ORLANDO, FL– July 7, 2021 – Berkadia today announced the refinancing of San Marco East Plaza, a 94 percent leased property in Jacksonville, Florida. Managing Director Rebecca Van Reken and Associate Director Alec Fox of Berkadia Orlando secured the bank financing on behalf of the owner, Prescott Group.
Dallas-based Prescott Group took ownership of the asset via foreclosure in March 2019, following the purchase of a defaulted $52 million note. In the two years since, Prescott Group has executed a business plan which has completely transformed the property and contributed to the ongoing revitalization of the San Marco East (US 1) corridor.
Prescott Group completed a capital plan that included new roofs, new green spaces, enhanced lighting and other amenities. These improvements attracted new tenants, including the addition of tenant RF Smart’s headquarters in 2020 which brought occupancy up to 94 percent. Then in March, Prescott completed the sale of the former Jacksonville Ice and Sportsplex to the Jacksonville Iceman, local investors who plan to spend over $11 million to renovate the iconic ice center to a world-class rink and training facility known as the “Igloo.”
Anchored by tenants, including Baptist Health and Wells Fargo, San Marco East Plaza features ample parking and access, excellent visibility, multiple fiber optic loops and redundancy, lush landscaping and beautiful outdoor green spaces with weekly food truck lunches.
Benefiting from its Qualified Opportunity Zone status, as well as its proximity to the highly desirable San Marco area and the central business district (CBD) of Jacksonville, this corridor has seen over 1,000 new market rate or luxury apartment units break ground or deliver over the past 12 months. Other recent projects in the corridor include a new Aldi grocery store, the Publix-anchored East San Marco and the $1.1 billion Riverfront Jacksonville mega development. San Marco East Plaza and its retail neighbors anchor the south end of this corridor and serve as a commercial node supporting this growing population.
As a result of Prescott Group’s success in transforming the property, the Berkadia team was able to secure an attractive fixed rate, non-recourse term loan with Florida-based City National Bank. The property had previously been encumbered with a bridge loan from Global Atlantic, which is now a subsidiary of KKR.
“We’re grateful to Global Atlantic and KKR for their early commitment to our vision for this asset, and for being an excellent lender partner as we worked to transform San Marco East Plaza into the great asset it is today,” stated Jud Pankey, CEO of Prescott Group. “We are equally excited to begin a new relationship with City National Bank as we seek to expand our portfolio holdings in the Southeastern US and beyond.”
“Prescott Group’s seasoned team, excellent track record and hands-on approach to each asset they own makes them an ideal borrower, and we were very pleased to introduce them to one of our regional banks in City National,” said Van Reken. “The process from start to finish was very well-orchestrated.”
Berkadia Secures Refinancing for San Marco East Plaza in Jacksonville | REBusiness Online