Savlan Capital, a prominent industrial park investor based in Hollywood, has finalized a significant acquisition, purchasing seven warehouses in Jacksonville for $52 million. This strategic move aims to bolster Savlan’s presence in the Jacksonville market and leverage its expertise in managing and leasing industrial properties.
Key Takeaways
- Savlan Capital acquired seven warehouses totaling over 765,000 square feet for $52 million.
- The portfolio is located on 71 acres across Lakeside Center and Flagler Center.
- The acquisition includes two medical facilities: Baptist Medical Center South and Brooks Rehabilitation Hospital.
- Savlan Capital plans to convert portions of the acquired properties into medical offices.
- The current vacancy rate for the acquired properties stands at 57.2%.
- JLL represented both the buyer and the seller in the transaction.
- NAI Hallmark will be responsible for the management of the newly acquired buildings.
Strategic Expansion in Jacksonville
The seven warehouse buildings, constructed between 1997 and 2007, are situated on a combined 71 acres within Jacksonville’s Lakeside Center and Flagler Center. This acquisition represents a substantial expansion for Savlan Capital, which already boasts a national portfolio of 22 medical centers. The company intends to implement an aggressive leasing strategy to improve the occupancy rate of these newly acquired assets.
Focus on Medical Office Conversion
A notable aspect of this deal is Savlan Capital’s intention to convert parts of the acquired warehouses into medical offices. This strategy aligns with the company’s existing experience in the healthcare real estate sector. The proximity of the new portfolio to major hospitals is seen as a key advantage, potentially attracting medical tenants and capitalizing on the growing demand for healthcare facilities in the area.
Transaction Details
JLL played a crucial role in facilitating this transaction, with brokers Robbie McEwan and Hunter Smith representing both Savlan Capital and the seller. Following the acquisition, NAI Hallmark has been appointed to manage the day-to-day operations of the seven-warehouse portfolio.