Downtown Jacksonville Tower Trades for $53M

In the past two years, the occupancy of the office high-rise increased by 22 percent and its market value by $24.4 million.

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

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