Ownership of the Wells Fargo Center sold the Downtown tower and two parking garages April 22 for a combined $46.35 million.
A New York City-based limited liability company led by the CEO of Argentic Investment Management LLC now owns the 37-story tower at 1 Independent Drive.
The deed shows that WFC Lessee LLC, led by Banyan Street Capital LLC of Miami, conveyed the property to AREIT RE WFC LLC.
That LLC is led by Doug Tiesi, CEO of Argentic Investment Management.
The two special warranty deeds were recorded April 24 with the Duval County Clerk of Courts for the 37-story tower at 1 Independent Drive W., a nine-level garage at 1 W. Bay St. and a three-level garage at 21 E. Bay St.
The almost 900,000-square-foot tower and the nine-level garage were sold at $41.715 million and the three-level garage at $4.635 million, the deeds show.
Last sold in 2014
The sale comes 10 years after the property last sold. The tower is almost 50 years old. The nine-level garage is 35 years old and the three-level garage is 48 years old.
In 2014, a group of New York and Miami investors partnered to pay $75.3 million for the signature tower on the Northbank.
Allegiance Partners of New York paid $44.75 million. Banyan Real Estate Capital of Miami paid $30.55 million.
The nine-story parking garage was included in the purchase of the building.
The investors separately paid $3.7 million for the three-story parking garage.
The deeds recorded April 22 indicate that Banyan sold the buildings "on or upon" the land.
The deeds say the property conveyed "expressly excludes any interest in the land ... owned by Allegiance Jacksonville LLC."
That indicates Allegiance owns the ground the buildings occupy and that Argentic will lease that land.
Cushman & Wakefield had the listing on the property.
Landmark tower
Taking up a city block, the building is considered one of Jacksonville’s most recognized buildings and used in skyline shots of the city.
The tower was built in 1975 as the headquarters for Jacksonville-based Independent Life & Accident Insurance Co. and was known as the Independent Life Building.
It became the AccuStaff Building starting in 1998 and later the Modis Building before Wells Fargo became the anchor tenant in 2011.
In 2021, owners began a $12.5 million lobby, cafe and common area renovation along with elevator upgrades in the tower.
The element likely best known to visitors the past few decades - the lobby plants, rocks, water features and bubbling fountains - were removed and replaced with new furniture, open seating, terrazzo floors and other up-to-date elements.
The property has been for sale, such as in 2019 when owners sought offers for investors. Market sources have talked about the potential sale for months.
About 88% leased
Office space on the Downtown Northbank is more than 20% vacant, according to first-quarter market industry reports. Ranges are 20% to almost 28%, depending on the method of calculation.
Sources say the Wells Fargo Center, with more than 650,000 square feet of leasable space, is about 88% leased.
"The market is in an interesting, but unsettled state right now," said Jim Sebesta, CEO and principal of Newmark Phoenix Realty Group in Jacksonville. He was not involved in the deal.
"Companies are for the most part doing well and growing, but they continue to reduce their office space requirement to cut costs and meet everchanging remote work demands," he said.
"The hybrid model of working remotely a couple of days a week is allowing managers to redesign the office and reduce space. This has pushed up vacancies and limited rent growth putting pressure on valuations."
Argentic was not immediately available for comment April 24.
About Argentic
Argentic says on its website, argenticmgmt.com, that it is the manager of commercial real estate lending and investment vehicles focused on providing fixed-rate and floating-rate debt financing solutions to property owners throughout the United States.
It says it is led by industry veterans with expertise in all aspects of commercial real estate, including loan origination, structuring, underwriting, credit, asset management and capital markets.
"As a direct lender, Argentic provides fixed-rate permanent financing, floating-rate transitional financing and subordinate debt financing secured by various types of properties including retail, office, industrial, multifamily, self-storage, hotel, mobile home parks and student housing," it says.
The site says that through investments in noninvestment grade CMBS, Argentic or its affiliates act as the directing certificate-holder on an increasing number of CMBS transactions, providing approval for certain major decisions throughout the life of the investments.
CMBS are commercial mortgage-backed securities, defined as fixed-income investment products backed by mortgages on commercial properties rather than residential real estate.
CMBS provide liquidity to real estate investors and commercial lenders.
Argentic is headquartered in New York City, with offices in Los Angeles, Chicago and Dallas.
This story has been updated