News Summary
SRS Real Estate Partners has confirmed the sale of the Deutsche Bank office building in Jacksonville, Florida, for $38 million. AJC Investment Group purchased the property for $31.225 million and secured a mortgage of $28.5 million. Sitting on 13.04 acres, the office building has been leased by Deutsche Bank since 2016. This sale highlights investor interest in commercial real estate, particularly properties with stable, long-term tenants, amid a growing market activity in the sector.
Jacksonville, Florida – SRS Real Estate Partners has confirmed the sale of the Deutsche Bank office building located at 5201 Gate Parkway for a total of $38 million. The transaction was officially recorded on June 13, 2023.
Details of the Sale
The property was purchased on June 10 by AJC Investment Group, which acquired the building through AJC Jacksonville Office LLC for a purchase price of $31.225 million. The seller, Strategic Office Partners of Phoenix, was represented in the sale through SOP 5201 Gate Pkwy LLC. This sale aligns with Strategic Office Partners’ ongoing strategy to reinvest capital into new investment opportunities after achieving their ownership goals.
AJC Investment Group secured a $28.5 million mortgage from Amerant Bank of Coral Gables to facilitate the transaction. AJC is a family office real estate investment firm based in Bloomfield Hills, Michigan, with over $2.5 billion in transactions over the past 12 years and an additional office in New York City. The firm’s strategy includes holding properties as long-term, cash-flowing investments.
About the Building and Current Tenant
Deutsche Bank has been a tenant in the 156,000-square-foot office building since it moved in April 2016. The building, which sits on 13.04 acres, was constructed in 2006 and is currently occupied by Deutsche Bank under a long-term, corporate-guaranteed lease. Before Deutsche Bank, the property was leased by PHH Mortgage.
The combination of a stable and prestigious tenant like Deutsche Bank and a favorable lease structure has rendered the building an attractive investment opportunity, as noted by representatives involved in the transaction. The property is considered desirable due to its prime location and annual rental increases, which further enhances its investment appeal.
Market Overview and Strategic Implications
The sale contributes to a trend of strong market activity in commercial real estate across the United States. In 2024, SRS Capital Markets reported closing approximately $2.5 billion in deal volume across more than 600 transactions in 45 states. Currently, SRS has over 740 properties on the market, with a total market value exceeding $3.5 billion.
Strategic Office Partners acquired the Deutsche Bank building in 2019 for $27.6 million, indicating a healthy appreciation in property value since their initial purchase. This recent transaction signals a continued investor interest in high-quality commercial real estate assets, particularly those featuring secure, corporate-backed leases.
The sale of the Deutsche Bank property highlights the ongoing dynamics within the commercial real estate market in Jacksonville and beyond, as investors seek to balance short-term gains with long-term strategic investments.
In summary, this significant sale reflects investor confidence in the market, bolstered by the stability provided by established tenants and lucrative lease agreements. Jacksonville’s commercial property landscape is evolving, evidenced by the continued interest from real estate investment firms keen on capitalizing on profitable opportunities.
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Additional Resources
- Jacksonville Daily Record: Deutsche Bank Office Building Sold
- Jacksonville.com: Ex-General Leading Deutsche Bank
- Bloomberg: Deutsche Bank’s Florida Outpost
- Wikipedia: Deutsche Bank
- Google Search: Deutsche Bank property Jacksonville
