PKY Deerwood Closes on $130M Jacksonville Office Portfolio
- Mar 19, 2013
PKY Deerwood, L.L.C., an affiliate of Parkway Properties, Inc., has acquired an eight-building, 1,018,218-square-foot portfolio in Jacksonville, Fla., from Flagler for $130 million.
CBRE represented the seller in the transaction and also secured the portfolio financing on behalf of the purchaser with $84.5 million acquisition financing with a fixed interest rate of 3.9 percent for a 10-year term.
“The rate and terms are exemplary,” Charles Foschini, CBRE’s vice chairman, said in a company statement. “This demonstrates the quality of the asset and its position in the market, as well as the acumen of a highly skilled sponsor who moved swiftly through the lender and buyer due diligence to lock up a historically low rate without hesitation.”
Located at 10151 Deerwood Park Boulevard, Deerwood South is comprised of four Class A buildings totaling 519,221 square feet of office space. It has the distinction of being named Best Suburban Office Park by TOBY twice.
Deerwood North is located in Jacksonville’s corporate growth corridor of Southside Boulevard and J. Turner Butler Boulevard, at 4600 Touchton Road. The office park is comprised of four office buildings totaling nearly 500,000 rentable square feet and it too has won accolades, being named a winner of NAIOP’s Best Office Development.
“Deerwood North and South provided the opportunity to achieve critical mass in the Deerwood Submarket with a stable rent roll and quality tenancy,” Christian Lee, lead CBRE broker on the transaction, said in a company statement.
The buildings have a combined occupancy of approximately 93 percent, with major tenants such as JP Morgan Chase, Fidelity, Comcast, Adecco, Main Street America, Fortegra, Carolina Casualty and Arizona Chemical.
According Michael Harrell, CBRE’s senior vice president and Jacksonville market expert, Deerwood is one of the tightest submarkets in the state and is expected to see strong rent growth.
CBRE’s Miami Institutional Group members, Lee, Foschini, Christopher Apone, and Amy Julian, with regional support from Vice Chairman Will Yowell and Harrell, collaborated to market the asset for sale and negotiate the transaction on behalf of the seller.