Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

JACKSONVILLE, FL-The 198,000-sf Downtown Telecom Building, which operated as a telecommunications “hotel” during its 46-year existence, is getting a new life as a planned 116-unit apartment complex to be renamed the Metropolitan Apartments. The 60%-vacant building will also retain 80,000 sf of existing telecom tenants during and after the conversion.

Atlanta-based Jax Telecom Partners has purchased the property at 421 W. Church St. for $5.15 million and received an $11-million construction loan from Merrill Lynch Capital of New York and a $3.3-million equity loan from Westplan Investors of Atlanta for the conversion. Bill Leffler, director of L.J. Melody’s Atlanta office, arranged the non-recourse, three-year financing package.

Leffler tells GlobeSt.com the name of the Florida seller “must remain confidential.” However, the Jacksonville property appraiser’s website lists six existing owners of condo space in the building as Bray & Singletary PA, Northeast Florida Community Action Agency Inc., Gerald Sohn PA, Qwest Communications Corp., Progress Telecom LLC and US Carrier Telecom LLC.

Leffler says the deal was done at this time because “the developer believes there is a pent-up demand for stylish, urban residential in the Jacksonville CBD.” The broker is confident the new owner, Jax Telecom Partners, “will deliver a sophisticated product at a very attractive price point.” The property is near the planned $230-million City and County Courthouse complex.

The financing package took three months to complete. Other lenders, besides Merrill Lynch and Westplan were bidding for the business as well, Leffler tells GlobeSt.com.

At $25.98 per sf, the Telecom Building is believed to be one of the lowest-priced structures in the metro Jacksonville commercial real estate market, area brokers tell GlobeSt.com. Estimated hard construction costs for a typical class A office building are in the $150-per-sf range, area construction sources tell GlobeSt.com. A specially retrofitted property, such as the Telecom Building, would have an estimated hard construction cost of at least $250 per sf, construction sources familiar with comparable properties tell GlobeSt.com.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.