Investors active in Jacksonville ready $700 million fund

IP Capital Partners says it will start investing in office and industrial properties “when we start to see life.”

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Investors Jason Isaacson and Josh Procacci’s Boca Raton-based group is preparing to buy up to $700 million in Florida office and industrial properties when the time is right.

Their group closed on the IPCP Florida Realty Value Fund III LP, which opens a fresh pool of capital with $51 million in equity. 

Isaacson said that his group typically partners with institutional capital and mortgage debt, which can leverage into the $700 million investment.

The fund’s investment window is three years. “We are in no rush,” Isaacson said.

“I don’t see us making firm commitments to buy anything for the foreseeable future, whether it’s 30 or 180 days – when we start to see life,” Isaacson said April 2.

Isaacson is president of IP Capital Partners LLC, a private real estate investment and asset management firm. IP Capital was formed to focus exclusively on co-investing with institutional and high net worth joint venture partners in office, retail and industrial real estate in Florida’s major growth areas.

The group’s first fund in the series sold the Eight Forty One office tower on the Downtown Southbank in February for $67 million to Atlanta-based ShareMD, a medical office building owner and operator.

A group led by IP Capital Partners paid $55.5 million for the property, then known as the Aetna Building, in December 2013. 

“We made a good investment,” Isaacson said, explaining that the group left the building and that part of the market “better than we found it.”

The group bought and sold the One Imeson distribution center in North Jacksonville before it started its first fund. It paid almost $16.3 million in late 2011 for One Imeson and sold it for $47.75 million in June 2018 to Arsenault Holdings LLC.

Just after it sold One Imeson, IP Capital Partners bought the Spring Lake Business Center for $13.8 million and that December, it bought the Fanatics warehouse in West Jacksonville for $15 million as part of the second fund.

Also in the second fund, it bought the Coleman American warehouse at 1200 Ellis Road N. as part of a portfolio with an additional property in Pensacola.

“We focus on value-oriented office and industrial,” Isaacson said. “We look for good value and a big reason we focus on Florida is what we’ve seen over the last decade – a generational demographic shift in this country where we are seeing people, capital, business and investment moving from the Northeast into the state of Florida.”

He said large companies have taken considerable back-office and front-office space in Jacksonville, Tampa, Orlando and South Florida. “We see that being a long-term trend.”

Isaacson said his group can move “swiftly and expeditiously” on opportunities.

“We plan to make a lot more investments in Jacksonville in the coming years,” Isaacson said.

“Capital goes to where it’s treated the best,” he said.