Wachovia Tower Sells for $51M

(Crystal Proenza is associate editor of Real Estate Florida.)

JACKSONVILLE, FL-The market for big deals is not dead, say local brokers after learning of Harbor Group International LLC’s recent sale of the 22-story Wachovia Tower office building at 225 Water St. for $51.4 million. The seller described the buyer as a public REIT that could not be disclosed. According to the special warranty deed issued by a circuit court in Duval County, the buyer is Hub OEC Properties LLC based in Newton, MA. Barry M. Portnoy and Adam D. Portnoy from Newton, MA and Michelle Dreyer from Wilmington, DE are listed as managers of the LLC in documents submitted to the Florida Department of State. Local brokers say the price paid for the building, which they call one of the most valuable office assets in the city, is “top of the market.”

Norfolk, VA-based HGI, a private real estate investment and management firm, purchased the building nearly five years ago for $38.3 million. T. Richard Litton Jr., president of HGI, says the timing for the sale is consistent with the firm’s typical holding period for office assets. He tells GlobeSt.com that his company assured a good return on investment by purchasing a quality asset and using a hands-on leasing approach, keeping very high occupancy throughout their ownership.