Savlan Capital Invests $52M in Jacksonville Office and Flex Portfolio

Savlan Capital has made a significant investment in the Jacksonville commercial real estate market with the acquisition of a seven-building, ±765,190 square-foot portfolio for $52 million. The portfolio, located in the Lakeside and Flagler Center business parks, includes Class A office and flex buildings that are currently 57.2 percent occupied. This move by Savlan Capital is seen as a strong vote of confidence in the Northeast Florida office market, especially in a time when the sector has faced challenges due to the COVID-19 pandemic.

The transaction was facilitated by the JLL team of Robbie McEwan and Hunter Smith, with Savlan Capital representing itself. Remarkably, the deal was closed within just 30 days from the signing of the contract. The portfolio comprises 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 built between 1997 and 2008.

High-profile tenants such as HTS Logistics, Kimley-Horn, Ernst & Young (EY), and Siemens Mobility currently occupy spaces within the portfolio. Savlan Capital has expressed its readiness to address the current vacancies aggressively, with founder and CEO Zusha Tenenbaum stating, "We are fully capitalized and ready to do deals." The company has allocated significant reserves for tenant improvement packages and upgrades, aiming to attract a diverse range of tenants through creative leasing strategies.

CBRE's team, including Oliver Barakat, Billy Kuntz, and IV Stucker, has been retained to market the portfolio. Their expertise in the Jacksonville market is expected to play a crucial role in filling the vacancies and attracting both general office and medical office users. The buildings' proximity to major amenities, including the Nocatee master-planned community and Baptist Medical Center South, adds to their appeal.

Savlan Capital's plans to convert portions of the buildings into medical offices leverage its experience with 22 medical centers in its national portfolio. This strategy taps into the growing demand for healthcare-related office spaces near major hospitals. The St. Johns County School district's high rankings and the area's rapid residential growth further enhance the portfolio's potential for success.

This acquisition not only highlights Savlan Capital's aggressive investment strategy but also underscores the potential of the Jacksonville office market to rebound and thrive post-pandemic. With a focus on revitalization and strategic leasing, Savlan Capital is poised to transform this portfolio into a cornerstone of the Northeast Florida commercial real estate landscape.