Icehouse

Investment Overview

The Palafox Icehouse offers a rare opportunity to acquire a stabilized, waterfront asset in the heart of Downtown Pensacola at a 5.88% cap rate, backed by long-term, credit-quality tenancy and irreplaceable Palafox Street frontage. The three-story iconic building is 100% leased to Merrill Lynch, a tenant since 2001, and Rafferty, Domnick, Cunningham & Yaffa, which recently executed a new five-year lease in 2024. Investors benefit from immediate cash flow with built-in upside through future rent growth or strategic repositioning. Located within a supply-constrained, high-growth coastal market surrounded by dining, retail, residential, and waterfront amenities, the asset offers durable income today and long-term appreciation potential.

Investment Highlights

• Prime Waterfront Location in the heart of Downtown Pensacola’s entertainment and business district with irreplaceable views.
• Iconic Palafox Street Frontage along the city’s most desirable commercial corridor, surrounded by dining, retail, and residential development.
• Stabilized, Income-Producing Asset — 100% leased to two long-term professional tenants; Merrill Lynch (12,255 RSF) — tenant since 2001 and Rafferty, Domnick, Cunningham & Yaffa (6,739 RSF) — new 5-year lease executed in 2024
• Attractive In-Place Yield — Offered at a 5.88% cap rate with stable downtown office income.
• Limited Downtown Office Supply supports long-term occupancy and rental stability.
• Historic, Character-Rich Building — Three-story Class "A" office building enhances market appeal and tenant retention.
• Walkable Waterfront Environment with immediate access to marina, festivals, restaurants, and hospitality.
• Located in a Growing Coastal Market benefiting from population growth and continued downtown revitalization.
• Rent Roll maintained almost 100% occupancy since building completed in 1999.