Paul DiSandro, a TCM Partner and Portfolio Manager
JACKSONVILLE, FL—Ten Capital Management reports it has acquired Capital Plaza, a three-building office park here totaling more than 417,000 square feet.
The Cleveland-based privately-held real estate investment management firm, is the new owner of the 417,513-square-foot complex that is currently 87% leased to nine tenants with a weighted average lease term of five to seven years. Approximately 53% of the tenancy is comprised of investment-grade tenants.
No financial terms of the transaction were disclosed for the property that is located in Jacksonville's Butler/Baymeadows office submarket within the Deerwood Park micro market
In the Deerwood Park market, no new office supply has come online since 2009, yet demand for office space has continued to increase with more than 300,000 square feet of additional new occupancy taking hold over the same period and remains robust with further growth projected into the future, according to Ten Capital Management.
Rent levels in the market have grown each year since 2011 totaling 24.2%. In addition, Jacksonville's leading mall and lifestyle center. St. John's Town Center has spurred significant multifamily development in the submarket, with 1,689 units delivered over the past five years and another 1,362 under construction for delivery over the next 12 months.
Paul DiSandro, a TCM partner and portfolio manager, said, “Capital Plaza offers our investors strong cash-on-cash returns and upside potential through the lease up of the remaining vacancy in the building and the ability to push rents to market, with in-place contractual rents at approximately 15% below current market rents in a micro-market which has a longstanding history of superior market performance.”
The property's amenities include a state-of-the-art fitness center, 24/7 security, market leading parking ratio of 6.2:1000 square feet, and a power redundancy system.
Capital Plaza has access to Interstate 95, Interstate 295 and St. John's Town Center. Over the last four years, the property has undergone $4 million in improvements and upgrades.
In March, Ten Capital Management completed the acquisition of Atria Corporate Center in Plymouth, MN, a suburb of Minneapolis.
The property is a 358,941-square-foot Class A, LEED Gold building, built in the late 1980s and substantially renovated in 2017.
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John Jordan
John Jordan is a veteran journalist with 36 years of print and digital media experience.
