Virginia-based Lingerfelt CommonWealth Realty Partners LLC bought the Stein Mart building Monday, adding a second Downtown Southbank high-rise to its Jacksonville portfolio.
It also manages 2.1 million square feet of suburban space as well as some ancillary properties, boosting its Jacksonville presence to at least 2.7 million square feet of office and flex space.
“Jacksonville continues to be a market that we are focused on,” said Kenneth Strickler, managing director of investments and asset management for Lingerfelt CommonWealth Partners.
Strickler said the group has “an incredible team on the ground there,” and is consistently evaluating investment opportunities.
“We are always looking for the next one,” he said, declining to identify a specific property.
Lingerfelt CommonWealth bought the Stein Mart building for $23.7 million from Orlando-based Parkway Properties LP.
Jacksonville-based Stein Mart Inc. occupies more than half of the 10-story, 197,000-square-foot building at 1200 Riverplace Blvd.
It’s across the street from the 28-story Riverplace Tower, which Lingerfelt CommonWealth acquired in October 2014 for $29 million.
Occupancy has risen at Riverplace Tower from 61 percent upon the purchase to 81 percent today at the more than 425,000-square-foot structure.
The Stein Mart building is almost 96 percent occupied by about 20 tenants, including the Marks Gray law firm and TD Bank. The building includes an adjacent six-story parking garage.
BankUnited of Miami Lakes issued a $17.43 million mortgage to LCP 1200 Riverplace LLC, the entity set up to buy the property.
The Stein Mart building was developed in 1986. Its assessed value is almost $18.5 million.
Commonwealth Commercial Partners, Lingerfelt CommonWealth’s property management affiliate, handles asset and property management for the Southbank buildings. JLL, also known as Jones Lang LaSalle, handles leasing and marketing for those buildings.
In February 2014, Lingerfelt CommonWealth announced it would provide leasing, property management and asset management for a 2.1 million-square-foot former office and flex/industrial portfolio of suburban buildings formerly owned by Liberty Property Trust.
Parkway Properties Inc. has been selling off its portfolio of Jacksonville office properties before merging into Cousins Properties Inc.
That merger agreement anticipates Parkway will sell its Deerwood North, Deerwood South, JTB Center properties on the Southside and the Stein Mart building.
Asked if Lingerfelt CommonWealth was interested in Parkway’s other Jacksonville properties, Strickler said he had no comment.
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