News Summary
AJC Investment Group has acquired the Deutsche Bank office building at 5201 Gate Parkway for $38 million. This transaction, announced on June 13, includes a long-term lease with Deutsche Bank, which has been the primary tenant since 2016. The three-story building spans 156,000 square feet on 13.04 acres. Facilitated by SRS Real Estate Partners, this sale highlights the growth in Jacksonville’s real estate market, attracting investors due to the stable tenant base and favorable lease structure.
Jacksonville – AJC Investment Group has acquired the Deutsche Bank office building located at 5201 Gate Parkway for $38 million. The transaction was announced on June 13, with the property purchase taking place on June 10 through AJC Jacksonville Office LLC.
The recent acquisition includes a long-term, corporate-guaranteed lease with Deutsche Bank, which has been the primary tenant of the property since moving in April 2016. The three-story office building encompasses 156,000 square feet and occupies 13.04 acres. Originally completed in 2006, the building was previously leased by PHH Mortgage before Deutsche Bank took over.
The sale was facilitated by SRS Real Estate Partners, with Jeff Gates, Senior Vice President of SRS Capital Markets based in San Francisco, representing the seller. The seller, Strategic Office Partners from Phoenix, operated the property through SOP 5201 Gate Pkwy LLC. Notably, this firm had purchased the office building in 2019 for $27.6 million.
AJC Investment Group, headquartered in Bloomfield Hills, Michigan, is identified as a family office real estate investment firm with a robust portfolio comprising over $2.5 billion in transactions over the past 12 years. With an additional office situated in New York City, AJC plans to retain the Deutsche Bank property as a long-term, cash-flowing investment. To facilitate this acquisition, AJC secured a $28.5 million mortgage with Amerant Bank of Coral Gables.
The appeal of the Deutsche Bank building to buyers like AJC stems from its stable tenant base and favorable lease structure, making it a strong investment opportunity. The property’s prime location and potential for annual rental increases contribute to its attractiveness in the commercial real estate market.
The transaction aligns well with Strategic Office Partners’ investment strategy, allowing them to reinvest their capital into new opportunities after reaching their ownership targets. The sale is part of a broader trend in the Jacksonville area, with the local market experiencing growth and interest from various real estate investors.
In related news, Merritt Properties recently acquired a five-building industrial park nearby for $19.6 million. The firm intends to convert the industrial park into Class A light industrial space and has announced significant expansion plans in Jacksonville as well. This acquisition follows the emerging economic developments involving Deutsche Bank, which has garnered recognition for contributing to job growth in both Jacksonville and North Carolina, with local governors acknowledging the positive impact on the region’s economy.
As of 2024, SRS Capital Markets has executed approximately $2.5 billion in deal volume across over 600 transactions in 45 states. Currently, SRS has more than 740 properties available on the market, boasting a total market value exceeding $3.5 billion. Such figures solidify SRS’s position as a leading entity in the commercial real estate sector, underscoring the continuing demand for quality properties like the Deutsche Bank office building.
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Additional Resources
- Jacksonville Daily Record: Deutsche Bank Office Building Sold for $38 Million
- Wikipedia: Jacksonville
- Jacksonville Daily Record: Merritt Properties Acquires Industrial Park
- Google Search: Deutsche Bank Jacksonville
- Bloomberg: Deutsche Bank’s Florida Reboot
- Encyclopedia Britannica: Deutsche Bank
- WolfStreet: Deutsche Bank’s Challenges
- Google News: Deutsche Bank
