Firm sees payday on sale of JPMorgan Chase Bank building
The acquisition of the JPMorgan Chase Bank building by CoxHealth was one of the most profitable office transactions in the post-pandemic era, according to a press release. Sentinel Net Lease, the investment firm that owned the 268,413 square-foot building, was able to generate a property-level internal rate of return of 46%. It also produced a 2X return on invested capital.
According to Laura Nguyen, director of investor relations & marketing for Sentinel, the financials of the deal will not be released as part of an agreement with CoxHealth. She added that 46% IRR is a significantly higher number than she would see in a usual office space transaction.
“Just to be very frank, there’s not a lot of transactions going on in the office sector,” Nguyen said. “Volume is down over 50% just given the sector is not as attractive as other sectors of commercial real estate”
Beginning in April, CoxHealth will move into the campus’ south building in April 2024. JPMorgan chase will remain in other areas of the campus, according to past News-Leader reporting.