JACKSONVILLE, Fla. – In the middle of a rapidly transforming Southbank skyline, one of Jacksonville’s most strategically positioned medical properties is now up for grabs — and whoever buys it could help shape how health care is delivered in Northeast Florida for decades.
Southbank Medical Pavilion, a 22-story outpatient tower at 841 Prudential Drive, has been listed for sale in what brokers describe as a rare opportunity: nearly 8 acres directly adjacent to Baptist Medical Center’s Southbank campus, including the last two remaining development parcels next to the hospital.
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The 7.9-acre site includes a 493,000-square-foot tower focused on medical users, a 1,024-space parking garage and two outparcels that could support future outpatient or inpatient health care, senior living, apartments, or a hotel.
“It is extremely uncommon for a property next to a major hospital campus to be independently owned and brought to market,” said Steve Leathers, senior managing director at Transwestern Real Estate Services, who listed the property. “In most markets, health systems control adjacent real estate through ownership, development restrictions or long-term ground leases to support their own future growth and care delivery.”
A pivotal moment for the Southbank
The listing comes as Jacksonville continues to grow — with the broader region approaching 1.8 million residents — and as the Southbank experiences a wave of investment.
The Related Group’s $150 million South Bank Residences project is in permit review. Baptist Health has proposed a 15-story, 226-room, $110 million hotel on its campus and is advancing a roughly $187 million emergency and patient care tower project on the Southbank. Together, the projects are reinforcing the area as a major medical and mixed-use destination.
Leathers said ownership of the pavilion could significantly influence how that district evolves.
“When an asset sits this close to a hospital’s core operations, ownership is less about the leased space in the building and more about long-term strategic advantages and community benefit,” Leathers said. “These decisions tend to shape how well a campus functions for decades.”
Southbank Medical Pavilion houses a mix of outpatient medical uses and physician practices and is 94% leased. Since acquiring the property, the current ownership group — backed by a private equity firm — completed more than 68,000 square feet of clinical conversions. The sellers are now seeking to transition the property to a new owner to guide its next phase.
“They are at the end of their life cycle, to where they feel their investors are ready to transition ownership to a new path,” Leathers said. “That will probably focus on a similar mission but may also look to develop with the fact that this property is uniquely situated and really capitalize on some of the growth and the medical community as well.”
Last room to grow next door
The site’s scale — and its proximity — are central to its appeal.
“Certainly, having 8 acres adjacent to a massive medical center, where more and more care is being provided outside of the hospital, is unique,” Leathers said. “If someone comes in, they will truly own the land, the parking and the surrounding area, and can bring more care to the community to expand outpatient services, which is certainly a trend we see regularly around the country — and here in Jacksonville as well.”
Industry analysts have labeled that national trend “reverse monetization,” as hospitals increasingly reacquire outpatient buildings they previously sold. According to health care real estate research firms RevistaMed and Healthcare Real Estate Insights, health systems accounted for nearly 23% of all medical office building acquisitions in the first half of 2025 — the highest share on record.
That shift reflects growing emphasis on campus control, integration of outpatient services and long-term planning flexibility.
Baptist Health is currently a tenant in the building. Control of adjacent real estate — whether through acquisition or partnership with a future owner — could influence future service expansion.
“To have the ability to control a site or work with future ownership of the site is really important,” Leathers said. “Because more and more services are likely to be here in Jacksonville, proximate to where physicians can utilize the space and coordinate care with the medical center next door.”
At the same time, the property’s independent ownership means a future buyer could lease to a variety of medical users.
“The owner of this has the ability to lease to a number of users around town,” Leathers said. “It seems the best use is medical, but that can certainly change over time. That’s why we see this as a unique opportunity. It only comes out once in a long time.”
Growth, demographics, and timing
Jacksonville’s population growth — particularly among residents over 65 — is expected to increase demand for outpatient and specialty services. Florida health systems have recently pursued on- and near-campus acquisitions to support long-term expansion strategies, mirroring national trends.
Leathers said current construction costs also make existing assets attractive.
“Right now it’s expensive to build new buildings,” he said. “So this opportunity provides the ability for an investor or a provider to acquire a property below its replacement cost and certainly create a nice future for the community.”
For Jacksonville’s Southbank, however, the transaction could mark a turning point. With the last major parcels next to the hospital campus now on the market, the decision about who ultimately controls the site may help determine how the city’s medical corridor grows — and how care is delivered — for years to come.