Prime Realty Vice President Shaun Mayberry said the sale of a Mandarin office building is indicative of a larger trend: investors changing focus to the more stable medical market.
Mayberry represented the seller in the $3,895,000 million sale of the 26,863-square-foot Mandarin Medical Plaza at 9765 San Jose Blvd.
Jacksonville-based Hakimian Holdings LLC, which owns the adjacent Mandarin Outback Plaza, bought the property through Mandarin Plaza LLC from Mandarin Medical Plaza LLC, managed by Luis Anez. The sale closed June 1.
Anez purchased the property in 1979 for $72,300. It was built in 1974.
The deed had not been recorded with the Duval County Clerk of Courts as of 2 p.m. June 4.
Tenants include Baptist Primary Care, First Coast Cardiovascular Institute, HCR ManorCare and Herrera Foot and Ankle Clinic.
Mayberry said Prime Realty initially was hired to lease the property, and once it was fully leased, it became an attractive asset to sell. The owner decided to sell and within a week, there were five offers on the property.
“It reinforces how strong medical is in the Jacksonville market,” Mayberry said.
The office’s central location to six hospitals and several senior living facilities made it an attractive property, he said.
Potential buyers came from California, Texas and Chicago, he said.
“With Prime Realty’s aggressive leasing approach and physician relationships we were able to lease up the property swiftly to create a prime investment scenario and target large medical portfolio investors which resulted in strong competition and multiple offers for our client,” Mayberry said in an email.
Investors who struggled with office and retail assets during the pandemic are looking toward health care investments, which Mayberry said “came through 2020 unscathed.”
While multifamily and industrial markets also were strong in that time, Mayberry said medical was the “closest relevant product type” for those investors.
“Medical office has a lot of attention locally and externally,” Mayberry said.
“Any group that invested in medical during COVID started looking at markets that did great through COVID like Jacksonville.”