Overview
Lillian Square & Jackson Street present a 115-unit, two-property multifamily portfolio in Pensacola, Florida offering immediate in-place yield with a clear, scalable value-add component. Built between 1966–1971 and averaging 752 SF per unit, the assets are currently 88.7% occupied with average in-place rents of $1,035 and asking rents of $1,081, providing both operational stability and near-term loss-to-lease capture. Classic interiors create a defined renovation runway, where targeted upgrades to finishes, appliances, and fixtures can drive meaningful rent premiums in line with nearby communities achieving $150–$300 higher rents. The offering allows investors to acquire durable workforce housing at an attractive basis while implementing a proven interior enhancement strategy to unlock organic NOI growth.
The portfolio benefits from Pensacola’s resilient, defense-anchored economy and limited new supply environment. Located within minutes of Naval Air Station Pensacola and near Navy Federal Credit Union’s $1 billion campus supporting 8,500+ jobs (projected to exceed 10,000), the properties draw consistent renter demand from military, healthcare, education, and corporate employment bases. The broader region is supported by over $7.8 billion in annual defense economic impact, 80,000+ defense-related jobs, and less than 400 units of new multifamily supply expected over the next two years, reinforcing occupancy durability and long-term rent growth potential. Combined with Pensacola’s strong lifestyle appeal and sustained population inflows, Lillian Square & Jackson Street offer investors a compelling blend of current cash flow and dependable upside within one of Northwest Florida’s most stable rental markets.
Investment Highlights
Value-Add Opportunity With Clear Upside – Both Lillian Square and Jackson Street feature classic units with dated finishes offering investors a scalable 115-unit portfolio with a defined renovation runway. New ownership can implement a strategic interior upgrade program by resurfacing countertops, modernizing backsplashes, updating appliances, new cabinet fronts and hardware, and updating lighting fixtures to significantly improve appeal and drive long-term revenue growth.
Loss-To-Lease Upside With Proven Rent Premiums At Comparable Properties – Current in-place rents at Lillian Square and Jackson Street average $1,035, trailing recent leases at $1,060 and asking rents of $1,081 represent an immediate opportunity to capture revenue through renewals and natural lease turnover. Additionally, comparable rental communities in the submarket are achieving rent premiums of $150 to $300, highlighting the rent growth potential through targeted interior upgrades.
Supply-Constrained Market Supports Long-Term Growth – With less than 400 units expected to deliver in Pensacola over the next 24 months, both assets are well positioned to benefit from constrained new supply and sustained renter demand. The limited development pipeline enhances pricing power and supports durable occupancy.
Consistent Rent Growth And Market-Stabilizing Occupancy – The Pensacola market has exhibited strong rental performance, with cumulative rent growth exceeding 17% since 2021 and sustained occupancy levels above 90%. This combination of rising rents and historically stable demand underscores the market’s resilience and supports long-term income durability.
Elevated Home Prices Reinforce Rental Retention – Pensacola’s average home prices have surged more than 117% since 2016, significantly outpacing both regional and national growth rates. With elevated entry-level pricing and high mortgage costs limiting homeownership access, a growing share of residents remain in the rental pool, supporting long-term renter retention and income stability
Photo Gallery
