X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

JACKSONVILLE, FL-Flagler Development Co. may be recouping the hard construction cost of its newest building at Deerwood North almost before the structure is completed later this month, based on its newest leasing transaction.

Flagler signed H&R Block subsidiary Option One Mortgage Co. to a 59,690-sf class A lease at the 113,168-sf, four-story Deerwood North 400 building within the four-building, 497,000-sf Deerwood North business park. Flagler officials declined to disclose lease details. H&R Block and Option One previously leased a total 110,310 sf at the park.”

However, area brokers familiar with Flagler’s projects tell GlobeSt.com the 59,690-sf lease was probably for 10 years at an effective rent of $20 per sf. That would bring the aggregate value of the lease to $12 million, or about two-thirds the cost of the estimated $17-million building, area construction sources tell GlobeSt.com.

Jacksonville area brokers tell GlobeSt.com the estimated aggregate value of the 170,000 sf leased by H&R Block and Option One Mortgage is in the $34-million range, based on a $20-per-sf-rent.

“Deerwood has been a very strong market for Flagler,” company president G. John Carey says in a prepared statement. “The lease with Option One is a great way to launch Deerwood North 400.”

Jerry Mallot, executive vice president of the Jacksonville Chamber’s Cornerstone division, hails the Option One lease as “a perfect fit, with existing space and new construction to meet the company’s expansion requirements.” Option One plans to have a full-time staff of 600 at Deerwood North 400. The 13-year-old, Irvine, CA-based firm expanded its operations to the Jacksonville area about three years ago.

Steve Pisarik of Colliers Seeley in Irvine, CA and Victor Narussas of Colliers Dickinson in Jacksonville negotiated the lease for Option One. J.J. Conners and Gary Cox of Flagler represented their firm and will continue to market the balance of space in the building.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.