Jacksonville, FL – March 18, 2013 – (RealEstateRama) — CBRE announced today that it has closed the $130 million sale of an eight-building, 1,018,218 square foot portfolio in Jacksonville, Florida.
A team of CBRE professionals marketed the asset for sale on behalf of Flagler, and secured the portfolio financing on behalf of the purchaser, PKY Deerwood, LLC, an affiliate of Parkway Properties, Inc. (NYSE:PKY).
Deerwood North and Deerwood South consist of 8 office buildings built from 1996 to 2005 with a current occupancy of over 90%. Major tenants include JP Morgan Chase, Fidelity, Comcast, Adecco, Main Street America, Fortegra, Carolina Casualty and Arizona Chemical.
“Deerwood North and South provided the opportunity to achieve critical mass in the Deerwood Submarket with a stable rent roll and quality tenancy,” said Vice Chairman Christian Lee, lead CBRE broker on this transaction.
According to Senior Vice President Michael Harrell, CBRE’s Jacksonville market expert, “Deerwood is one of the tightest submarkets in the state and is expected to see strong rent growth.”
CBRE also sourced and arranged for the $84.5 million acquisition financing with a fixed interest rate of 3.9% for a 10-year term. “The rate and terms are exemplary which demonstrated both 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,” said Charles Foschini, Vice Chairman, CBRE.
“This transaction is a great example of CBRE working together regionally to achieve the best results for our clients,” said Will Yowell, Vice Chairman, CBRE.
CBRE’s Miami Institutional Group members, Christian Lee, Charles Foschini, Christopher Apone, and Amy Julian, with regional support from Vice Chairman Will Yowell and Senior Vice President Michael Harrell, collaborated to market the asset for sale and negotiate the transaction on behalf of the seller.
Flagler is one of Florida’s oldest and largest integrated, full-service real estate companies. Flagler owns, manages, and leases approximately 8 million square feet of Class-A office and industrial space located in strategic markets throughout Florida. In addition, Flagler provides third-party asset management, property management, and brokerage services and owns nearly 5,000 acres of Florida land, of which 1,650 acres are entitled for up to 19 million square feet of development. Headquartered in Coral Gables, Fla., Flagler is owned by private equity funds managed by affiliates of Fortress Investment Group LLC.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
Marketing Director, FL
elizabeth.cross (at) cbre (dot) com
Marketing & Communication Specialist
tempe.seibel (at) cbre (dot) com