one enterprise center - s3.amazonaws.com · lease in northbankwill reduce class a vacancy by 2.1%...

One Enterprise CenterJacksonville, Northbank CBD, FL

Prepared by

For Sale John F. BellManaging DirectorD: 305.808.7820 | M: [email protected]

St Johns River

PROPERTY OVERVIEW 2O N E E N T E R P R I S E C E N T E R

Northbank CBD

SHOPPING CENTER

SHAREDPARKING GARAGE

3O N E E N T E R P R I S E C E N T E R

The OpportunityOne Enterprise Center is a 317,571 SF Downtown Jacksonville landmark office tower, universally considered one of the top office buildings in the Jacksonville CBD. The distinctive glass panel exterior design features a dramatic marble lobby and a glass atrium dome with the tower directly connected to a 354 room Omni Hotel. The office and hotel share a parking garage providing One Enterprise Center with one of the CBD’s best available parking ratios at 2.3/1000.

Competitive advantages include spectacular unobstructed water views, a location at the center of Downtown’s amenity base, steps from the Times Union Center for the Performing Arts and Jacksonville Landing’s retail and restaurants, as well as the St Johns River waterfront.

Downtown Jacksonville’s renaissance coincides with increased office demand in the CBD, exemplified by notable large users such as CSX Corp. that is expected to move into 120,000 SF, leaving few suitable contiguous options for large tenants to locate in the CBD. One Enterprise Center’s contiguous vacancy, coupled with its prestigious reputation, signage opportunity, and amenity base provide a competitive advantage in luring large tenants interested in leasing Downtown.

One Enterprise Center

Price Unpriced

Address 225 Water Street

City, State Jacksonville, Florida 32202

Year Built 1985

Total Area 317,571 SF

Type Class A CBD Office Tower

Total Land Area 1.15 Acres

Parking 2.3/1,000

Occupancy 51.2%

Stories 22 levels

VALUE ADD INVESTMENT

SIGNIFICANT UPSIDE

ICONIC OFFICE TOWER

Transwestern has been retained on anexclusive basis to arrange the sale of theOne Enterprise Center office tower.

Class A Office Tower

4C O N C O U R S E T O W E R S

Investment Highlights Meaningful Cash Flow Upside / High IRRRare opportunity to acquire a trophy landmark with value add characteristics. One Enterprise Center’s vacancy is perfectly positioned to experience an expedited lease up with its competitive advantages once the market is aware of new committed and stable ownership.

Iconic Local LandmarkWidely recognized as one of the top two office towers in the Jacksonville CBD, One Enterprise Center has a well earned reputation as a prestigious business address.

Competitive Market Share AdvantagesUnobstructed water views, one of the best parking ratios in CBD, adjacent Omni Hotel, and center of amenity base allow new stable ownership to achieve the superior market share the asset is accustomed to commanding.

Capital RepositioningOwnership replaced cooling tower in 2016 and has begun an elevator modernization program enhancing operations. Lobby is in excellent condition and provides prospective tenants with an impressive first impression.

Stable Existing Cash Minimal near term leasing rollover, solid cash flow while focusing on lease up of space under new committed ownership.

Signage Opportunity – Lures Large UsersAvailable building signage and naming rights are highly attractive to prospective large users.

Strengthening Office MarketVacancy improved to 12%, when excluding the property's vacancy and 120K CSX lease would drop vacancy below 10%. Rents growing and poised to exceed historical highs.

Prime SignageNaming Rights

EXECUTIVE SUMMARY 5O N E E N T E R P R I S E C E N T E R

Adjacent to Omni Hotel connected by a dramatic glass topped atrium.

SHOPPING CENTER

SHAREDPARKING GARAGE

SKYWAYSTATION

Not Part of Offering

Shared Atrium

CLICK HERE FOR VIRTUAL TOUR

SHOPPING CENTER

SKYWAYSTATION

I-95

St Johns River

VIRTUAL TOUR

https://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9ghttps://youtu.be/R0LejD_Bm9g

EXECUTIVE SUMMARY 7

ONE ENTERPRISE CENTER

High Profile Location Attracts Tenants

• Downtown Northbank location – Core of CBD. Conveniently located across from a Skyway elevated transportation station.

• Easy and convenient access to entire region at convergence of I-10 and I-95 Expressways.

• Central location and convenient commute to all of surrounding Jacksonville, attractive to tenants.

• Highly recognized property with direct views of St Johns River, another competitive advantage.

Main & Main Location: Northbank CBD

Located at prominent intersection of Water and Hogan Streets

ONE ENTERPRISE CENTER

O N E E N T E R P R I S E C E N T E R

EXECUTIVE SUMMARY 8

Office MarketINVENTORY

Total: 11,627,031 SFClass A: 5,533,469 SF

AVG RENT

$21.04/SF FS

Strengthening Fundamentals

OPPORTUNITY • Submarket: The Property is located in the Northbank market,

epicenter of the CBD markets, and the location of choice for premier corporate and legal firms attracted by the concentration of finance and government offices. The market’s residential and amenity base is also evolving, enhancing the already important market’s attractiveness.

• Rent Growth: Class A rents have continued to grow as prime space becomes leased at competitors. The $21.04/SF class A rent exceeds the Property’s projected market rent of $20/SF, providing One Enterprise Center a highly competitive rate to capture superior market share.

• Tight and Improving Vacancy: Northbank vacancy is currently at 12% overall and 12.5% for Class A space. The impending 120,000 SF CSX lease in Northbank will reduce class A vacancy by 2.1% and deducting the Property’s 155,000 SF (2.8%) of vacancy and CSX absorption reduces overall vacancy at competitors to only 7.6%.

Landlord’s Market

Historical “peak and low” submarket stats

Property is one of top 2 Buildings in CBD Consistent Rent Growth

Class A rents poised to blow through historical highsIncreased demand with few options for large users

Improving Market Vacancy & Rising RentsOne Enterprise Center is positioned to be first

choice for large users

GR

OW

TH

VACANCY

12.0% 7.6% 48.8%

Jacksonville CBD Northbank

One Enterprise Center

CBD Northbank Total A & B Class A CBD Northbank

Current Low Low Date Peak Peak DateNorth Bank Class A $21.09 $18.10 2011 Q3 $21.17 2016 Q2North Bank Class B $17.18 $15.68 2012 Q2 $18.67 2007 Q2North Bank Overall $19.72 $17.58 2011 Q3 $19.87 2007 Q3

Historical Peak and Low Submarket Rents


Sheet1

Historical Peak and Low Submarket Rents

CurrentLowLow DatePeak Peak DateUpside

North Bank Class A$21.09$18.102011 Q3$21.172016 Q20.4%Current NNN Rents have an upside potential growth rate of 0.4% to achieve their peak rents set in 2016 Q2.

North Bank Class B$17.18$15.682012 Q2$18.672007 Q28.7%Current NNN Rents have an upside potential growth rate of 8.7% to achieve their peak rents set in 2007 Q2.

North Bank Overall$19.72$17.582011 Q3$19.872007 Q30.8%Current NNN Rents have an upside potential growth rate of 0.8% to achieve their peak rents set in 2007 Q3.

South Bank Class A$21.96$19.462007 Q2$22.092016 Q20.6%Current NNN Rents have an upside potential growth rate of 0.6% to achieve their peak rents set in 2016 Q2.

South Bank Class B$14.15$14.152017 Q1$19.132009 Q435.2%Current NNN Rents have an upside potential growth rate of 35.2% to achieve their peak rents set in 2009 Q4.

South Bank Overall$21.68$19.222007 Q2$21.932016 Q31.2%Current NNN Rents have an upside potential growth rate of 1.2% to achieve their peak rents set in 2016 Q3.

Combined Class A$21.36$18.482011 Q3$21.412016 Q30.2%Current NNN Rents have an upside potential growth rate of 0.2% to achieve their peak rents set in 2016 Q3.

Combined Class B$17.09$15.892012 Q2$18.562007 Q38.6%Current NNN Rents have an upside potential growth rate of 8.6% to achieve their peak rents set in 2007 Q3.

Combined Overall$20.19$17.932011 Q3$20.182017 Q1-0.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2017 Q1.

Historical Peak and Low Submarket Gross Rents


North Bank Class A$21.05$18.122011 Q3$21.182016 Q20.6%Current NNN Rents have an upside potential growth rate of 0.6% to achieve their peak rents set in 2016 Q2.

North Bank Class B$17.67$15.922012 Q2$18.852007 Q26.7%Current NNN Rents have an upside potential growth rate of 6.7% to achieve their peak rents set in 2007 Q2.

North Bank Overall$19.88$17.642011 Q3$19.982007 Q30.5%Current NNN Rents have an upside potential growth rate of 0.5% to achieve their peak rents set in 2007 Q3.

South Bank Class A$21.86$19.462007 Q2$22.092016 Q31.1%Current NNN Rents have an upside potential growth rate of 1.1% to achieve their peak rents set in 2016 Q3.

South Bank Class B$14.74$14.742017 Q1$19.132009 Q429.8%Current NNN Rents have an upside potential growth rate of 29.8% to achieve their peak rents set in 2009 Q4.

South Bank Overall$21.30$19.222007 Q2$21.852016 Q32.6%Current NNN Rents have an upside potential growth rate of 2.6% to achieve their peak rents set in 2016 Q3.

Combined Class A$21.22$18.492011 Q3$21.342016 Q20.6%Current NNN Rents have an upside potential growth rate of 0.6% to achieve their peak rents set in 2016 Q2.

Combined Class B$17.56$16.102012 Q2$18.732007 Q26.7%Current NNN Rents have an upside potential growth rate of 6.7% to achieve their peak rents set in 2007 Q2.

Combined Overall$20.10$17.972011 Q3$20.092017 Q1-0.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2017 Q1.

Historical Peak and Low Submarket Vacancy


North Bank Class A12.50%11.60%2016 Q124.20%2011 Q47.2%Current NNN Rents have an upside potential growth rate of 7.2% to achieve their peak rents set in 2011 Q4.

North Bank Class B11.50%11.40%2016 Q417.20%2011 Q10.9%Current NNN Rents have an upside potential growth rate of 0.9% to achieve their peak rents set in 2011 Q1.

North Bank Overall12.0%11.80%2016 Q219.10%2012 Q11.7%Current NNN Rents have an upside potential growth rate of 1.7% to achieve their peak rents set in 2012 Q1.

South Bank Class A4.90%4.90%2017 Q117.70%2008 Q40.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2008 Q4.

South Bank Class B0.40%0.40%2017 Q19.50%2007 Q40.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2007 Q4.

South Bank Overall3.80%3.80%2017 Q115.00%2008 Q20.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2008 Q2.

Combined Class A10.50%10.10%2016 Q220.80%2011 Q43.8%Current NNN Rents have an upside potential growth rate of 3.8% to achieve their peak rents set in 2011 Q4.

Combined Class B10.50%10.40%2016 Q416.30%2007 Q41.0%Current NNN Rents have an upside potential growth rate of 1.0% to achieve their peak rents set in 2007 Q4.

Combined Overall10.50%10.50%2017 Q117.30%2012 Q20.0%Current NNN Rents have an upside potential growth rate of 0.0% to achieve their peak rents set in 2012 Q2.

Sheet2

Sheet3

EXECUTIVE SUMMARY 9

Investment ContactJohn F. BellManaging DirectorD: 305.808.7820M: [email protected]

100 SE 2nd StreetSuite 3100Miami, Florida, 33131

Disclaimer: The information contained in this Offering Memorandum has been obtained from sources believed tobe reliable. While we do not doubt its accuracy, we have not verified it and make no guaranty, warranty orrepresentation about it, nor does owner. It is the responsibility of each prospective purchaser to independentlyverify its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for examplepurposes only and do not represent the current or future performance of the property. Each prospective purchaseris to rely upon its own investigation, evaluation and judgment as to the value and condition of the property, theinformation contained in the Offering Memorandum, and advisability of purchasing the property. This Offering maybe rescinded or altered and the property may be sold, leased or withdrawn from the market without notice. Brokersare not authorized to make any representations or agreements on behalf of the property owner or bind the propertyowner to any agreement for sale of the property.


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one enterprise center - s3.amazonaws.com · lease in northbankwill reduce class a vacancy by 2.1%...

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