By Timea Papp
VyStar Credit Union has acquired a Class A office tower in downtown Jacksonville, Fla. Colliers International represented the seller, a joint venture between Mainstreet Capital Partners and CarVal Investors. The new owner plans to rebrand the property as VyStar Tower.
Located at 76 S. Laura St., in the city’s central business district, the 1989-built asset comprises nearly 360,000 square feet. Previous ownership recently wrapped up a three-year, $2 million improvement program at the 23-story tower. The partnership acquired the asset for $31.1 million in 2015.
Upgrades included the completion of a 612-space parking garage adjacent to the building, mechanical and common area renovations, as well as new elevator cabs and lobby improvements. Furthermore, new food and beverage options were added, along with a fitness facility, tenant lounge and conference center.
Nearing full occupancy
The tower is currently more than 90 percent leased. Notable tenants include SunTrust Bank, PwC, ICX Group and Accretive Solutions, according to Yardi Matrix. Colliers will continue to spearhead leasing efforts at the property.
“This transaction was mutually beneficial—it saved Mainstreet and CarVal a significant investment over the long-term by eliminating the expensive lease-up process and it provided VyStar Credit Union with a long-term office space solution to meet its growing employee base. It’s also good for downtown Jacksonville because this move will bring several hundred employees to the area, thus supporting the broader neighborhood economy,” Colliers Executive Vice President Chuck Diebel, said in a prepared statement.
Last week, downtown Jacksonville was the scene of another notable transaction—Talara Investment Group acquired BB&T Tower for $24.5 million. The office tower changed hands through the Ten-X auction platform.
Image courtesy of Yardi Matrix