Real estate finance advisory firm Arrow Real Estate Advisors has arranged $52 million in acquisition financing on behalf of Savlan Capital for the purchase of the Lakeside & Flagler Center Business Park, a Class A, seven-building office and flex warehouse portfolio totaling 765,190 square feet in Jacksonville, Fla. Obra Real Estate provided the financing. The financing was arranged by Arrow’s Founder and Managing Partner Morris Betesh, Senior Vice President Alex Bailkin, Senior Associate Matt O’Hanlon and Analyst Andrew Rosenberg.
“We are seeing tremendous opportunities in the office sector for opportunistic Sponsors that are purchasing assets at a reset basis,” Betesh said. “This was a rare opportunity for the sponsor to acquire a newer vintage portfolio of Class A office and flex properties at a significant discount to replacement cost. Arrow was able to source accretive, flexible financing in an expedited 30-day timeframe, allowing sponsorship to quickly secure the asset while at the same time providing significant leasing capital in support of ownership’s aggressive repositioning strategy.”
Located at 12735 Gran Bay Parkway West, the business park is comprised of four flex office properties, totaling approximately 400,000 square feet, and three traditional office properties, totaling approximately 365,000 square feet. The property, acquired from a financial institution at an attractive basis, is nearly 60% occupied, and features a diverse mix of high-profile tenants including HTS Logistics’ corporate headquarters, Ernst & Young, Kimley-Horn, United Healthcare Service and Siemens Mobility.
Savlan Capital plans to capitalize on the portfolio’s strong fundamentals, allocating significant reserves for tenant improvement packages and upgrades, with a focus on executing creative, tenant-driven leases to bring occupancy to market-leading levels.
