BofA Buys Jacksonville Operations Base for $155M
The price exceeds the market's entire sales volume for the first half of the year.
Bank of America has acquired a five-building portfolio it had been leasing at Gramercy Woods, a 1.3 million-square-foot office campus in Jacksonville, Fla., according to the Jacksonville Daily Record.
Ladder Capital sold the assets for $155 million after nine years of ownership. In 2017, the firm acquired the properties from Gramercy Property Trust for $115 million, with the help of an $82.3 million self-financed loan, Yardi Matrix information shows.
Gramercy Woods occupies some 80 acres at 9000 Southside Blvd., just north of The Avenues mall and 13 miles from downtown Jacksonville. The complex includes seven office buildings, four parking garages, a school and childcare center, as well as an amenity building.
Bank of America has been a constant presence at the property since most of it was completed, in 1989. The campus houses one of the bank’s major operations hubs, supporting more than 7,100 employees.
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Under the current deal, Bank of America purchased Gramercy Woods’ Buildings 200, 300, 400, 500 and 600, totaling 822,000 square feet, together with two parking structures. As part of the transaction, the bank will also continue to lease about 78,000 square feet at Building 100, a 10-story property owned by Glenfield Capital.
The newly acquired office assets, rising two and five stories, were completed in 1989 and 1993. The bank reportedly has spent more than $230 million on renovations over the years, the amount including the construction costs of one of the garages.
Jacksonville office assets get more pricey
Bank of America’s acquisition price exceeded the total investment volume recorded in Jacksonville during the first half of the year. According to Yardi Matrix, only eight office properties changed hands in the market year-to-date through June for a combined $122.5 million.
The sales volume was almost on par with the one from the same period last year, when 11 assets sold for nearly $122 million. However, the average price per square foot witnessed a 64 percent jump year-over-year, from $71.68 to $117.62, according to the same source.
In a more recent deal, Acorn Property Holdings sold Butler Pointe, a 151,815-square-foot office building in Jacksonville. The property traded at $96.83 per square foot, a 22 percent premium to its 2015 sale price, in a deal arranged by NAI Hallmark.
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