Hertz Investment Group, downtown Jackson’s dominant landlord, has added to its Central Business District holdings with a $6.2 million acquisition of the two-tower City Centre and its parking garage at 200 Lamar St.
The south tower is 12 floors and the north tower 10 floors. Together, they cover 266,700 square feet and are served by a 518-space structured parking deck. The Class A buildings are 87-percent leased with a tenant mix of law firms, government agencies and insurance companies.
Renovated in 1987, City Centre includes two lobbies with a marble finish and an atrium with black granite and mahogany panels.
Nearby are the city’s arts complex, the Jackson Convention Complex, the U.S. Federal Courthouse and state office buildings.
Hertz, which is estimated to own around 60 percent of the Central Business District’s office space, brings the privately held California commercial real estate investment company’s Jackson holdings to approximately 1.4 million square feet. Hertz also owns the Pinnacle, One Jackson Place, 111 East Capitol, Regions Plaza and Regions Bank Building.
As it did with the Pinnacle and One Jackson Place, Hertz bought City Centre from Parkway Properties, a real estate investment trust that moved its headquarters from Jackson to Orlando a three years ago.
The company has also offered to buy the Jackson Redevelopment Authority’s parking garage at Jackson Place for $3.5 million in cash.
“We believe in Jackson,” said Judah Hertz, chairman & CEO, in a statement accompanying the announcement of the City Centre purchase.
“Since entering the Jackson market in 2007, we have sought to acquire best in class assets and believe we have once again achieved that goal with City Centre.”
Hertz owns more than 19-million square feet of office space in 20 cities across 15 states.
Jim Ingram, a former Parkway executive who is now Hertz’ executive VP & CIO, said acquisition of the City Centre is part of an investment strategy is to acquire and manage Class A properties in central business districts, whether that be in Birmingham, New Orleans, Jacksonville or Jackson,.
Tenants want Class A office space in downtown locations, and acquiring these properties in a cost-efficient way has enabled Hertz to grow substantially, Ingram said.
In June, Hertz made its largest acquisition to date, buying a portfolio of six Class A buildings totaling more than three million square feet for $417 million. The properties are n New Orleans; Birmingham, Columbia, S.C., and Greensboro, N.C. Earlier this month Hertz acquired Skylight Office Tower, a 12-story, 321,000-square-foot property in downtown Cleveland, Ohio, which marked Hertz’s second major purchase in Cleveland this year.