As Raja Saoud prepared for the ceremonial groundbreaking Thursday for his family company’s $8.5 million speculative office building in Nocatee, he drew attention to the adjacent building site.
That will be next. It likely will be built as soon as the new 62,751-square-foot structure is completed, expected in July, and leased.
“We have several prospects right now,” said Lou Nutter, senior vice president of CBRE Inc. in Jacksonville, the real estate group handling leasing and management for the property.
Saoud said the three-story building is attractive for professionals, such as lawyers, medical offices and companies.
“God willing, we’ll be building pad No. 3 over there very soon,” Saoud said.
The new building signals more than just construction. It is believed to be the first speculative Class A multitenant office building developed in Northeast Florida since 2008 at Flagler Center in Jacksonville, Nutter said.
That’s when the recession led to a lot of vacant office space, which has been recovering in higher-demand areas.
However, building costs have risen, forcing owners of new structures to charge higher rents. Nutter said that works best these days in limited markets, such as Nocatee and, if land was available, at the Beaches.
Further, it’s in St. Johns County, where Nocatee straddles the county line with Duval. Nocatee is the 14,000-acre development ranked last year as the nation’s third best-selling master-planned community.
The building’s address will be Ponte Vedra, he said, which is attractive to tenants who want to be associated with the established St. Johns County resort and residential area.
The site is at northwest Nocatee and Crosswater parkways, about 5 miles west of Ponte Vedra Beach.
International Management’s development is in the Fort Wade Office Park. Sauod is vice president with International Management, which bought the park, comprising 24 acres, in December 2013.
It consisted of the ADS building and the vacant land that is being developed. The ADS building is fully leased and anchored by Advance Disposal Services.
IMC is a Jacksonville-based real estate management, development and general contracting company founded by Edmond Saoud in 1992. His sons, company executives Raja and Joe, attended the groundbreaking.
Raja Saoud said the company has 700,000 square feet of leasable space in Northeast Florida. “We grow with the times,” he said, referring to Nocatee’s growth patterns.
Sundance Pointe apartments sell for $12.25M
Sundance Pointe Apartments in Arlington were sold for $12.25 million to Peak Capital Partners, an apartment investment and management company based in Provo, Utah.
Sundance Pointe is an affordable apartment community with 288 assisted rental units. It was developed and operates with federal housing financing.
The Peak Capital Partners website says that the company, started in 2007, and its affiliates own and manage 90 conventional, affordable and student apartment communities in 15 states.
Sundance Pointe Associates Ltd. of Hollywood sold the community, built in 2001, for $42,534 a unit. The property is at 5681 Edenfield Road.
That’s below the $77,614 average sales price for Northeast Florida apartments in the first nine months of the year, according to Colliers International. It’s also below the $60,000-$65,000 average price expected by year-end.
Three older conventional Arlington multifamily complexes sold in September for almost $56,100 a unit. Those complexes were built from 1972-75.
Berkadia Commercial Mortgage LLC issued a $9.5 million mortgage to Peak Capital, through PC Sundance Pointe I LLC and PC Sundance Pointe II LLC.
Those LLCs bought the property.
The deed and mortgage were recorded Oct. 9 with the Duval County Clerk of Court.
NW Jacksonville distribution center sold
Jacksonville investor Sam Easton sold a northwest Jacksonville distribution center this week for $3.65 million.
The 142,000-square-foot US 1 Distribution Center, at 5220 New Kings Road, was built in 1974.
Easton, through US 1 Distribution Center LLC, sold the 9.7-acre property to E4 Holding LLC.
The site includes the building and a 1.2-acre parking lot.
Easton said the Brazil-based ownership group was represented by a broker from Miami seeking 30,000 square feet of space for a water-bottle recycling operation.
The US 1 center had that amount of vacant space.
Easton said ABC Supply Co. leases the remainder of the building.
The Jacksonville Bank issued a $2.37 million mortgage to E4 Holding.
The Duval County Property Appraiser reports the market value at $1.34 million.
Easton is the manager of the LLC and a partner in the Easton, Sanderson & Co. full-service commercial real estate firm.
He said recently the market for warehouse sales and leasing in Jacksonville has been very good, which he repeated Thursday.
Easton said Jacksonville’s market is becoming better known and busy. “Activity breeds activity,” he said.
Food notes
• In West Jacksonville, Commonwealth Jasz Inc. paid $950,000 for almost 2.5 acres at 6707 Commonwealth Ave. for construction of a Zaxby’s restaurant, which was permitted Thursday at $1 million. Commonwealth Jasz bought the land Sept. 25 from N.G. Wade Investment Co. and received an almost $2.2 million mortgage from Atlantic Coast Bank.
• Near Downtown, the city is reviewing a permit application for Hyppo Gourmet Ice Pops in Brooklyn Station on Riverside next to Zoës Kitchen. It’s a 1,105-square-foot build-out at 90 Riverside Ave.
• In Bartram, the city is reviewing plans for Hurricane Grill & Wings in Bartram Village. The $185,000 project at 12547 Bartram Park Blvd. would build-out 3,900 square feet of space.
• In St. Johns Town Center, Chicken Salad Chick plans to open a second Jacksonville restaurant at 4624 Town Crossing Drive. Dakenna Development Inc. is the contractor for the estimated $174,000 build-out of 2,370 square feet. The Wishbone Group Inc. owns the first Chicken Salad Chick that opened at Reedy Branch Commons at 10920 Baymeadows Road and also is opening the Town Center store. Alabama-based Chicken Salad Chick said in February that Wishbone Group would open six locations in Jacksonville.
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