Florida office market continues to attract investor interest
JLL Capital Markets closed the sale of The Offices at Pelican Bay, a value-add office opportunity in Naples that marks the largest office transaction on Florida’s Southwest coast this year
MIAMI, Dec. 28, 2021 – JLL Capital Markets announced today that it has closed the $55.5 million sale of The Offices at Pelican Bay, a two-building, Class A office portfolio totaling 177,557 square feet in Naples, Florida. The sale marks the largest office transaction on Florida’s Southwest coast this year.
JLL represented the seller, a joint venture between funds managed by Apollo Global Management, Miami-based SQUARE2 Capital and Steelbridge Capital. The selling partnership purchased the property for $33.6 million in 2014. This marks the partnership’s second round trip in Naples in recent years and the second time JLL has worked with the partnership in a sale; the partnership bought the SunTrust Building across the street in 2014 for $17.5 million and sold it a year later through JLL for $25.5 million.
The Offices at Pelican Bay comprise two, six-story buildings that are leased to a diverse, stable tenant roster. Located at 5801 and 5811 Pelican Bay Blvd., the properties sit on nearly 10 acres at the intersection of Pelican Bay Boulevard and Tamiami Trail North within the coveted Pelican Bay community. The properties are within close walking distance of the retail and dining options at Waterside Shops and Artis Naples Philharmonic Cultural Center and are surrounded by a thriving residential market and a variety of high-end and extended-stay hotel options. Additionally, Naples is only one-hour from Fort Myers International Airport and under three hours from both Miami and Tampa.
The JLL Capital Markets team representing the seller was led by Senior Managing Directors Hermen Rodriguez and Chris Drew, Managing Director Ike Ojala and Director Matthew McCormack. Patrick Fraley, CCIM of Investment Properties Corporation of Naples, procured the buyer.
“Florida’s business friendly and tax-friendly environment continues to attract new companies and investors to the market,” McCormack said. “As a result, we are finding investor interest continues to grow for well-located office properties with value-add components such as The Offices at Pelican Bay.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About SQUARE2 Capital
SQUARE2 Capital is an investment management company based in Miami that invests and operates throughout Florida and the Southeast. SQUARE2 operates with the belief that real estate investing should be transformational, guiding the asset through a change in form and appearance, but also effectuating financial and operational improvements. By building on SQUARE2’s deep industry expertise and multi-cycle track record as a seasoned manager, owner and operator, the firm aggressively targets on and off market investments that allow it to implement strategies to create differentiated office experiences. For more information, please visit: s2c.com.
About Steelbridge Capital
Steelbridge Capital is a real estate private equity firm that invests in single and multi-tenant properties nationwide. Steelbridge uses proprietary AI analytics to identify assets and submarkets with true competitive advantages that have been temporarily discounted due to inefficiencies in the real estate capital, operating or information markets or where values can be significantly enhanced through redevelopment and repositioning. For more information, please visit steelbridge.com.