Cushman & Wakefield’s Karl Johnston Represented the Seller in the Disposition of Jacksonville Office and Small-bay Industrial Property
JACKSONVILLE, FL, October 26, 2018 — Cushman & Wakefield has negotiated the sale of Exchange South, a 194,400-square-foot office and small-bay light industrial complex in Duval County.
Karl Johnston of Cushman & Wakefield’s Capital Markets Group, with the leasing assistance of Mark Scott of Foundry Commercial, represented the seller in the disposition. South Florida-based Savlan Capital was the buyer.
Exchange South comprises five Class A office and small-bay industrial buildings that were developed between 1990 and 1996. The property was 75.1% leased at the time of sale to 24 diversified tenants, including Konica Minolta, Ovation Credit and Omnicare. A number of tenant expansions and renewals were in-process at closing.
Savlan Capital has announced plans to upgrade Exchange South through the implementation of a $2 million interior and exterior capital expenditure program.
Exchange South is located at 9143 Philips Highway within the Butler/Baymeadows office submarket, as defined by Cushman & Wakefield. Butler/Baymeadows is the largest suburban office submarket in Jacksonville with 10.7 million square feet of office space and, according to Johnston, is poised for significant rent growth given the considerable barriers to entry for developers and exceptional demand for existing space within the submarket.
“Today’s more sophisticated single-story office and small-bay industrial tenants are looking for highly functional office and warehousing space, ease-of-access and multi-purpose capability,” said Johnston. “This changing dynamic has made high-quality office and small-bay industrial buildings, such as Exchange South, a high-demand product type.”
Added Johnston, “While the offering received tremendous interest from the investment community given its strategic location, high functionality and credit tenancy, Savlan Capital was the ideal purchaser given the company’s immediate commitment to the property and overall Jacksonville community.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value by putting ideas into action for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with 48,000 employees in approximately 400 offices and 70 countries. In 2017, the firm had revenue of $6.9 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.