Petra announced June 25 that the ATP global headquarters will anchor the Grand Ocean building in Atlantic Beach, a move the tour’s chief legal and administrative officer said was rooted in workplace changes resulting from the COVID pandemic.
ATP, the global governing body of men’s professional tennis, the ATP Tour and ATP Challenger Tour, will relocate from the 28,000-square-foot building it owns at 201 ATP Tour Blvd. in Ponte Vedra Beach into about 9,500 square feet, taking the entire third floor of Grand Ocean at 42 East Coast Drive.
ATP built the two-story St. Johns County structure in 1993.
Mark Young, also head of the ATP Americas office, said the organization’s global policy is hybrid work. ATPTour.com also shows it has offices in London, Monaco and Sydney.
As a result, “we have way more space than we need,” Young said June 25.
Also, the age of the building plays a role.
Young said the structure needs renovation, so the ATP had to choose whether to invest in the building and lease half of it to another tenant and then become a landlord, or to move into new space better suited for the size it needs.
Leadership “opted for the latter,” Young said.
“We love Ponte Vedra and have loved being there, but when we decided to move we didn’t find space that fit our needs,” he said.
Young said a decision has not been made but the organization is considering selling the existing building.
The Petra news release said ATP “seeks to be in a walkable, community-centered environment for their employees, members, and affiliates.”
Grand Ocean, in the Beaches Town Center, comprises office, retail and mixed-use spaces.
“With its prime location and exceptional amenities, Grand Ocean is poised to become the destination of choice for businesses seeking a vibrant coastal setting,” the release said.
“ATP is one of Northeast Florida’s most prominent organizations, and it is an honor to have helped secure their tenancy at Grand Ocean,” said Petra Vice President Elias Hionides in a news release.
JLL Managing Director Jesse Shimp represented ATP in the deal. Petra is the leasing agent for the property ownership.
Young said the ATP likely would work with Shimp if it decided to sell its existing building.
ATP will be moving 8 miles north from St. Johns into Duval County, and from about a mile from the beach to an oceanfront view.
Hionides said previously the three-story Grand Ocean comprises 25,000 square feet at 42 East Coast Drive, north of Coop 303 restaurant.
Grand Ocean comprises ground-floor retail spaces starting from 700 square feet; second- and third-floor office spaces with ocean views; and amenities such as full-time valet parking, terraces overlooking the ocean, and designated bike and golf cart parking.
Petra announced April 3 that Elase medical spa has signed as the first tenant, leasing 3,500 square feet on the second floor.
Grand Ocean will be completed this fall.
Hionides and Young expect tenant build-out for ATP will be completed by year-end or early 2025 for the move.
Young said about 50 people are assigned to the Florida ATP office, but about half of that number is the usual number and, with the change in the workforce policy, “it is significantly less than 25 in the building.” The schedules are dependent on supervisors.
Young also said the location is a factor.
Grand Ocean is near the One Ocean Resort & Spa as well as bars and restaurants, providing convenient lodging and entertainment.
It also is close to the Seahorse Oceanfront Inn and The Lemon Bar, now owned by Jacksonville Jaguars owner Shad Khan, who plans to redevelop the property as a boutique resort hotel, similar to what is in place now, along with additional amenities and supporting uses.
Future resort amenities may include a spa, beach club, fitness center, restaurant, improved Lemon Bar, parking and retail space.
Khan likely could market those properties as amenities for guests at his Four Seasons hotel under development Downtown.
“We have a lot of young people that we want to attract and we feel that will add to the attraction of working for the ATP Tour,” Young said.
Hionides continues to lease the remaining Grand Ocean office and retail space.