Another delay for East San Marco project

[thelakelander]

East San Marco has stalled again, but maybe not for long. That means residents waiting for the Publix grocery will need to exercise more patience.

The Daily Record reports that Publix agreed more than a decade ago to anchor the corner of Hendricks Avenue and Atlantic Boulevard, which most recently planned for a more than $60 million project to include retail space and 266 apartment and townhouse units.

Developer ArchCo Residential LLC terminated its involvement just before the scheduled March 6 closing to buy the property from Regency Centers Corp.

ArchCo's group intended to buy the land, develop the project and sell the retail space to Regency Centers, which is a national shopping center owner.

Jacksonville-based Regency Centers intends to continue the project without ArchCo and its development partner, but details are being worked out, said spokesman Eric Davidson.

The site is at 1532 Atlantic Blvd.

"The project is still moving forward but not with ArchCo and Bluerock. We are still committed to the project," Davidson said Thursday.

Publix still is onboard.

Full article: http://www.news4jax.com/news/local/jacksonville/another-delay-for-east-san-marco

[Tacachale]

[ProjectMaximus]

Wonderful. At what point do we look at making this parkspace in the interim? Seeing as how everything around it is being developed. I'm excited to see the Baptist Convention lot move forward.

[FlaBoy]

Wonderful. At what point do we look at making this parkspace in the interim? Seeing as how everything around it is being developed. I'm excited to see the Baptist Convention lot move forward.

Maybe allow them to use a portion of it as parking in order to incentivize a possible green space use?

[remc86007]

I feel bad for the people that bought houses (or commercial buildings) around there assuming this was going to be built. I would have bet it would have started by now just based on the economic conditions surrounding it and the success of Brooklyn. What are the chances that further delay will result in a larger scale (taller) development? I'm guessing not good.

[Steve]

I feel bad for the people that bought houses (or commercial buildings) around there assuming this was going to be built. I would have bet it would have started by now just based on the economic conditions surrounding it and the success of Brooklyn. What are the chances that further delay will result in a larger scale (taller) development? I'm guessing not good.

Materially larger seems unlikely. I think the biggest challenge is what Regency paid for the property....they need to get their money out of it and a single Publix isn't going to do it.

To that point, unless they just want to throw away money I can't seem the scaling it back either.

[remc86007]

Perhaps if the other projects on the southbank do well and lease out quickly, banks will be willing to lend more and a few floors can be tacked on to get more money out of it.

[JBTripper]

Perhaps if the other projects on the southbank do well and lease out quickly, banks will be willing to lend more and a few floors can be tacked on to get more money out of it.

More floors? Won't somebody think of the TRAFFIC!? /s

[FlaBoy]

That's why you have a walkable environment with a Publix and restaurants everywhere within a half mile.

[JBTripper]

That's why you have a walkable environment with a Publix and restaurants everywhere within a half mile.

/s denotes sarcasm

If the developer does attempt to add units in order to make this project more feasible, rest assured there will be cries of "TRAFFIC! We don't want to be ATLANTA!"

[FlaBoy]

That's why you have a walkable environment with a Publix and restaurants everywhere within a half mile.

/s denotes sarcasm

If the developer does attempt to add units in order to make this project more feasible, rest assured there will be cries of "TRAFFIC! We don't want to be ATLANTA!"

There are always going to be a loud NIMBY minority, but I think most in the area would agree that the vacant lot has become an eyesore for a decade and development would significantly improve the area. They would also want to make sure the garage increases with the units because even more of a rallying cry than "TRAFFIC" is "PARKING!!!"

[Transman]

The numbers aren't going to work unless they let the building go higher, the land costs are too high.
They bought at the top before the last bust.  I know a developer from Atlanta that looked at it but couldn't make it work.

If they stairstep the building back and go taller it will work, but I don't think the San Marco folks will go for that, so more years looking at the lot.

[FlaBoy]

The numbers aren't going to work unless they let the building go higher, the land costs are too high.
They bought at the top before the last bust.  I know a developer from Atlanta that looked at it but couldn't make it work.

If they stairstep the building back and go taller it will work, but I don't think the San Marco folks will go for that, so more years looking at the lot.

How high/units did your friend say they needed to make it work?

[MusicMan]

Well, 'be patient' is such a nice phrase. I'm pretty sure, eventually, a plan will surface that guarantees "the developer" a (profitable) way out.

This hypothesis is based on the "First Law of Florida Real Estate: Developers always get everything they want."

(In this case a much taller building.)

Followed closely by the "Second Law of Florida Real estate: Developers never lose money. Even when they make bad decisions, cannot execute a plan, and must wait no less than 10 years while trying to figure it all out. Because, they ...never lose money." 

[Captain Zissou]

^If that's the case, why don't you try your hand at development?  Sounds like you can't lose.