Savlan Capital's $52M Jacksonville Acquisition Signals Confidence in Northeast Florida Office Market

Savlan Capital has made a significant investment in the Northeast Florida office market with the acquisition of a seven-building, approximately 765,190 square-foot, Class A commercial portfolio in Jacksonville for $52 million. The portfolio, located in the Lakeside and Flagler Center business parks, was purchased from a financial institution, marking one of Jacksonville's rare office transactions over the past year. The JLL team of Robbie McEwan and Hunter Smith represented the buyer, while Savlan Capital represented itself in the acquisition, which was completed in just 30 days from signed contract to closing.

The portfolio includes Lakeside I, II, and V in Lakeside Center, and Flagler 100, 200, 300, and 400 in Flagler Center, offering a mix of office and flex spaces. Despite COVID-era vacancies leaving the portfolio 57.2 percent occupied, Savlan Capital is poised to address these vacancies promptly, with plans to allocate significant reserves for tenant improvement packages and upgrades. The company's strategy includes converting portions of the buildings into medical offices, leveraging its experience with 22 medical centers in its national portfolio and the proximity to major healthcare facilities like Baptist Medical Center South and Brooks Rehabilitation Hospital.

The location of the portfolio, situated on 71.5 acres within two adjacent business parks, offers access to Jacksonville's dynamic market and St. Johns County's highly-educated workforce. The area's strong educational system, including the St. Johns County School district, which ranks second in Florida's academic accountability reporting, has attracted new residents and spurred the construction of over 5,000 new multifamily units in the past five years. This demographic trend, combined with nearby amenities and Savlan Capital's expertise, positions the property for significant upside.

CBRE's team of Oliver Barakat, Billy Kuntz, and IV Stucker has been retained to market the portfolio, bringing extensive leasing experience in the immediate market. The acquisition is seen as a strong vote of confidence in the Northeast Florida office market, with Savlan Capital eager to transform the portfolio into a success story, much like its previous investments in sustainable business parks and medical offices across the United States.