Formativ Health’s $1.6M renovation is in review

Butler Plaza is preparing for an almost $1.6 million build-out for Formativ Health, which intends to open a 500-job patient access service center there.


Formativ Health intends to hire 500 people to staff a service center to be built-out at Butler Plaza’s Butler III building.
Formativ Health intends to hire 500 people to staff a service center to be built-out at Butler Plaza’s Butler III building.
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Auld & White Constructors LLC is the contractor for the project, which involves 72,200 square feet on all four floors at Butler III at 4875 Belfort Road.
Plans show training rooms, the board room, and workforce management on part of the first floor.
Formativ will occupy all of the upper three floors, with open office space, conference rooms, collaboration areas and directors’ offices on each.
Plans also show recreation rooms that include games like billiards, foosball and pingpong.
Formativ Health CEO Dennis Dowling said at a news conference in January that the center will provide practice management services for physicians around the country. 
He said Formativ was founded by Northwell Health as a for-profit joint venture with Pamplona Capital Management, a private equity firm.
Northwell Health is the state of New York’s largest health care provider and will be a customer, he said.
New York-based Formativ will provide comprehensive management services to physician practices, including tailored revenue cycle management solutions, patient access services, physician practice management and advisory services, he said.
Chief Administrative Officer Nick Stefanizzi said in January that the building was wired for technology, which he said was critical.
He said the company will make aesthetic renovations because “we want people to feel they are in a workplace with an engaging culture.”
Build-out isn’t expected to be completed until mid-2018, although Formativ said in January it would being training and open partial operations this spring.
The office space formerly housed Deutsche Bank, which relocated to its nearby campus.

Local vs. state: Office vacancy rates higher, rents lower
Jacksonville’s average office vacancy rates are higher than the statewide numbers while its lease rates are lower.
CBRE Inc. reported that the overall state office vacancy rate for the first quarter was 12.4 percent, compared with 15.9 percent in Jacksonville.
The only market with a higher overall vacancy rate than Jacksonville was Palm Beach at 16.4 percent. 
The statewide suburban rate of 12.1 percent was lower than Jacksonville’s 16.2 percent, while the central business district rate in Florida averaged 13.4 percent, below Jacksonville’s 15.2 percent.
Jacksonville’s average asking lease rate was $19.07 a square foot overall, with $18.67 in the suburbs and $19.96 in the CBD.
No location in the CBRE statewide report had lower average lease rates.
Florida’s average rates were higher — $27.25 overall, $25.71 suburban and $31.96 CBD.
However, Jacksonville did score first and second place in the top 10 lease transactions – One Call Care Management, for 80,000 square feet at 841 Prudential, and Formativ Health, for 76,075 square feet at Butler Plaza III.
Jacksonville also took the No. 7 spot with Ameris Bancorp’s 37,990 square feet of space in the Center Building.

Food notes

  • Morton’s The Steakhouse scheduled an invitation-only VIP opening preview for Thursday at its Hyatt Regency Jacksonville Riverfront restaurant. The hotel is at 225 E. Coastline Drive.
  • Wendy’s is preparing to rebuild at 2006 Park St. A pending construction permit shows a $650,000 construction job for the 2,433-square-foot restaurant.
  • Wendy’s also plans an extensive remodel at 3910 University Blvd. W. 
  • McDonald’s plans to rebuild its store at 12311 N. Main St.

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