One of the largest single-user buildings in Baymeadows sold this week when JDM Partners of Phoenix bought the State Farm Operations Center for $46 million, $2.2 million more than it sold for just five months ago.
JDM, through JDM II SF National LLC, bought the property at 8001 Baymeadows Way from Hudson Advisors LLC of Dallas.
A Hudson company, LSREF2 Tractor REO (Direct) LLC, bought the center Nov. 8 from State Farm for almost $43.6 million.
The 284,000-square-foot building was built in 1976 and it sits on 35 acres. Its 2014 market value is $16.9 million, according to the Duval County Property Appraiser.
A JDM representative said Thursday the principals were not available and the company is not commenting.
The Hudson entity sold the property to JDM in a deed made Tuesday and recorded Thursday with the Duval County Clerk of Court.
UBS Real Estate Securities Inc. and Morgan Stanley Mortgage Capital Holdings LLC issued a $46 million mortgage on the property to JDM the same day.
The mortgage was part of a $383.5 million loan by the lenders to JDM II SF National LLC.
JDM posted on its website that its JDM Partners Opportunity Fund II LLC is managed by JDM Partners LLC, whose principals are Jerry Colangelo, David Eaton and Mel Shultz.
Shultz signed the mortgage documents.
“As Fund managers, JDM’s fundamental investment strategy for Fund II will be to continue to acquire real estate that the manager believes is undervalued or, given the applicable circumstances, is likely to generate a superior return on investment,” says its website, jdmpartnersllc.com.
It’s not the first State Farm Center the fund bought.
The fund purchased the State Farm Tempe Operations Center in May 2013. The property is a 372,408-square-foot, five-building corporate campus in Tempe, Ariz., on almost 21 acres. State Farm Mutual Insurance has been the sole tenant since the building was constructed in 1997.
The Vizzda.com real estate site reported that as a condition of the sale, State Farm agreed to lease the property from JDM Partners for a period of 10 years with two five-year options to extend.
JDM II SF National LLC filed March 17 as a foreign limited liability company in Florida.
Hudson Advisors, of Dallas, filed as a limited liability company in Florida Nov. 4, just before it bought the building.
After State Farm sold the building to Hudson, a State Farm spokeswoman for Florida said the company had completed a sale and leaseback of several operations centers, including the Jacksonville location, as a package to a single buyer.
Spokeswoman Michal Brower said then that State Farm immediately leased back the buildings with renewal options.
She said the lease for the Jacksonville Operations Center was for 15 years with two five-year options to renew.
Brower said Friday morning the sale and leaseback of the Jacksonville center is not affected by the JDM purchase. She said as of January, the company had about 1,160 employees at the center.
Langton building being gutted
Owner Mike Langton is demolishing the inside of his 120 E. Forsyth St. building in preparation for a restaurant and other uses.
The city is reviewing a permit for McAneny Builders LLC to tear out a 10,000-square-foot space at a project cost of $34,000.
Margie Seaman of Sellers Realty Group, who is working with Langton, said it would be an 11,500-square-foot gut renovation of what is the Old Republic National Title Insurance building. Seaman and Langton refer to the building by its previous name, the New York Steam Laundry.
Seaman said Langton is renovating the building for a ground-floor restaurant, possibly with a second-floor dining/catering component and/or a nonprofit.
A reception “launch” of the building is Thursday.
Langton, through LB Jax Development LLC, bought the two-story building Jan. 9 for $450,000.
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