Savlan Capital has acquired a seven-building, approximately 765,190 square-foot Class A commercial portfolio in Jacksonville, Florida, for $52 million from a financial institution. The collection of office and flex buildings is located in the Lakeside and Flagler Center business parks. The transaction, from signed contract to closing, was executed in just 30 days, according to a news release.
The portfolio includes Lakeside I, Lakeside II, and Lakeside V in Lakeside Center, and Flagler 100, Flagler 200, Flagler 300, and Flagler 400 in Flagler Center. The buildings, constructed between 1997 and 2008, range from single-story flex facilities to five-story office towers. Notable tenants include HTS Logistics’ corporate headquarters, Kimley-Horn, Ernst & Young (EY), Pulte Home Company, Siemens Mobility, United Healthcare Service, and Total Quality Logistics.
The portfolio has battled COVID-era vacancies and is currently 57.2 percent occupied. Savlan Capital is well-positioned to address the availabilities, with founder and CEO Zusha Tenenbaum stating, “We are fully capitalized and ready to do deals. We have allocated significant reserves for future TI packages and upgrades and are willing to execute creative, tenant-driven leases.”
Savlan Capital has retained the CBRE team of Oliver Barakat, Billy Kuntz, and IV Stucker to market the portfolio. This team has extensive leasing experience in the immediate market, including Quadrant I & II, Gran Park at the Avenues, 6651 Gate Parkway, and Gramercy Woods. NAI Hallmark will manage the buildings.
“This acquisition stands out as one of Jacksonville’s rare office transactions over the past year,” said Kuntz, First Vice President with CBRE. “This portfolio is driven by investment, which in turn is signaling a strong vote of confidence in the Northeast Florida office market.”
The buildings are situated on 71.5 acres within two adjacent business parks – Flagler Center and Lakeside Center – just north of the Duval-St. Johns County border. This location offers access to both the dynamic Jacksonville market and St. Johns County’s highly-educated workforce. The St. Johns County School district ranks second in Florida’s academic accountability reporting and is one of only two districts in the state to receive an “A” grade every year since reporting began in 2004. This has attracted new residents and driven the construction of more than 5,000 new multifamily units in the market over the past five years.
The buildings are also proximate to Nocatee, one of the most successful and fastest-growing master-planned communities in the Southeast, as well as the recently-expanded Baptist Medical Center South and the newly-constructed Brooks Rehabilitation Hospital. Savlan Capital’s existing national portfolio includes 22 medical centers, and the new owner plans to capitalize on that experience by converting portions of the newly acquired buildings into medical offices, tapping into demand from health care users that prefer proximity to major hospitals.
“This portfolio presents a unique opportunity for businesses seeking a well-connected and competitive office solution in a burgeoning part of town,” said Barakat, Senior Vice President at CBRE. “We are excited to work with Savlan Capital to attract both general office and medical office users to this revitalized project.”
“This location – combined with nearby amenities, demographics, and our expertise – positions this property for significant upside,” added Tenenbaum. “With our proven track record of transforming good assets into great ones, this should be another success story in the making.”
Savlan Capital is a fully integrated real estate investment company with over 20 years of experience. For more information, visit www.savlancapital.com.
