Credit Union Buys Downtown Tower for $59M
VyStar Credit Union approached the ownership about its interest in the building at 76 S. Laura St. earlier this year and a purchase and sale agreement was signed within three weeks of the initial meeting between the buyer and seller.
JACKSONVILLE, FL—VyStar Credit Union has finalized its purchase of the 23-story office tower on South Laura St. here for $59 million. The property sold for close to double the price it traded for three years ago.
Brokerage firm Colliers International reports that the property ownership did not have the tower, which was built in 1989, on the market for sale. VyStar Credit Union approached the ownership about its interest in the building at 76 S. Laura St. earlier this year and a purchase and sale agreement was signed within three weeks of the initial meeting between the buyer and seller.
With the sales deal finalized, the office building will now be rebranded as the VyStar Tower. Colliers International Northeast Florida represented the seller, Mainstreet Capital Partners, which purchased the tower in a joint venture with CarVal Investors LLC for $31.1 million in 2015.
“This transaction is a win-win-win for VyStar Credit Union’s members, our dedicated employees and the Downtown Jacksonville business community,” says Brian E. Wolfburg, president and CEO of VyStar Credit Union. “Purchasing this tower was the most economical option to ensure our team has a strong home base from which to serve our 615,000 members across Florida. It’s also a visible sign of our commitment to the Jacksonville community as a great place to live, work and play.”
The sales deal and Vystar’s presence in the tower raises the occupancy rate at the office building to more than 90%.
“This transaction was mutually beneficial; it saved Mainstreet and CarVal a significant investment over the long-term by eliminating the expensive lease-up process, and it provided VyStar Credit Union with a long-term office space solution to meet its growing employee base,” says Chuck Diebel, EVP of Colliers International Northeast Florida. “It’s also good for Downtown Jacksonville, because this move will bring several hundred employees to the area, thus supporting the broader neighborhood economy.”
Mainstreet Capital Partners and CarVal Investors LLC recently completed a three-year, $2-million renovation to the office tower. In addition to mechanical and common area improvements, notable changes included the completion of a 612-space parking garage adjacent to the building, new elevator cabs, lobby improvements (including a digital directory, WiFi, modern furniture and new lighting), food and beverage options (Tossgreen restaurant, The Court Urban Food Park and outdoor patio seating), a fitness center, a tenant lounge and a conference center.