Gramercy Property Trust Leases, Rebrands 1.1MSF Office Park in Jacksonville

By Robert Demeter

Gramercy Woods

Jacksonville–Gramercy Property Trust recently announced that it has signed four leases totaling approximately 1.1 million square feet at the former Bank of America office park in Jacksonville’s Bay Meadows submarket. Gramercy became the lead tenant, and subsequently rebranded the 90+ acre office campus to Gramercy Woods as part of the transaction.

The property located at 9000 Southside Blvd. consists of 10 buildings totaling approximately 1.2 million square feet of office space. Tenants at the campus include Aetna, a national life insurance company who will leave its 170,000-square-foot office space in Downtown Southbank, as soon as its lease expires in August 2017. Aetna signed for a new 10-year, 132,000-square-foot lease in the campus’ Building 100.

Another 15-year-lease with a major financial institution has been confirmed, for approximately 822,500 square feet, and two additional long term leases with large national professional services firms for approximately 50,000 square feet each, one for a 12 year term, and the other for a 7.5 year term.

“Gramercy is very excited to continue the transformation of this office campus,” said Benjamin Harris, president of Gramercy Property Trust. “These transactions diversify our rent roll and significantly extend the average lease term at the campus, while increasing property NOI, thereby creating significant value for our shareholders. With this transaction, Gramercy is making a significant long term investment in the property and the Bay Meadows submarket”.

The leasing activity increases the weighted average lease term across the campus from 7.4 years to 14.0 years. In addition, stabilized NOI increases approximately 9.0 percent.

Last month, Gramercy Property Trust purchased 12 industrial buildings, located in key markets in the U.S. and Canada, for $115.2 million.

Photo courtesy of Google Street View.