market conditions, availability’s and a realistic assessment of options for their clients. We take our assignments very seriously, with these goals top of mind: to deliver accurate data and the best counsel to best meet or exceed our client’s needs. 

Scott Clendening
Commercial Partners Realty, Inc.

Will COVID-19 Be the Death of Retail?

Rumors of the death of retail may be greatly exaggerated. While widespread novel coronavirus quarantines and stay-at-home orders will undoubtedly be the end of a record number of businesses, from Mom and Pop shops to nationwide retail chains, many are finding new ways to navigate this quickly changing landscape. Savvy retailers are positioning their brands for a “new normal” yet to come.

Not surprisingly, national brands with deep pockets that have been deemed “essential” during the pandemic have thrived. Amazon, Walmart and Target all saw sales increases in the first quarter of 2020. Unfortunately, not every business is considered “essential.” Restaurants that could not shift to take-out or delivery models are struggling. Buffett-style eateries are unlikely to return to a germ-conscious, post-COVID marketplace. Even national chains – J. Crew, Neiman Marcus, Gold’s Gym, JC Penney’s, Pier One Imports, to name a few – have found themselves unable to adjust or to handle the final blow that the virus has brought to an already declining operational model and have filed for bankruptcy.

But there are some retailers that were already preparing for change when the outbreak occurred. Large mall operators realized transformation was coming when many of the big box stores that anchor their properties began to go dark. The large regional mall is also not conducive to the way most people shop now. Shoppers prefer to park, run into a store, make a purchase and be on their way. COVID-19 has forced the acceleration of change that was already in the planning stages.

With the popularity of free retail apps that allow shoppers to purchase store inventory online, make a contact-free payment within the app and pick it up at the store, savvy retailers already had the technology in place to meet this crisis. Large malls, with their vast parking lots, are able to assign spots to individual retailers for pick-up of online purchases, aiding their tenants in moving to this new model that combines online retail with brick and mortar stores.

Another trend that has been accelerated by the pandemic is the move to more regional and local retail brands.
Millennials have long eschewed what they saw as the “vanilla” nature of big, faceless national brands.The pandemic has expanded this trend as isolated consumers feel a greater connection to their own community. Consumers want to support their neighbors, including local retailers. Social media amplifies the message to buy local and support locally owned businesses.

National retailers have been trying since before the outbreak to connect to this local-first movement. National brands now attempt to “regionalize” their product offerings and the character of their stores. “Un-branding is the new branding.” A seemingly local pizza shop appearing on delivery apps since this April called Pasqually’s Pizza & Wings, is actually owned by Chuck E. Cheese, the ubiquitous kid-centric pizza and game parlor. Applebee’s launched its own local sounding restaurant, called Neighborhood Wings and that indie bookstore near your local college is probably owned by Barnes and Nobel or Follet.

Some changes prodded by COVID-19 will probably stay with us for a long time. Developments that arose as a response to the need for social distancing will turn out to be technological and service-oriented advancements that consumers will want to keep due to their convenience. App-driven delivery or pick-up services for groceries and prescriptions don’t just support consumers trying to keep their distance during a pandemic, they offer busy people a way to quickly and conveniently get the items they need and be on their way. Supporting local businesses usually results in more personal customer service. While some retailers will not have the resources to come back from this crisis, when it is over, there will still be consumers wishing to buy and businesses ready to sell their wares. How and where those transactions take place will define the retail real estate landscape for years to come.

Frank Bozikovich is a retail specialist with over 20 years of experience. He has worked with many of the nation’s 100 largest retailers, the franchise industry, developers and investors.

Recent Transactions

CPR Team Continues to Close Deals – Helping clients navigate the market during a crisis

There is no denying that the current pandemic and its economic fall-out will have particularly strong effects on the commercial real estate market for years to come. Having the right advisors can ensure that owners and users of commercial properties make it through such uncertain times in a fiscally strong position. Despite government ordered business closures and shelter-in-place recommendations, there will always be a need for commercial real estate and a good real estate broker can help an owner or user make financially strong decisions, regardless of the economic conditions that surround them.

During the first five months of 2020, the Commercial Partners Realty has continued to close deals, guiding their clientele through the uncertainties that have accompanied this pandemic. This has at times required coaching clients in new technologies, from online video meetings to remote, “contact-free” closings. For others, it has required changing the focus of their marketing to find a new highest and best use for property types that have faced extreme challenges due to the outbreak.

For one CPR client, the pandemic disrupted their plans to move their operations to another state just as they were scheduled to close on the sale of their Tampa Bay facility. Their CPR agent was able to negotiate a last-minute, short-term leaseback with the buyer so that the sale could be completed as scheduled. Another buyer, moving their offices from Tampa to St. Petersburg, found themselves unable to secure financing due to the funds of most lenders being tied up in Payroll Protection Plan loans. The CPR Broker helped arrange short-term seller financing that the buyers could later refinance with a traditional lender once banks returned to funding commercial real estate, and the sale closed without delay.

The following are recent transactions closed by CPR Team members during the novel coronavirus pandemic and its resulting economic downturn.

Broker Scott Clendening represented the tenant, Ensurem, LLC in $2.6 million lease of a 28,150 SF Office located at 8560 Ulmerton Rd., in Largo, and in a long-term lease of 10,244 SF of office space in the Piers Center at 6239 Tacoma Dr. in New Port Richey, FL.

Scott Clendening recently completed a $6,000,000 sale/leaseback of Nautical Structures’ 94,000 sf manufacturing facility on 5 acres in mid Pinellas County. Nautical Structures will remain in operation as the tenant of the property. Clendening was the only broker involved in the transaction representing the seller. Woodhill Real Estate, LLC was the buyer.

Chris Ewing represented the tenant, Kenick, Inc., in leasing 15,000 SF of flex space located at 11400 47th St N., Pinellas Park FL, with a lease value of $597,000.

Chris Ewing represented the seller, PE Enterprises II, LLC., in sale of a 4,031 SF office, located at 1025 1st Ave N., in St. Pete’s Edge District for $820,000.

CPR agent Jim Engelmann represented the landlord, Asset Trust Holdings, in the lease of 900 SF of office space located at 102 Myrtle Ridge Rd., Lutz to D Retro Salon & Spa.

Jim Engelmann represented the seller, BRS Industries, in sale of a 2-acre parcel in the final phase of a larger development deal near the intersection of State Rd. 54 and Suncoast Parkway in Odessa FL.

CPR Team member Frank Bozikovich represented the seller, Montana Holdings, in the sale of an 11,189 SF office building in the Skyway Marina District of St. Petersburg. Located at 2861 34th Street S., the property sold for $1,500,000.

The QA Team of Dan Quarles and Austin Karrick has recently completed the following transactions:

  • Represented the landlord, B & L Management, in the lease of 4,574 SF of flex space located in the Bryan Dairy Business Center at 7279-81 Bryan Dairy, Largo FL.
  • Represented the landlord, B & L Management, in the lease of 7,485 SF of flex space located in the Bryan Dairy Business Center at 7225 Bryan Dairy, Largo FL.
  • Represented the landlord, B & L Management, in the lease of 2,575 SF of flex space located in the Starkey Center at 12505 Starkey Rd., Largo FL.
  • Represented the landlord, B & L Management, in the long-term lease of 12,520 SF of flex space located in the Starkey Center at 12505 Starkey Rd., Largo FL.
  • Represented the landlord, Mainstream Business Park, in the lease of 2,400 SF of flex space located at 7201 112th Ave N., Largo FL.
  • Represented the seller, Ashby Green, in the sale of a 1,612 SF office at 5511 Central Ave. in St. Petersburg for $335,000.
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Commercial Partners Realty Negotiates Sale of 11,000 SF Skyway Marina District Office

Commercial Partners Realty team member Frank Bozikovich represented Almased in the sale of their 11,189 SF office building located at 2861 34th Street S., in St. Petersburg for $1.5 million. The property was purchased by an investor who plans to lease out the office space in the Skyway Marina District. Currently, office space in the growing market is in high demand, with a record-low 1% vacancy rate for the area.

Almased is a private, multinational company that manufactures and distributes dietary supplements worldwide. They have owned and occupied the former bank site for the past 18 years. Almased has decided to consolidate its operations in Charlotte, NC in order to be more centrally located within its distribution area. However, due to the COVID-19 crisis the move has been delayed and Bozikovich has helped the company negotiate a short-term lease with the new owner.

Commercial Partners Realty is a proud member of the George F. Young corporate family. Our parent company is a full-service professional consulting firm offering engineering, planning, landscape architecture, environmental, and surveying services throughout Florida. Established in 1919, George F. Young, Inc. has been serving the Tampa Bay area and beyond for over 100 years.

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CPR Team Members Win FGCAR Pinnacle Awards

CPR Team Awards

The Florida Gulfcoast Commercial Association of Realtors announced their annual Pinnacle Awards, recognizing the area’s top commercial realtors. Awards are presented in multiple categories for both regional and national firms. Commercial Partners Realty is proud to announce that four of our team members received Awards for 2019.

Commercial Partners Realty broker Scott Clendening was awarded a 2019 Top Producer Award at the Florida Gulfcoast Association of Realtors (FGCAR) Annual Pinnacle Awards Ceremony. The award is given annually to the agent with the highest transaction volume in each category. Mr. Clendening received the award in the Regional Office Brokerage category.

The Top Producer award for the highest transaction volume in Regional General Brokerage went to CPR Team member Jim Engelmann.

Austin Karrick of CPR’s QA Team received Top Producer Awards for the third highest volume of transactions in the Regional Industrial Brokerage and QA Teammate Erica Lovingood received the Rookie of the Year Award.

Erik Anderson and Frank Bozikovich received FGCAR’s multimillion dollar producer award. 

FGCAR is an industry group comprised of over 400 licensed agents and affiliate members who participate in the sale and lease of commercial real estate in the 7 counties that make up the Tampa Bay market. They provide a broad range of benefits and services to area realtors and associate members and a positive impact in governmental affairs.

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CPR Team Welcomes David Culligan

Commercial Partners Realty welcomes broker David Culligan to our team. As an industry expert, Culligan represents commercial clients throughout their entire real estate pursuits. Operating out of the firm’s Tampa office, David is responsible for new business development, as well as all-inclusive consultation for his customers both locally and nationally. His ultimate goal is to aid his clients in improving long-term profitability and help them navigate the increasingly complex negotiations of commercial real estate transactions.

David’s more than 25 years of experience in the Florida commercial real estate market have given him a wealth of knowledge and practical skills. As a specialist in optimizing the bottom line and developing innovative workplace strategies, David conducts critical path forecasting, in-depth market research, financial analysis and strategic planning for clients in need of both corporate offices and data centers.

Prior to joining the CPR Team, David worked with Savills as a managing director and as the owner and president of Centerpointe Development, where he developed multiple office, retail and industrial projects throughout Central Florida. As a former director for Waterford Construction & Development, David was responsible for design, construction, sales generation, lease negotiation, land acquisition and engineering to assist in the development of more than two million square feet of projects throughout West and Central Florida. In addition, he has gained institutional landlord experience having spent time as a leasing director of Childress Klein Properties and Paragon Group.
Outside of the office, David is a member of the Westshore Alliance and the Greater Tampa Chamber of Commerce. He has also spent many years coaching and mentoring youth sports in Hillsborough County Youth Leagues.

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Recent Transactions

The QA Team of Dan Quarles, Austin Karrick and Erica Lovingood continue to have a strong year in 2019. The following are the most recent transactions from Commercial Partners Realty’s Pinellas County Office/Industrial team.

Represented the landlord, Mainstream America, Inc., in the lease of 15,000 SF of flex space in the Petersburg Commerce Center, located at 4055 35th Street N. in St. Petersburg, FL to Sir Speedy Printing.

Represented the landlord, Cheese Popper, LLC, in the lease of a 2,500 SF flex building located at 1920 15th Avenue N. in St. Petersburg, FL.

Represented the buyer, Autism Inspired, in the purchase of a 11,500 SF office, located at 2177 NE Coachman Dr. in Clearwater, FL for $950,000.

Represented the buyer, ENT Associates of St. Pete, LLC in the purchase of a 7,500 SF medical office building located at 501 Dr. ML King Jr. St. S. in St. Petersburg FL for $1,830,000.

Represented the landlord, Mainstream America, Inc., in the lease of 5,100 SF of flex space in the Petersburg Commerce Center, located at 4055 35th Street N. in St. Petersburg, FL to Tampa Bay Tiny Homes.

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Commercial Partners Team Sets National Record at FGCAR Golf Tournament!

Clouds were gathering on a hot, humid Florida Fall afternoon. Four members of the CPR Team (Austin Karrick, Chris Ewing, Jim Engelmann and Frank Bozikovich) stepped up to the first hole of the Cove Cay golf course. It was the FGCAR Annual Golf Tournament, and this was “The Fastest Hole Competition”.

Austin Karrick [back], Chris Ewing, Jim Engelmann and Frank Bozikovich [front L-to-R]

The Fastest Hole Competition challenges tournament foursomes to get the ball from the tee box into the hole on a par 4 in the fastest possible time. No one player can hit the ball twice in a row.

The first hole of Cove Cay is a 360 yard par 4 with sand traps flanking the landing area of the initial drive and the front right lip of the green. The group arrived at the hole during the latter part of the tournament, so many of the other teams had already taken their turn. Austin asked the Flying Locksmith representative, who had sponsored the competition, what was the time to beat. Not wanting to give too much away, all the rep said was, “You guys have to be under 30 seconds.”

The mark was set, and our team began planning.

Jim, who has participated in this event for three years now, immediately laid out a plan of attack. He would be the first shot, Austin and Chris would be responsible for the second/approach shot and Frank would be on the green for the finishing putt.

After a small discussion, they took their positions along the fairway.

The team gave their final thumbs up to the timekeeper and Jim teed off. He hit a piercing drive that began to favor the right side of the fairway, heading right at Austin, towards a bunker. Jim crushed the drive as it sailed over the bunker and just clearing Austin’s head. Realizing that he needed to get to the green to back up Frank on the putt, Chris took off running at top speed.

The ball came to rest about 70 yards away from the hole. Austin steps up to the ball and quickly assesses the next shot. He can hear the timekeeper saying, “Take your time! Take your time!”

He takes his swing and flushes the ball, it takes a high trajectory right towards the hole. Unsure of if he hit it far enough, he fears of the encroaching sand traps nip at his confidence. The ball reaches its pinnacle and begins to descend, a plop, and relief! It bounces just on the outer fringe of the green and rolls towards the hole.

Frank is at the ready. He lines up his putt before the ball has even rolled to a stop. Chris arrives at the green for a final tap-in, if needed. When ball finally comes to a rest, Frank pulls back. A slight *tink* can be heard as his putter contacts the ball. It rolls right towards the hole and drops in!

Celebrations begin, but was it good enough?

Austin looks back to the timekeeper and sees his mouth dropped open.

“What was the time?”


“What was the time?”

Finally, the ref speaks, “19 seconds!”

High fives all around – they are confident this number can’t be beat.

At the awards ceremony the team awaits the news.

The owner of The Flying Locksmith takes the podium and tells the crowd that they sponsor this Fastest Hole Competition at 19 other tournaments nationwide and there has never been a winning team with a faster time in any of the events hosted by the Flying Locksmith. The CPR Team swept past all competitors with a time of 19 seconds, a record that the sponsor “is confident, will never be beat”.

The team expects to soon receive their trophy and will surely be enshrined into the Golfers’ Fastest Hole Hall of Fame.