Bluecrest Capital Advisors, a Nashville-based real estate investment company, recently announced the acquisition of Cypress Point Business Park in Jacksonville.
Bluecrest Capital, which targets growth markets
across the Southeast, purchased the 226,500-square-foot, small bay light industrial infill development for $28.15 million from Viking Partners Cypress. This was the company's largest transaction to date and its first outside Tennessee.
“From the start, we have focused on identifying markets and seeking light industrial and flex properties with significant value propositions realized through leasing and capital improvements,” said Scott Porter, founder and managing principal at Bluecrest Capital, in a news release. “Based on population growth, rent growth and favorable supply-demand fundamentals ... Cypress Point is a textbook example of the sort of asset that aligns with our investment criteria.
Why are business parks popular in Jacksonville?
As one of the fastest-growing major markets in the Southeast, Jacksonville has strong long-term population growth and a diverse regional economy, Porter said. It is also home to one of the largest container ports in the U.S. and a key distribution hub.
What is Cypress Point Business Park?
The six-building Cypress Point Business Park features four office buildings, constructed between 1999 and 2004, total 146,500 square feet with two light industrial buildings totaling 80,000 square feet.
The property is currently 62% leased to five regional and national tenants, including US Assure Insurance and ADT.
“This market is hungry for more light industrial options,” Porter said.
Where is Cypress Point Business Park?
The business park is on 21 acres between Interstate 95 and U.S. Highway 1, south of J. Turner Butler Boulevard. It is nestled in the Baymeadows submarket, one of Jacksonville’s largest concentrations of office properties. The submarket currently reports an industrial vacancy rate of just 2.8% and an average annual rent growth rate of 7.2% over the past three years.
In addition to direct access to major highways, the office park is only a 10-minute drive from St. Johns Town Center, one of the Northeast Florida’s largest retail destinations.
What is Bluecrest Capital?
Bluecrest Capital Advisors is a Nashville-based real estate investment firm led by Scott Porter and John Colucci.
The firm seeks to assemble a portfolio of more than 1 million square feet of small bay light industrial assets throughout the Southeast over the next four years.
What is Bluecrest Capital doing with Cypress Point Business Park?
Bluecrest Capital plans to convert 85,000 square feet of vacant space to SBLI, according to the news release.
Within three years, the company expects to have converted approximately 76% of the gross leasable area converted through lease rollovers and strategic buildouts.
The remaining 24% is expected to be converted after the third year. Bluecrest Capital also plans exterior upgrades and renovations to subdivide larger suites into smaller units.
What does Bluecrest Capital own?
Bluecrest Capital previously acquired two assets located in near Nashville International Airport: Royal Parkway I and II, a 145,000-square-foot infill SBLI property, for $12.2 million and 501 Metroplex, a 61,250-square-foot flex infill property, for nearly $8 million.
Royal Parkway, currently under renovation, is now 100% leased. Renovations also were completed recently at 501 Metroplex with additional plans to combine spaces into larger layouts and reduce the number of bays.
“Our aim is to not only improve under-performing properties and build value for our investors but to also fulfill the growing demand for light industrial in high-growth markets throughout the Southeast,” Porter said.
This article originally appeared on Florida Times-Union: Nashvilled-based real estate company buys Jacksonville business park
