Fairlead buys Southside office buildings for $23M
Fairlead Commercial Real Estate made its first Jacksonville acquisition last week with the $23 million purchase of three buildings in Gran Park at the Avenues.
ROC II Fairlead Gran Park at Avenues LLC bought three buildings, totaling 240,000 square feet, at 7406 and 7411 Fullerton St. and 10199 Southside Blvd.
Fairlead bought the properties Friday from FDG Avenues II LLC, which is a successor company to Flagler Development Co. and before that, Gran Central Corp.
Bridge Investment Group Partners, managers of the ROC Funds, is Fairlead's equity partner.
Fairlead Florida Senior Managing Director J.J. Conners said Wednesday the three buildings are 90 percent leased. Primary tenants include Florida East Coast Railway, which is based at 7411 Fullerton St. and leases about 73,000 square feet; Progressive Insurance; and Value Options, he said.
“With tightness in the suburban Class A office market, this asset will do very well,” Conners said. He said the structures are considered Class A- or B .
Each structure is a three-story, 80,000-square-foot building.
Duval County property records show that 10199 Southside Blvd. was built in 1992, 7406 Fullerton St. followed in 1993; and 7411 Fullerton St. was developed in 1995.
Duval County Clerk of Court records show Fairlead bought three parcels that comprise the buildings and a little more than an acre of vacant land, totaling almost 36 acres.
The properties carry a 2014 market value in progress of $17 million.
Fairlead Commercial Real Estate LLC is based in Atlanta and has offices in Jacksonville, Hong Kong and Singapore, according to fairleadcre.com.
Fairlead is a privately held investment and operating company focused on commercial real estate. It says its objective is to buy investments throughout the Southeast “that provide attractive returns for our investment partners.”
Principals Kevin Oats, Jeff Shaw and John Ward previously were part of Jackson Oats
Shaw Corporate Real Estate in Atlanta.
The companies comprise Fairlead Commercial Real Estate LLC, Mandalay FCRE and Chestnut Hill Development.
Conners founded Jacksonville-based Chestnut Hill Investments in July 2006.
He previously worked for Flagler Development Co., a Jacksonville-based subsidiary of Florida East Coast Industries, and AEW Capital Management in Boston.