Jacksonville, Fla. — VyStar Credit Union has completed the purchase of the tower located at 76 S. Laura Street in Downtown Jacksonville for $59 million. Colliers International Northeast Florida represented the seller, Mainstreet Capital Partners, which purchased the tower in a joint venture with CarVal Investors LLC for $31.1 million in 2015. The 23-story tower, which was built in 1989, will be rebranded as VyStar Tower.
The tower was not listed for sale when VyStar approached Mainstreet Capital Partners about the option of purchasing the building. A purchase and sale agreement was signed within three weeks of the initial meeting between the buyer and seller.
“This transaction was mutually beneficial; it saved Mainstreet and CarVal a significant investment over the long-term by eliminating the expensive lease-up process, and it provided VyStar Credit Union with a long-term office space solution to meet its growing employee base,” said Chuck Diebel, Executive Vice President of Colliers International Northeast Florida. “It’s also good for Downtown Jacksonville, because this move will bring several hundred employees to the area, thus supporting the broader neighborhood economy.”
As a result of the purchase completion, the tower’s occupancy rate is more than 90 percent. Colliers International Northeast Florida will remain as the leasing agent for the building. This transaction establishes three of the six Downtown Northbank towers with over 90 percent occupancy.
“This transaction is a win-win-win for VyStar Credit Union’s members, our dedicated employees and the Downtown Jacksonville business community,” said Brian E. Wolfburg, President/CEO of VyStar Credit Union. “Purchasing this tower was the most economical option to ensure our team has a strong home base from which to serve our 615,000 members across Florida. It’s also a visible sign of our commitment to the Jacksonville community as a great place to live, work and play.”
Mainstreet Capital Partners and CarVal Investors LLC recently completed a three-year, $2 million renovation to update the Class A office tower. In addition to mechanical and common area improvements, notable changes included the completion of a 612-space parking garage adjacent to the building, new elevator cabs, lobby improvements (including a digital directory, WiFi, modern furniture and new lighting), food and beverage options (Tossgreen restaurant, The Court Urban Food Park and outdoor patio seating), a fitness center, a tenant lounge and a conference center that can accommodate meetings for up to 28 guests.
“Employees want to work in an attractive, comfortable and convenient environment. All of the upgrades we made were in an effort to make sure the property would remain a competitive Class A office destination for many years to come,” said Paul Kilgallon, President of Mainstreet Capital Partners.
Mark Kunkel, Managing Director at CarVal Investors, added, “Though we hadn’t considered selling the tower this year, we were impressed by VyStar Credit Union’s leadership and their commitment to making the deal work for both sides. We wish them many years of continued success in their new corporate headquarters.”
About VyStar Credit Union
VyStar Credit Union is the largest credit union headquartered in Northeast Florida and the 17th largest in the country by asset size. VyStar now serves over 615,000 members with assets totaling more than $7.7 billion. VyStar membership is open to everyone who lives or works in 22 counties of Northeast to Central Florida including: Alachua, Baker, Bradford, Brevard, Clay, Columbia, Duval, Flagler, Gilchrist, Hamilton, Lake, Levy, Marion, Nassau, Orange, Putnam, St. Johns, Seminole, Sumter, Suwanee, Union and Volusia Counties.
About Mainstreet Capital Partners
Mainstreet Capital Partners, Inc. is a real estate investment and management company that specializes in office and industrial buildings across the Southeastern and Southwestern United States. Established in 1999, the company has since completed 35 investments totaling $1.3 billion with nine institutional partners. Mainstreet sources investment and development opportunities in office, industrial, hotel and multi-family in its core markets and provides property management services through its management affiliate, Mainstreet Real Estate Services, Inc. To learn more, visit MainstreetCapital.com.
About CarVal Investors
CarVal Investors is a leading global alternative investment fund manager focused on distressed and credit-intensive assets and market inefficiencies. Since 1987, CarVal has invested $108 billion in 5,300 transactions across 79 countries. Today, CarVal Investors has over $10 billion in assets under management in both credit and real estate strategies. For more information, visit CarValInvestors.com.
About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row.