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Harrison Lilly Team

Owner/Operator | Harrison Lilly Emerald Coast | Harrison Lilly Realty | PLACE

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815 S Palafox St , Pensacola, FL 32502
$9,700,000
Est. Payment: $53,591.10/mo
21720 Sqft
0.37 Acres
Status: Active | Days on site: 257
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BNTA - B11308,B1394
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Harrison Lilly Team
Owner/Operator

House Description

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. 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.

Highlights

Listed by Tammy R Huston , 850-960-3624 and Patrick E Jones , 850-814-5878 NAI TALCOR , 850-249-2879. Bay County Association of REALTORS

Property Type

Commercial Sale

Lot/Acreage
0.37

Year Built

1999

County

Escambia

Area

13 - Escambia County

Neighborhood

No Named Subdivision

Listing ID

780409

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Interior Features

Exterior Features

Principal Interest
$53,591
Taxes
$6,184

Home Price

$9,700,000

Loan Details

30 yrs
7.374%

Down Payment

20%
$1,940,000
All calculations are estimates and provided by Blueroof360. Today’s Rates provided by Blueroof360. Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
Monthly Price:
$53,591.10

Principal

Taxes

Principal Taxes HOA Total
Monthly $53,591.10 $6,183.75 $0.00 $59,774.85
Yearly $643,093.23 $74,205.00 $0.00 $717,298.23
Total $19,292,797.02 $2,226,150.00 $0.00 $21,518,947.02

Today's Rates

30 Year

7.37%

20 Year

7.27%

15 Year

6.8%

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Market insight data is pulled from the same city as the listing being viewed (Pensacola, FL).

The schools listed are within a 2-mile radius of the property; however, attendance is not guaranteed. Please contact the local school district to confirm zoning and enrollment options.

Information provided by Bay County Association of REALTORS, and is deemed reliable but not guaranteed accurate.

IDX service by Blueroof 360

Data last updated: 2026-10-07T08:26:25.000Z

© 2026 Bay County Association of REALTORS