Paul DiSandro, a TCM Partner andPortfolio Manager

JACKSONVILLE, FL—Ten Capital Management reports it has acquiredCapital Plaza, a three-building office park here totaling more than417,000 square feet.

The Cleveland-based privately-held real estate investmentmanagement firm, is the new owner of the 417,513-square-footcomplex that is currently 87% leased to nine tenants with aweighted average lease term of five to seven years. Approximately53% of the tenancy is comprised of investment-grade tenants.

No financial terms of the transaction were disclosed for theproperty that is located in Jacksonville's Butler/Baymeadows officesubmarket within the Deerwood Park micro market

In the Deerwood Park market, no new office supply has comeonline since 2009, yet demand for office space has continued toincrease with more than 300,000 square feet of additional newoccupancy taking hold over the same period and remains robust withfurther growth projected into the future, according to Ten CapitalManagement.

Rent levels in the market have grown each year since 2011totaling 24.2%. In addition, Jacksonville's leading mall andlifestyle center. St. John's Town Center has spurred significantmultifamily development in the submarket, with 1,689 unitsdelivered over the past five years and another 1,362 underconstruction for delivery over the next 12 months.

Paul DiSandro, a TCM partner and portfolio manager, said,“Capital Plaza offers our investors strong cash-on-cash returns andupside potential through the lease up of the remaining vacancy inthe building and the ability to push rents to market, with in-placecontractual rents at approximately 15% below current market rentsin a micro-market which has a longstanding history of superiormarket performance.”

The property's amenities include a state-of-the-art fitnesscenter, 24/7 security, market leading parking ratio of 6.2:1000square feet, and a power redundancy system.

Capital Plaza has access to Interstate 95, Interstate 295 andSt. John's Town Center. Over the last four years, the property hasundergone $4 million in improvements and upgrades.

In March, Ten Capital Management completed the acquisition ofAtria Corporate Center in Plymouth, MN, a suburb ofMinneapolis.

The property is a 358,941-square-foot Class A, LEED Goldbuilding, built in the late 1980s and substantially renovated in2017.