MIAMI—It’s one of the highest prices paid for a mall since the commercial real estate market crashed in the downturn. Deutsche Asset & Wealth Management just paid $375 million for a 50% stake in St. Johns Town Center in Jacksonville, FL.
“For institutional property, the buyers are stacked up 10 or 20 deep,” Dan Fasulo, managing director of Real Capital Analytics, told the Wall Street Journal, which first reported the transaction. “There’s a lack of investment alternatives, and it just keeps driving capital into commercial real estate.”
According to the WSJ, Ben Carter, an Atlanta-based real estate developer who built the mall in 2005, sold the 50% stake. Simon owns the other half.
“It’s a really aggressive price,” says Fasulo. “But as much as it feels aggressive to me, you have pools of capital running around the world looking for a premium to government bonds.”
The Real Estate Alert reported earlier this year that Eastdil Secured was marketing Carter’s stake in the 1.2-million-square-foot trophy retail property. And the Jacksonville Business Journal reported the mall is 99% occupied and sees rents from $40 to $80 per square foot.
The outdoor lifestyle mall is home to 150 stores, many of which are exclusive in the Jacksonville market. Tenants include Dillard’s, Apple, Pottery Barn, and Ann Taylor. Dining options include The Cheesecake Factory, The Capital Grille, and Cantina Laredo.
Located in Jacksonville’s Southside neighborhood, St. Johns Town Center offers quick access to accessible to Interstate 95, Interstate 295 and J. Turner Butler Boulevard and between Downtown and the beaches serving Jacksonville, St. Augustine, Amelia Island, and South Georgia.