The borrower was a joint venture of InLight Real Estate Partners and an Ares Management Real Estate fund. The loan will be used for lease-up of the project in addition to construction.

As currently planned, the first phase of Eastport Logistics Park will feature four buildings with clear heights of 32 to 36 feet, 135- to 185-foot truck court depths, 222 dock doors, 418 trailer parking stalls and 691 car parking spaces.

The two larger buildings (100 and 200) will total approximately 312,000 square feet, and the two smaller buildings (300 and 400) will total about 132,000 square feet. The second phase will offer build-to-suit options as large as 688,000 square feet.

READ ALSO: Port Activity Rebounds

The development’s location in Jacksonville’s Northside submarket is just off I-295, 5 miles from the I-95 interchange and 4 to 5 miles from the Port of Jacksonville’s Dames Point, ICFT CSX and Blount Island terminals. The project also has the capability for rail service by CSX, a main line of which abuts the property to the north.

The park is scheduled to deliver in the first quarter of 2026. 

Languid activity

The industrial real estate sector in Jacksonville’s Northside submarket has an overall vacancy of 5.7 percent on an inventory of about 32.5 million square feet, according to a fourth-quarter report from Cushman & Wakefield. Net absorption in the latest quarter was a negative 84,000 square feet, which was about on par for the region as a whole. This reflected a surge in deliveries of warehouse/distribution space with little preleasing.

Just after New Years, Affinius Capital provided a $77.4 million loan to ForeFront Commercial Real Estate, in conjunction with an Ares Management Real Estate fund, for their development of West Worth Commerce Center, a 992,000-square-foot industrial campus in Fort Worth, Texas.

Last fall, Affinius collaborated with Bank OZK on two loan deals.

The pair extended a $135 million loan to a joint venture of DECA Cos. and Wildcat Capital Management for the development and lease-up of an 850,000-square-foot industrial property in Perris, Calif.

They also loaned $83.8 million to a joint venture between Lincoln Property Co. and Goldman Sachs for the construction and lease-up of Waterstone, an 894,000-square-foot, four-building industrial development in Kyle, Texas, near Austin.

In each transaction, Bank OZK was the senior lender, while Affinius originated the subordinate portion of the note.

The post InLight, Ares Management JV Lands $82M for Industrial Project appeared first on Commercial Property Executive.

Ben E. Keith Foods has started construction on a 707,000-square-foot distribution center in Alachua, Fla. The project is expected to reach completion by fall 2026.

The warehouse is taking shape on a 148-acre lot on Technology Avenue within Interstate 10 Industrial Park, according to Milton Post. The firm acquired the site in June for $13.5 million, Alachua County records show.

This will be Ben E. Keith Foods’ second Florida location. The first one is a 83,500-square-foot warehouse in Gainesville that became one of the company’s holdings after it acquired Florida Food Services Inc. in 2022.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The firm has 10 divisions, shipping to 20 U.S. states. The upcoming facility will house its Florida Division headquarters and help expand its reach in the Southeast region.

When complete, the property will have 105 dock doors and parking for 120 tractor trailers. It will feature advanced logistics systems and 24/7 intake and outtake operations for better serving customers.

Industrial development in Greater Jacksonville

Industrial projects under construction in Greater Jacksonville, Fla., totaled 6.9 million square feet in the last quarter of 2024, a recent Colliers report shows. However, the pipeline is expected to shrink as construction starts were less often when compared to the last seven years. The majority of underway developments were warehouse or distribution facilities, while cold storage projects amounted to nearly 900,000 square feet.

In August, VanTrust Real Estate received approvals for a 547,000-square-foot warehouse within Imeson Park South in North Jacksonville. The speculative facility will be the developer’s fifth project to be constructed at the 3 million-square-foot master-planned campus.

The post Ben E. Keith Expands in Florida With 707 KSF Facility appeared first on Commercial Property Executive.

This is the REIT’s first purchase under its Structured Investment Program. Initially, the company had extended $15 million in mezzanine financing for the asset, which was fully repaid following the latest transaction.

The open-air shopping center came online in 2008 on some 41 acres, and was 97 percent leased at the time of the sale. Encompassing nine buildings, it is anchored by a Sprouts Farmers Market and shadow-anchored by a Costco Wholesale. The Markets at Town Center also features a mix of regional and national retailers such as Ulta Beauty, CVS Pharmacy, Five Below, REI, J.Crew, Ballard Designs, Sugar Factory, Nordstrom Rack, DXL Big & Tall, Gen Korean BBQ, Panda Express and Chipotle, among others.

READ ALSO: Unlocking the Sun Belt’s Retail Potential

Located at 4868 Town Center Parkway, the property is within Jacksonville’s Intracoastal West submarket. The Markets at Town Center serves approximately 192,000 individuals within a 5-mile radius, with the average household income of $95,000, according to Kimko. The property clocks in at more than four million annual visits, according to Placer.ai data quoted by the buyer.

Kimko’s extensive Jacksonville portfolio

Kimco owned six properties in the Jacksonville area, spanning around 1.5 million square feet, at the end of 2024.

In October, in another large move, Kimco purchased Waterford Lakes Town Center, a 976,000-square-foot grocery-anchored lifestyle center in Orlando, Fla., for $322 million. The company took on the responsibility of a $164 million mortgage.

Early last year, Kimco completed the acquisition of New York-based RPT Realty, in an all-stock transaction valued at $2 billion. The transaction encompassed 56 open-air centers, with 43 being wholly owned, amounting to 13.3 million square feet. A little later, Kimco also sold eight retail properties from this extensive portfolio to KPR Centers, totaling 1.5 million square feet, for $180 million.

The post Kimco Pays $108M for Jacksonville Shopping Center appeared first on Commercial Property Executive.

This shipping market continues to see positive demographic trends and upgrades. The port is investing more than $1 billion over the next five years to improve access and utilization of this critical transport infrastructure, which lifts 1.3 million 20-foot equivalent units (TEUs) annually.

CSX, Norfolk Southern and the Florida East Coast Railway are key railroad infrastructure support systems for the port’s traffic.

Jacksonville’s population of 1.7 million has grown four times the national average since 2013 and is expected to grow twice the national average over the next decade, according to Stonepeak.

Simpson Thacher & Bartlett LLP served as legal counsel, and JLL served as Stonepeak’s financial advisor.

Jacksonville’s logistics market is growing

According to Alex Redfearn of Redfearn Capital, Jacksonville’s logistics and industrial market is experiencing significant growth and has quickly become one of Southeast’s most dynamic logistics hubs.

He told Commercial Property Executive that Jacksonville is strategically located near major transportation networks, has a pro-business climate and has an expanding workforce.

“It has become a critical entry point for goods coming into the U.S.,” said Redfearn, whose company now owns over 1.4 million square feet in Jacksonville.

“Recent investments in port infrastructure, including enhanced container handling capabilities, have increased Jacksonville’s capacity to support higher international trade volumes.”

READ ALSO: How Infrastructure Investment Drives Industrial Space Growth

In August, Redfearn Capital acquired a 363,000-square-foot warehouse, Gran Bay Parkway at 12751 Grand Bay Parkway in Jacksonville from Brookfield for $27 million. The property is fully leased to Saddle Creek Logistics, an omnichannel, integrated supply chain company. It also recently secured $18.7 million to finance the acquisition.

Stonepeak’s portfolio expansion

The company has been busy expanding its footprint this year.

In September, Stonepeak acquired two logistics assets totaling 1.1 million square feet in Fort Worth, Texas, from institutional investors advised by J.P. Morgan Asset Management, using a $57 million loan from PGIM Real Estate for the acquisition.

In April, Stonepeak acquired a three-building, 1.7 million-square-foot rail-served fully leased logistics portfolio at CenterPoint Intermodal Center–Joliet/Elwood—the largest inland port in North America—from CenterPoint Properties. The deal went for $125 million, according to IPE Real Assets. The properties are in Elwood, Ill., at 26318-26634 S. Walton Drive, 21561 Mississippi Ave., and 26634 Mississippi Ave.

The post Stonepeak Buys 1.8 MSF Logistics Portfolio appeared first on Commercial Property Executive.

Easterly Government Properties, in a joint venture with a global investor, has completed the acquisition of a 193,100-square-foot medical office building leased to the Department of Veterans Affairs in Jacksonville, Fla. The property is the tenth and last facility to be purchased as part of a 2021 portfolio transaction in which U.S. Federal Properties Co. was the seller.

The North Florida/South Georgia Veterans Health System broke ground on the $64.2 million Jacksonville project in December 2021 and completed it in April this year. The developer acquired the construction site for $8.4 million in 2020, according to CommercialEdge data.

The property features a domiciliary that provides housing for veterans in need of substance abuse treatment or full-time care. The clinic offers various services such as physical therapy, prosthetics, occupational therapy, rehabilitation medicine and traumatic brain injury treatment.

READ ALSO: Outpatient Facilities Step Into the Spotlight

The 21.6-acre facility is at 145 Heron Bay Road and provides access to interstates 95 and 295. Downtown Jacksonville is some 13 miles south of the property. Other medical facilities in the surrounding area include UF North Health, Millennium Physician Group and Coastal Medical Plaza, among others.

VA clinic serving the Jacksonville area

The 1.2 million-square-foot portfolio consisted of 10 outpatient clinics leased to the VA for 20 years on average. The joint venture acquired the group of assets for a total of $635.6 million.

The Class A facilities are located in several states across the U.S., such as Kansas, Texas, Georgia, Tennessee, Arizona, Alabama and Florida. Last year in September, the partnership closed on its ninth clinic, the 69,276-square-foot facility in Corpus Christi, Texas.

Easterly owns a total of 94 assets totaling 9.2 million square feet. In another major transaction that took place in late 2022, the REIT sold $205.3 million worth of commercial properties leased to the U.S. government.

The post Easterly Government JV Closes on Jacksonville VA Clinic appeared first on Commercial Property Executive.

Formerly known as The Meridian at Deerwood, the property has been renamed Merritt at Gate Parkway. Located in the heart of St. Johns Town Center, it is accessible directly off J. Turner Butler Boulevard on Gate Parkway in Duval County.

Merritt at Gate Parkway spans five buildings and offers 200,000 square feet of light industrial space. It has available space starting at 3,500 square feet. Established tenants include DB Structured Products and MMI.

Zoned as Industrial Business Park, the site offers 14-foot clear heights and ample parking, providing flexible industrial space for various businesses.

At the time of the deal, the Southside Duval County submarket reported a light industrial vacancy rate of less than 3 percent.

READ ALSO: Top Markets for Industrial Deliveries

Previously, the development had transitioned to a single-story office layout. Still, with increasing demand for small-bay light industrial spaces, Merritt Properties found it an opportunity to convert the property to Class A light industrial use.

Plans are underway to enhance the property by installing drive-in docks and further upgrading the facilities to meet modern industrial standards. The site also has significant redevelopment potential.

Portfolio expansion continues

Merritt Properties continues to grow its portfolio in Jacksonville. It already owns and operates Imeson Landing Business Park, a five-building industrial park that it plans to expand with three additional buildings.

Additionally, Merritt Properties owns land in Clay County for the future development of Oakleaf Commerce Center and acquired Magnolia Park, a three-building business park, during its initial expansion into Jacksonville in 2021. Merritt holdings in Jacksonville now exceed 500,000 square feet of light industrial in just two years of being in the market.

Additionally, the city of Jacksonville issued a permit on Aug. 9 for MW Builders Inc. to build a speculative 547,000-square-foot warehouse within Imeson Park South at 1511 Zoo Parkway in North Jacksonville.

The developer is VanTrust Real Estate LLC, and the project’s estimated price tag is $1 million. It hasn’t announced the construction start. The pad is in place, and the building should break ground soon, JLL told Commercial Property Executive.

The post Merritt Properties Buys Jacksonville Industrial Park appeared first on Commercial Property Executive.

This multi-market off-market acquisition totals 1.7 million square feet and features four buildings in Jacksonville and 12 in Memphis.

Faropoint’s chief investment offer, Ohad Porat, told Commercial Property Executive his firm prefers off-market transactions.

“We strongly emphasize off-market acquisitions as a key component of our investment strategy, as these deals often present attractive opportunities due to reduced competition and limited marketing exposure,” he said.

“Our deep industry relationships and ability to close quickly and reliably have made us a preferred buyer for many sellers in off-market situations. Leveraging this approach alongside our data-driven methodology and market expertise, we identify and act on high-value opportunities across the industrial real estate spectrum, providing our investors access to a wide array of opportunities and maximizing value creation potential in this competitive market.”

READ ALSO: First-Half Investor Darlings

Porat stated that, unlike widely marketed deals, Faropoint defines off-market transactions as those where the broker or seller approaches them directly or contacts a select group of buyers known for their ability to close deals swiftly and maintain strong reputations. These properties often lack offering memorandums or other formal marketing materials.

When off-market deals make sense

Off-market deals are preferred in many asset classes.

Jaclyn Anastasakos, realtor at Luxe Properties, told CPE that off-market acquisitions can be a strategic way to grow a portfolio.

“By targeting properties not on the market, you can find unique assets that align with specific investment goals, often at more favorable prices,” she said.

Anthony Bergeman, SIO, executive vice president & principal with DAUM Commercial Real Estate Services, Industrial, told CPE, “Off-market acquisitions are incredibly important at the institutional level because it enables ownership groups to buy and sell assets more quickly and efficiently than they would if they had to list it and promote it publicly.”

“Some entities could be prohibited from listing publicly or don’t want to disrupt their tenants. Speed can be a main factor when trading assets through 1031 exchanges and other investment vehicles with deadlines,” Bergeman said.

According to Bergeman, off-market deals also avoid negative perceptions associated with public listings, such as drops in the price or a high number of days on the market. “For off-market acquisitions to succeed, brokers need deep relationships within their region and the national ownership level.”

Michael Koshet, an off-market multifamily specialist at LAoffmarket.com/KW Commercial, told CPE that since debt markets began tightening 24 months ago, it has been increasingly difficult to fully market specific assets in a broadly marketed process with a major institution.

“Various metrics could throw off a strategic acquisition, causing sellers to receive offers significantly below expectations or BOVs,” Koshet said.

“Most groups competing on a specific deal communicate about market conditions, etc.; in this scenario, word of mouth about what another group is offering could cause a domino effect on other offers.”

He said in an off-market scenario, a seller is in a closed-door negotiating room with a specific buyer who focuses on that subject property, allowing no outside opinions or metrics to affect that negotiating table.

“The seller usually vets the buyer group and vice versa,” he said. “This gives a higher probability of that transaction crossing the finish line, considering both groups hold each other accountable during the transaction period.”

According to Koshet, sellers may have the benefit of directly communicating with the buyer and transacting at a price they feel is acceptable to their investors, while buyers have the benefit of acquiring a deal on a basis they think is acceptable and tailored to their investor return requirements. “Off-market transactions may not always be the norm for some groups, but it is a great option that buyers prefer, and sellers could strategically accomplish a disposition,” he added.

Joe Santaularia, senior vice president & managing partner of Bradford Commercial Real Estate Services/CORFAC International, told CPE that off-market transactions are the best way to get a buyer to commit to a lower price because they don’t leverage the market.

“When working with an investor, a common tactic is sending unsolicited offers to a target market to generate transactions,” he said. “In DFW industrial, the market has been inundated with capital, and much of the low-hanging fruit has been picked, leaving non-institutional products to pick from.”

“With interest rates being at a high point for this cycle, some investors who bought assets before rates skyrocketed are in a crunch and looking for off-market investors to help them from sliding into bankruptcy,” Santaularia added.

The post $105M Off-Market Deal Nets 16 for Faropoint appeared first on Commercial Property Executive.

VanTrust Real Estate LLC is the developer, and the project has an estimated price tag of $1 million. It hasn’t announced the construction start. The pad is in place and the building should break ground soon, JLL told Commercial Property Executive.

The shell project, called Building 400 and Building D, is the fifth of VanTrust’s seven buildings to be constructed at Imeson Park South.

Two more structures are planned—Building B2, at 235,735 square feet, and Building F, at 216,320 square feet. Those are Buildings 600 and 700.

JLL Senior Managing Director Luke Pope and Vice President Ross Crabtree represent VanTrust in lease negotiations.

“The location is one of the best in Jacksonville,” Pope told CPE. “This is one of the last bulk sites available within Imeson Industrial Park and is centrally located between Jacksonville International Airport and JaxPort, roughly a mile away from I-95.”

Pope said he has been in touch with numerous industrial distribution-related tenants about the building and site but has not yet signed a lease.

READ ALSO: The Case for More Last-Mile Logistics Centers

VanTrust Real Estate said the Imeson Park South master plan totals 3 million square feet of industrial space.

The 214-acre Imeson Park South property is south of VanTrust’s 146-acre Imeson Park, which totals about 2.5 million square feet and includes a 1 million-square-foot Amazon fulfillment center.

Last month, VanTrust Real Estate sold Primark at Imeson Park, a recently completed 550,243-square-foot facility within Imeson Park South. INDUS Realty Trust acquired the asset, which is fully leased to Primark.

This is Primark’s second distribution center in the U.S. and the first in Florida, with products arriving through JaxPort.

VanTrust Real Estate announced last month that it would develop a 746,672-square-foot build-to-suit facility for Sephora in Avon, Ind. The 61-acre property will serve as the beauty retailer’s Midwest distribution center. It is scheduled to come online next summer.

Jacksonville’s industrial market

Jacksonville’s industrial sector during the second quarter of this year saw a 210-basis-point increase in overall vacancy year-over-year, rising to 5 percent, according to a Cushman & Wakefield market report. Additionally, more than 1.5 million square feet were completed in the first half of the year, representing a 43.3 percent drop from the same period in 2023.

The post VanTrust Sets the Stage for Spec Warehouse in Jacksonville appeared first on Commercial Property Executive.

VanTrust Real Estate has sold Primark at Imeson Park, a recently completed 550,243-square-foot facility in Jacksonville, Fla. INDUS Realty Trust acquired the asset, which is fully leased to Primark.

This is Primark’s second distribution center in the U.S. and the first in Florida, with products arriving through JaxPort. The company’s other distribution center is a 677,080-square-foot facility in Bethlehem, Pa.

JLL brokered the deal on behalf of the seller. VanTrust broke ground on the project in 2022, using a $37 million construction loan originated by JPMorgan Chase in June that same year, CommercialEdge information shows.

READ ALSO: Is the Multistory Industrial Niche Taking Off?

The building is part of Imeson Park South, a 215-acre logistics park that will measure about 3 million square feet upon full build-out. Four buildings are already completed, with three additional ones coming soon.

The distribution center features 40-foot clear heights, 99 dock-high loading doors, four drive-in doors and 175 trailer parking stalls. Additionally, the cross-dock building has more than 200 parking spaces.

The 33-acre property is at 1511 Zoo Parkway, less than 9 miles from downtown Jacksonville. Jacksonville International Airport is within about 10 miles from the property, while The JaxPort is 7 miles southwest.

JLL Capital Markets Investment Sales and Advisory Senior Managing Director John Huguenard, Managing Director Luis Castillo, Senior Director Cody Brais and Associate Taylor Osborne represented the seller in the transaction.

Jacksonville’s industrial sector faces challenges

Jacksonville’s industrial sector during the second quarter of this year saw a 210-basis-point increase in overall vacancy year-over-year, rising to 5.0 percent, according to a Cushman & Wakefield market report. Additionally, more than 1.5 million square feet were completed in the first half of the year, representing a 43.3 percent drop from the same period in 2023.

Last month, Bixby Capital Management acquired two industrial facilities in Jacksonville for $53.5 million through Bixby Land Co. Link Logistics sold the properties.

Earlier this year, a joint venture between Redfearn Capital and TPG Angelo Gordon purchased a Jacksonville portfolio for $47.8 million. Somerset Properties and CenterSquare Investment Management sold the eight buildings totaling 380,589 square feet.

The post INDUS Realty Trust Buys Industrial Facility in Jacksonville appeared first on Commercial Property Executive.

Manulife Investment Management has launched a joint venture with Foundry Commercial to purchase, develop and lease industrial outdoor storage in across infill industrial markets in the Southeast.

The joint venture plans to operate a portfolio consisting of 10 sites, located in Nashville, Tenn., Atlanta, Jacksonville, Fla., and Dallas Fort-Worth. Manulife has already acquired three of the sites that have completed construction, while the remaining will be developed together with Foundry.

Manulife has $19.2 billion worth of assets under management and more than 84.6 million square feet of commercial real estate on a global scale, while Foundry currently has $2.7 billion in assets under management.

The decision to invest in this niche got a boost from the reduction in capital costs compared to industrial properties in general, which also brings opportunities unavailable to the general marketplace, said Foundry Commercial Principal Rick Coe in a prepared statement.

A sought-after industrial niche

Despite being a small, rather untapped industrial niche, IOS is attracting a significant number of investors looking to branch out and diversify.

In early January, Alterra IOS partnered with ConGlobal Industries to acquire four IOS properties totaling nearly 90 acres. The assets are located in areas with dense IOS clusters, near port and rail infrastructure.

More recently, Triten Real Estate and TPG Angelo Gordon announced plans to acquire more than $1 billion in additional industrial outdoor storage assets over the next five years. The joint venture initially launched their investment platform in 2020 and have since purchased more than $500 million of IOS assets across 16 markets.

The post Manulife, Foundry Launch Industrial Outdoor Storage JV appeared first on Commercial Property Executive.

Bixby Capital Management, through Bixby Land Co., has purchased two Class A warehouses in Crossroads Distribution Center in Jacksonville, Fla., for $53.5 million, public records show. Link Logistics sold the two assets totaling 423,480 square feet with the assistance of JLL.

The 297,067-square-foot Building 100 is at 6590 Pritchard Road and was completed in 2020, according to information from CommercialEdge. The facility features ESFR sprinklers, a 32-foot clear height and 54- by 48-foot column spacing.

Completed in 2009, Building 200 is at 6600 Pritchard Road. The warehouse totals 126,056 square feet and has a 32-foot clear height and 50- by 52-foot column spacing.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

In May, Bixby Land closed its Bixby Industrial Fund I, which holds a portfolio of five fully leased industrial properties in California, Arizona and Georgia totaling more than 836,000 square feet of leasable space. Vintage Strategies at Goldman Sachs Alternatives and an Ares Management Real Estate Secondaries fund are two of the equity investors.

Bixby Land currently owns 8.9 million square feet of commercial space across 49 office and industrial properties in the U.S., according to the company’s website. Last month, the firm sold a 340,080-square-foot Class A industrial property in San Bernardino, Calif., to Dalfen Industrial.

Jacksonville’s industrial market still steady

The Jacksonville industrial space market has seen 1.7 million square feet of net absorption year-to-date as of March, according to a first-quarter report from JLL. Deliveries totaled 3.3 million, with a further 3.2 million under construction. Overall vacancy clocked in at 5.8 percent.

One of the underway projects is IGP 95/Logistics Park, a three-building industrial development totaling approximately 510,000 square feet in St. Augustine, Fla. Foundry Commercial broke ground on the campus in January and completion is scheduled for the third quarter of this year.

The post Bixby Buys 2 Jacksonville Industrial Assets for $54M appeared first on Commercial Property Executive.

The property offers 53,000 pallet positions with 212,000 square feet of freezer space and a 41,000-square-foot cooler dock. The dock will provide users access to a large number of functions, including cross-docking, repacking and USDA inspections, as well as those associated with cold storage, such as blast freezing and overseas container plug-ins.

The 20-acre Jacksonville facility will also include 34 loading docks, 132 trailer parking stalls, 90 container plug-ins and 67-foot clear-height ceilings. The facility is slated for completion in November.

Valley National Bank and IDB are the senior lenders in the deal, with Nuveen Green Capital providing Commercial Property-Assessed Clean Energy financing. Tyler Huffman and Joseph Byrne of BG Capital originated the financing. A mix of traditional and alternative lenders has been a focal point in BGFP’s efforts to put together complex capital stacks in a time of turbulent debt markets, Huffman noted.

READ ALSO: Why Cold Storage Is Getting Hotter

The project represents BGFP’s third built-to-suit location within its national expansion program, which also includes a 172,000-square-foot cold storage facility in Philadelphia and a 543,000-square-foot cold storage facility in Houston. BGFP International says it is committed to upping the availability of cold storage facilities nationwide.

New Jersey-based FreezPak is a cold storage specialist with facilities in its home state, Florida and Illinois, and ones under construction in Virginia and Texas. The company’s robotic division plans on installing 42 robots at the Jacksonville facility.

Cold storage, a hot sector

The U.S. cold storage market was valued at $36.9 billion in 2023 and is expected to grow at a compound annual growth rate of 13.3 percent from 2023 to 2030, Grand View Research reports, noting that the growth will be support technological advancements in packaging, processing and storage of perishable food products and other temperature-sensitive items.

FreezPak isn’t alone among cold storage operators in maximizing throughput and order accuracy by using robotics applications, high-speed conveyor systems and automated materials handling equipment, according to Grand View.

Also driving demand in the cold storage sector is health consciousness among consumers, and their increasing taste for fresh and perishable commodities, which has in turn spurred demand for higher-quality food packaging and storage. The market has also benefited from the stringent government regulation regarding the supply of temperature-sensitive products, Grand View reports.

The post BGFP Sources $72M Loan for Cold Storage Development appeared first on Commercial Property Executive.

A joint venture of Redfearn Capital and TPG Angelo Gordon has purchased a 380,589-square-foot industrial portfolio in Jacksonville, Fla. Somerset Properties and CenterSquare Investment Management sold the eight buildings for $47.8 million, according to Duval County public records. CBRE negotiated on behalf of the seller.

The properties are:

• 73,500-square-foot facility at 600 Suemac Road
• 56,000-square-foot industrial warehouse at 5875 Highway Ave.
• 58,982-square-foot distribution center at 3010 Powers Ave.
• 33,632-square-foot facility at 5885 Mining Terrace
• three buildings totaling 103,725 square feet at 9855 and 5867 Mining Terrace
• 54,750-square-foot property at 5748 Mining Terrace

The facilities came online between 1987 and 2020. They feature 20- to 22-foot clear heights and previously changed hands in 2020, when Kennedy Investments sold them in a $28.2 million portfolio deal, according to CommercialEdge.

Tenants include Transtar Industries, Wesco, Atlantech Distribution Inc., Sunbelt Rentals and Alside Supply Center, among others, the same source shows. The portfolio was 91 percent occupied by 18 tenants at the time of the sale.

The industrial assets provide easy access to interstates 295, 95 and 10, while being within 51 miles of Jacksonville International Airport.

CBRE’s Vice Chairmen Jose Lobón, Frank Fallon and Trey Barry, together with Vice President Royce Rose, negotiated on behalf of Somerset Properties and CenterSquare Investment Management. The firm’s Financial Analysts Gabriel Braun and Daniel Sarmiento, Senior Vice President Gary Marcy and Vice President Jack Buckley also provided assistance.

Recent Jacksonville deals

CBRE arranged another industrial sale in Jacksonville in December last year. Clarion Partners purchased a Class A facility from CT Realty, in a joint venture with Diamond Realty Investments. The recently completed industrial asset was fully occupied by a wholesale supplier.

Another big purchase in the area closed in August last year, when Hillwood acquired a 1.4 million-square-foot portfolio, also arranged by CBRE. Invesco Real Estate sold the fully occupied properties.

The post Redfearn Capital JV Makes $48M Jacksonville Purchase appeared first on Commercial Property Executive.

Texas-based Woodside Capital Partners acquired Greystone at Town Center, a 212,240-square-foot office park in Jacksonville, Fla., for $19.2 million. The asset was last owned by Taurus Investment Holdings, according to CommercialEdge data. Cushman & Wakefield brokered the transaction.

Completed in 1999, the park comprises five single-story buildings with floorplates ranging between 34,000 and 50,000 square feet, along with 850 parking spaces. Tenants at the property include Paycor, Next Science and DJ & Lindsey Real Estate, CommercialEdge information shows.

The buildings previously traded in 2006 for $25 million, according to the same source. In 2018 the asset became subject to a $20 million CMBS loan from Wilmington Trust, originated by JPMorgan Chase. The note carried a fixed interest rate of 4.86 percent.

Located at 10550 Deerwood Park Blvd., Greystone at Town Center is between interstates 295 and 95, and roughly 12 miles from downtown Jacksonville. It is also within walking distance of the Markets at Town Center shopping mall, as well as from the 1.6 million-square-foot St Johns Town Center lifestyle center.

Cushman & Wakefield Senior Directors Karl Johnston and Traci Jenks represented the seller in the transactions.

The buyer, Woodside Capital Partners, has been actively investing in office assets throughout the U.S. At the beginning of 2024, the firm entered the state of Arizona, paying $9.3 million for Talavi Corporate Center, a 153,332-square-foot office and medical office property. Including Greystone at Town Center, the company now operates a portfolio of 35 office properties totaling more than 3.7 million square feet.

The post Jacksonville Office Park Changes Hands appeared first on Commercial Property Executive.

Merritt Properties has completed construction of the second phase of the Imeson Landing Business Park, comprising a pair of flex/light industrial facilities totaling 128,400 square feet in Jacksonville, Fla.

Development of the second phase, called Buildings 400 and 500, began last July, concurrent with the announcement that the firm had leased up 88 percent of the space in the first two buildings. In total, the park is planned to span eight buildings totaling 380,700 square feet across roughly 25 acres.

READ ALSO: CRE Experts See Opportunities Ahead

Buildings 400 and 500 share a truck court, spanning 68,400 and 60,000 square feet, respectively. The facilities include rear-loading bays and 20-foot clear heights. Future tenants in the building will join a mix of tenants in the shipping, clothing, construction supply, printing and marketing sectors.

ARCO/Design Build served as the project’s general contractor, while JLL Senior Vice President Ross Crabtree and Executive Managing Director Luke Pope are overseeing leasing, along with Pat Franklin and Remy Merritt, working in-house as asset manager and finance/leasing professional. Additionally, Merritt offers tenants in-house space design and construction services, as well as building signage opportunities.

Developing Imeson Landing Business Park

The park’s first phase, consisting of Buildings 100, 200 and 300, came online in 2022 and totals 137,800-square feet, with interior spaces offering 18- to 20-foot clear heights. In the first quarter of this year, Merritt signed eight new leases for these spaces, with a mix of wholesalers and service companies, which will occupy a combined 75,000 square feet.

According to Merritt, construction on phase three will begin later this year and will consist of Buildings 600, 700 and 800. This project component will total 114,500 square feet and will comprise a 34,500-square-foot building and two additional structures spanning 40,000 square feet. They will all offer 18-foot clear heights.

Located at 1250 Imeson Park Blvd., the development is part of Imeson Industrial Park. Situated within Northeast Florida’s Foreign Trade Zone Number 64, tenants benefit from reduced import taxes and a roughly 6-mile proximity to Jacksonville International Airport.

The park’s neighbors include Imeson Park South, an under-development, master-planned 215-acre, 3 million-square-foot logistics and distribution park that includes Jacksonville Cold Storage, a recently completed 216,297-square-foot facility. Roughly 1 mile north, Amazon operates two fulfillment centers. Downtown Jacksonville is 6 miles in the opposite direction, accessible via Highway 17.

Jacksonville’s upward trajectory

In the fourth quarter of 2023, a Cushman & Wakefield market update found that Jacksonville’s industrial sector saw a 180-basis-point increase in its vacancy rate, in part due to the sheer volume of new supply coming to market. The metro saw 7.4 million square feet of new space come online in 2023, 43.8 percent higher than the last two years combined. More than half of that space was located in the Northside submarket, home to Imeson Landing.

The Gateway to Florida has continued this momentum in the new year. In January, Foundry Commercial started construction on the IGP 95/Logistics Park, a three-building property in St. Augustine that totals 510,000 square feet. Earlier that month, a joint venture between PCCP and Midwest Industrial Funds added another 337,000 square feet to the pipeline, with the groundbreaking of a new facility within the Westlake Industrial Park.

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Joint venture JAX-IMESON JV LLC—made up of affiliates of North Signal Capital and Fox Capital Partners—has fully leased its Class A infill facility in Jacksonville, Fla., to RoadOne IntermodaLogistics Co.

According to CommercialEdge data, the building came online last year, after Synovus Bank provided a $25 million construction loan in 2022.

The 422,136-square-foot facility at 1000 Imeson Park Blvd. features 36-foot clear heights, ESFR sprinklers, LED lighting and tilt-up concrete construction. Two drive-in doors, 216 car parking spots and 180 trailer parking spots are also included in the property, which was designed to be flexible to accommodate up to four tenants. However, the logistics supplier leased the entire space.

READ ALSO: What’s Next for Industrial Real Estate?

Located in the Imeson Park submarket of Jacksonville, the facility is on a 40-acre lot. Interstate 95 and Highway 17 provide distribution access throughout the Jacksonville and larger Florida area. Downtown Jacksonville is approximately 9 miles from the facility.

JLL Executive Managing Director Luke Pope represented the joint venture in the leasing deal.

RoadOne’s Jacksonville plans

RoadOne is already planning on making tenant improvements to 1000 Imeson Park Blvd., including the installation of dock levelers to every dock-high door, full-site fencing, a guard shack and a 100,000-square-foot climate-controlled area. The company will occupy the warehouse until capital improvements complete in the late summer or early fall of this year.

The logistics intermodal transportation, transload and warehousing operations company signed the lease to expand its transloading footprint. Including 1000 Imeson Park Blvd., RoadOne now has three Jacksonville facilities totaling more than 800,000 square feet.

RoadOne is the largest privately-owned, asset-based intermodal trucking provider in the nation. The company has a current footprint of nearly 5 million square feet of warehouse and transload space.

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Clothing retailer Primark has continued its U.S. expansion with the opening of a new distribution center in Jacksonville, Fla., and the signing of four new retail leases for stores in Virginia, Maryland, Tennessee and Texas.

The newly built warehouse, which has more than 550,000 square feet of space, is located at 1511 Zoo Parkway within the Imeson Park South complex in the North Jacksonville submarket, according to CommercialEdge data. VanTrust Real Estate is the developer of the 215-acre master-planned campus.

The single-tenant warehouse dubbed Building C has a 40-foot clear height and a total of 206 parking spaces, CommercialEdge reported. The Conlan Co. broke ground on the facility in 2022 and started tenant improvements for the European retailer in July 2023; Macgregor Associates Architects designed the Primark project.

READ ALSO: What’s Next for Industrial Real Estate?

Primark’s new distribution center will serve the company’s expansion in the U.S. with a focus on southern states including Florida, Texas and Tennessee. The retailer is opening its first store in The Volunteer State at Cool Springs Galleria in Franklin.

The Tennessee store is one of four retail sites totaling 128,000 square feet of space Primark is leasing. The other new stores will be located at Potomac Mills in Woodbridge, Va.; Mall at Prince George’s in Hyattsville, Md., and Katy Mills in Katy, Texas. The Hyattsville store will occupy 30,000 square feet in the space formerly occupied by JCPenney and plans to open in 2025.

The four new stores will be serviced by the Jacksonville distribution center and its other U.S. warehouse in Bethlehem, Pa. Primark is currently operating in 24 stores in the U.S. across eight states and has plans to have 60 U.S. stores by 2026. The company has more than 400 stores worldwide and is seeking to open 530 stores across the globe by late 2026.

Growing demand

Kevin Tulip, president of Primark U.S., said in a prepared statement the firm has seen growing demand for Primark stores across the U.S., particularly in the South. He said they recently expanded the store footprint in the Sawgrass Mills shopping center in Sunrise, Fla., to meet customer demand. Tulip added Primark also plans to open a store in Orlando, Fla., and expects the Jacksonville distribution center to play a key role in supporting the growth.

The company opened its first U.S. store in 2015 in the Burnham Building, part of the Millennium tower development in downtown Boston. Other U.S. stores include Kings Plaza in Brooklyn, Danbury Fair in Connecticut, Fashion District Philadelphia and Freehold Raceway Mall in New Jersey.

Last summer, Primark opened its seventh store in a Macerich property, leasing 54,562 square feet of multi-level space at Queens Center in the New York City borough’s Elmhurst neighborhood. Other outlets opened last year in Arundel Mills in Hanover, Md.; Tysons Corner Center in McClean, Va.; Green Acres Mall in Valley Stream, N.Y.; and City Point in downtown Brooklyn, N.Y.

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Foundry Commercial has broken ground on IGP 95/Logistics Park, a three-building industrial development totaling approximately 510,000 square feet in St. Augustine, Fla., within the South Jacksonville submarket. Miller Construction Co. is the general contractor. Completion is scheduled for the third quarter.

The development team also includes C4 Architecture, The Avanti Group as structural engineer and Matthews Design Group as civil engineer. Foundry Partner Mark Scott and Senior Associate John Cole will market the property for lease.

Plans call for three rear-load, single-story buildings ranging from 110,600 to 205,700 square feet, with clear heights of 28 and 32 feet. The property will feature 60-foot speed bays, ESFR sprinkler systems, 3,800 amps of power, 120-foot truck courts and a total of 465 vehicle parking spots. Additionally, each facility is set to include two 2,454-square-foot speculative office suites.

A 996-acre master-planned community

IGP 95/Logistics Park will take shape at 3405 International Golf Parkway. It is part of the master-planned World Commerce Center, which is set to include office, retail, warehouse and hotel spaces. Jacksonville-based Steinemann & Co. is the developer of the 996-acre DRI.

The 43-acre site is on farmland that includes a high water table, where Miller’s preconstruction team planned the excavating and foundation procedures. The property is close to Interstate 95 and 11 miles from Northeast Florida Regional Airport, 30 miles from Jacksonville, Fla., 35 miles from JAXPORT and within 45 miles of Jacksonville International Airport.

More industrial space coming to Jacksonville

Recent Jacksonville projects include PCCP’s 337,000-square-foot speculative industrial facility. The company broke ground earlier this month and is building the project with partner Midwest Industrial Funds.

Last summer, Merritt Properties commenced construction on Imeson Landing Business Park’s second phase. The developer will add two buildings totaling 128,400 square feet and also purchased 16 additional acres for further expansions.

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A joint venture of PCCP and Midwest Industrial Funds has broken ground on a 337,000-square-foot speculative facility within Westlake Industrial Park in Jacksonville, Fla. Completion is scheduled for December.

The developer acquired the land at the end of last year for $3.5 million and took out a $19.3 million construction loan from CIBC Bank, according to public records. The note is set to mature in December 2026.

Partners on the project include general contractor ARCO Design/Build and architecture firm ADB Design Services, Jacksonville Daily Record reported. England-Thims & Miller Inc. is the civil engineer, while Colliers Senior Vice President Guy Preston and Associate Seda Preston will take care of leasing.

The Class A warehouse will feature 36-foot clear heights, 190-foot truck court and 72 dock-high loading doors. Additionally, the rear-load facility will comprise 245 vehicle parking spaces and 97 trailer stalls. Plans also include a second, adjacent building set to measure about 193,000 square feet, bringing the total project cost to $60.4 million, Colliers marketing materials show.

The 33-acre site is at the junction of Pritchard Road and Jones Road, 4 miles from Interstate 295. The development is 14 miles from downtown Jacksonville and Jacksonville International Airport, while the Port of Jacksonville is some 12 miles southeast.

PCCP’s growing industrial pipeline

The news comes on the heels of PCCP’s joint venture with Panattoni Development Co. and Hunt Cos. for the development of Project Grande, a 939,612-square-foot industrial development in El Paso, Texas. The project is scheduled to come online in the second half of this year.

In September, the firm partnered with BBX Logistics Properties to develop a 40-acre logistics park in Delray Beach, Fla. BBX Park at Delray will consist of three buildings totaling 672,533 square feet.

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Building 200 at 9909 Pritchard Blvd. is fully occupied by IPEX USA LLC. Image courtesy of CBRE

Clarion Partners LLC has acquired a 300,240-square-foot, Class A industrial building in Jacksonville, Fla., on behalf of a separate account. CBRE arranged the transaction.

The seller was CT Realty in a joint venture with Diamond Realty Investments. The transaction’s dollar value was not disclosed.

The newly completed Building 200 at 9909 Pritchard Blvd. is fully occupied by IPEX USA LLC, a wholesale supplier of specialized PVC and thermoplastic piping systems.

The structure is sited within the master-planned Florida Gateway Logistic Park, in Jacksonville’s West Side submarket, and features 36-foot clear height, cross-dock loading, 86 dock doors, four drive-in doors, ESFR sprinkler systems, 168 car parking spaces and 138 trailer parking spaces.

READ ALSO: Top 5 Markets for Industrial Transactions

CBRE National Partners’ Vice Chairmen Jose Lobón, Trey Barry, Frank Fallon, along with Chris Riley, president, U.S. Industrial & Logistics, Capital Markets, and Royce Rose, senior financial analyst, represented the sellers, assisted by CBRE’s Alain Bonvecchio, financial consultant, and Gabriel Braun, associate.

In a prepared statement, Lobón described the property as “strategically located for mega-regional distribution,” with a location from which 60 million consumers can be reached within an eight-hour drive. The building has immediate access to I-295 and easy connections to the entire Southeast via I-10 and I-95.

Staying warm

Jacksonville’s industrial space market consists of about 110 million square feet, of which 4.9 percent is vacant. Nearly 4.9 million square feet of space is currently under development, according to a third-quarter report from JLL.

Year-to-date, deliveries of about 4.4 million square feet have outpaced absorption of about 2.4 million square feet. The overall direct asking rent is $7.95 per square foot.

The IPEX lease is one of the top five lease transactions noted by JLL in the report, and there has been plenty of other recent activity in Jacksonville.

In August, Hillwood acquired a 1.4 million-square-foot, two-building portfolio from Invesco Real Estate, in a deal also arranged by CBRE.

In July, IWH Capital purchased a 300,000-square-foot, six building industrial campus from GF Florida for $35 million. Again, CBRE represented the buyer.

Also in July, Merritt Properties got under way on the second phase of Imeson Land Business Park. The three-building first phase was completed in 2022 and is already 88 percent leased.

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To celebrate its new store at Riverplace Shopping Center, Homesense will donate $10,000 to Habitat for Humanity. Image courtesy of CommercialEdge

Homesense has completed its build-out at the Kimco Realty-owned Riverplace Shopping Center in Jacksonville, Fla. Kerricook Construction Inc. has remodeled a 36,076-square-foot former Stein Mart store for the new tenant, according to Jacksonville Daily Record. The project’s cost was $2.1 million.

The 265,300-square-foot retail property is at 11111 San Jose Blvd., some 19 miles south of downtown Jacksonville. The 1989-built asset has just under 1,400 parking spaces, according to CommercialEdge data. Kimco Realty bought the asset in 2010 for $35.6 million, the same source shows.

Homesense belongs to TJX Cos., along with T.J. Maxx, which also leases space at Riverplace Shopping Center. Sola Salons is also a tenant, among others, according to CommercialEdge. In celebration of this new store location, Homesense is slated to donate $10,000 to Habitat for Humanity of Jacksonville, to contribute to the community.

Kimco Realty plans to expand in Sun Belt markets. In August, the company has entered into a merger agreement to acquire RPT Realty in an all-stock transaction valued at approximately $2 billion, including preferred stock and debt assumption.

Private investment claimed 82 percent of all retail acquisitions through the first six months of the year, while institutional investors and REITs were more selective, according to JLL Managing Director Dean Sands. Transaction volume was highest in the Sun Belt region, which also experienced the highest rates of rental growth.

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Hillwood Investment Properties has acquired a two-building industrial portfolio in Jacksonville, Fla. Image courtesy of CBRE 

Hillwood Investment Properties has acquired an approximately 1.4 million-square-foot, two-building industrial portfolio in Jacksonville, Fla., from Invesco Real Estate in a deal arranged by CBRE.

The sales price of 12200 Presidents Court and 2300 Pickettville Road was not disclosed. Invesco, a global real estate manager, had purchased the two properties along with 600 Whittaker Road in March 2019 from Link Logistics, formerly Gramercy Property Trust, and now part of the Blackstone Group.

The combined price for the three assets at that time was $129.3 million. 12200 Presidents Court sold for $46.9 million and 2300 Pickettville Road sold for $50.4 million, according to CommercialEdge data. Invesco sold 600 Whittaker Road, a 469,830-square-foot warehouse, to LRC Properties and Machine Investment Group for $29.3 million in June 2021.

The two properties sold this month by Invesco were both Class A bulk cross-dock distribution buildings in Jacksonville’s Westside industrial market. Both assets were fully leased to two investment grade tenants—Unilever and Keurig Dr. Pepper. With nearby access to Interstates 295, 10 and 95, both properties provide tenants direct access to Jacksonville’s growing population base as well as a strategic location for regional distribution.

READ ALSO: These Asset Classes Stood Out in DLA Piper’s Mid-Year Outlook

Unilever occupies the 772,210-square-foot warehouse at 12200 Presidents Court, which was built in 2008 on 68.14 acres. The building has 32-foot clear heights, 90 dock doors, ESFR sprinklers, 186 car parking spaces and 255 trailer parking spaces.

Keurig Dr. Pepper leases the 601,500-square-foot warehouse at 2300 Pickettville Road. Completed in 2009, the building has 32-foot clear heights, 128 dock doors, ESFR sprinklers, 326 car parking spaces and 118 trailer parking spaces on a 69.08-acre lot.

CBRE’s Jose Lobón, Trey Barry, and Frank Fallon represented Invesco in the sale. The CBRE National Partners sales team was assisted by Royce Rose and Alain Bonvecchio as well as Ben Stewart, first vice president with CBRE’s Industrial Advisory and Transaction Services group in Jacksonville.

Hillwood industrial moves

In February, Dallas-based Hillwood Investment Properties and CBRE Investment Management purchased 364 acres of land in Fontana, Calif., from Auto Club Speedway for $559 million as part of the first phase of Speedway Commerce Center, a multi-building logistics campus that will total 6.6 million square feet at buildout. The sale of the project’s second phase, encompassing 69 acres, is scheduled to close on or before Dec. 31, 2026. Located in the western part of the Inland Empire, the site will offer easy access to Interstates 15 and 10, as well as the San Bernardino BNSF freight railway’s Intermodal Yard and Long Beach and Los Angeles ports.

A year earlier, in January 2022, Hillwood agreed to sell CBRE Investment Management a $4.9 billion global logistics portfolio with 57 assets totaling 28.4 million square feet in the U.S. and Europe. It was among the largest sales of industrial properties on record and the largest deal made to that point by CBRE Investment Management, which had previously operated as CBRE Global Investors.

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Imeson Landing Business Park. Image courtesy of Merritt Properties

Merritt Properties has begun the development of the second phase of Imeson Landing Business Park in Jacksonville, Fla. The company has also announced the signing of a slew of leases for the industrial development’s initial phase, which is now 88 percent leased.

More than 121,000 square feet of flex/light industrial space have been leased across the three buildings completed as Phase I. Merritt Properties signed 12 leases with tenants including food packaging, government contracting, distribution and transportation services companies.

Tenants include CLogic Defense, Tote Maritime, Loomis, Freedom Forever, American EV, New Image Global, Dorado Graphix, Evans Marketing Group, EX Anchor Puller, Krebs Brothers, Phenix Specialty Films and VSS Logistics.

The floorplate sizes leased range from 2,800 square feet to 29,000 square feet.

Built in 2022, the first three buildings are situated at 1250 Imeson Park Blvd. According to CommercialEdge data, each property features 18-foot clear heights and loading doors. Building 100 is 39,000 square feet, Building 200 is 40,000 square feet and Building 300 is 58,800 square feet.

Situated in Duval County at Zoo Parkway, tenants at Imeson Landing Business Park are in proximity to Interstate 95 and I-295. Downtown Jacksonville is approximately 15 minutes away with dining, entertainment and retail options. The Jacksonville International Airport is around 20 minutes from the property.

Phase II on the way

Phase II of the project will include two additional buildings, Building 400 and Building 500. Plans call for the assets to be 68,400 square feet and 60,000 square feet, respectively.

Delivery of Phase II of Imeson Landing Business Park is anticipated for December of this year. Additionally, Merritt acquired 16 more acres of land for further expansion purposes in March of this year. Following the development of the second phase of Imeson Landing Business Park, the company anticipates completing an additional three buildings. They are set to total some 114,500 square feet.

ARCO/Design Build is the general contractor for the park. JLL’s Ross Crabtree and Luke Pope are working alongside Merritt’s Pat Franklin as the leasing team.

Arcadia Cold is also developing a 216,297-square-foot industrial facility nearby, at Imeson International Industrial Park. The cold storage asset will feature a freezing capacity for more than 6 million pounds of product per week. It is anticipated to deliver in early 2024.

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Aerial image of IWH Industrial Park. Image courtesy of CBRE

IWH Capital has purchased a 300,000-square-foot, six-building industrial campus in Jacksonville, Fla.—its second investment in the market. GF Florida sold the property for $35 million. CBRE First Vice President Ben Stewart and Associate Kyle Fisher negotiated on behalf of the buyer and will also provide leasing services.

IWH Capital focuses on acquiring last-mile industrial products. The firm’s portfolio consists of more than 3 million square feet of industrial space spread across Midwest, Mid-Atlantic and Southeast U.S.

Nearly 3.2 million square feet of industrial space changed hands in Jacksonville metro in the first six months of the year, according to CommercialEdge data. In one of the transactions, Sterling Investors paid $31.1 million for a 260,000-square-foot, Class A distribution center. Link Logistics sold the asset, with the assistance of JLL.

A small bay and flex industrial portfolio

At the time of the transaction, the asset was 92 percent leased by 22 companies working in the HVAC, electronics, healthcare and automotive industries. The portfolio encompasses the following buildings, all featuring small bay industrial and flex space:

• Monterey, a 61,688-square-foot facility located at 8168-8190 Baymeadows Way W.
• the 57,000-square-foot Madison at 7750 Bayberry Road
• Lexington, a 9,632-square-foot office building located at 7751 Bayberry Road
• the 40,000-square-foot Palatka, situated at 7861-7875 Bayberry Road
• Denver, a 70,140-square-foot property at 7829-7859 Bayberry Road
• the 66,800-square-foot Charleston, located at 7749-7787 Bayberry Road.

The portfolio is close to Interstate 95 within Jacksonville’s Southside submarket, 9 miles from downtown Jacksonville, 12 miles from JAXPORT and within 24 miles of Jacksonville International Airport.

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4150 Perimeter Industrial Parkway W. Image courtesy of JLL

Link Logistics has sold a 260,000-square-foot distribution center in Jacksonville, Fla., for $31.1 million, according to Duval County public records. The same source shows that Sterling Investors is the new owner of the Class A asset. Global Atlantic Financial Group provided a $22.2 million acquisition loan for the buyer.

JLL’s Capital Markets Investment Sales and Advisory team of Executive Managing Director Luke Pope, Senior Managing Director John Huguenard, Managing Director Luis Castillo, Director Cody Brais, with the assistance of Analyst Taylor Osborne and Associate Wells Waller, has made arrangements on behalf of the seller.

This is the JLL team’s fifth transaction in the Jacksonville area in the past 12 months, according to Castillo. In January last year, VanTrust Real Estate, assisted by JLL, sold an Amazon-occupied facility for $103.5 million, part of a 156-acre industrial campus.

A fully occupied industrial asset

Located at 4150 Perimeter Industrial Parkway W. on a 15.3-acre lot within Perimeter West Industrial Park, the one-story property is fully occupied by Volkswagen Group of America. Its features include ESFR sprinkler systems, 30-foot clear heights, HVAC systems, dock levelers and bumpers, a 155-foot truck court and 156 parking spots, according to CommercialEdge data.

The distribution center is close to multiple interstates, as well as to CSX Intermodal Terminal, 8 miles from downtown Jacksonville and within 12 miles of Jacksonville International Airport. Nearby major thoroughfares include interstates 295, 95 and 10.

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Rendering of Jacksonville Cold Storage. Image courtesy of Arcadia Cold

Arcadia Cold has commenced the construction of Jacksonville Cold Storage, a 216,297-square-foot facility in Jacksonville, Fla. The project is slated for completion in early 2024.

In late 2022, the Jacksonville Business Journal reported that Jacksonville’s city council agreed to offer Arcadia a $2 million property tax rebate for the development, while JAX USA reported in October that Arcadia will invest $86.5 million in the refrigerated distribution facility.

Upon completion, the cold storage facility will include 30,254 pallet positions with a freezing capacity for more than 6 million pounds of product per week, with temperatures ranging from -10 degrees F to 38 degrees F. The project will feature ample dock space and doors to manage import, export and distribution services.

READ ALSO: Electric Vehicles Put a Charge in Industrial Growth

The facility will rise in the Imeson International Industrial Park, 9.2 miles from downtown Jacksonville, with access to Highway 17 and Interstate 95. The cold storage project is designed to support distribution activity through the Jacksonville Port Authority, which is 4.8 miles from the development site.

Last month, Arcadia signed an agreement to lease and operate Phoenix Cold Storage, a 293,000-square-foot industrial building currently under construction in El Mirage, Ariz. Last year, the company also broke ground on a cold storage facility in Hazleton, Pa., and two other facilities in Atlanta and Fort Worth, Texas.

Demand for cold storage assets remains strong

Driven by the pandemic-induced rise in e-commerce activity, demand for cold storage warehouses remains strong. This trend became evident in 2021, when total annual sales for this particular asset class in dense urban areas amounted to $2 billion.

Notable recent deals include Barber Partners and Bain Capital’s formation of a joint venture in May 2022, with plans to invest $500 million in the development of 15 cold storage facilities that would operate under the Chill Storage brand. Later in September, IDS Real Estate Group secured $124 million in post-close acquisition financing for its cold storage facility in Riverside, Calif., which traded for $225 million.

In March 2022, Bridge Industrial signed FreezPak to a full-building lease for its cold storage facility in South Florida, while the project was still underway.

A more recent deal was announced early this year in February, when Tiger Cool Express signed a lease/purchase agreement to acquire an industrial property that will host a 200,000-square-foot cold storage facility in Wallula, Wash.

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Parkway Village at St. Johns. Image courtesy of JLL Capital Markets

A joint venture between Stiles Corp. and Cantrell & Morgan has sold Parkway Village at St. Johns, a 52,070-square-foot retail center in St. Augustine, Fla., with the assistance of JLL Capital Markets. A private investor acquired the asset, that also includes two outparcels leased to Heartland Dental and Starbucks, for $24.1 million.

Completed by Stiles and Cantrell last year, the shopping center is anchored by a 35,413-square-foot Publix supermarket, which represents 68 percent of the property’s gross leasable area. The store features a beer and wine tasting center, deli section and second-floor terrace with outdoor seating.

Other tenants at the fully leased Parkway Village include Supercuts, Orange Theory Fitness and The Loop, among others. The weighted remaining contract leases average more than 13.5 years.

READ ALSO: What Will Retail Look Like in 2023?

Situated at the intersection of International Golf Parkway and Commerce Lake Drive, Parkway Village at St. Johns is part of World Commerce Center, a 1,000-acre development of regional impact. At full build-out, the mixed-use property will feature 2.1 million square feet of office space, 1.2 million square feet of industrial space, 950 hotel rooms and 1,200 residential units.

The retail center sits in a trade area located 30 miles south of downtown Jacksonville, Fla., and 2 miles from World Golf Village, having nearly 1.6 million yearly visits. Parkway Village at St. Johns serves a population with an average household income of $142,371 within a 3-mile radius.

Jacksonville, a growing retail market

Jacksonville’s retail sector fully rebounded from the pandemic, driven by record population growth and restored consumer confidence, resulting in robust overall performance, according to Jacksonville Daily Record. In the fourth quarter of last year, the metro saw nearly 600,000 square feet of new retail space delivered; another million square feet of new construction was planned or underway as of January.

JLL Senior Managing Directors Danny Finkle, and Alex Sharrin, Senior Directors Eric Williams and Jorge Portela, Director Jeff Cicurel and Vice President Kim Flores led the Investment Sales and Advisory team that brokered the transaction on behalf of the joint venture. In a prepared statement, Finkle said that the features of the site, upgrades and tenants guarantee the asset’s long-term viability.

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Image by Tookapic via Pixabay.com

North Signal Capital has started construction on a 422,136-square-foot Class A industrial building in Imeson Park, a submarket of Jacksonville, Fla.

A joint venture between the company and Fox Capital Partners acquired the 40-acre lot in March of this year. Synovus Bank will provide construction financing for the project. The facility is slated for completion in August 2023.

Designed for multiple tenants, North Signal’s new development will feature  tilt-up concrete construction, ESFR sprinkler systems, 36-foot clear heights, mechanical dock levelers and seals, and 180 trailer parking spots. The building will also include an office component consisting of two 1,000-square-foot office units, located at both ends of the property. Located at 1000 Imeson Park Blvd., the development will be situated close to Interstate 95, Highway 17 and 9.2 miles from downtown Jacksonville.

Evans General Contractors is the appointed contractor, leading the construction team that includes LS3P, OMNI Partners, England-Thims & Miller and LJB. JLL will oversee leasing, with a team formed of Managing Director Luke Pope and Vice President Ross Crabtree.

Higher industrial demand

North Signal is developing some 6 million square feet in Jacksonville, Fla., Charleston, S.C., and Savannah, Ga., according to the company. Jacksonville’s population is expected to grow with the in-migration of some 75 people per day in the next 5 years, while corporate employees are choosing Jacksonville over other markets with higher taxes and costs of living, thus making industrial demand higher, JLL’s Luke Pope said in prepared remarks.

Other recent deals in the region include LRC Properties and Machine Investment Group’s $29.6 million acquisition of 600 Whittaker Road, a 469,830-square-foot distribution center and Sealy and Co.’s $98 million purchase of two Class A logistics facilities with a total of 841,849 square feet in Lakeland, Fla. In May, Hines began construction of its four-building Tampa Commerce Center, a Class A industrial park in Tampa, the company’s first industrial project in the area, expecting to exceed 600,000 square feet.

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701 San Marco Blvd.

The Prudential Insurance Co. of America has completed the sale of 701 San Marco, a 19-story Class A office tower at 701 San Marco Blvd. in Jacksonville, Fla.

Bradford Allen Investment Advisors bought the property for an undisclosed amount. A JLL Capital Markets team represented Prudential in the transaction.

701 San Marco was constructed in 1985 and hosts 658,822 square feet of Class A office space, with 187,929 square feet available for lease and an additional 3,900 square feet for retail use, according to CommercialEdge data.

Occupants include the building’s former owner, The U.S. General Services Administration, FIS Relius, The U.S. Army Corps. of Engineers and Home Depot. Amenities include conference rooms, a cafeteria, ground floor restaurant space and a 1,277-space parking garage. The complex is located adjacent to Jacksonville’s South Main St., overlooking the St. John’s River and is within 1 mile of downtown Jacksonville, with quick access to many restaurants, shops and cultural sites.

Jacksonville’s journey to the top

The sale of 701 San Marco takes place as Florida remains a magnet for corporate relocations and commercial real estate investment. Jacksonville, Miami and Tampa continue to see strong office leasing activity for both vacant and new space. Such moves are motivated in part by the state’s lower taxes and less intensive regulations, as well as its warm weather. Jacksonville, for its part, has seen strong leasing and construction activity amid ongoing migration to the city, with more than 941,699 square feet of space being leased year-to-date and 228,764 square feet of space in its construction pipeline, according to data from JLL and a second quarter 2022 report from Avison Young.

READ ALSO: Class A Demand Stabilizes Office Sector

The JLL team was led by Senior Vice President Peter Politi, Senior Managing Director Herman Rodriguez, Senior Director Robbie McEwan, Managing Director Ike Ojala and Director Matthew McCormack.

Putting these trends in context, McEwan said in prepared remarks that strong market fundamentals, a steady commercial office base, a growing workforce and favorable demographics continue to support Southbank’s growth into one of the strongest submarkets in Jacksonville.

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Imeson Park. Image via Google Earth

With the assistance of JLL Capital Markets, VanTrust Real Estate has sold a new industrial building totaling more than 1 million square feet in Jacksonville, Fla., to LBA Logistics. The asset, 10501 Cold Storage Road, Building E, which is net leased to Amazon, sold for a total of $103.5 million, according to records of the Duval County Clerk of Courts.

Building E is located within Imeson Park, a 156-acre, master-planned industrial business park. The multi-structure complex sits less than 7 miles from Jacksonville Port Authority and is within close proximity of Interstates 95 and 295, thereby placing the entire Southeast within easy reach. VanTrust completed the development of Building E in 2021 with the assistance of an approximately $55.5 million loan through JP Morgan Chase.

READ ALSO: What to Expect From the Industrial Sector in 2022

A state-of-the-art facility, Building E encompasses such features as a 40-foot clear height, wide column spacing, office accommodations, ESFR fire protection and ample auto and trailer parking.

JLL Capital Markets’ John Huguenard, Luis Castillo and Cody Brais marketed the asset and arranged the transaction on behalf of VanTrust. The team likely found an audience of eager buyers when presenting the opportunity.

Magnet for investors

By the close of the third quarter, industrial investment activity in Jacksonville had already reached $500 million year-to-date and was on track to exceed the annual investment activity recorded in 2019 and 2020, according to a report by Avison Young.

“There is considerable investor appetite for high-quality distribution properties in Jacksonville but there are very few current opportunities,” according to the Avison Young report. This dearth of high-quality, investment-grade industrial assets on the market also caused a decrease of 17.6 percent in the average price per square foot of industrial assets in Jacksonville from pre-pandemic pricing in the first quarter of 2020 to the third quarter of 2021.

Notable Jacksonville industrial transactions in the last six months of 2021 included VanTrust’s disposition of 10501 Cold Storage Road Building B, an approximately 552,700-square-foot structure, for $50.8 million. At Westside Industrial Park, three facilities carrying the address of 4601 Bulls Bay Highway—the 439,400-square-foot Building 100, the 415,800-square-foot Building 200 and the 310,000-square-foot 300 12-C—sold for $41.8 million, $44.1 million and $35.2 million, respectively.

Investors have taken notice of this critical Southeast logistics hub, and strong capital flows into Jacksonville are expected to continue for some time, Luis Castillo, managing director with JLL Capital Markets, said in a prepared statement.

In October 2021, VanTrust acquired an additional 196 acres in Imeson Park for $22.8 million. The company plans to build Imeson Park South, a six-building, master-planned industrial park featuring 2.8 million square feet of accommodations.

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600 Whittaker Road. Image courtesy of LRC Properties and Machine Investment Group

LRC Properties and Machine Investment Group have teamed up to buy industrial properties in the Southeast, including the $29.6 million acquisition of 600 Whittaker Road, a 469,830-square-foot distribution center in Jacksonville, Fla.

READ ALSO: Top 5 Markets for Industrial Transactions

The debt on the purchase was funded by Rialto Capital. Further details on that part of the transaction were not available.

The warehouse property is situated in the Imeson International Industrial Park, a 1,500-acre master-planned development in the Northside submarket of Jacksonville, which is one of the key submarkets in the region.

Built in 1995, 600 Whittaker Road was most recently owned by Invesco Real Estate, which paid $32 million for the asset in March 2019, according to CommercialEdge data. The Invesco purchase was part of a $129.3 million, three-building, nearly 1.9 million-square-foot industrial portfolio acquisition from Gramercy Property Trust.

The property is the only rail-served vacancy in the tight Jacksonville industrial market, according to Machine Investment Group. It has significant trailer parking, 32-foot clear heights, 54 loading docks and 14 rail-served loading docks. The 24.46-acre property is located near I-95, I-295, I-10 and two ports. LRC and Machine Investment Group plan to make cosmetic upgrades and improve the signage. The property last had a cosmetic renovation in 2007.

Karie Nero, principal & CFO of LRC Properties, said in a prepared statement the location near major interstates, the ports and rail access made the property an ideal distribution hub for many companies. Nero said they are seeing great interest from potential users.

Nashville deal

With the purchase of the Jacksonville property and a recent acquisition of 2 Dell Parkway, a 288,860-square-foot industrial property in Nashville, Tenn., LRC Properties owns approximately 6 million square feet of commercial properties in the Southeast, with assets under management worth more than $500 million.

LRC Properties and Machine Investment Group have also partnered to purchase the Nashville industrial property, with significant development rights, for $36.23 million. Located in Nashville’s Airport submarket, 2 Dell Parkway is a warehouse and office property. As part of their value-add business plan, Machine and LRC will renovate the asset to expand its total rentable square footage to approximately 368,000 square feet. They will convert office space to additional industrial space and create new Class A shallow bay warehouse space. The existing mini-bulk distribution center is currently fully leased by Amazon as the anchor tenant.

The Nashville industrial market, particularly the Airport submarket, is one of the tightest industrial markets in the Southeast, with robust tenant demand, extremely low vacancy and lack of available land for new development. The Nashville market is also experiencing strong tailwinds due to migration to the Southeast and significant corporate relocations. A gateway to the rest of the Southeast, 72 percent of the U.S. population is within a two-day drive of Nashville.

Opportunistic buys

Noting both the Jacksonville and Nashville properties are located in leading national distribution hub markets, Eric Rosenthal, managing partner of Machine, said in a prepared statement both deals represented a unique opportunity to add opportunistic industrial assets to its growing portfolio. Launched in August, Machine is a New York City-based real estate investment platform that focuses on opportunistic, distressed and special situations investments. The firm’s first transaction was the $54.5 million acquisition of Stevens Creek Executive Park in San Jose, Calif., in a Silicon Valley redevelopment play.

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JEA Headquarters. Image courtesy of Ryan Cos.

Less than a year after breaking ground on JEA’s new headquarters in Jacksonville, Fla., Ryan Cos. has laid the final beam for the 153,000-square-foot office building. The project, which also landed a $62.9 million construction loan from Wells Fargo in July 2020, is expected to complete construction in the second quarter of 2022.

Located at 225 Pearl St., the seven-story office is a build-to-suit project for JEA, the area’s not-for-profit utility company that will lease the space for an initial term of 15 years. Apart from the Class A office space, the building will include 9,325 square feet of street-level retail and a seven-story parking garage that can accommodate 630 spaces. The utility company is also planning to operate a customer experience center out of the new headquarters.

READ ALSO: Office Vacancy Rates Up as Pipeline Poised to Cool

Ryan Cos.’ design of the office building drew inspiration from the area’s bridges and industrial history and features large windows and open floorplans that are meant to promote collaborative meeting spaces. The new headquarters was also designed to achieve LEED Gold certification and WELL Building standards.

New Downtown Home

Ryan Cos. served as the developer, architect of record and builder for JEA’s new headquarters, Scott Stenman, vice president of construction at Ryan Cos., told Commercial Property Executive. The company used its in-house capital markets team to finance the project and will use its real estate management team to manage the office building when it’s complete.

JEA will be moving out of its previous headquarters located nearby at 21 W. Church St., which the company has said will be marketed for sale and possible redevelopment. According to JEA, the company has been planning for a new corporate headquarters for several years to address business continuity but wanted to have a project that met its headquarters needs in a cost-effective manner.

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Florida’s industrial developers have taken note: CommercialEdge shows nearly 14.9 million square feet underway, or roughly 2.3 percent of completed inventory, with close to one-third slated for delivery by year-end. That’s on top of the 17.6 million square feet already delivered through mid-November. Last year’s completions, by comparison, totaled 16.6 million square feet.

The table below uses CommercialEdge data to highlight the five Florida markets with the highest levels of industrial development.

5. Jacksonville

JAXPORT. Image courtesy of Jacksonville Port Authority

Jacksonville’s industrial market has long been a strong performer, bolstered by its major shipping port and further augmented this year by the rapid growth of e-commerce. Although only a handful of major projects are underway, industrial completions this year have hit a record high. Through mid-November, 2.9 million square feet delivered, the highest level since 2009.

The largest project underway was VanTrust Real Estate’s 1.1 million-square-foot Building E at Imeson Park. Located at 10501 Cold Storage Road in the North Jacksonville industrial corridor, the asset is fully leased to Amazon with delivery slated for late 2021.

4. Fort Lauderdale

Bridge Point 595. Image courtesy of Bridge Development Partners

Development has picked up in Broward County this year, with industrial deliveries topping 1.5 million square feet and 11 projects underway totaling an additional 1.7 million square feet. Even though passenger cruises have completely halted at the county’s Port Everglades, the facility remains one of the U.S.’s busiest shipping ports, with a volume of more than 1 million TEUs (20-foot equivalent units) per year.

Bridge Point 595 was the largest industrial development underway. Bridge Development Partners broke ground on the three-building, 677,310-square-foot park in October 2019, with delivery expected in the first quarter of 2021. The structures will have 32-foot clear heights, ESFR sprinkler systems and a combined 132 dock-high loading doors. Wells Fargo provided the developer with $60.3 million in construction financing.

3. Orlando

Infinity Park. Rendering courtesy of McCraney Property Co.

Although Orlando’s economy has taken a substantial hit this year, the industrial sector has come back to life. Area employers added 11,500 trade and transportation jobs between April and September, according to the Bureau of Labor Statistics, reflected by growing demand for modern distribution space. Developers are moving forward with projects totaling 2.6 million, more than 80 percent of which is speculative.

Building 800 at Infinity Park is the largest property underway. McCraney Property Co. and Tavistock Development Co. broke ground on the 433,404-square-foot speculative project in August at 2500 Consulate Drive, with completion set for early 2021. The building is one of four within the 206-acre park’s second phase.

2. Tampa Bay

Port Tampa Bay. Image courtesy of Tampa Port Authority

Florida’s largest industrial market continued to expand, with 3.8 million square feet underway across 16 projects. Deliveries through mid-November totaled 6.1 million square feet and may finish the year beyond the 2016 peak of 6.3 million square feet. In addition to a diversified port, shifts from retailers toward e-commerce operations have driven much of the market’s activity, with Ace Hardware and The Home Depot moving forward with distribution centers.

Brennan Investment Group’s 1 million-square-foot Building 400 at CenterState Logistics Park East in Lakeland broke ground in August, becoming the market’s largest development underway. Upon completion, the cross-dock spec facility will have 40-foot clear heights, 238 loading doors, 190-foot truck courts and 70-foot speed bays. Citizens Financial Group provided $42.6 million in financing.

1. Miami

PortMiami. Image by zopalic via Pixabay.com

Topping our list, Miami has some 4.2 million square feet underway, equal to 3.3 percent of inventory. The metro’s role as a major international trade hub remains intact even amidst the backdrop of economic uncertainty: In the 2020 fiscal year, PortMiami reported only a slight decrease in sea cargo volume from the previous year to 1.1 million TEUs. In addition to port traffic, e-commerce growth is also pushing industrial demand higher, particularly for well-located, last-mile distribution centers.

Nearly 90 percent of the metro’s industrial development activity was concentrated in Hialeah, northwest of Miami. The largest project underway is a two-building, 1 million-square-foot build-to-suit facility for The Home Depot. Florida East Coast Industries began construction in January with an anticipated delivery this winter.

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JEA Headquarters. Image courtesy of Ryan Cos.

Ryan Cos. has broken ground on JEA’s new headquarters in Jacksonville, Fla. The 153,000-square-foot project kicked off via a virtual groundbreaking ceremony involving representatives from the developer as well as from JEA, local government and CBRE.

Wells Fargo is providing nearly $63 million to finance the project, set to deliver in early 2022, according to Yardi Matrix. JEA will lease the building at 225 Pearl St. N. for a 15-year period upon completion.

JEA has operated out of its current, 433,000-square-foot headquarters five blocks away at 21 W. Church St. for more than three decades. “This is a long time coming,” said Paul McElroy, interim CEO & managing director of JEA, during the ceremony. “(Our current building has) finally reached the end of its life at this point in time as we know it.”

The new building will rise seven stories on the 1.9-acre project site in the heart of downtown, one block east of the Duval County Courthouse. The development is within half a mile of 6.2 million square feet of office space, Yardi Matrix shows.

The project, designed by Ryan Architecture + Engineering, is targeting LEED Gold certification upon completion. The structure will include an attached, 640-stall parking garage and street-level retail space. JEA will operate a customer experience center within the property, anticipating approximately 3,000 monthly visitors.

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8451 Western Way, Jacksonville, Fla. Image courtesy of Plymouth Industrial

Plymouth Industrial REIT Inc., of Boston, has bolstered a couple of its current strongholds by acquiring two industrial properties in St. Louis and one industrial property in Jacksonville, Fla., for a total of $51.2 million. The sellers were not disclosed.

READ ALSO: Transactions: September 2020

The two properties in St. Louis total 566,408 square feet. Commerce Center I and II are two Class A in-fill buildings totaling 487,150 square feet that are fully leased to five tenants. The buildings (both completed in 2001) are at 909 N. 20th St. and 900 N. 23rd St. and were acquired for $27 million. Their previous owner was Real Capital Solutions, of Louisville, Colo., according to information provided to Commercial Property Executive by Yardi Matrix.

2326 Grissom Drive in St. Louis consists of two Class B industrial buildings totaling 79,258 square feet and fully occupied by a single tenant. The property is near St. Louis Lambert International Airport and was acquired for $3.7 million.

The industrial property in Jacksonville is 8451 Western Way, a 289,850-square-foot Class B building that’s fully leased to five tenants. It’s off I-95, close to two of Plymouth’s business parks, and was acquired for $20.5 million.

The acquisitions were funded with working capital and borrowings under Plymouth’s credit facilities.

Presence is stronger, market is not

In a prepared statement, Pendleton White Jr., Plymouth’s president & chief investment officer, described the acquisitions as classic Plymouth properties in markets with strong industrial demand fundamentals and access to large, highly skilled blue-collar labor pools, and in close proximity to the company’s existing portfolio assets. He added the properties were acquired well below replacement cost.

Plymouth’s existing industrial portfolio in Jacksonville consisted of three parks, all in the Southside submarket, and totaling 20 buildings and more than 1.1 million square feet. The whole portfolio was acquired at the end of 2018, in a transaction involving a $75 million purchase of Plymouth stock by Madison International Realty, as well as some other moving parts.

The St. Louis industrial real estate market lost a little ground in the second quarter, with overall vacancy increasing to 5.9 percent and average rents declining from $4.61 to $4.52 per square foot, according to a second-quarter report from Newmark Grubb Zimmer.

The culprit was negative net absorption, which totaled 553,000 square feet in the second quarter and 1 million square feet over the past four quarters. In addition, a little over 600,000 square feet of space was delivered in the second quarter, and nearly a further 1.4 million is currently under construction, again according to Newmark Grubb Zimmer.

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Exchange South. Image courtesy of Alliant Credit Union

Walker & Dunlop has secured a $16.2 million refinancing package for Exchange South, a 194,400-square-foot industrial/flex property in Jacksonville, Fla. Director Jacob Cohen facilitated the loan on behalf of the borrower, Savlan Capital. Alliant Credit Union provided a five-year, non-recourse loan with a 30-year amortization schedule. Note terms include a built-in tenant improvement and leasing commission reserve.

The new origination will replace the existing debt, a $15.4 million acquisition loan which The Bancorp Bank provided in 2018, according to Yardi Matrix data. The borrower purchased the asset for $18.3 million from HighBrook Investors. Following the acquisition, the new owner carried out significant renovations at Exchange South, which increased occupancy levels.

Located on an 18-acre site at 9143 Philips Highway, the property encompasses five single-story buildings completed in 1990 and 1996. The facility has 18-foot ceiling heights, 35 grade-level and 16 dock-high doors. At the time of closing, the park was 90 percent leased to 36 tenants, including Ovation Credit Systems, Schindler Elevators and Orion Energy Systems, among others. The property is 2 miles from Interstate 95 and some 12 miles southeast of downtown Jacksonville.

The post Walker & Dunlop Arranges $16M Loan for Flex Asset appeared first on Commercial Property Executive.

JEA Headquarters. Rendering courtesy of Ryan Cos.

Ryan Cos. has secured $62.9 million in construction financing from Wells Fargo to develop a 162,000-square-foot headquarters for utility provider JEA in Jacksonville, Fla., according to Duval County records. The project, scheduled to break ground in October, will deliver in early 2022.

Upon completion, JEA will lease the build-to-suit development for an initial term of 15 years. Located on 1.5 acres at 325 W. Adams St., the project is five blocks from the company’s current headquarters at 21 W. Church St. Ryan Cos. acquired the land from the City of Jacksonville earlier in July for $2.6 million, public records show.

Initial plans, approved in December, called for a nine-story, 196,900-square-foot building and an 841-stall parking structure. However, in May the utility company reduced the development’s size, now pegged at 162,000 square feet across seven stories. The parking garage’s capacity was similarly diminished by approximately 20 percent. In addition to its office component, the property will have 10,690 square feet of retail space at the base of the parking structure. The project is targeting LEED Gold standards.

Although Ryan Cos. has a number of other major office projects underway across the country, the firm is also involved in development efforts ranging from industrial to multifamily assets. In February, the developer partnered with Amazon to build the e-commerce giant’s first Iowa fulfillment center by the end of the year.

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9512 Sunbeam Center Drive

Wells Fargo has provided ADT with a $19.1 million refinancing package for its three buildings in Jacksonville, Fla., Duval County records show. The security provider—part of Apollo Global Management following a $6.9 billion deal in 2016—had acquired the 102,169-square-foot portfolio through two separate transactions closed in 1997 and 2004.

Two of the properties are located within Greystone Business Park at 10550 Deerwood Park Blvd., 11 miles southeast of downtown Jacksonville. Building 200 and Building 400, two single-story assets completed in 1999, house one of the firm’s security monitoring operations centers. The buildings are just south of J. Turner Butler Boulevard, a short distance from St. Johns Town Center.

The third property, located at 9512 Sunbeam Center Drive, is some 8 miles southwest of the first two. The two-story structure opened in 1997 and serves as a field support center for ADT. The financing package also encumbers a neighboring, 1.5-acre parcel at 9545 Hood Road, used as a parking lot. The property is 2 miles from Simon’s recently reopened, 1.1 million-square-foot The Avenues shopping mall at the intersection of Philips Highway and Interstate 95.

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William Gulliford, Executive Managing Director, CBRE. Image courtesy of CBRE

CBRE has promoted William Gulliford to executive managing director of its Florida operations including advisory and transaction services, investment sales, debt and structured finance, property management, valuation and advisory services and project management. In this new role, he will oversee the company’s eight offices in the state.

Gulliford has more than 20 years of combined experience in real estate, banking and management. He previously held the position of senior managing director for CBRE’s North Florida region. Before joining the brokerage in 2013, he served as managing director at EverBank Commercial Advisors and prior to that, he was a development executive with Midland Development Group and Regency Centers.

The newly appointed executive holds a B.A from The University of the South and a J.D. from Stetson University College of Law. Gulliford also served as the chairman of the Jacksonville Housing Finance Authority.

Recently, CBRE expanded its San Diego office with the addition of Lesley Hudson. As associate director of the property management division, Hudson will oversee the overall performance of a mixed portfolio of assets.

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10201 Centurion Parkway. Image courtesy of JLL Capital Markets

Taurus Investment Holdings’ One Deerwood office property in Jacksonville, Fla., has landed a $20.1 million refinancing. JLL Capital Markets arranged the three-year, floating-rate bridge loan with Prime Finance.

READ ALSO: April Fool’s Day 2020: No Joke for Borrowers, Loan Servicers

The six-story building offers 161,167 square feet of Class A office space in Jacksonville’s Butler/Baymeadows market. Taurus purchased the property for $24.8 million in 2007, according to public records, and the building was later renovated in 2017. Located at 10201 Centurion Parkway, the office space was 88 percent leased at the time of sale. The property is situated near the J Turner Butler Boulevard/Route 202 and Southside Boulevard.

JLL’s Capital Markets team representing Taurus included Porter Terry and Tarik Bateh, senior directors. Bateh said in prepared remarks that the transaction was completed in an extremely challenging environment, but that both the borrower and lender were reliable companies.

Elsewhere in Florida, Taurus also acquired a 246,941-square-foot office complex in Sarasota for $45 million. More recently, the private equity firm was involved in one of Chicago’s largest transactions of 2020 by purchasing a 28-property industrial portfolio in March for $153.5 million.

Strong start hampered by COVID-19

While the market is facing a challenging environment as Bateh said, Jacksonville’s office market was showing a promising start to 2020, before the COVID-19 pandemic hit the U.S. According to JLL’s first quarter report on Jacksonville’s office market, tenant demand in suburban areas remained strong, while the downtown office market saw some decline.

No new developments broke ground in the market, but the pricing throughout remained on an upward trajectory. Specifically, in the Butler/Baymeadows market—where One Deerwood is located—average asking rents were $22.34 per square foot, while the vacancy rate was 15.6 percent.

Despite the metro’s solid fundamentals going into the first quarter of 2020, Jacksonville’s office market will likely be affected by the COVID-19 pandemic for the remainder of the year, according to the report. There will likely be an increase in the number of subleases available, and the development pipeline will be put on pause for the next six months. The market could see even more volatility, depending on the recession’s lasting impact after the pandemic.

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3300 Phillips Highway. Image via Google Street View

Spirit Realty Capital has acquired a three-building portfolio from Mac Papers Inc. in Jacksonville, Fla., for $23.9 million. The deal totals some 276,000 square feet of industrial and office space, along with 5 acres of undeveloped land.

The transaction comes on the heels of Monomoy Capital’s acquisition of Mac Papers and all of its subsidiaries earlier this month. Following the deal, Monomoy Capital will lease the properties from Spirit Capital.

According to public records, the portfolio includes:

• a 163,000-square-foot manufacturing facility built in 1970, located on 10 acres at 8370 Philips Highway;
• a 64,300-square-foot distribution warehouse completed in 1956, located on 3 acres at 3350 Philips Highway;
• a 49,150-square-foot office property, located on 3 acres at 3300 Philips Highway, adjacent to the land parcel that was also included in the deal. The office building came online in 1990 and underwent renovations in 2015.

The properties are close to Interstate 95, which also provides access to interstates 10 and 295. Downtown Jacksonville is within 11 miles and Jacksonville International Airport is approximately 26 miles away.

In January, Spirit Realty sold Broadview Village Square, a 193,536-square-foot retail center near Chicago. A JLL Capital Markets team represented the seller in the deal.

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JAX Offices

Blue Way Developers has sold the JAX Offices, a three-building, 140,002-square-foot office portfolio in Jacksonville, Fla., for $24 million. JLL represented the seller and procured the buyer in the deal. According to Yardi Matrix data, two of the three assets previously traded in 2013, also in a portfolio sale financed with a $6 million loan from CenterState Bank.

The portfolio encompasses Buildings 200, 400 and 700 within the JAX Offices Business Park, a seven-building property in the Mandarin submarket. Built in 2002, 2004 and 2008, respectively, the Class B assets were 93.4 percent occupied at the time of sale, with medical and healthcare companies forming a third of the tenant roster.

Located at 12776 San Jose Blvd., some 22 miles south of downtown Jacksonville, the 7.2-acre property provides easy access to Interstate 295. The immediate area holds numerous shops and restaurants, with The Shops at Julington Creek across the road.

JLL Senior Director Robbie McEwan led the Capital Markets team assisting the seller in the disposition. McEwan was also instrumental in the recent $50.4 million sale of a two-building, 245,111-square-foot office portfolio in Orlando, Fla.

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Five Points Plaza. Image courtesy of Colliers International

T.J. of Nassau Inc. has sold Five Points Plaza, a 31,800-square-foot shopping center in Fernandina Beach, Fla., for $5.4 million. Colliers International assisted the seller, while Skinner Bros. Realty Co. represented the buyer in the deal.

Situated at 808-822 Sadler Road, the three-building property is 2.5 miles south of city center, adjacent to State Road A1A. The 2004-built Five Points Plaza is in a high-density retail trade area that also includes Island Walk Shopping Center, FedEx and Pet Supermarket. The Dollar Tree-anchored shopping center was approximately 90 percent leased at the time of sale. Beach Diner and Coldstone Creamery are also among the tenants of the property.

A Colliers’ Northeast Florida team has been handling leasing management at the property since 2014 and will continue to do so. Colliers’ Matt Entriken and Robert Selton negotiated the deal on behalf of the seller. The two brokers have been busy in the Jacksonville, Fla., area. Recently, they were part of the team that assisted the landlord in the lease negotiations for almost 40,000 square feet at an office park in the Southside submarket.

The post North Jacksonville Retail Center Changes Hands appeared first on Commercial Property Executive.

Image via Pixabay

Hilton has opened a new property in Florida, a 103-key Home2 Suites in Fernandina Beach. The owner and manager of the property is Fernardina Investments.

Located at 2246 Sadler Road, the pet-friendly hotel is within walking distance of several dining options, being also close to the beach and other attractions. Jacksonville International Airport is within 25 miles of the property, while the local airport is less than 3 miles away.

Home2 Suites by Hilton Fernandina Beach Amelia Island includes a business center, an outdoor saline pool, fire pit and grilling area, as well as a combined laundry and fitness area, the brand’s Spin2 Cycle concept. The suites include accessorized kitchens and modular furniture. The property also offers complimentary Wi-Fi, parking and hot breakfast. 

Earlier this month, Hilton also opened the 130-key Home2 Suites by Hilton Lawrenceville Atlanta Sugarloaf. The property, which is located some 25 miles northeast of central Atlanta, is owned and managed by the Peachtree Hotel Group.

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The Strand. Image via Google Street View

Consolidated-Tomoka Land Co. has purchased The Strand, a roughly 212,000-square-foot shopping center in Jacksonville, Fla., for $62.7 million through a 1031 exchange. The new owner selected Colliers International to oversee the property’s leasing and management.

The Strand was 95 percent occupied at the time of the sale and has four anchor tenants: Hobby Lobby, 2nd & Charles, Best Buy and PGA Superstore. The property’s 20 in-place leases have a weighted average remaining term of 9.5 years.

The Strand is located in a vibrant retail district near the intersection of Interstate 295 and J. Turner Butler Boulevard., adjacent to Simon Property Group’s 1.4 million-square-foot, 150-tenant St. Johns Town Center. The area is home to many businesses: Yardi Matrix shows nearly 4.5 million square feet of office space within a mile of the retail asset, including McKesson Corp.’s 120,000-square-foot headquarters which traded in September.

This deal brings the firm’s acquisition activity up to 11 assets this year, totaling an aggregate investment amount of approximately $165 million. In May, Consolidated-Tomoka sold a 112,351-square-foot retail center in Winter Park, Fla., for nearly $20 million.

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Innovation Park. Image courtesy of Colliers International

Susquehanna Holdings has added two new tenants to its roster at Innovation Park, a two-building, 275,229-square-foot office campus in Jacksonville, Fla.

HR software firm Paycor has leased 33,696 square feet and the Army Corps of Engineers has leased 5,659 square feet at the office campus. Colliers International negotiated the leases on behalf of landlord , bringing the property’s occupancy to 85 percent.

Innovation Park consists of a three-story building and a four-story building completed in 1983 and 1992, respectively. Susquehanna purchased the property in 2010 and has invested more than $2.5 million in exterior and interior upgrades since March 2018. Improvements include new roofs, redevelopment of the plaza area and renovation of the lobbies, corridor and atrium. Existing tenants at the business park include Verizon, Genpact, Intuition LLC and TMC Transportation.

Located at 6735 and 6737 Southpoint Drive S. in the Southside submarket, the 16-acre office campus is near the intersection of Interstate 95 and J. Turner Butler Boulevard. The property is roughly 9 miles southeast of downtown Jacksonville and 4 miles west of St. Johns Town Center. Innovation Park is also roughly 2 miles north of a 344,000-square-foot office property that sold for $35.8 million in June.

A Colliers’ Northeast Florida team is the leasing agent for the office park. Chuck Diebel, Matt Entriken, Wade Powers and Bob Selton represented the landlord in the lease negotiations. 

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Compass Self Storage. Image courtesy of Compass Self Storage

Compass Self Storage has expanded its footprint with the acquisition of an approximately 86,000-square-foot Class A facility in St. Augustine, Fla. Atlantic Investors Group traded the LifeStorage branded and managed property, according to Yardi Matrix.

Located at 250 Sandy Creek Parkway, alongside Interstate 95, the facility is around 18 miles from downtown St. Augustine and 22 miles from downtown Jacksonville. The facility is situated near other retailers and services, such as Goodyear Auto Service and Winn-Dixie. Approximately 26,000 people live within a 5-mile radius, Yardi Matrix shows.

Completed in 2018, the four-building facility occupies 5.2 acres and features units ranging from 25 to 300 square feet. Characteristics of the asset include climate control, drive-up access, security cameras and parking and RV parking spaces. Other services provided are on-site management and truck rental options. The buyer plans to upgrade the facility with smart locks, new lighting and individual access control.

Earlier this year, Compass Self Storage purchased a 98,000-net-rentable-square-foot facility in Largo, Fla., for nearly $10 million.

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STAG Westlake. Image courtesy of Cushman & Wakefield

STAG Industrial has purchased a Class A, 232,488-square-foot industrial asset in Jacksonville, Fla. Johnson Development Associates Inc. sold the newly built warehouse for $14.8 million. In another recent deal, the Boston-based REIT acquired a 110,000-square-foot asset in South Richmond, Va.

The distribution center dubbed STAG Westlake is situated at 9779 Pritchard Road, on an 18-acre site in the Westside submarket. Completed in 2019, the speculative building features 32-foot minimum clear heights and built-to-suit office space.

Features include 43 truck doors, two drive-in doors, 159 regular parking spots and 52 truck spaces. The asset is roughly 4 miles west of Interstate 295. Jacksonville International Airport is 16.3 miles northeast, while JAXPORT is 14 miles east.

Senior Directors Tyler Newman and Jacob Horsley of Cushman & Wakefield’s industrial services team assisted the new owner in the acquisition. The brokerage team was also tapped as the exclusive leasing agent for STAG Westlake. The landlord’s portfolio currently comprises more than 80 million square feet of industrial space across the U.S., with more than 1 million square feet of that located in Jacksonville. 

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The Shoppes at Southside. Image via Google Street View

Brixmor Property Group has sold The Shoppes at Southside, a 112,613-square-foot, fully leased retail center in Jacksonville, Fla. CORE Investment Management purchased the asset for $23.3 million through its CORE Investment Properties Fund. JLL represented the seller in the transaction.

The Shoppes at Southside spans across nearly 13 acres at 9930-9990 Southside Blvd., near Interstate 95, State Road 1 and Southside Boulevard, in an area where the car traffic is approximately 209,000 vehicles per day. The property is roughly 14 miles southeast from downtown Jacksonville, adjacent to both the 1.1 million-square-foot Avenues Mall and the 90-acre Gramercy Woods office park.

Anchored by Best Buy, Urban Air Trampoline and Adventure Park, The Shoppes at Southside consists of a main building, a strip building and three separate parcels. Tenants include David’s Bridal, Starbucks and Aspen Dental. The center serves both Duval and St. John counties, catering to a population of more than 53,700 residents living within a 3-mile radius and earning an average annual household income of $91,039.

JLL Senior Managing Director Brad Peterson, Senior Director Whitaker Leonhardt and Director Michael Brewster assisted the seller in the deal. Leonhardt was also part of the team that represented the seller in the recent sale of a 393,387-square-foot retail center in Ocala, Fla.

The post Jacksonville Retail Center Sells for $23M appeared first on Commercial Property Executive.

Homewood Suites by Hilton Jacksonville Deerwood Park. Image via Google Street View

A joint venture between Three Wall Capital and Guggenheim Investments has acquired Homewood Suites by Hilton Jacksonville Deerwood Park, a 117-key extended-stay hotel in Jacksonville, Fla. The Generation Cos. sold the asset for $14.9 million, per Duval County records.

The transaction was part of a larger, 1,973-key portfolio deal which included extended-stay hotels in North Carolina, Virginia, Florida, Texas, Tennessee and Georgia. Public records show the buyer financed the 18-property acquisition with a $167.1 million loan from Guggenheim.

Located on 3 acres at 8511 Touchton Road, the hotel is approximately 8 miles southeast of downtown Jacksonville. The property is within 5 miles of interstates 95 and 295 as well as the Avenues Mall and St. Johns Town Center.

The Homewood Suites Jacksonville Deerwood Park opened in 2016, previously operating under the Staybridge Suites flag. The four-story hotel offers studio, one- and two-bedroom guestrooms with fully equipped kitchens. Amenities include complimentary Wi-Fi, a business center, a fitness center, an outdoor pool and two grill-equipped patio areas.

Another Homewood Suites hotel is underway in nearby St. Augustine, Fla., after developer 3H Group received $19.5 million in construction financing in March. The development site is 34 miles south of Homewood Suites Jacksonville Deerwood Park.

The post Homewood Suites Jacksonville Changes Hands appeared first on Commercial Property Executive.

McKesson’s headquarters. Image courtesy of Real Capital Solutions

Hines has sold McKesson Corp.’s headquarters in Jacksonville, Fla. Real Capital Solutions acquired the Class AA, 120,407-square-foot office building for $42.3 million, according to Duval County records. Public records also show the sale was subject to a $32 million loan originated by Bank of America.

Located at 6651 Gate Parkway in the Intracoastal West submarket, the 7.7-acre property is roughly 13 miles southeast from downtown Jacksonville, easily accessible due to its proximity to Interstate 295 and J. Turner Butler Boulevard. St. Johns Town Center, with its wide array of shopping and dining options, is less than 4 miles north.

The recently completed, four-story, LEED Silver building features 31,000-square-foot floorplates, collaborative workspaces for nearly 800 employees and walkable amenities. McKesson is the sole tenant, having signed a 10-year lease in 2018. The property is part of Hines’ signature Southside Quarter, a 105-acre, live-work-play development that broke ground in 2017.

This is the fifth recent purchase of a Florida office building for Real Capital Solutions. According to Vice President of Acquisitions Adam Abeln, the company has invested nearly $100 million in single tenant net lease properties over the last five months.

The post Hines Sells North Florida Office for $42M appeared first on Commercial Property Executive.

Capital Plaza

Starwood Property Trust, in partnership with Parmenter Realty Partners, has sold Capital Plaza, a three-building, 417,513-square-foot office campus in Jacksonville, Fla. A joint venture between Somerset Properties and Ten Capital Management acquired the asset for $51.5 million. 

Located at 10301 and 10401 Deerwood Park Blvd. in the Butler/Baymeadows submarket, Capital Plaza is 11.4 miles from downtown Jacksonville, providing access to interstates 95 and 295. St. Johns Town Center, a 51-acre mall and lifestyle center, is less than 2 miles from the property, across the J. Turner Butler Boulevard. Jacksonville International Airport is within a 30-minute drive north.

The business park consists of Class A buildings developed in 1990 and 1999 on 42.7 acres, per Yardi Matrix data. The property provides a parking ratio of 6.2 spaces per 1,000 square feet. Capital Plaza also features a power redundancy system, which includes dual feeds from JEA in case of a failed power line, as well as five redundant generators. During their ownership, the sellers invested $3 million in common area improvements including restroom renovations, a roof replacement and major mechanical work. 

CBRE’s Christian Lee, Michael Harrell, José Lobón, Tyler Ploshnick and Royce Rose represented the seller in the transaction. According to Yardi Matrix, the property last sold in 2016 for $24 million.

In June, another business park within the Butler/Baymeadows submarket traded approximately 5 miles west of Capital Plaza. Viking Partners acquired the 344,000-square-foot property for $35.8 million.

The post Jacksonville Office Campus Commands $52M appeared first on Commercial Property Executive.

Cypress Point Business Park. Image courtesy of Cushman & Wakefield

GBR Properties Inc. has sold Cypress Point Business Park, an eight-building, 344,000-square-foot office asset in Jacksonville, Fla. Viking Partners acquired the property for $35.8 million. Senior Director Karl Johnston of Cushman & Wakefield’s Capital Markets Group, working together with leasing representative Senior Vice President Mark Scott of Foundry Commercial, brokered the deal on behalf of the seller. According to Yardi Matrix data, the property last traded in 2016, commanding $22.7 million.

Located at 8100, 8120, 8200 and 8230 Nations Way as well as 8201 and 8211 Cypress Plaza Drive and 7215 Financial Way, Cypress Point Business Park is between Philips Highway and Interstate 95. The property is in the Butler/Baymeadows office submarket, the largest Jacksonville suburban office submarket, encompassing 10.7 million square feet. Downtown Jacksonville is approximately 8.5 miles north, while the Jacksonville International Airport is within a 30-minute drive.

The business park consists of single-story buildings completed between 1999 and 2004. Four of the structures have above standard ceiling height, with the property offering a parking ratio of six spaces per 1,000 square feet, per Yardi Matrix. Currently, the asset is 88 percent leased, with the tenant roster including Fanatics, U.S. Assure, Crowley Marinetime, ADT and Selene Finance. Several expansions and renewals were underway at the property at the time of the sale.

In May, a 1.3 million-square-foot office portfolio traded 5 miles east of Cypress Point Business Park. The buyers payed about $231 million in an off-market transaction.

If you’d like to be featured in Brokers’ Corner, send your deal to deals@cpe-mhn.com.

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Deerwood Park Office North (Image courtesy of Starwood)

Starwood Real Estate Income Trust Inc. has acquired a 1.3 million-square-foot, 11-building Class A office portfolio in Jacksonville, Fla., for about $231 million through an off-market transaction, Starwood REIT announced.

The Florida Office Portfolio is in the Deerwood Park submarket, which according to Starwood commands Jacksonville’s highest asking rents and has its lowest vacancies. The submarket reportedly offers convenient access to both executive and workforce housing and to North Florida’s most successful retail complex, St. Johns Town Center.

The purchaser is actually a joint venture of Starwood and affiliates of Vanderbilt Office Properties and Trinity Capital Advisors, with Starwood owning 97 percent. Vanderbilt has been engaged as the portfolio’s property manager. The seller was not disclosed.

“SREIT focuses on markets with strong growth dynamics, because they drive occupancies, rents, and values upward. We like Florida in particular because it led the nation in job growth in 2018,” John McCarthy, CEO & president of SREIT, said in a prepared statement.

Deerwood Park Office South (Image courtesy of Starwood)

“We were also attracted to the portfolio’s diversity of tenants, with more than 65 percent financially strong credit tenants including Fidelity Investments, The Adecco Group, and JP Morgan,” he added.

Those three tenants occupy respectively 14 percent, 11 percent and 10 percent of the portfolio’s total net rentable area, at annual base rents of $21.01, $22.65 and $21.59, respectively, according to a prospectus supplement issued by Starwood.

The portfolio is currently 90 percent leased and its average effective rent per square foot is $23.92, per the same source. The acquisition was funded with cash on hand plus $135 million in debt financing provided by Wells Fargo, also according to the prospectus.

Steady and solid

As leasing activity and rental rates continue to remain strong, the Jacksonville office market is favorable for landlords, according to a first-quarter market report from NAI Hallmark. “We’re seeing a revitalization of the city as older, inefficient properties are being redeveloped into profitable, modern office space.”

The report notes that metro Jacksonville has more than 700,000 square feet, or about 1 percent of inventory, currently under construction, and even that modest amount is more than 90 percent preleased.

In a Q&A with Commercial Property Executive last fall, JLL Executive Vice President Michael Loftin noted that the Deerwood Park submarket, and the southern metro area bordering St. Johns County more generally, had gotten “especially tight with low vacancy and strong fundamentals for new build-to-suit development.”

As vacancy levels in Deerwood Park have fallen over the past couple of years, he continued, rents have risen nearly 20 percent, sparking new build-to-suit projects, including Town Center I and II and Hines’ Southside Quarter, a major mixed-use development.

The post Starwood REIT Buys Jacksonville Office Portfolio for $231M appeared first on Commercial Property Executive.

Southpoint Self Storage. Image courtesy of Yardi Matrix

Acorn Property Holdings has sold Southpoint Self Storage, a 98,163-square-foot facility in Jacksonville, Fla. Marcus & Millichap’s Columbus office arranged the sale on behalf of the seller and secured the buyer, a limited liability company. Extra Space Storage is the manager of the asset, according to Yardi Matrix data.

The storage facility is located at 6611 Southpoint Parkway near Interstate 95, approximately 7 miles from downtown Jacksonville. The asset is also situated close to residential areas; there are approximately 13,000 units completed or under construction within a 3-mile radius, Yardi Matrix data shows.

Built in 1987, the facility comprises 547 climate-controlled units and 81 boat and RV storage spaces, ranging from 25 to 800 square feet. The storage asset is gated and features drive-up access, six office suites and security cameras. Additional services provided include on-site management and 24-hour access.

Marcus & Millichap’s brokerage team included Investment Specialists Brett Hatcher, Gabriel Coe and Nathan Coe and Regional Manager Ryan Nee. In February, the firm’s Forth Worth-based office arranged the sale of Payless Storage, an 87,600-square-foot facility in Texarkana, Texas.

The post Marcus & Millichap Arranges FL Storage Sale appeared first on Commercial Property Executive.

600 Whittaker Road

Gramercy Property Trust, part of The Blackstone Group, has sold a three-building, nearly 1.9 million-square-foot industrial portfolio in Jacksonville, Fla., to Invesco Real Estate for $129.3 million, according to public records. Earlier this month, the seller also traded a nearly 90,000-square-foot office asset in Nashville, Tenn., for $17 million.

Two of the warehouses are located in Jacksonville’s Westside submarket, at 12200 Presidents Court and 2300 Pickettville Road. The first asset, 5 miles north of Interstate 10, totals 773,662 square feet and is fully leased to Unilever, which renewed its lease in 2018. The building opened its doors in 2008.

The second, a 600,657-square-foot property, is positioned alongside Interstate 295, 10 miles from the city center. The building is fully occupied by the Dr. Pepper Snapple Group, which uses the cross-dock facility as a distribution hub.

The third asset in the portfolio is located at 600 Whittaker Road in Jacksonville’s Northside submarket. The 478,791-square-foot warehouse, constructed in 1995 as part of the Imeson International Industrial Park, is home to GE Appliances. However, according to the Jacksonville Daily Record, the firm will be relocating to a larger building this summer.

Image via Google Maps

The post Invesco Real Estate Buys $129M FL Industrial Portfolio appeared first on Commercial Property Executive.

Homewood Suites development site

Hotel developer 3H Group has taken $19.5 million in construction financing for its 108- to 112-key Homewood Suites by Hilton development in St. Augustine, Fla., according to county records. Western Alliance Bank originated the mortgage, which bears a variable interest rate.

Located alongside the San Sebastian River at 10 Prawn St., the 4.2-acre project site is less than 1 mile west of St. Augustine’s city center. The area is home to a wide variety of hospitality assets, with a 50-key boutique hotel planned for development just north of the Homewood Suites’ location. Approximately 5 miles east of the property, another Hilton-flagged hotel opened its doors in December.

The developer submitted plans for the hotel to the St. Augustine Planning and Zoning Board in 2017. The five-story building will connect with an existing marina adjacent to the site and amenities are set to include covered parking at the building’s ground floor and an outdoor swimming pool overlooking the San Sebastian river.

Lindsay Pope Brayfield Clifford is designing the project, with Carter Environmental Services and Gulfstream Design Group providing permitting and engineering support.

Image via Google Earth

The post North FL Hotel Project Lands $20M Financing appeared first on Commercial Property Executive.

NorthPort Logistics Center

Real Capital Solutions has sold NorthPort Logistics Center, an 872,627-square-foot industrial asset in Jacksonville, Fla., to Graham & Co. for $49 million, according to public records. The buyer drew an undisclosed amount from a $101.4 million line of credit provided by Wells Fargo to finance the acquisition.

The seller had acquired the asset in 2015 from Oakmont Industrial Group for $33 million. In June 2018, Real Capital Solutions paid nearly $48 million for the largest commercial building in Jacksonville, 5 miles to the west.

Located at 11530 New Berlin Road in the city’s Northside submarket, the property is within 4 miles of two major marine terminals. The nearest entrance to Interstate 295 is roughly 2 miles west of the warehouse, providing access throughout the metro area.

Constructed in 2009, the LEED Silver certified building is home to Gildan Activewear and Grimes Logistics, which occupy a respective 306,611 and 400,928 square feet, according to Jacksonville Daily Record. The structure features 32-foot clear heights, 126 dock-high loading doors and two 12-by-16 drive-in doors. The cross-dock facility also includes 60-foot loading bays, 219 trailer stalls and 57 parking spaces.

Image via Google Street View

The post Jacksonville Warehouse Changes Hands for $49M appeared first on Commercial Property Executive.

1707 Huron St.

Commercial Warehousing, a third-party logistics firm, has sold a 106,560-square-foot industrial asset in Jacksonville, Fla., to Coca-Cola Beverages Florida. The new owner, an independent bottler for the soft drink giant, paid $3.3 million for the property, according to Duval County records.

Located at 1707 Huron St., the structure is situated in Jacksonville’s booming Westside submarket, within a mile of CSX’s Moncrief railyard. The asset is a short drive from interstates 10 and 295 and roughly 5 miles from downtown Jacksonville. The Coca-Cola bottler also owns a two-building, 194,429-square-foot property one block south of the new acquisition, at 1411 Huron St., which it acquired in late 2016 for $15 million.

Commercial Warehousing purchased the property upon completion in 1993 for less than $200,000, per public records. The rear-load structure contains 10 dock-high loading doors, a drive-in door and a fenced truck court. Additionally, a rail spur, which predates the building, runs alongside the property.

Image via Google Maps

The post Jacksonville Warehouse Changes Hands appeared first on Commercial Property Executive.

Salisbury Business Park

Plymouth Industrial REIT has a new partner and a new portfolio. The company has closed on a $75 million investment from Madison International Realty Holdings, which allowed for the simultaneous $97.1 million acquisition of the 1.1 million-square-foot Jacksonville Southside Business Park portfolio in Jacksonville, Fla.

Enhancing its capital structure, Plymouth sold 4,411,764 shares of its Series B Convertible Redeemable Preferred Stock to Madison, at $17.000 per share. The REIT utilized proceeds from the transaction—orchestrated by Sandler O’Neill and Partners—to repay a $31.2 million loan from KeyBank and fund a $5 million stock repurchase program. An additional $34 million was applied to the purchase price of the Jacksonville assets.

“The timing was right (for the strategic investment) because we required a large sum of equity to acquire the Jacksonville portfolio and our ability to access the public equity markets at the time was limited,” Jeff Witherell, chairman & CEO of Plymouth Industrial REIT, told Commercial Property Executive.

Plymouth financed the remaining cost of the Jacksonville portfolio with a short-term loan of $63 million through KeyBank. The collection of light industrial and flex facilities, located in the Southside submarket, consists of the three-building Salisbury Business Park, the six-structure Liberty Business Park and Center Point Business Park, an 11-building campus. The group of properties is 96 percent leased, with such leading businesses as Cardinal Health, Cintas, Comcast and Home Depot listed on the roster of 40 tenants.

Hitting targets

The acquisition of the Jacksonville portfolio gives Plymouth a million-square-foot presence in one of its core markets in one fell swoop.

“We’ve been looking at Jacksonville for some time now and saw this opportunity as a way to achieve critical mass in a high-growth market, with very limited downside,” Pendleton White, president & chief investment officer of Plymouth Industrial REIT, told CPE. “We continue to assess other potential acquisitions in the Southeast. In addition to expanding our existing footprint in Atlanta, we’re also looking at Orlando, Savannah, Tampa and Charleston to name a few.”

Plymouth’s growth plan, however, extends beyond key southeastern markets—the Midwest is on its radar as well. In the third quarter of 2018, the REIT purchased a 400,000-square-foot industrial building in Cleveland and announced a definitive agreement to buy a 1.1 million-square-foot property in Cincinnati. Additionally, in two separate deals earlier this year, Plymouth expanded its holdings in metropolitan Chicago with the acquisition of a 75,000-square-foot light manufacturing building in Elgin and two manufacturing buildings totaling 270,000 square feet in Elgin and Arlington Heights. 

Image courtesy of Plymouth Industrial REIT

The post Plymouth Industrial Closes Stock Sale, $97M Portfolio Purchase appeared first on Commercial Property Executive.

5233 Commonwealth Ave.

IP Capital Partners has acquired a roughly 523,300-square-foot industrial asset in Jacksonville, Fla., for $15 million, according to county records. BankUnited provided the buyer with $10.6 million in acquisition financing. 

Two other buildings on the parcel—a single-story, 33,427-square-foot office structure occupied by sports merchandiser Fanatics and a 36,068-square-foot Conlan Tire maintenance center—were included in the deal. The seller, Tower Investments, had picked up the property in July 2016 for $10.8 million from Winthrop Realty Trust.

The warehouse, located at 5233 Commonwealth Ave., is home to Dickinson Fleet Services, a truck service and maintenance firm. The structure, built in 1960, contains 58 loading docks and a fenced yard. Additionally, the facility features more than 10,000 square feet of office space.

The property is within 4 miles of the intersection of interstates 10 and 295, a stone’s throw from the booming Westside submarket. The area is home to three industrial developments currently underway.

Image via Google Maps

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Cowford Chophouse

Evermore venues are turning green. Cowford Chophouse, Jacksonville, Fla.’s premier steakhouse and historical landmark, joined the ranks with a LEED Silver certification issued by the U.S. Green Building Council.

The Cowford building dates back to 1902, becoming one of the city’s earliest symbols of rebirth after a fire had swept through the city one year prior. The property served as multiple bank and professional offices, including the office of architect Henry John Kluth. In 2014, Jacques Klemps acquired the asset and began the restoration process, with local construction company Danis and Design Cooperative leading efforts.

Repurpose, recycle

Cowford Chophouse

To reach the Silver award, the property achieved 51 points. Among the sustainable strategies used to receive this level of green certification are the use of recycled materials, diverting 75 percent of demolition debris from landfills and incineration facilities, and installing water- and energy-efficient building systems and equipment.

Repurposed materials used in the construction of Cowford include the entire building structure, such as structural floor and roof decking, exterior brick, exterior limestone lintel blocks and original windows and trim. In addition, original heart pine and interior marble from the building was recycled and integrated throughout the restaurant. These resulted in water use reduction of 25 percent, exceeding the 20 percent baseline requirement.

Images courtesy of Cowford Chophouse

The post Restored Jacksonville Landmark Earns LEED Silver appeared first on Commercial Property Executive.

Sheraton Jacksonville Hotel

Rockbridge and Hospitality Ventures Management Group have partnered to acquire the 159-key Sheraton Jacksonville in Jacksonville, Fla., from a joint venture led by Peachtree Hotel Group. HVMG will manage the asset and coordinate approximately $1.3 million in capital improvements.

Peachtree Hotel Group, along with Argosy Real Estate Partners, purchased the property in 2015 for $15.8 million, according to Duval County records.

Located at 10605 Deerwood Park Blvd., the six-story Sheraton Jacksonville Hotel is situated within 1 mile of more than 4.5 million square feet of Class A office space in the metro’s Intracoastal West submarket, according to Yardi Matrix. In the first quarter, McKesson Corp. signed a 125,000-square-foot full-building lease a stone’s throw from the hospitality asset. Other major employers in the immediate area include the FBI, PNC Financial Services and PHH Mortgage.

The hotel offers a mix of standard guestrooms and suites, ranging from 253 to 500 square feet. The owner’s renovation plans include upgrades to the 9,047 square feet of conference space and doubling the size of the fitness center. Additional guest amenities include a heated indoor pool, complimentary Wi-Fi and electric car-charging stations.

Image via Google Street View

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My Neighborhood Storage Center

Liberty Investment Properties is set to build an approximately 90,000-square-foot self-storage facility in Jacksonville, Fla. The project contracted with Turner Construction is slated for completion by early 2019. The development will mark the 11^th facility operating under the My Neighborhood Storage Center brand.

The new facility will be located at 1816 Kings Ave. in Jacksonville’s San Marco district, just off Interstate 95 and Freeway 10, around 2 miles from the city’s downtown. The development will include a renovated facility and a three-story newly constructed building. Additionally, the three-story storage asset will feature a front office and climate-controlled units.

“Although challenging, our design team was able to incorporate our class A facility which allows easy access, while also maximizing overall square footage,” said Jennifer Bollhofer, asset manager at Liberty Investment Properties.

Earlier this year, Liberty Investment Properties, together with private investors, opened a 550-unit Extra Space Storage self-storage facility in Tampa, Fla.

Image courtesy of Liberty Investment Properties

The post Liberty Investment Properties Breaks Ground on FL Storage Asset appeared first on Commercial Property Executive.

Exchange South

Highbrook Investors has sold Exchange South, a 194,400-square-foot office and industrial property in Jacksonville, Fla., for $18.3 million, according to public records. The buyer, Savlan Capital, took a $15.4 million acquisition loan from The Bancorp Bank.

Karl Johnson of Cushman & Wakefield and Mark Scott of Foundry Commercial represented the seller in the transaction.

Located at 9143 Philips Highway in the city’s Butler/Baymeadows office submarket, the property consists of five structures on 17.7 acres alongside U.S. Route 1, a mile and a half from Interstate 95. A number of small retail, flex office and industrial buildings operate in the immediate area. A Jacksonville Transportation Authority bus route operates a stop right next to the parcel.

At the time of the sale, the asset, constructed between 1990 and 1996, was 75.1 percent leased by a mix of 24 tenants, including Konica Minolta, Ovation Credit, ALS Environmental and Omnicare. The new owner plans to invest approximately $2 million into capital improvements for the buildings’ interiors and exteriors.

In August, Highbrook Investors offloaded a 560,000-square-foot office tower in Raleigh, N.C.

Image via Google Maps

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Jacksonville Self Storage

Aztec Group Inc. has arranged a $6.8 million loan for the refinancing of Jacksonville Self Storage, a 982-unit facility in Jacksonville, Fla. Benefit Street Partners LLC provided the loan to Jacksonville Self Storage LLC operating in Jacksonville and South Florida. The borrower purchased the self-storage property in 2013.

Located at 10724 Lem Turner Road, Jacksonville Self Storage is close to interstates 295 and 95, approximately 8 miles from the city’s downtown. The facility is situated near several apartment communities, such as the 240-unit Madison Woods and 360-unit The Place at Capper Landing. The storage asset was constructed in 2008 and was expanded in 2013 due to population and employment growth in the area. Jacksonville Self Storage occupies almost 17 acres and comprises units ranging from 25 to 500 square feet. The five-building facility features climate-control, gated entry, drive-up access and parking and RV parking spaces.

“The storage facility’s prime location in Northern Florida coupled with the strength of the borrower enabled us to secure financing terms that met our client’s expectations,” said Howard Taft, senior managing director at Aztec Group, in prepared remarks.

Aztec Group’s team included Taft, Executive Vice President Charles Penan and Senior Associate Joel Zusman. Earlier this year, the firm arranged $5.9 million in financing for the acquisition of Westshore Center, a 77,000-square-foot office building in Tampa, Fla. 

Image courtesy of Aztec Group Inc. 

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Summit at Southpoint

Bluerock Real Estate has sold Summit at Southpoint, a 260,664-square-foot office complex in Jacksonville, Fla., for $29.6 million, according to public records. Berkadia arranged $25 million in acquisition financing on behalf of the buyer, Rose & Berg Realty Group.

Located at 6410-6440 Southpoint Parkway, the four-building campus was completed in phases, in 1988, 1991 and 1998. Summit at Southpoint underwent cosmetic upgrades in 2006 and 2015, and previously changed hands in 2007, according to Yardi Matrix. The property was 82 percent leased at the time of sale to a mix of notable tenants including U.S. Bank/FSV, Chicago Title Insurance Co., BB&T, Windstream, Ocenture and Keiser University.

Transwestern Managing Director John Bell represented the seller, while Berkadia Senior Managing Director Charles Foschini and Managing Director Christopher Apone facilitated the financing. NXT Capital originated the three-year loan. Terms include an extended interest-only period and 72 percent loan-to-cost ratio. Recently, NXT Capital provided financing for the acquisition of a Class A office tower in Dallas.

“Jacksonville, like the rest of the state, has emerged as a much more dynamic employment market than in past cycles. Both the buyer and the lender recognized that in the opportunity to acquire a well-located asset with a strong anchor in existing tenancy,” Foschini said in prepared remarks.

Summit at Southpoint spans across 24.3 acres, providing convenient access to Interstate 95. The campus is on St. Vincent’s Hospital power grid, which is an important feature for the park’s tech tenants, as the hospital is the first to regain power in Jacksonville following outages.

Image courtesy of Berkadia

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Guy Preston, executive vice president, Colliers International

In recent years, the U.S. industrial market has seen dropping vacancy rates across the nation, with new deliveries continuing to be absorbed quickly. Nowhere is this more apparent than in Jacksonville, Fla., where vacancy rates dropped to a record 2.7 percent at the end of the second quarter, according to a report from Colliers International.

Commercial Property Executive spoke with Guy Preston, executive vice president with Colliers in Jacksonville, about the future of the sector in the metro. As the firm’s lead on industrial properties in the area, Preston has been involved in Jacksonville’s industrial growth for 25 years.

What factors are contributing to Jacksonville’s rise as a significant industrial market?

Preston: Jacksonville itself is maturing. Companies are choosing to locate here due to the business-friendly environment and the low business and living expenses—no state income tax and low real estate tax rates. This, in addition to the high quality of living, has stimulated job growth that is attracting people to relocate here. As our population grows, demand for goods and services also increases, which creates industrial opportunities.

Vacancy rates are at a historic low. How has this impacted the development of new industrial product?     

Preston: The market is seeing significant new development by existing and new developers. Currently, there are several speculative projects scheduled to deliver over 1.5 million square feet of industrial product within the next 12 months. This includes the 760,000 square feet now underway and planned constructions.

What kind of building features are potential tenants looking for in the area today?

Preston: The Class A industrial product being delivered includes buildings with 32-foot clear heights, deep truck courts with plenty of trailer storage, a high number of employee parking stalls as well as close proximity to our multi-modal highway, rail and port transportation system.

How do tenants’ needs stack up against the market’s existing inventory?

Preston: The existing inventory is extremely limited, presenting obstacles for tenants with immediate needs. For the tenants who can delay their occupancy to the first or second quarter of 2019, there will be more options to meet their needs. (In terms of building features and location) developers like Pattillo, Hillwood and Jackson-Shaw have consistently designed and delivered buildings that are perfect for our market needs.

Tell us about a recent transaction you were involved in and how it is indicative of the current trends.

Preston: I have worked with several companies in the past two years that had included Jacksonville amongst the markets where they were considering to locate a distribution center, but based on their timing to occupy and the limited supply in Jacksonville, they went on to locate in other markets. I have heard similar stories of other missed opportunities from brokers and developers alike. With the speculative projects currently under construction, Jacksonville will be well-positioned to capture these tenants moving forward. 

Which submarkets are most suitable for industrial development, and what factors are contributing to this?

Preston: Both our Westside and Northside submarkets have all the ingredients needed to be successful, including an abundant and available labor pool, and zoned and entitled land located near our excellent transportation system. Three of the four (current) developments are on the Westside and one is on the Northside.

Tell us about the challenges industrial investors and developers face in Jacksonville.

Preston: Though there is limited supply for out-of-market investors to come in and purchase industrial buildings, I believe there are currently more opportunities than challenges in Jacksonville—which offers a value-add proposition compared to higher-priced major markets. Both investors and developers are discovering Jacksonville as an emerging market in which to invest.

Image courtesy of Colliers International

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Michael Loftin, executive vice president, JLL

The Jacksonville office market has been the scene of thriving investment, leasing and development activity lately. However, much like other markets, Jacksonville entered the Great Recession with availability in the office sector, according to JLL Executive Vice President Michael Loftin, which tempered lease rate increases and delayed landlords’ ability to hike up asking prices.  

Loftin shares his views on current trends in the market and talks about some of the most significant developments underway. He also names the Jacksonville submarkets that attract most interest from investors.

Can you tell us about the current supply/demand dynamics in the Jacksonville office market?

Loftin: While supply/demand dynamics vary across Jacksonville, over the past few years the city has experienced general tightening across most submarkets. Deerwood Park and the southern region bordering St. Johns County have grown especially tight with low vacancy and strong fundamentals for new build-to-suit development.

What are the big-picture trends shaping Jacksonville’s office sector?

Loftin: There has been a flurry of capital markets activity in downtown Jacksonville in recent months. From the resurgence of the infill Brooklyn and Riverside areas neighboring the central business district to Vystar Credit Union’s purchase of SunTrust Tower for $59 million ($160 per square foot), to the sale of BB&T Tower to Ash Properties for $23.3 million ($82 per square foot), 2018 has seen more activity than we have experienced in the past decade.

Elements of Jacksonville closed on an $18.6 million land purchase to build the The District, a major mixed-use development along Jacksonville’s riverfront on the Southbank. Augustine Development Group also purchased five parcels of downtown land for a new residential, retail and hotel project. The Laura Street Trio project is progressing with construction, and Shad Khan’s Iguana Investments continues to pursue future mixed-use development on the Lot J parcel adjacent to TIAA Bank Stadium, while development negotiations on the Shipyards parcel continue. All of this recent activity is creating a renewed buzz around downtown, a submarket that has been relatively quiet for the past 10 years.

What can you tell us about the suburbs regarding vacancy and lease rates?

Loftin: Switching to the suburbs, as vacancy levels have drastically decreased over the past couple of years in the Deerwood Park office submarket, rates have increased nearly 20 percent in that time, giving rise to new build-to-suit projects along Gate Parkway with the Town Center I and II buildings and Hines’ Southside Quarter. The South Duval region is experiencing a spike in rents with rates having gone up nearly 15 percent over the past couple years. The market benefits from being in close proximity to the rapidly growing residential and employment populations of St. Johns County.

Which submarkets have seen the most investor interest in the past quarters and why?

Loftin: While downtown Jacksonville lays claim to several of the most visible office investment deals of 2018, the Butler Corridor has seen significant activity with three large office deals—involving new development—closed in the past few months. McKesson and Web.com signed build-to-suit agreements for 125,000 square feet and 218,400 square feet in the Butler Corridor, and both are expected to move into their spaces in 2019. The 1 million-square-foot Flagler Center portfolio in southern Duval County traded for $136 million in early 2018, representing the largest office transaction in Jacksonville this year.

What is the status of leasing activity and asking rates in Jacksonville?

Loftin: Across the board, office rental rates are on the upswing. The areas surrounding Deerwood Park and Flagler Center have seen the most dramatic rise in rates with a nearly 20 percent increase over the last two years. The Southpoint submarket has also seen modest increases in asking rates benefitting from the significant rise in the neighboring Deerwood Park area, while downtown rates have remained fairly flat this past year. Downtown Jacksonville’s asking rates vary on a building-by-building basis, meaning that some have maintained the same rate, while others have increased with positive leasing activity over the past couple of years. Overall, downtown rates have been creeping up over the last few of years, but certainly not at the same pace as the suburbs.

Are there warning signs to suggest the market is gearing up for the next phase of the real estate cycle?

Loftin: When examining Jacksonville’s performance in the last recession, office rates did drop off a bit, but not nearly as much as what was seen in larger Florida office markets. Since Jacksonville entered the last recession with office availability, we first had to backfill our existing supply, which prolonged the market’s ability to increase rates. About a year and a half ago, Jacksonville started seeing an uptick in build-to-suit activity, which helped put new office supply on the market. 

Although most of the tenants that are occupying new build-to-suit buildings are currently in the market and will need to vacate other buildings, having a few pockets of large, contiguous office space is healthy and essential to attracting new-to-market tenants looking for these sizable blocks. Jacksonville’s office sector grew organically, cautiously and in a calculated manner, which should keep the market from having a glut of vacant office space when the next down cycle occurs.

What do you think will be the main driver for office demand going forward?

Loftin: As with most other markets, the general health of the economy is the largest determinant of office demand. Jacksonville is fortunate to have a diversified economy with ports and logistics, financial institutions and insurance companies serving as cornerstone industries, while new and exciting sectors such as tech are growing within our market. The expansion and diversification of our economy will only continue to move Jacksonville’s office market forward.

Image courtesy of JLL

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27 S. Laura St. (VyStar Tower)

VyStar Credit Union has acquired a Class A office tower in downtown Jacksonville, Fla. Colliers International represented the seller, a joint venture between Mainstreet Capital Partners and CarVal Investors. The new owner plans to rebrand the property as VyStar Tower.

Located at 76 S. Laura St., in the city’s central business district, the 1989-built asset comprises nearly 360,000 square feet. Previous ownership recently wrapped up a three-year, $2 million improvement program at the 23-story tower. The partnership acquired the asset for $31.1 million in 2015.

Upgrades included the completion of a 612-space parking garage adjacent to the building, mechanical and common area renovations, as well as new elevator cabs and lobby improvements. Furthermore, new food and beverage options were added, along with a fitness facility, tenant lounge and conference center.

Nearing full occupancy

The tower is currently more than 90 percent leased. Notable tenants include SunTrust Bank, PwC, ICX Group and Accretive Solutions, according to Yardi Matrix. Colliers will continue to spearhead leasing efforts at the property.

“This transaction was mutually beneficial—it saved Mainstreet and CarVal a significant investment over the long-term by eliminating the expensive lease-up process and it provided VyStar Credit Union with a long-term office space solution to meet its growing employee base. It’s also good for downtown Jacksonville because this move will bring several hundred employees to the area, thus supporting the broader neighborhood economy,” Colliers Executive Vice President Chuck Diebel, said in a prepared statement.

Last week, downtown Jacksonville was the scene of another notable transaction—Talara Investment Group acquired BB&T Tower for $24.5 million. The office tower changed hands through the Ten-X auction platform.

Image courtesy of Yardi Matrix

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BB&T Tower

Transwestern has brokered the $24.5 million sale of BB&T Tower, a roughly 285,500-square-foot office tower in downtown Jacksonville, Fla. LNR Partners sold the asset to Talara Investment Group through the Ten-X auction platform. According to Yardi Matrix, U.S. Bank foreclosed on the property in December 2015. 

Located at 200 W. Forsyth St., in the city’s central business district, the 18-story building was completed in 1975 and underwent a nearly $4 million renovation process under the management of LNR Partners. Improvements included key property upgrades such as an elevator modernization program. LNR Asset Manager John Mitchell implemented a new leasing strategy that resulted in preserving occupancy and several lease renewals. 

Coveted asset

Transwestern Managing Director John Bell spearheaded marketing efforts on behalf of the seller. “The BB&T Tower listing was a unique opportunity to acquire a trophy landmark with value-add characteristics in that it is 63 percent leased with in-place income, positioned to experience an expedited lease-up with new and committed long-term ownership,” Bell said in prepared remarks.

The BB&T-anchored high-rise is proximate to City Hall, the Federal and County Courthouses, and is directly across from One Enterprise Center, a 317,571-square-foot office building that sold last July for $15.2 million. Bell represented the seller in the disposition of that asset as well.

BB&T Tower encompasses a full city block and a tunnel connects it to a six-story parking garage across the street. The property is close to the convergence of interstates 10 and 95, providing easy access to the main thoroughfares as well as unobstructed views of St. Johns River.

Image courtesy of Yardi Matrix

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One Imeson Distribution Center

Real Capital Solutions has acquired the 1.7 million-square-foot One Imeson Distribution Center in Jacksonville, Fla., for $47.8 million. The structure is the largest commercial building in Jacksonville. The seller, IP Capital Partners, acquired the asset in late 2011 for $16.3 million, according to Duval County records. 

The property, located at 1 Imeson Park Blvd., in the North Jacksonville submarket, is positioned next to U.S. Highway 17 and within two miles of Interstate 95, providing access throughout the city and down Florida’s eastern coast.

One Imeson includes just under 1.5 million square feet of industrial and nearly 250,000 square feet of office space. At the time of sale, the asset was 74 percent leased. Larger tenants in the building include Bacardi, General Dynamics, KoMyo America and Venus Swimware. The distribution center was constructed in 1974 and the previous owner most recently renovated the structure between 2012 and 2015.

Cushman & Wakefield’s Mike Davis, Karl Johnston, Tyler Newman, Michael Lerner and Rick Brugge comprised the team representing the seller in the transaction. In March, the firm represented Graham Commercial in a $25.3 million industrial sale in the area.

“With additional development land, outdoor storage, as well as quality back office space, One Imeson is positioned to accommodate a variety of industrial or office uses well into the future,” said Davis, vice chairman of Cushman & Wakefield, in a prepared statement. 

Image courtesy of Cushman & Wakefield

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605 Palencia Club Drive in St. Augustine, Fla.

Hines has sold a 6,351-square-foot office building in St. Augustine, Fla., for $1 million. The buyer, DLP Capital Partners, plans to use the structure as its new southeastern headquarters. DLP funded the acquisition with a five-year, $800,000 mortgage held by Ameris Bank, according to St. Johns county records.

Located at 605 Palencia Club Drive, the two-story building sits inside Palencia, a 1,450-acre master-planned residential community. U.S. Highway 1 runs approximately one mile west of the building, providing access to downtown St. Augustine and north into Jacksonville. Hines previously used the asset as a residential sales office and will now relocate its team near the firm’s latest project in Jacksonville, southwest of Butler Boulevard and Interstate 295.

Chuck Diebel, Lisa McLatchey and Wade Powers of Colliers International represented Hines in the transaction.

“The Palencia community is made up of a mix of two-story units, which offer a combination of office and retail space. What makes this sale unique is its special zoning, which allows real estate occupants,” Diebel, executive vice president of Colliers’ Northeast Florida office, told Commercial Property Executive. “The buyer, a local real estate business, seized a great opportunity. The transaction reflects the success of Hines’ development efforts for Palencia and the desirability of Palencia’s Village Center.”

Image courtesy of Colliers International

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4601 Bulls Bay Highway, Building 100, in Jacksonville, Fla.

Colony Industrial, the industrial platform of Colony NorthStar, has acquired Westside Industrial Park from Pattillo Industrial Real Estate. The four Class A light industrial buildings in Jacksonville, Fla., changed hands for $77.5 million. Frank Fallon, Chris Riley and Trey Barry of CBRE were the brokers on the transaction.

Three of the buildings are located at 4601 Bulls Bay Highway (Buildings 100, 200, and 300) and the other property has an address of 4910 Bulls Bay Highway. Combined, the four facilities total nearly 1.3 million square feet.

“The portfolio we acquired at Westside Industrial Park is comprised of four Class A light industrial buildings with very attractive distribution features for warehouse tenants, including fast access to three major Interstates and an airport,” Lew Friedland, Colony NorthStar’s managing director & head of Colony Industrial, told Commercial Property Executive. “The buildings are 99.8 percent leased to well-known, national companies.”

The buildings in the portfolio offer a top location that provides tenants with convenient access to Interstate 295. Additionally, the facilities are about 10 miles from both Interstate 95—the major national north-south corridor—and Interstate 10—the major national east-west corridor.

“Colony Industrial is a platform focused on owning, managing and operating strategically located warehouse properties that are close to growing major markets,” Friedland said.

Loving Jacksonville

According to Friedland, the deal represents an ideal example of the sort of properties Colony Industrial is looking to purchase in the U.S., and the company is excited about expanding its presence further in the city of Jacksonville.

“Jacksonville is located in what we call the ‘sweet spot’ of the characteristics we seek in our target markets. Strong manufacturing and distribution facilities, well-located, infill warehouse space close to a major market are crucial to fast delivery, and increasingly scarce due to constrained supply,” Friedland added.

Colony Industrial already owned three other properties in the area, all acquired since last August. The company’s first deal in Jacksonville was the purchase of Creekside Distribution Center, a 334,930-square-foot, three-building industrial portfolio. This was followed by a November acquisition of an 85,259-square-foot building and a three-building deal in February totaling 304,948 square feet. In total, Colony Industrial now owns more than 2 million square feet in the city, with an average occupancy of 99.9%.

Earlier this week, the company acquired Enterprise Industrial Park, a two-building, Class A San Antonio light industrial complex.

Image courtesy of Colony Industrial

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The Pavilion at Durbin Park

The Pavilion at Durbin Park, a retail development on track to become the largest shopping center in Northeast Florida, has landed $80.5 million in construction financing. City National Bank of Florida provided the three-year construction loan, which has a variable interest rate. The owner, a joint venture between Gatlin Development Co. and Gate Petroleum, is building the 80-acre property near Jacksonville, Fla., and the first retailer—WalMart—plans to opens its doors in November 2018.

Just the start

Located at the southwest corner of Interstate 95 and Race Track Road, the development site is positioned about 20 miles south of central Jacksonville. The first phase is expected to be fully complete by the summer of 2019 and will total 600,000 square feet, anchored by both WalMart and The Home Depot. The long-term plans for Durban Park call for a total of 2.4 million square feet of retail, 2.8 million square feet of office, 999 housing units and a 350-guestroom hotel, according to The St. Augustine Record.

Aztec Group’s Jason Shapiro and Sean Harrington worked on behalf of Gatlin to secure the financing.

“The Pavilion is a much-needed and overdue addition to the northern St. Johns submarket, as the area is experiencing a surging residential population that has grown by 19 percent in five years … and continues to add new rooftops year over year,” said Shapiro, managing director of Aztec Group, in a prepared statement. “Highly desirable market fundamentals, including low per capita retail square footage in the trade area, combined with the credit strength of The Pavilion’s investment-grade anchor tenants were all instrumental in helping us secure favorable financing terms for the borrower.”

Image courtesy of Aztec Group

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Aerial view of Interstate South Commerce Center

Graham Commercial Properties has traded six industrial buildings in Jacksonville, Fla., for $25.3 million to Fort Family Investments. Interstate South Commerce Center encompasses 260,272 square feet and is currently 88.5 percent occupied.

Located on 25 acres at 9440-9456 Philips Highway in Jacksonville’s Southside submarket, the property is positioned within a mile of the intersection of Interstate 95 and U.S. Highway 1, enabling easy access to the city center.

Diverse tenant roster

Constructed between 1986 and 1989, the buildings are leased to a mix of 31 tenants including Honeywell, Lennar Homes, Dal-Tile and Lincare. The seller picked up the property for $21 million at the start of 2015 from a joint venture between Mutual of Omaha and the Unum Group, according to Duval County public records.

A Cushman & Wakefield team led by Karl Johnston, Mike Davis, Rick Brugge and Michael Lerner represented Graham Commercial in the transaction.

“Today’s more sophisticated light industrial tenants are looking for highly functional space with both showroom and warehouse capabilities, as well as ease of access. This changing dynamic has created a strong demand for light industrial buildings like Interstate South Commerce Center, which will position this property for future rent growth,” said Johnston, senior director of the Cushman & Wakefield Capital Markets team, in a prepared statement.

Image via Google Maps

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JTB Center

Cushman & Wakefield has negotiated a new 8,084-square-foot lease for Office Evolution at JTB Center, a 220,000-square-foot office park in Jacksonville, Fla. The tenant, a growing coworking franchise, plans to open five locations in the Jacksonville metro over the next several years.

Located at 5011 Gate Parkway, JTB Center comprises two assets—the Carlton and Collier buildings—completed in 1999 and 2001. The properties sit on 15.2 acres and are LEED Gold certified. According to Yardi Matrix, landlord TPG Real Estate acquired the complex in a $195 million portfolio deal from Parkway Properties in September 2016.

Flexibility and privacy

Office Evolution – Rendering

The new tenant’s space at Building 100 within JTB Center is currently being built out and will feature 30 private offices, a coworking lounge and two conference rooms, with completion slated for May. Office Evolution offers coworking and private office space, virtual offices and business services. Additionally, the company provides phone answering services and private mailboxes.

Cushman & Wakefield Senior Associate David Hillegas facilitated the negotiations on behalf of the tenant. Victor Hughes with Touchton Property Partners represented TPG Real Estate.

“Our new center is centrally located with easy access to major highways. It’s also close to the St. Johns Town Center, which will provide our members with access to the best shopping and dining in Jacksonville,” said Office Evolution franchise owner Michael Wielgus, in prepared remarks.

Images courtesy of Yardi Matrix and Workscopes

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Plaza 295 in Jacksonville, Fla.

Prime Realty has closed the sale of the two-building, 54,730-square-foot Plaza 295 in southwestern Jacksonville, Fla. The flex industrial asset sold for $3.5 million to a private investor, who funded the acquisition with a $2.6 million mortgage held by CenterState Bank, according to public records.

The seller, the Rahimi brothers, purchased the property out of foreclosure for $891,000 in March of 2014. Located at 7060 103rd St., Plaza 295 sits alongside Interstate 295 and is exposed to an average of 95,000 cars per day. The clear-span buildings feature 28-foot clear heights and most of the buildings’ 15 units were built out over the past two years.

Plaza 295 is situated next to a self-storage facility operated by U-Haul and is across the street from a Hospitality Inn & Suites. The property is 85 percent leased to a diverse mix of small tenants, including Hohrath’s Heating & Cooling, Prism Medical Products and Glass Doctor of Jacksonville.

Image via Google Maps

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Southside Quarter rendering

McKesson Corp. has signed a full-building lease for 125,000 square feet at Hines’ 105-acre Southside Quarter development in Jacksonville, Fla. The Class A office property is expected to begin site work this spring, with McKesson occupying the space in summer of 2019. Hines plans to construct another 125,000-square-foot office property and is presently building more than 300 luxury apartments and a number of single family homes as part of the Jacksonville mixed-use development. According to Yardi Matrix, the construction of the apartments is intended to wrap up in September 2018.

At the southwest corner of Interstate 295 and J. Turner Butler Boulevard, the four-story office building will be situated approximately 10 miles from downtown Jacksonville. St. Johns Town Center—an open-air Simon mall—is located just north of the Southside Quarter’s site. A number of other office properties sit in the immediate area, home to tenants including PNC Financial Services, PHH Mortgage, Danis and the FBI’s Jacksonville field office. McKesson’s building, designed by Rule Joy Trammel + Rubio, will be constructed to achieve LEED Silver and WELL certification.

“McKesson’s new facility will include a modern workspace that promotes collaboration and wellness features for our employees,” said Michael Huaco, senior vice president & global head of real estate for McKesson, in a prepared statement. “We are excited to continue growing in a community that reflects our focus on employee wellbeing, sustainability and innovation, and offers our employees access to local amenities.”

Image courtesy of Hines

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Riverside Centre in St. Augustine, Fla.

Peter Sleiman Development Group has acquired a 62,000-square-foot part of the Riverside Centre in St. Augustine, Fla. The previous owner, a partnership of RCG Ventures and DRA Advisors, sold the space for $6.7 million, according to public records. The sale price marks a slight uptick in value compared with the joint venture’s acquisition of the property in 2015 for $6.6 million. Directors Anthony Blanco and Lynn De Marco of The Shopping Center Group represented the seller in the transaction. The new owner funded the acquisition with a $4.6 million mortgage, held by Synovus Bank, per St. Johns County records.

Located at the northwest corner of Dixie Highway and Florida Route 312, the Riverside Centre is exposed to almost 40,000 cars per day. The part of the property included in the sale is home to Hobby Lobby and Sherwin Williams. The remainder of the shopping center is occupied by tenants such as Bealls Outlet, Big Lots and a number of smaller tenants. Sitting five miles from Interstate 95, the property is served by two on-site bus stops operated by St. Johns County’s Sunshine Bus Co.

“Purchasing this two-tenant portion of the market’s dominant retail asset is a smart passive investment particularly for a Jacksonville-based investor that understands the nuances of the region,” said Blanco in a prepared statement. “Both tenants are under triple net leases, and the adjacent anchored center enhances customer draw and traffic.”

Further east in St. Augustine, a new oceanfront resort under the Embassy Suites flag is expected to open later this quarter.

Image via Google Maps

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Personal Mini Storage

Personal Mini Storage has purchased, Devon Self Storage, an 897-unit, Class A self-storage facility in Gainesville, Fla. The acquisition marks the company’s sixth asset in the Gainesville market. The facility will be rebranded as Personal Mini Storage.

At 8825 N.W. 13^th St., the asset sits on a major street that connects to Interstate 75. Downtown Gainesville is within 15 minutes of the property. The area is surrounded with many apartment communities, which are 91 percent occupied. This year, the city’s population is expected to increase by 2.7 percent.

Completed in 2009, the facility comprises 90,000 rentable square feet, with units ranging in size from 25 to 240 square feet. The asset offers both climate- and non-climate-controlled units, as well as outdoor parking space for boats and RVs.

“We’re incredibly excited to add our sixth store in Gainesville, Fla., and coincidentally our sixth store with National Storage Affiliates, our joint venture partner,” said Marc Smith, president of Personal Mini Storage, in prepared remarks.

Devon Self Storage recently acquired two self-storage assets in Chicago and a three-property portfolio in Grand Rapids, Mich. The company received an approximately $27 million acquisition loan. 

Image courtesy of Personal Mini Storage

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CubeSmart Ocoee in Orlando, Fla.

Jernigan Capital Inc. closed an $8 million investment in a 749-unit multi-story, climate-controlled self-storage facility in Jacksonville, Fla. The proposed 68,700-square-foot ground-up project will be built by Structure Development LLC and will break ground in the fourth quarter of 2017. Construction work is expected to be complete by the end of 2018.

The facility will be located on Edison Avenue, half a mile from downtown Jacksonville, and will be visible from interstates 10 and 95. Brooklyn Station, a new Fresh Market-anchored retail destination and several new, upscale apartment communities are situated nearby. This is the third self-storage project in which Jernigan and Structure are co-investors.

New projects open under CubeSmart brand

Three new self-storage facilities, in which Jernigan holds 49.9 percent profits interest, are now open for business. The first is a 584-unit multi-story, climate-controlled self-storage facility in Pittsburgh, Pa., in which the company invested $5.3 million.

The 287-unit addition to Jernigan’s Ocoee self-storage facility in Orlando, Fla. is operational, after a $5.1 million investment from the Memphis, Tenn.-based firm. The Sunshine State also welcomed a new 787-unit multi-story, climate-controlled self-storage property in Jacksonville. For this project, Storage Partners LLC, the company’s joint venture with Heitman and an institutional investor, contributed $8.1 million.

The new facilities are all managed by CubeSmart.

Image courtesy of Jernigan Capital Inc.

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Scott Lawlor, CEO of Waypoint Residential

Waypoint Residential continues its round of student housing purchases with the addition of a 288-unit community located in Tallahassee, Fla. This time, the company plans to redevelop the property from student housing to conventional apartments.

Waypoint’s renovation plan

Located near various retail and transportation options, the redevelopment includes amenities such as a fitness center, a computer lab, business center, conference room, movie theater, swimming pool, a full-size basketball court and a sand volleyball court.

Waypoint’s extensive renovation plan will include upgrades to the unit interiors such as new stainless steel appliances, upgraded countertops, flooring, cabinetry and lightning, and plumbing packages. Exterior improvements will include landscaping, paint, roof replacement, new signage and pool area updates.

“This acquisition brings to bear Waypoint Residential’s fully integrated platform and showcases our complete skill set,” Scott Lawlor, CEO of Waypoint Residential, said in a statement. “The ability to capitalize on this type of opportunity requires deep expertise in both student housing and multifamily investments, as our team was able to identify a supply and demand imbalance between the two sectors in the Tallahassee market. This investment speaks to our ability to approach residential investments from every perspective and demonstrates our strong acquisition and redevelopment capabilities.”

Image courtesy of Waypoint Residential

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Rendering of Embassy Suites by Hilton St. Augustine

Key International topped off phase I of construction of the Embassy Suites by Hilton St. Augustine Beach Oceanfront Resort in Florida. The project is slated for delivery in the first quarter of 2018.

Located at 300 A1A Beach Blvd. on a 6.5-acre site in St. Augustine Beach, Fla., the resort will feature 175 keys and will include king and studio king, two-bedroom and queen-queen suites equipped with separate living areas, private bedrooms and high-definition TVs. Amenities at the property will include 7,500 square feet of indoor meeting space, an oceanfront pool bar, a fitness center, an outdoor pool, direct beach access and several dining options, as well as a Starbucks café.

Coastal hospitality expertise

Key International has selected PFVS Architecture to design the resort, while J. Banks Design is in charge of the new interiors. Hospitality Ventures Management Group, an Atlanta-based hotel management and ownership company, will oversee management of the property.

Set adjacent to Anastasia State Park, the resort boasts 535 feet of ocean frontage and offers an outdoor dedicated wedding lawn. A subsequent phase II of construction will include an additional 90 to 100 accommodations to the resort. Key International acquired the property for $4 million in 2015, adding to the company’s portfolio of hospitality, commercial and residential projects throughout the U.S. and Spain.

“Reaching this monumental construction milestone brings us one step closer to filling the need for a family-friendly resort product in this market, an unmatched beachfront location that couples an extensive collection of active and leisure amenities with modern finishes and dependable guest services,” said Diego Ardid, co-president of Key International, in prepared remarks.   

Earlier this year, an Embassy Suites by Hilton in San Antonio broke ground. Construction of the 203-key asset is expected to take 18 months, with a scheduled opening also in 2018.

Rendering courtesy of PFVS Architecture

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One Enterprise Center

Transwestern brokered the $15.2 million sale of One Enterprise Center, a 317,571-square-foot, Class A office tower in downtown Jacksonville, Fla. According to public records, the buyer was Rosecrans 2004 LLC, an entity affiliated with Los Angeles-based Michael Development Corp. The seller was 225 Water Street West Holdings LLC, an entity connected to CWCapital Asset Management LLC.

LEED Silver certification

Located at 225 Water St., the 22-story building was completed in 1985 and underwent cosmetic improvements in 2004, Yardi Matrix shows. The LEED Silver certified asset features a marble lobby, a glass atrium dome with a tower directly connected to a 354-key Omni Hotel and a parking ratio of 2.26 spaces per 1,000 square feet.

Transwestern Managing Director John Bell represented the seller in the disposition of the asset, which was 51 percent leased at the time of the sale. One Enterprise Center is just steps from the Times-Union Center for the Performing Arts, The Jacksonville Landing’s retail and restaurants, as well as the St. Johns River waterfront. The property’s central location offers access to the entire region at the convergence of Interstates 10 and 95.

“This listing was a rare opportunity to acquire a trophy building with compelling value-add potential. Currently 51 percent leased, the asset is positioned to experience an expedited lease-up with new, long-term ownership,” said Bell, in prepared remarks. “Universally considered one of the top office buildings in the Jacksonville Central Business District, the new ownership is committed to returning the building to its place as downtown’s most sought-after business address.”

According to Yardi Matrix, CWCapital Asset Management, acting as trustee on behalf of U.S. Bank, foreclosed on the property in 2015, after the previous owner defaulted on a $41.6 million CMBS loan.

Image courtesy of Transwestern

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One Deerwood

HFF arranged a $19 million refinancing of One Deerwood, a Class A, 161,167-square-foot office building in Jacksonville, Fla. The mortgage replaced a previous CMBS loan on the property, which was scheduled to mature in May 2017, according to Yardi Matrix.

Floating-Rate Loan

The debt placement team worked on behalf of the borrower, Taurus Investment Holdings LLC, to secure the three-year, floating-rate loan. Senior Managing Director Michael Weinberg and Director Porter Terry led HFF’s team that arranged the financing through Ares Management. Taurus Investment purchased the asset in 2007, when HFF was also involved in the transaction.

Completed in 1999, the six-story property sits on a 10.85-acre site at 10201 Centurion Parkway North within Deerwood Park, the largest, full-service multi-purpose campus in Jacksonville, Fla. One Deerwood features 24-hour on-site security, a parking ratio of five spaces per 1,000 square feet and on-site management office.

The property is leased to tenants including CIT Bank, JMB of North Florida and Amports Inc. Located in the Butler Corridor submarket at the interchange of J Turner Butler Boulevard and routes 202 and 115, One Deerwood is near many of the area’s lifestyle and retail drivers, including St. Johns Town Center.

Image courtesy of Yardi Matrix

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8800 Baymeadows Way West

CCP Commercial Real Estate acquired 8800 Baymeadows Way West, a Class A, 191,000-square-foot office building in Jacksonville, Fla. The five-story property changed hands in a $22.5 million deal.

The commercial real estate investment company purchased the building from CRT Baymeadows Owner LLC, an affiliate of New York-based DRA Advisors, while NXT Capital LLC provided $17.8 million in acquisition financing. The three-year loan is scheduled to mature in April 2020, according to public records. The property was 81 percent leased at the time of the sale.

Located directly off I-95 in Jacksonville’s Butler/Baymeadows submarket, 8800 Baymeadows Way West was completed in 1993. According to Yardi Matrix, the asset last traded in 2004, when DRA Advisors purchased it from Citigroup for $20.8 million.

“We are excited to expand our Southeast footprint with the acquisition of 8800 Baymeadows Way West. The suburban Jacksonville office investment market has been very strong over the last two years, and we felt this was a great opportunity to purchase a quality asset at a significant discount to replacement cost,” said Jeremy McLendon, president of CCP Commercial Real Estate, in prepared remarks.

Image courtesy of Yardi Matrix

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Jacksonville rent evolution, click to enlarge

A healthy employment climate, an inexpensive cost of living and mild weather are attracting jobs and new residents to Jacksonville, creating demand for apartments and bolstering rent growth.

Tourism made the most new hires and grew more here than in all other Florida cities. The latest entertainment project, a Topgolf venue near the St. Johns Town Center, brought more than 500 jobs to the area. Another strong sector is health care, which attracted employers such as Formativ Health. Founded as a partnership of Northwell Health, New York’s largest healthcare provider, and Pamplona Capital Management, the company is set to bring another 500 jobs to the area. On the retail front, Amazon, which has been one of Florida’s best job creators over the past few years, is opening its first fulfillment center in Jacksonville by the end of the year and employing 1,500 people. A second facility is expected to create an additional 1,000 jobs. By the end of the year, IKEA, the Swedish home furnishing giant, will open a new store projected to hire 250 people.

With vacancy under 5 percent, a relatively small amount of inventory underpins the need for more apartments. Development is set to ramp up, though, with more than 4,500 units under construction as of March. Investment activity peaked at $916 million in 2016. We expect absorption to keep up with the new supply coming online in 2017, leading to continued rent growth this year.

Read the full Yardi Matrix report.

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The Hampton Inn & Suites in downtown Gainesville, Fla.

Key International, a real estate investment and development company specializing in hospitality, and LBA Hospitality, a hotel management, development and consulting firm, announced the completion of a nearly $2 million renovation to the 124-key Hampton Inn & Suites Gainesville-Downtown in Florida. In September 2016, Key International acquired the asset for $27 million and shortly began renovations in November under the supervision of LBA Hospitality.  

The guestrooms, 27 studio suites, 1,700 square feet of meeting and social event space, lobby, reception and breakfast room have all been upgraded. Each room now features textured wallpaper, wood finishes, adaptable furniture pieces and increased lighting. Hotel amenities include a 24-hour business center, free Wi-Fi, a fitness center and a swimming pool.

Located at 101 Southeast 1st Ave., the Hampton Inn & Suites Gainesville-Downtown is conveniently located off Interstate 75, at Archer Road, and 18 miles from the Gainesville Regional Airport. The hotel is a five-minute drive from the 2,000-acre campus of University of Florida, close to the Florida Museum of Natural History, the University of Florida Golf Course and the Thomas Center art galleries. 

“We are pleased to see the culmination of the renovation occur in such a short timeframe since we purchased the hotel last year,” said Key International Executive Vice President of Hospitality Shawn Gracey, in prepared remarks.  

Image via Google Street View

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Hyatt Place Jacksonville

Concord Hospitality began construction on Hyatt Place Jacksonville, a 160-key hotel scheduled to open in late 2018.

The five-story property will feature the Gallery, which will offer 3,000 square feet of meeting space, an outdoor pool, a fitness center and an outdoor deck for events. The asset will be part of The Strand at St. Johns Town Center, a 45-acre, mixed-use development comprising residential, retail, restaurant and hotel space.

“As the area continues to grow, so does the demand for a thoughtful, modern, refreshing and stylish hotel designed with guest needs in mind,” said Mark Laport, president & CEO of Concord Hospitality, in prepared remarks. “The Hyatt Place brand could not be a better fit and we are looking forward to expanding our offerings in the Florida market.”

Concord operates two additional Hyatt-branded properties in Florida: Hyatt Place Miami Airport and Hyatt Centric South Beach Miami. The company also plans to open Hyatt Centric Brickell Miami in late 2017.

Image courtesy of Concord Hospitality 

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https://www.youtube.com/watch?v=Nj377jfcD1Q&feature=youtu.be

Jacksonville, Fla.—Crystal Lagoons US Corp., Twin Creeks Development and Encore Capital Management recently broke ground on the second Crystal Lagoon in Florida, currently the largest under construction in the U.S. The 14-acre man-made lagoon will be part of Beachwalk, a multi-purpose community in St. Johns County, Fla.

Crystal Lagoons, a multinational water innovation company, has developed a recreational concept and technology to create a large-scale, Caribbean-style beachfront location, with low construction and maintenance costs. The Crystal Lagoons developments are suitable for swimming, kayaking, paddle boarding and sailing anywhere in the world. The company that builds them offers developers revolutionary amenities.

Since 2007, more than 600 Crystal Lagoons have been built in 60 countries, including Saudi Arabia, Egypt, Thailand, India and Mexico. There are 14 in progress in the U.S. alone, with another 45 in negotiation. The lagoons range from 7 to 90 acres and are environmentally sustainable. They are all monitored, controlled and operated remotely by the Crystal Lagoons Control Center, via internet through the cloud, not requiring skilled people on-site.

“The developer is using the Crystal Lagoon to create a vibrant waterfront dining and retail experience that will revitalize the community and attract tourists and visitors alike,” said Uri Man, Crystal Lagoons U.S. East CEO, in a prepared statement.

Beachwalk will feature 1,000 homes and a 175,000-square-foot retail village that will provide waterfront dining and shopping. Encompassing more than 1,000 acres, the Crystal Lagoon will be the centerpiece of the community and will be surrounded by white sand beaches, as well as a private beach club on the north shore with a restaurant, several bars, a fitness center, an 18-hole miniature golf course and Laguna Dog – a splash park for the dogs of the community.

Video courtesy of Crystal Lagoons

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Hap Stein, Chairman & CEO of Regency Centers

Jacksonville, Fla. & New York—Get the party balloons ready, because the largest U.S. shopping center REIT by equity value is almost here. At a special meeting on Friday, Regency Centers Corp. stockholders approved the company’s merger with Equity One, Regency has announced.

As previously reported, the post-merger company, which will retain the Regency name and its NYSE symbol (REG), will have an equity value of $15.6 billion. The merger is expected to close Wednesday.

On a pro forma basis, Regency stockholders are expected to own about 62 percent of the combined company’s common stock, and former Equity One stockholders are expected to own the remaining approximately 38 percent.

J.P. Morgan Securities LLC is acting as financial advisor and Wachtell, Lipton, Rosen & Katz is acting as legal advisor to Regency in connection with the merger.

Regency’s portfolio of 307 retail properties totals more than 42.1 million square feet, is primarily grocery-anchored, and is focused in affluent and infill trade areas in attractive metro areas. Further, Regency has developed 223 shopping centers since 2000, representing an investment at completion of more than $3 billion.

David Lukes, President & CEO of Equity One

Equity One has 112 operating properties totaling 15 million square feet of retail and in addition has $250 million of redevelopment in progress. Its portfolio is focused on urban communities and concentrated in New York, San Francisco, Los Angeles and South Florida.

The merger will bring multiple benefits for Regency, Michael Lagazo, senior advisor, retail, for SVN Asset Advisory Group in San Diego, ‬told Commercial Property Executive, including enhanced concentration in desirable markets with high barriers to entry, such as Northern and Southern California, the Northeast, Atlanta, Southeast Florida, New York and the Washington, D.C., corridor.

Further, because the performance of a publicly traded REIT like Regency is measured by funds from operations, and greater earnings as well as eliminating redundant expenses at the asset level improves FFO, acquiring Equity improves Regency’s shareholder value at a greater rate than increasing rental income by expanding gross leasable area.

Regency typically invests in shopping centers anchored by top national grocers such as Kroger, Albertsons and Publix and having an average occupancy rate of 95.8 percent, Lagazo added, while Equity One has maintained similar occupancy levels at their properties.

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Southside Quarter rendering

Jacksonville, Fla.—Hines has broken ground on Southside Quarter, located at the intersection of I-295 and J.T. Butler Boulevard in Jacksonville.

The 105-acre, mixed-use development will offer retail, office, and residential space, as well as a hotel, to create a live, work, play environment. Office sites in the first phase include up to two 125,000-square-foot buildings, offering lake views, ample parking and walkability to future residential and retail components.

Southside Quarter will focus on connectivity, walkability, pedestrian-friendly pathways, a central lake amenity and ample green space. Hines is working with RTKL Associates, a local engineering firm, ETM and the City of Jacksonville to develop a master plan that will add character to the existing community.

“With the Quarter, we will create a timeless and true mixed-use destination,” said Lane Gardner, Hine’s Jacksonville-based managing director, in prepared remarks. “It will be the place to be for people, tenants, residents and neighbors to meet, gather, live, work, relax and enjoy life.”

Image courtesy of Hines

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Jason Burt, Florida division operations manager, Gilbane Building Co.

Jacksonville, Fla.—Gilbane Building Co. announced the promotion of Jason Burt as Florida division operations manager.

In his new role, he will focus on process improvement and client services enhancement. Burt will also endeavor to expand workforce planning and enhance employee engagement and development. Additionally, he will manage support services across Florida including quality, safety, purchasing, estimating, scheduling and training.

“With his in-depth and unique understanding of this multifaceted market and the variety of construction related services required to be successful, his knowledge and experience will allow him to really be an advocate for our clients,” said Robert Hayes, vice president and division leader, Florida, in prepared remarks.

During his career, Burt has been involved in all phases of delivery including project planning, conceptual and construction assessment, procurement, design management, construction management and warranty management. His portfolio includes K-12, institutional/library, public, private, federal, commercial, detention, high-end custom residential and complex renovation projects in various states from Florida to Georgia.

Burt holds a Bachelor of Science in building construction from the University of Florida.

Image courtesy of Gilbane

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Walgreens, 3505 University Blvd. W., Jacksonville, Fla.

Jacksonville, Fla.—The Boulder Group announced it has completed the $5.2 million sale of a single-tenant, net-leased Walgreens located at 3505 University Blvd. W. in Jacksonville, Fla.

Walgreens signed a 10-year lease extension for this location that will expire in August 2026 and includes eight five-year renewal options.

The 13,905-square-foot building is located at the intersection of University Blvd. W. and St. Augustine Road, surrounded by other retailers such as Publix, TJ Maxx, LA Fitness, Restaurant Depot, Bank of America, AutoZone and Dollar Tree.

Boulder Group President Randy Blankstein and partner Jimmy Goodman represented the seller in the transaction. The buyer was an international investment company.

“The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long-term leases,” said Blankstein in prepared remarks.

Image courtesy of The Boulder Group

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William Gulliford, Senior Managing Director, CBRE

Jacksonville, Fla.—CBRE recently announced the promotion of William Gulliford to senior managing director in North Florida. In his new role, Gulliford will oversee operations in all of CBRE’s North Florida offices, including Jacksonville, Orlando and Tampa.

Since joining CBRE in 2013 as managing director, Gulliford has been responsible for overseeing the Jacksonville and Northwest Florida markets. “William has done an exceptional job of expanding CBRE’s operations in North Florida and brings more than two decades of commercial real estate, banking and management experience to his new role,” said John Ferguson, president of the Southeast division, in a prepared statement. “His deep knowledge of the CBRE platform and strong leadership abilities will continue to greatly benefit our professionals and clients in the North Florida region.”

Prior to joining the firm, he served as managing director at EverBank Commercial Advisors. Earlier in his career, he was a principal with Midland Development Group and an executive at Regency Centers. A lawyer by training, Gulliford also practiced general business and commercial real estate law in Jacksonville with Rogers Towers and Ulmer, Murchison, Ashby & Taylor.

Gulliford holds a B.A. in Political Science from Sewanee: The University of the South and a J.D. from Stetson University College of Law. He is a member of The Florida Bar, the International Council of Shopping Centers and the Urban Land Institute. Gulliford currently serves as chairman of the Jacksonville Housing Finance Authority.

Photo courtesy of CBRE

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Jacksonville rent evolution, click to enlarge

The multifamily market in Jacksonville is improving, sustained by the metro’s hiring boom and increasing population. Although Jacksonville is a secondary tourist location in Florida, its share of the market is growing. The leisure and hospitality industry is leading the way, as visitors are coming to the state in record numbers. Employment gains have also been significant for the local medical community, the office-using sectors, construction and transportation.

Jacksonville currently ranks as one of the most affordable metros in Florida for apartment renters. And even though rent gains have persisted over the last three years, incomes have grown even faster, helping to maintain the city’s relative affordability as a key draw for incoming residents.

Multifamily fundamentals have been healthy, and we expect that to continue. Transaction volume exceeded $700 million, and investors reached a cycle-high price per unit last year. Construction activity, however, posted modest numbers, as only about 1,200 units came online in 2016, although we expect an increase to 1,800 units in 2017. The pipeline includes developments targeting areas near St. Johns Town Center, downtown and the Jacksonville International Airport. We expect absorption to remain robust, despite rents growing a modest 3.7 percent in 2017, down from 5.1 percent in 2016.

Read the full Yardi Matrix Report.

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Jacksonville Medical Plaza

Jacksonville, Fla.—The Hartford office of Tremont Realty Capital, a division of The RMR Group LLC, has secured an approximately $16.3 million refinancing loan for Jacksonville Medical Plaza in Jacksonville, Fla. Located at 3901 University Blvd. South, the 1974-built, 132,488-square-foot medical office complex offers three, one-story buildings and 433 parking spaces, according to Yardi Matrix.

The non-recourse, CMBS financing represented 75 percent of the property’s appraised value and has a 10-year fixed annual interest rate of 5.26 percent and a 30-year amortization schedule.

“Through our extensive network, we identified a capital provider that understood Jacksonville Medical Plaza’s situation—with its complex borrower structure and existing ground lease—and structured a long-term loan with a long fixed interest rate period to refinance the property’s maturing bank debt,” Stephen Henderson, director of Capital Markets for Tremont, said in prepared remarks. “The financing transaction underscores Tremont Realty Capital’s position at the nexus between borrowers and lenders, providing well executed and timely solutions across a range of property types, funding scenarios and geographies.”

Image courtesy of Yardi Matrix

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Map of Jackson International Tradeport

Jacksonville, Fla.—Jackson-Shaw has announced the groundbreaking of Jacksonville International Tradeport 3 & 4 in Jacksonville, Fla. The industrial facilities are designed for a vast array of users and add up to a total of 178,000 square feet. Building 3 will total 124,000 square feet with 32-foot heights, 37 dock high doors, 130-foot truck courts, one drive-in ramp, 109 parking spaces and 34 optional trailer storage spaces. Building 4 will consist of 54,000 square feet with 28-foot heights, 16 dock high doors, 130-foot truck courts, 31 parking spaces and 12 optional trailer drops.

“With only a handful of modern Class A options remaining in the market, now is the right time to build spec warehouse facilities in Jacksonville,” said Tyler Newman, director of Industrial Brokerage Services at Cushman & Wakefield, in prepared remarks. “With numerous prospects looking for space, we need aggressive developers like Jackson-Shaw to build this product type to meet the demand and support the region’s growth.”

The one-story industrial buildings, developed by Jackson-Shaw, are located on Jacksonville’s north side adjacent to the airport. This location gives tenants access to major thoroughfares such as I-95, I-295 and is within close proximity to all JAXPORT terminals.

“Buildings 3 & 4 are situated in the heart of Jacksonville International Tradeport, which is leased to a diverse group of tenants in the medical supply, food distribution, freight forwarding and exhibit/trade industries, including Mercedes-Benz and Coach USA,” added Michele Wheeler, president & COO of Jackson-Shaw.

Both buildings will be built using tilt-wall construction, rear-loading and cross-dock configurations and ESFR fire protection systems. Newman will lease the two facilities, construction funding is provided by BB&T and Jackson-Shaw investment partner, Thackeray Partners, co-owns the developments. The buildings are slotted for completion by the third quarter of 2017.

Image courtesy of Jackson-Shaw

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Jacksonville, Fla.—Fortress Investment Group recently announced that it has closed the sale of Riverplace Tower, an iconic 28-story office building, for $53.4 million. The Class A, 441,000-square-foot asset was bought by Fortress in partnership with Lingerfelt Commonwealth Partners in 2014 for the price tag of $29 million.

Riverplace Tower, Jacksonville

Located at 1301 Riverplace Blvd. in Jacksonville on an 8.63-acre site, the multi-tenant property was built in 1966 and completely renovated in 2010. The building features standard ceilings and abundant covered and surface parking in an adjacent multi-level parking structure. Amenities include common area Wi-Fi, redundant power, a fitness center and a private dining club.

In the past two years, the owners made capital improvements to the property and leased more than 170,000 square feet of office space, out of which 137,000 square feet to new tenants, the occupancy increasing from 63 percent to 85 percent. In 2014, Fortress also acquired the 951-room Hyatt Regency Jacksonville, a premier downtown waterfront hotel and the investments in the Hyatt Regency and Riverplace Tower were made primarily through the firm’s Fortress Real Estate Opportunities Funds, private equity style funds that focus on opportunistic investments in commercial real estate and real estate related assets.

“It’s been a pleasure working with Lingerfelt Commonwealth, who shared our vision for the revitalization of this significant property, and we were pleased with their ability to drive operational efficiencies,” said Thomas Pulley, global head of the Fortress Credit Real Estate business, in a prepared statement. “Riverplace Tower has been a defining landmark of the Jacksonville skyline since its opening, and we are confident that it will long be a contributor to and beneficiary of the city’s growing economy,” he added.

According to Yardi Matrix data, the 2016 sale was subject to an acquisition and development loan in the amount of $32.7 million, held by Ameris Bank.

Image courtesy of Yardi Matrix

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