Financial institution of America Tower to be bought for $ 75.5 million Jax Each day File | Jacksonville Each day File
New York City’s RMC group bought Jacksonville’s tallest office building – the 42-story Bank of America Tower – and two other buildings downtown on December 15 for $ 75.5 million.
The other two buildings are the adjacent Iberiabank building and a parking garage.
Chicago-based Prime Finance Partners financed the deal for nearly $ 61.3 million.
The RMC group bought the property from Hertz Jacksonville One LLC through Jacksonville Tower Florida Realty LP.
Hertz Investment Group, a California-based real estate investment and management group focused on downtown revitalization, paid $ 88 million for the property in July 2014.
Hertz sold the property for 14% less than six years ago.
The Duval County Property Appraiser estimates the property at $ 75 million, nearly the purchase price.
Real estate records show the 729,185-square-foot skyscraper was built in 1990 on nearly 1.32 acres at 50 N. Laura St. for Barnett Banks Inc.
Jacksonville-based Barnett was sold to NationsBank, which then merged with Bank of America.
With the purchase, the RMC Group acquired the five-story, almost 42,000-square-meter Iberiabank building at 135 W. Bay St. next to the tower and a nine-story, 93,000-square-meter parking garage at 25 W. Forsyth St.
Commercial real estate company Cushman & Wakefield represented Hertz in the sale.
“The building definitely has a bright future under new ownership,” said Mike McDonald, Dallas-based vice chairman of Capital Markets at Cushman & Wakefield.
“There is a growing desire for capital to invest in a high growth, low tax environment across the Sunbelt, and Jacksonville definitely offers that opportunity,” he said.
Cushman & Wakefield has been marketing the property for at least a year.
“The LEED-certified trophy-class skyscraper is the iconic focal point of the Jacksonville skyline,” he said earlier on his website under “Capital Markets Opportunities”.
McDonald previously said the building will be sold “at a significant discount on replacement cost,” meaning a structure this size would cost more than the selling price to build.
With an industry estimate of $ 225 to $ 400 per square foot, a new tower could cost up to $ 291 million to build.
CBRE will lease and manage the building. Oliver Barakat, Senior Vice President of CBRE, and office specialist Patrick Orman make up the leasing team.
The GroupRMCusa.com website states that Group RMC is “a real estate co-investment group investing in underrated office properties in US gatewayless markets.”
The RMC group and its affiliates own 18.5 million square feet in the United States, primarily in the Midwest, which equates to an asset of more than $ 2 billion.
It is said that its clients usually take 5% to 20% of each partnership and offer partners the opportunity to invest together, as the group’s RMC is looking for like-minded partners, not just customers.
The RMC Group also says that they and their partners are “constant and patient investors,” which indicates long-term ownership. “Group RMC will never be a forced seller and will only sell when an irresistible offer arises,” it says.
The website shows that it owns 37 properties in 12 states and another 12 in Quebec. No other stocks in Florida are shown.
Hertz owns more than 21 million square feet of office assets nationwide.