News Summary
Savlan Capital has successfully purchased seven office and flex buildings in South Jacksonville for $52 million. The acquisition was financed through five mortgages and highlights Savlan’s strategic move in a market recovering from pandemic-related vacancies. With notable tenants already in place, Savlan plans to address occupancy challenges and convert some properties into medical office spaces, leveraging their expertise in medical center facilities.
South Jacksonville – Savlan Capital has officially acquired seven office and flex buildings for $52 million on August 8, 2023. The properties are situated in the Lakeside and Flagler Center business parks within South Jacksonville.
This transaction was fully financed, as detailed in property records, where Savlan Capital leveraged five mortgages totaling $52 million from Chicago-based Obra Capital. The seller, TD Bank, had previously obtained these properties through foreclosure in 2024, holding a lien of $86.77 million.
The acquisition was structured through four limited liability companies (LLCs) registered at Savlan’s headquarters in Hollywood, Florida. These include LFC DMS Property LLC with a 35.92% interest, Savlan Flagler Center LLC at 30%, DMS Jax Property LLC holding 24.34%, and LFC Tammuz Property LLC with 9.74% interest. The transaction took only 30 days from the signed contract to closing, showcasing the efficiency of the deal.
Property Details
The seven buildings included in this portfolio offer a combined total of over 765,000 square feet of space, with the following specifications:
- Lakeside I: 112,314 sq. ft., four stories, built in 2007
- Lakeside II: 112,306 sq. ft., four stories, constructed in 2005
- Lakeside V: 140,952 sq. ft., five stories, developed in 2008
- Flagler 100: 106,439 sq. ft., single-story flex building, built in 1997
- Flagler 200: 61,837 sq. ft., single-story flex facility, constructed in 1997
- Flagler 300: 134,159 sq. ft., two-story flex building, built in 1998
- Flagler 400: 97,183 sq. ft., two-story flex building, built in 1999
Occupancy Status and Future Plans
As of now, the portfolio is 57.2% occupied, with some challenges arising from vacancies that occurred during the COVID-19 pandemic. Savlan Capital has plans to tackle these vacancies promptly and has stated that they are fully capitalized for future acquisitions.
The current tenants in these buildings include notable firms such as HTS Logistics, Kimley-Horn, Ernst & Young, Pulte Homes, Siemens Mobility, United Healthcare Service, and Total Quality Logistics. Savlan Capital has also expressed intentions to convert portions of the newly acquired properties into medical office spaces, utilizing their expertise in medical center facilities.
Background Context
These properties were previously part of a $136 million acquisition by Farallon Capital Management LLC in 2018. In 2020, two separate office buildings from this portfolio were sold to Ally Financial for $49 million. However, difficulties arose when TD Bank ceased receiving mortgage payments in 2023, leading to the foreclosure that set the stage for this acquisition.
This transaction is represented by JLL’s Robbie McEwan and Hunter Smith, who acted on behalf of both the buyer and the seller during the deal.
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Additional Resources
- Jax Daily Record: Savlan Capital Acquired South Jacksonville Building
- Wikipedia: South Jacksonville
- Rebusiness Online: Savlan Capital Purchases Office Flex Portfolio
- Google Search: Savlan Capital Jacksonville
- Connect CRE: Savlan Spends $52M on 7 Jax Warehouses
- Google Scholar: Savlan Capital
- Jax Daily Record: Savlan Capital Buys Lakeside Flagler Center
- Encyclopedia Britannica: Real Estate
- Jacksonville.com: Savlan Capital Purchases Charter Landing
- Google News: Jacksonville Real Estate
Author: STAFF HERE JACKSONVILLE WRITER
The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
