David Bauerlein| dbauerlein@jacksonville.com
The sun will set and the star will rise over one of downtown Jacksonville's most visible office towers.
VyStar Credit Union is buying the 23-story SunTrust Tower and will rename it VyStar Tower as it move its headquarters there in the biggest corporate relocation to downtown since EverBank announced a similar move in 2011.
VyStar expects to close on the purchase of the building in the next 30 to 45 days and then relocate its headquarters over a period of 12 to 18 months. That is expected to bring about 600 to 700-plus employees to the tower.
“It’s a big increase in one move to have 600 new people in downtown, but it’s also incredibly symbolic for VyStar to make its headquarters in downtown Jacksonville,” said Jake Gordon, CEO of Downtown Vision, a nonprofit advocacy group that represents downtown property owners.
Mayor Lenny Curry called it a "great move for both VyStar and downtown Jacksonville" that shows the city's efforts to attract investors and businesses into downtown are working.
"Downtown Jacksonville is the heart of our city," Curry said in a statement. "I want it to be a vibrant place for citizens to live, work and play.”
VyStar CEO Brian Wolfburg said the credit union has grown rapidly over the past decade into the 17th-largest in the nation and the second-biggest in Florida. He said the company has outgrown its Blanding Boulevard headquarters building and had been leaning toward expanding its campus on Blanding before turning its sights on downtown.
Wolfburg said purchasing the SunTrust Tower makes the most sense economically and gives VyStar a more visible location as it continues to add customers from growth in Northeast Florida and expansion into other regions through mergers and acquisitions.
"We thought it was time to take a different presence in the community, to put our name on the skyline and gain the visibility for the organization, as well as make a commitment to downtown Jacksonville," Wolfburg said.
The last big move by a company into downtown also involved a financial institution. EverBank consolidated its suburban locations and brought 1,500 employees into downtown. Later acquired by TIAA Bank, EverBank received a $4.85 million taxpayer incentive package for the relocation and creation of 200 new jobs.
VyStar isn't seeking any tax dollars from the city.
"Our [credit union] members are the same individuals who are paying taxes in the community," Wolfburg said. "We want to bring them value in as many ways as possible. We think we found the best economic decision in this building, and we did not need the city's support in that way to do it."
He said the biggest issue coming from the suburbs is parking, and the city is working with VyStar to line up enough parking for its employees. Wolfburg said besides the parking garage that is part of SunTrust Tower, VyStar employees would be able to park at a new parking garage that will be built as part of the redevelopment of the historic Barnett Bank and Laura Street Trio buildings. He said VyStar would pay to use space in that garage.
The SunTrust Tower, located at 76 N. Laura St., is a couple of blocks from the historic buildings, so VyStar's move would add another burst of activity along Laura Street, which is in the heart of downtown's Northbank.
JAX Chamber President Daniel Davis, whose organization has advocated for a vibrant downtown as a way to attract talented young people to the city, said having a concentration of downtown activity in a small area "is definitely a big win."
"You can't have a great city without a great downtown, and we think this is one in many steps that's going to create the momentum to move in that direction," he said.
Wolfburg said VyStar went through a wide-ranging search that encompassed potential suburban sites throughout Northeast Florida. It checked out planned new developments in downtown such as The District on the Southbank and Jaguars owner Shad Khan's vision for development at the sports complex.
VyStar also considered the BB&T Tower in downtown but decided for various reasons that building didn't work for the credit union's headquarters. VyStar didn't bid in the online auction that saw Ash Properties of Jacksonville submit the winning bid.
Wolfburg said the SunTrust Tower, featuring windows overlooking the St. Johns River and blocks of floor space suitable for moving in a large group of employees, fit the bill. He declined to disclose the purchase price.
He said that even as VyStar expands its market its home base will remain Northeast Florida, so VyStar needs the region to thrive. Downtown defines the region "even though we have so many other great areas and so much else going on."
"So our commitment to downtown is putting our money where our mouth is," he said. "We're taking a stake in downtown."
David Bauerlein: (904) 359-4581
