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Jax Daily Record Tuesday, Nov. 8, 202211:11 AM EST

New JEA headquarters sells for $95 million

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Developer Ryan Companies sold the recently completed Downtown Jacksonville building as the city utility prepares to move in.

By Karen Brune Mathis and Mike Mendenhall | Staff Writers

Colorado-based firm Real Capital Solutions paid almost $95 million for JEA’s new Downtown corporate headquarters in a sale executed Nov. 3.

Ryan Companies US Inc., the structure’s developer, announced Nov. 4 it sold the newly completed building to Real Capital Solutions.

Real Capital Solutions, based in Louisville, Colorado, formed three limited liability companies to buy the property.

Minneapolis-based Ryan sold the property through Ryan Jacksonville LLC.

The price was $94,996,931, according to the deed recorded Nov. 8 with the Duval County Clerk of Courts.

UMB Bank of Denver issued a $92.25 million mortgage to the three acquiring LLCs.

The sale closed after the municipally owned electric and water utility received its certificate of occupancy from the city of Jacksonville for the seven-story, 153,000-square-foot building at 225 N. Pearl St. but before JEA has completed its move from its current headquarters.

JEA agreed to a 15-year, $153 million lease with Ryan for the estimated $100 million headquarters and parking garage near the Duval County Courthouse. Those terms don’t change under the new ownership.

“It has been our pleasure to work with JEA on the development of their new headquarters. They have been fair but firm through the process and very professional,” Ryan Southeast Regional President Doug Dieck said in a news release. 

“They are moving into a great building that will serve them well for the next 20 years and beyond. We look forward to continuing to serve them as Ryan will manage the building on behalf of the new owner.” 

In summer 2020, the current JEA board worked with Ryan to alter the design to reduce the height and cost of the project. 

Ryan paid $2.6 million for the 1.5-acre parcel in June 2020. The project has been under construction since October 2020. 

Ryan had the option to sell the property as part of its lease with JEA but required the company to give JEA the option to purchase the building before putting it on the market. 

According to the release, Real Capital Solutions has purchased and managed more than 365 real estate investments totaling about $3.5 billion over 35 years.

JEA CEO Jay Stowe said Oct. 25 that the utility plans to start relocating personnel and equipment to the new headquarters in December starting with technology services and security teams. 

He said the move from its existing 19-story headquarters at 21 W. Church St. should be complete by February 2023.

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