The New York-based financial services firm is buying 90 acres with the 1,022-acre Flagler Center in the fast-growing South Jacksonville submarket at Interstate 95 and Old St. Augustine Road. Citicorp has contracted with Flagler to develop a three-building, 500,000-sf office campus that will house the company's administrative and production segments.

Flagler officials didn't disclose the amount of the land contract or the construction cost of the three buildings. However, area land brokers familiar with the South Jacksonville submarket tell GlobeSt.com the 90 acres will probably go for $100,000 per acre or about $9 million.

Jacksonville construction industry estimators tell GlobeSt.com on condition of anonymity that the three buildings, if built to class A specifications, will have a hard cost of about $150 per sf or a total $75 million when completed.

Citicorp has also taken an option to buy additional land in the near future. The deal leaves Flagler Center with 322 acres available for future development. The park was formerly known as Gran Park at Jacksonville.

Flagler president G. John Carey calls the deal "great news for Jacksonville." He says, "Citicorp's decision validates our investment at this strategic location" because the property "offers Citicorp the location, accessibility, visibility, security and future expansion opportunities essential for its operation."

Flagler Development paved the way for the Citicorp deal by breaking ground in 3Q 2002 of a new interchange into the park that will offer easy access to Flagler Center. New interchanges generally cost about $20 million, local construction industry estimators tell GlobeSt.com.

Flagler Center, approved for 4.2 million sf of office, industrial and commercial space, currently has 772,000 sf of occupied light industrial and office space. About 469 acres are set aside for a nature preserve and roadway right-of-way use.

Instant Insights /

Citicorp Buying 90 Acres for 500,000-SF Office Campus

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