Jacksonville Office Complex Commands $30M

By Timea Papp

Summit at Southpoint

Bluerock Real Estate has sold Summit at Southpoint, a 260,664-square-foot office complex in Jacksonville, Fla., for $29.6 million, according to public records. Berkadia arranged $25 million in acquisition financing on behalf of the buyer, Rose & Berg Realty Group.

Located at 6410-6440 Southpoint Parkway, the four-building campus was completed in phases, in 1988, 1991 and 1998. Summit at Southpoint underwent cosmetic upgrades in 2006 and 2015, and previously changed hands in 2007, according to Yardi Matrix. The property was 82 percent leased at the time of sale to a mix of notable tenants including U.S. Bank/FSV, Chicago Title Insurance Co., BB&T, Windstream, Ocenture and Keiser University.

Transwestern Managing Director John Bell represented the seller, while Berkadia Senior Managing Director Charles Foschini and Managing Director Christopher Apone facilitated the financing. NXT Capital originated the three-year loan. Terms include an extended interest-only period and 72 percent loan-to-cost ratio. Recently, NXT Capital provided financing for the acquisition of a Class A office tower in Dallas.

“Jacksonville, like the rest of the state, has emerged as a much more dynamic employment market than in past cycles. Both the buyer and the lender recognized that in the opportunity to acquire a well-located asset with a strong anchor in existing tenancy,” Foschini said in prepared remarks.

Summit at Southpoint spans across 24.3 acres, providing convenient access to Interstate 95. The campus is on St. Vincent’s Hospital power grid, which is an important feature for the park’s tech tenants, as the hospital is the first to regain power in Jacksonville following outages.

Image courtesy of Berkadia