Last year, Prudential offloaded its office campus in Jacksonville, Florida, amid the headwinds of the fastest interest rate hike in the history of the United States, earning the deal a 2023 CoStar Impact Award, selected by a panel of local industry professionals.
Prudential was able to capture income from its buildings, and the buyer was able to pick up a value-add office deal in Jacksonville's growing downtown Southbank market in a win-win for both parties.
The Prudential Office Tower, located at 701 San Marco Blvd., was initially a build-to-suit for Prudential, which occupied the entire building. Over the years, the Fortune 500 company, whose subsidiaries provide insurance, retirement planning, investment management and other financial products and services to retail and institutional customers in over 40 countries, eventually downsized its footprint here and decided to remain in only a portion of the building.
At the time of sale, the property was 60% leased, anchored by Prudential Insurance Co. of America, Interline Brands and the Army Corps of Engineers.
About the deal: Chicago-based Bradford Allen Realty Services purchased the two-building, 706,746-square-foot trophy office tower that features a seven-story west wing and a 19-story east wing for $70 million. An adjacent parking garage and surface parking provide over 2,200 spaces. In connection with the sale, the buyer secured a $69.07 million loan held by Simmons Bank.
What the judges said: Jeffrey Terwilliger and Tyler Saldutti noted the size of this downtown acquisition would have a large impact on the market.
"The Prudential Office Tower is a significant office tower on our Southbank and the change in ownership will bring new property improvements and new life to an older asset," said Saldutti.
They made it happen: Matthew McCormack, Ike Ojala and Hermen Rodriguez with JLL in Miami teamed up with Robbie McEwan III in JLL's Orlando office to represent the seller.
