841 Prudential

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JACKSONVILLE, FL—ShareMD, a growing Atlanta-based medical officebuilding owner/operator, has acquired a 20-story iconic officetower in downtown Jacksonville for $67 million. Miami-based Easton& Associated represented ShareMD in what it describes as one ofthe priciest transactions in North Florida this year. CBRErepresented the seller, Chicago-based GEM Realty.

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"Jacksonville, Florida is a target market for investment firmsas the metro has the fastest growing 65-and-older population andmedical office occupancy rates are some of the highest in thecountry at 95%," Easton VP Elliot LaBreche tells GlobeSt.com. Thelimited supply of new medical office construction will lead tofurther positive absorption and rent appreciation as well."

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Built in 1955, 841 Prudential in Jacksonville, with nearly500,000 square feet of leasable space, is the city's firstskyscraper. The building, which underwent a six-million-dollarrenovation two years ago, is located on the south bank of the St.John's River in the heart of a massive medical campus anchored byBaptist Medical Center. While the property is nearly 80% occupiedwith mostly professional office-use tenants, LaBreche said there isa big opportunity to change to clinical users.

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"Jacksonville is becoming a destination healthcare city focusedon wellness/care as well as research," LaBreche said. "Healthcareproviders such as The Mayo Clinic, Baptist MD Anderson CancerCenter and St. Vincent have all made significant investments in newfacilities to accommodate the domestic and international growth inmedical tourism."

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ShareMD is looking to make a big push into Florida to roll outits co-working medical suite concept which is already up andrunning in five Southern California locations. The company buildsout clinical space for doctors and other medical professionals andthen leases it by the half-day, day, week or month—allowingphysicians to expand their geographic reach and save money by notbeing tied into long-term rents. ShareMD will dedicate between10,000 – 15,000 square feet of 841 Prudential for co-working andfill other vacancies with long-term medical tenants.

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ShareMD has invested $100 million in real estate assets inFlorida over the past four months. It entered the state last fallwith the acquisition of two medical buildings in the Miami area for$33 million. LaBreche identified both properties and brokered thetransactions. ShareMD is actively seeking to make additionalacquisitions in the Orlando, Tampa Bay, Fort Lauderdale markets aswell as other key metro areas around the country.

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