Kuhn paid Bay Street LLC $4.5 million, or a below-replacement cost of $64.29 per sf, for the 80%-leased Dyal-Upchurch Building at 4 East Bay St. Area construction sources tell GlobeSt.com a comparable structure today would have a hard construction cost of about $200 per sf.

When the six-story building was constructed in 1901, it was recognized as Jacksonville's first skyscraper, says a Kuhn Co. spokesperson. The building is listed in the National Register of Historic Places.

Kuhn broke into the fast-developing Jacksonville office market with his purchase of the 386,000-sf SunTrust Tower in September 2005. Kuhn paid Orlando-based Capital Partners Inc. $37 million or $96.10 per sf for the property. In October, Kuhn paid 112 West Adams LP $4.95 million or $33 per sf for the 18-story, vacant Downtown Barnett Bank Building at 112 West Adams St.

Kuhn is redeveloping the SunTrust Tower into an office condo property in his River Watch at City Centre redevelopment. He already has pre-sold about 50% of the space, according to the spokesman. The developer hasn't announced redevelopment or conversion plans for either Barnett Bank or the Dyal-Upchurch Building.

As Kuhn continues to add assets to his Jacksonville portfolio, other Downtown observers are awaiting the second-quarter ground-breaking of Hines' planned 261-unit, 43-story St. John condominium. That asset will become the tallest building in Central and North Florida at 478 feet above street level, as Globest.com previously reported. Houston-based Hines is partnering with locally headquartered South Shore Group Partners on the estimated $78-million venture.

Meanwhile at the Jacksonville Airport exit on Interstate 95, Ramco-Gershenson Properties Trust of Farmington Hills, MI is preparing for its third-quarter ground-breaking on the first phase of River City Marketplace. The developer has signed three national retailers to newly signed leases at the planned one-million-sf asset—Michaels at 21,300 sf; Old Navy at 15,100 sf; and OfficeMax at 20,000 sf. The three merchants join Wal-Mart Supercenter, an 18-screen Wallace Theatre, Ross Dress for Less and Petsmart as anchors in the first phase of River City Marketplace, according to Dennis Gershenson, president and CEO of the Michigan-based development company.