The 417,513 sf Property is located within Jacksonville’s Butler/Baymeadows office submarket and in the A+ location of the Deerwood Park micro market
CLEVELAND, OHIO, July 25, 2019 – Ten Capital Management (“TCM”), a privately held real estate investment management firm, today announced it has completed the acquisition of Capital Plaza (“Capital Plaza” or the “Property”), located in the highly coveted Deerwood Park market, where vacancy has averaged 5% over the past 20 years.
Capital Plaza, comprised of 417,513 sf, provides tenants with first class amenities featuring a state-of-the-art fitness center, 24/7 security, market leading parking ratio of 6.2:1000 sf, and a one of a kind power redundancy system, critical to virtually all of the existing tenants. The Property is currently 87% leased to nine tenants, with a weighted average lease term of ~5.7 years. Approximately 53% of the tenancy is comprised of investment-grade tenants. Capital Plaza has immediate access to Interstate 95, Interstate 295 and St. John’s Town Center – Jacksonville’s leading mall and lifestyle center. Over the last four years, the Property has undergone ~$4 million in improvements and upgrades.
In the Deerwood Park market, no new office supply has come online since 2009, yet demand for office space has continued to increase – over 300,000 sf of additional new occupancy taking hold over the same period – and remains robust with further growth projected into the future. Rent levels have grown each year since 2011 totaling 24.2%. In addition, St. John’s Town Center has spurred significant multifamily development in the submarket, with 1,689 units delivered over the past five years and another 1,362 under construction for delivery over the next 12 months.
With a growing population, a strong economy, diverse cultural and recreational opportunities and abundant natural resources, Jacksonville overall continues to distinguish itself as one of the nation’s most dynamic and progressive cities.
Paul DiSandro, a TCM Partner and Portfolio Manager, said, “Capital Plaza offers our investors strong cash-on-cash returns and upside potential through the lease up of the remaining vacancy in the building and the ability to push rents to market, with in-place contractual rents at approximately 15% below current market rents in a micro-market which has a longstanding history of superior market performance.”
Ben Adams, TCM’s CEO, added, “At the heart of the matter, we continue to focus on buying well and having a strong margin of safety in place on the day we close, while providing excellent client service at every step.”
TCM is a privately held real estate firm investing across a broad spectrum of strategies and seeks to deliver consistent, superior risk-adjusted returns to its global investor base, while remaining proactive, adapting quickly to changing market fundamentals and opportunities. TCM makes equity investments between $10 and $25 million, targeting transactions which fall “below the radar” of larger institutional investors. For more information, please go to www.tencapmanagement.com.