Heidi Adams, director of leasing for Taurus Southern Investments, declined to discuss precise deal terms. However, she says the average rental rate for Greystone Park is $12.75 per sf NNN, which is comparable to competitive rates in the area.
Peter Ramsey and Traci Jenks of CB Richard Ellis, Jacksonville, represented Taurus Southern, and Joe Ayers of CB Richard Ellis, Jacksonville, represented the tenant. The Renaissance Behavioral Health Systems network is comprised of three nonprofit organizations: Renaissance Behavioral Health Systems Inc., Mental Health Resource Center Inc. and Mental Health Center of Jacksonville Inc.
Greystone Park is one of four metro office properties Taurus Southern Investments acquired from Phillips & Co. in 2006. Taurus paid $70 million for the total 698,501 sf of rentable area. In addition to the seven-building, 212,240-sf Greystone Park, the acquisition consisted of the 200,931-sf Meridian at Deerwood, the 217,968-sf Central Park and the 67,362-sf Central Park East. The tenant rosters for the properties include Cisco Systems, Gulf Atlantic Financial, Magellan Academy and Paychex.
According to Marcus & Millichap Real Estate Investment Services' 2008 National Office Report, Jacksonville's office vacancy is expected to decline 70 basis points to 14.1% by year-end 2008. In addition, asking rents are forecast to rise 4% to $18.94 per sf, with effective rents forecast to rise 4.1% to $15.72 per sf.
"While tenant demand and absorption are anticipated to build in the near term, additions to the office stock remain subdued, with the development of new office space expected to decline this year," the report states. "As a result, occupancy will continue to improve throughout the year, with rent growth projected to post modest improvements."
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