This sounds like a good buyer... Anyone have any inside details? Can we expect them to help our core?
"The website says the group has created a record of "astute" investments by "recognizing the benefits of historic preservation, conservation and adaptive reuse, and moving swiftly to take advantage of rare opportunities.
It says it has revitalized some of Los Angeles' "most cherished buildings," including the Wiltern Center, the Oviatt Building and the Park Plaza Hotel."
http://www.jaxdailyrecord.com/showstory.php?Story_id=543385
Bank of America Tower.
Judah Hertz, chief executive officer of Hertz Investment Group, called it the finest building in downtown Jacksonville. It's currently 69 percent occupied, he said.
"Those are the type of buildings I like to buy," he said. "I think we'll be able to rent it out."
"We buy in downtowns across the country," he said. "But it's been a long time since we bought any buildings in Florida. I used to own a lot in Miami. We used to convert apartments to condos."
http://members.jacksonville.com/business/2014-07-11/story/bank-america-tower-sells-88-million
$88MM for 696,672 SF. That is $126psf for 71% occupancy. Gross that up to ~$140-160 for an already stabilized Bank of America tower depending on how aggressive they are with their leasing assumptions (I would think not so aggressive, so perhaps closer to $160).
Well now we know what top of the market means in Jax :) Hopefully the Bizjournal can get their narrative right next time (remember, they predicted the Wells Fargo tower would trade at well more than $130psf because a top of the market suburban office center sold for that amount).
This valuation! Jeez
I know nothing of Hertz and I know a lot about a lot of groups. Parmenter was a larger name.
Excerpts from my local bizjournal today as a matter of fact paint an entirely different story:
QuoteGoogle Inc. purchased 188 The Embarcadero from Ares Management LP and USAA Investment Management Co. for $65 million and will lease 250,000 square feet at the 42-story Spear Tower in the One Market Plaza complex, according to reports from Bloomberg News and the San Jose Mercury News. The eight-story Embarcadero building sits two blocks away from Google's offices at Hills Plaza and has 88,000 square feet of space.
$739psf valuation, which is not a record around here. My friend's firm, a private equity group, just inked a lease for one of the 7 floors and Google is pissed about it, lol. He said they secured a lease for mid-$60s, which is a steal considering view space at the Spear Tower where Google is leasing that extra 250,000 SF can exceed $100. But Goog wanted the whole building that they bought - they wanted an owner-user situation, but now they'll have a tenant to manage too.
Speaking of lease language, I took beef with how the Jax bizjournal worded the whole Citizen deal. Very confusing. Here is how the local bizjournal is describing a recent Google lease in very basic terms, but it is much more clear (that a- it's a lease they're talking about, and b- the terms):
QuoteWith the news of the purchase and lease, Google stands to be a significant real estate dealmaker in 2014. The search giant was already a major player in San Francisco real estate in 2013 — signing the biggest office lease of the year in the city: an expansion to 386,000 square feet at Hills Plaza in a deal valued at $125 million over 10 years.
Source for all of the above (same article) (http://www.bizjournals.com/sanfrancisco/blog/2014/07/google-san-francisco-embarcadero-spear-tower.html)
The words above link to a Bizjournal report on a Bloomberg report that lay out the terms.
QuoteThe report, which is consistent with what the San Francisco Business Times reported last week, describes a 10-year lease and represents a 25 percent expansion. Google has been slowly gobbling up more space in the historic coffee-roasting building since it signed its first deal for 210,000 square feet back in 2007. Rent will be $65 a square foot, according to the news report.
Location: Hills Plaza at 345 Spear St.
Size: 386,000 square feet.
Value: $125 million.
Landlord: PPF OFF 345 Spear Street LP (Morgan Stanley).
Tenant: Google.
Brokers: Wes Powell and Karen Wells of Jones Lang LaSalle represented the landlord.
Source (http://www.bizjournals.com/sanfrancisco/print-edition/2014/03/28/office-lease-san-francisco-winner-google.html?page=all)
I think Jax real estate reporting has a ways to go, frankly. I think the Daily Record piece was far superior to that which I have read in the Jacksonville Business Journal. Anyway, way to go Jax! Opportunity market for sure!