Nashville-based Bluecrest Capital Advisors has expanded into Florida by purchasing Jacksonville’s Cypress Point Business Park for $28.15 million. The transaction is the firm’s first outside Tennessee and its largest to date. Bluecrest plans to reposition vacant office space as small-bay light industrial units, targeting demand in one of the Southeast’s fastest-growing commercial markets.
Key takeaways
- Bluecrest acquired the 226,500-square-foot Cypress Point Business Park for $28.15 million.
- The Jacksonville purchase is the firm’s first investment outside Tennessee.
- About 85,000 square feet of vacant space is planned for conversion to light industrial use.
- The property is 62% leased to five regional and national tenants.
- Bluecrest aims to build a Southeast portfolio exceeding 1 million square feet within four years.
A first Florida acquisition for Bluecrest
The six-building business park was purchased from Viking Partners Cypress. The property includes four office buildings totaling 146,500 square feet and two light industrial buildings totaling 80,000 square feet.
The acquisition extends Bluecrest’s strategy of buying infill commercial properties where leasing improvements, renovations and changes to unit layouts can create additional value. Founder and Managing Principal Scott Porter said Cypress Point fits the firm’s focus on growth markets with favorable population, rental and supply-demand trends.
Plans to reshape Cypress Point
Bluecrest expects to convert approximately 85,000 square feet of vacant space into small-bay light industrial units. The company also plans exterior improvements and renovations designed to divide larger suites into smaller spaces that may appeal to contractors, distributors, service companies and other users seeking flexible footprints.
Within three years, the firm expects lease rollovers and strategic buildouts to result in roughly 76% of the property’s gross leasable area being converted or repositioned. The remaining 24% is expected to follow after the third year.
Jacksonville location supports industrial demand
Cypress Point occupies 21 acres between Interstate 95 and U.S. Highway 1, south of J. Turner Butler Boulevard. It is located in the Baymeadows submarket, one of Jacksonville’s largest office concentrations, and is about 10 minutes from St. Johns Town Center.
The submarket’s reported industrial vacancy rate is 2.8%, while average annual rents have grown 7.2% over the past three years. Jacksonville’s population growth, regional economic diversity, port activity and role as a distribution center are key factors behind Bluecrest’s interest in the market.
Existing tenants and future expansion
Cypress Point is currently 62% leased to five regional and national tenants, including US Assure Insurance and ADT. Bluecrest’s redevelopment plans are intended to improve occupancy while increasing the property’s supply of smaller industrial spaces.
The firm’s stated goal is to assemble more than 1 million square feet of small-bay light industrial assets across the Southeast over the next four years.
Bluecrest’s growing portfolio
Before acquiring Cypress Point, Bluecrest purchased two properties near Nashville International Airport. Royal Parkway I and II comprise 145,000 square feet of infill small-bay industrial space and were acquired for $12.2 million. The property is undergoing renovation and is now fully leased.
Bluecrest also acquired the 61,250-square-foot 501 Metroplex flex property for nearly $8 million. Renovations have been completed, with additional plans to combine spaces into larger layouts and reduce the number of individual bays.
Sources
- Bluecrest Capital Advisors eyes Florida expansion with latest acquisition, The Florida Times-Union.