Jacksonville CBD Office Tower Fetches $25M

By Timea Papp

BB&T Tower

Transwestern has brokered the $24.5 million sale of BB&T Tower, a roughly 285,500-square-foot office tower in downtown Jacksonville, Fla. LNR Partners sold the asset to Talara Investment Group through the Ten-X auction platform. According to Yardi Matrix, U.S. Bank foreclosed on the property in December 2015. 

Located at 200 W. Forsyth St., in the city’s central business district, the 18-story building was completed in 1975 and underwent a nearly $4 million renovation process under the management of LNR Partners. Improvements included key property upgrades such as an elevator modernization program. LNR Asset Manager John Mitchell implemented a new leasing strategy that resulted in preserving occupancy and several lease renewals. 

Coveted asset

Transwestern Managing Director John Bell spearheaded marketing efforts on behalf of the seller. “The BB&T Tower listing was a unique opportunity to acquire a trophy landmark with value-add characteristics in that it is 63 percent leased with in-place income, positioned to experience an expedited lease-up with new and committed long-term ownership,” Bell said in prepared remarks.

The BB&T-anchored high-rise is proximate to City Hall, the Federal and County Courthouses, and is directly across from One Enterprise Center, a 317,571-square-foot office building that sold last July for $15.2 million. Bell represented the seller in the disposition of that asset as well.

BB&T Tower encompasses a full city block and a tunnel connects it to a six-story parking garage across the street. The property is close to the convergence of interstates 10 and 95, providing easy access to the main thoroughfares as well as unobstructed views of St. Johns River.

Image courtesy of Yardi Matrix