February 21, 2020– Miami-based Easton & Associates represented ShareMD, a growing Atlanta-based medical office building owner/operator, in the $67 million acquisition of a 20-story iconic office tower in downtown Jacksonville, Florida. It marks one of the priciest transactions in North Florida this year.
Easton Vice President Elliot LaBreche represented the buyer. CBRE represented the seller, Chicago-based GEM Realty.
Built in 1955, 841 Prudential in Jacksonville, with nearly 500,000 square feet of leasable space, is the city’s first skyscraper. The building, which underwent a six-million-dollar renovation two years ago, is located on the south bank of the St. John’s River in the heart of a massive medical campus anchored by Baptist Medical Center. While the property is nearly 80% occupied with mostly professional office-use tenants, LaBreche said there is a big opportunity to change to clinical users.
Jacksonville’s medical-office-building occupancy rate is just under 95% according to Revista, a medical real estate research company. That leads all other Florida metro areas and ranks among the top nationally.
“My client is strategically acquiring medical office buildings throughout Florida to meet increased demand for healthcare services as well as to grow their clinical co-working platform, ShareMD,” said LaBreche. “Eight Forty One is located in the heart of the city’s healthcare hub. The proximity to Baptist and University of Florida healthcare infrastructure and physicians is a big draw for medical tenants.”
ShareMD is looking to make a big push into Florida to roll out its co-working medical suite concept which is already up and running in five Southern California locations. The company builds out clinical space for doctors and other medical professionals and then leases it by the half-day, day, week or month—allowing physicians to expand their geographic reach and save money by not being tied into long-term rents. ShareMD will dedicate between 10,000 – 15,000 square feet of 841 Prudential for co-working and fill other vacancies with long-term medical tenants.
ShareMD has invested $100 million in real estate assets in Florida over the past four months. It entered the state last fall with the acquisition of two medical buildings in the Miami area for $33 million. LaBreche identified both properties and brokered the transactions. ShareMD is actively seeking to make additional acquisitions in the Orlando, Tampa Bay, Fort Lauderdale markets as well as other key metro areas around the country.
“We are excited to be in South and North Florida and look forward to rounding out our Florida portfolio with additional assets over the coming months,” said George Scopetta, president and managing partner of ShareMD. “With an aging baby boomer population, a burgeoning demand for healthcare services and insurance companies favoring outpatient care, we think the timing is perfect to execute our business plan in Florida. The opportunity is endless.”
841 Prudential is located at 841 Prudential Drive, Jacksonville, FL 32207.