Deerwood Park office portfolio sells for $231 million
Posted by Carlos Renteria on
A joint venture between Starwood Real Estate Income Trust Inc., Vanderbilt Office Properties and Trinity Capital Advisors paid $231 million for an 11-building office portfolio in Deerwood Park in an off-market transaction, reports rebusinessonline.com.
The starwoodnav.reit site said the Class A office portfolio totals 1.27 million square feet of space and is 90 percent leased to 55 tenants.
Tenants include Fidelity Investments, The Adecco Group and JPMorgan Chase Bank. Rebusinessonline.com reported that the leases expire in 2026, 2022 and 2022, respectively.
“Jacksonville has been one of the top performing large metros in the U.S. for employment and population growth over the last five years and is projected to continue to rank among the top markets over the next five years,” said Starwood's property brochure.
The Starwood site said that investment-grade companies comprise more than 65 percent of the portfolio’s tenants.
Rebusinessonline.com said Wells Fargo provided a $135 million acquisition loan to the borrowers. SREIT, which owns 97% of the portfolio, funded the rest of the acquisition. Vanderbilt Office Properties will manage the properties.
It said the seller was not disclosed. Property records show TPG Capital owned the property.
In September 2016, Parkway Properties Inc. sold the Deerwood North, Deerwood South and JTB Center office properties for $195 million to Deerwood South LLC, a company registered with the state by the TPG global investment firm in Fort Worth, Texas.
“The Florida office portfolio is another example of SREIT acquiring high-quality real estate in markets with strong population and job growth,” says John McCarthy, CEO and president of SREIT, in a news release.
“SREIT focuses on markets with strong growth dynamics because they drive occupancies, rents and values upward.”
By: Karen Brune Mathis