Jacksonville Medical Office Tower Trades for $67M

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

“Jacksonville, Florida is a target market for investment firms as the metro has the fastest growing 65-and-older population and medical office occupancy rates are some of the highest in the country at 95%,” Easton VP Elliot LaBreche tells GlobeSt.com. The limited supply of new medical office construction will lead to further positive absorption and rent appreciation as well.”

Built in 1955, 841 Prudential in Jacksonville, with nearly 500,000 square feet of leasable space, is the city’s first skyscraper. The building, which underwent a six-million-dollar renovation two years ago, is located on the south bank of the St. John’s River in the heart of a massive medical campus anchored by Baptist Medical Center. While the property is nearly 80% occupied with mostly professional office-use tenants, LaBreche said there is a big opportunity to change to clinical users.

“Jacksonville is becoming a destination healthcare city focused on wellness/care as well as research,” LaBreche said. “Healthcare providers such as The Mayo Clinic, Baptist MD Anderson Cancer Center and St. Vincent have all made significant investments in new facilities to accommodate the domestic and international growth in medical tourism.”

ShareMD is looking to make a big push into Florida to roll out its co-working medical suite concept which is already up and running in five Southern California locations. The company builds out clinical space for doctors and other medical professionals and then leases it by the half-day, day, week or month—allowing physicians to expand their geographic reach and save money by not being tied into long-term rents. ShareMD will dedicate between 10,000 – 15,000 square feet of 841 Prudential for co-working and fill other vacancies with long-term medical tenants.

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