Mixed-use project proposed for Ambassador Hotel block

[thelakelander]

Already moving forward with the redevelopment of the long abandoned Ambassador Hotel and Independent Life Buildings, Augustine Development Group is now poised to bring a mixed-use multifamily project to Downtown Jacksonville.

Read More: https://www.thejaxsonmag.com/article/mixed-use-project-proposed-for-ambassador-hotel-block/

[marcuscnelson]

Wow, crazy how fast people start responding to any indication at all of the city giving a damn about downtown.

The new building seems just a little uninspired to me, and that big blank wall viewed from Julia St is screaming for a mural or something. Infill is infill, of course, but I can't help but feel like we could do a little better.

[Steve]

Wow, crazy how fast people start responding to any indication at all of the city giving a damn about downtown.

The new building seems just a little uninspired to me, and that big blank wall viewed from Julia St is screaming for a mural or something. Infill is infill, of course, but I can't help but feel like we could do a little better.

Agreed. I think this project is "okay".

- I like the reuse of the Marine National Bank building, so that's nice.
- While perhaps 1st floor residential that opens in is considered "activated" street front (not sure the law), in spirit it definitely is not in my eyes.
- They are also using the Ambassador frontage as "active" space, yet that project isn't up for review here.
- That combined with the lack of activity on the garage isn't great, means that 75% of the block is uninspiring.

[thelakelander]

I'm fine with it at this point. I rather see the retail of the various developments clustered together as opposed to spread out at random locations of each site. The retail is pushed to Julia in the Marine National Bank, the Ambassador and the Independent Life Building. If we zoom out a bit, this also aligns with the clustering of retail along Julia with the JEA headquarters and the redevelopment of the Porter House block. By the same token, if we zoom out and look at the surrounding area, Pearl is more of a service street. What's happening here is something the DIA should have attempted on a much larger level through the core of downtown. Identifying retail vs service corridors.

[Ken_FSU]

Great project, and big props to the DIA for pushing through the legislation to uncap the Historic Preservation Trust.

Different use cases and objectives obviously, but it will be interesting to see how much public subsidy goes into what's essentially Augustine Development Group's version of Lot J in the true urban core:

~400 residential units (vs. 400 at Lot J)
~127 hotel rooms (vs. 150-200 at Lot J)
~500 structured parking spots (vs. 700 at Lot J)
~35,000 sf of retail (vs. 175,000 at Lot J)

[bl8jaxnative]

it will be interesting to see how much public subsidy goes into what's essentially Augustine Development Group's version of Lot J

That's an interesting and excellent comparison.

[Steve]

I'm fine with it at this point. I rather see the retail of the various developments clustered together as opposed to spread out at random locations of each site. The retail is pushed to Julia in the Marine National Bank, the Ambassador and the Independent Life Building. If we zoom out a bit, this also aligns with the clustering of retail along Julia with the JEA headquarters and the redevelopment of the Porter House block. By the same token, if we zoom out and look at the surrounding area, Pearl is more of a service street. What's happening here is something the DIA should have attempted on a much larger level through the core of downtown. Identifying retail vs service corridors.

You bring up fair points. Julia has the dead block of the State Attorney Office and the back of the Federal Courthouse. But the rest of the nearby blocks are good.

I get that you need "service" blocks - just would have liked to see SOMETHING more on Pearl. Residents is good though

[thelakelander]

^It (the ground floor of the State Attorney Office) could be something. It used to be the downtown post office. Now it's just empty shell space:



If security concerns could be overcome by design, it would be a great spot for something like a museum or restaurant, considering its publicly owned and already dried in.

[Steve]

^Forgot about that space....good point. That actually would be a good spot for something. To you point, plumb in Restrooms and make a completely separate entrance where you couldn't pass into the rest of the building.

[thelakelander]

Great project, and big props to the DIA for pushing through the legislation to uncap the Historic Preservation Trust.

Different use cases and objectives obviously, but it will be interesting to see how much public subsidy goes into what's essentially Augustine Development Group's version of Lot J in the true urban core:

~400 residential units (vs. 400 at Lot J)
~127 hotel rooms (vs. 150-200 at Lot J)
~500 structured parking spots (vs. 700 at Lot J)
~35,000 sf of retail (vs. 175,000 at Lot J)

^I'd add these to the mix as well. All combined likely take up about the same or less amount of land than Lot J:

Porter House block - TBD
Florida Baptist Convention Building - 24 apartments, xx sf of retail/dining
Old Federal Reserve Building - 9,000 sf restaurant/office/event space
Jones Brothers Furniture Company - 28 apartments, 10,000 sf of retail
Old FBC/Gulf Life buildings on Hogan (Jim and Ellen Wiss) - 200 apartments, ?? sf of retail
JEA Headquarters - 153,000 sf office, 10,690 sf retail, 650 structured parking spots

[Ken_FSU]

https://www.jaxdailyrecord.com/article/ambassador-hotel-developer-asks-dia-for-more-time-to-secure-financing

Looks like the flag has switched from La Quinta to TRYP by Wyndham.

Also interesting that so many other projects were granted extensions by the DIA during COVID via force majeure (the District, Jones Bros, etc.), but this one was denied.

Hope they secure financing by end of month, but man, four weeks ain't a lot of time to get shovels in the ground after that. 

[thelakelander]

I hope they can break ground by July 31st. That date will be here pretty quick.

[CityLife]

From the article:

"Her letter said information provided by AXIS Hotel to the DIA show it was underwriting requirements from various lenders that caused the delays, not an inability to obtain financing due to the pandemic.

'This is especially evident by the number of lenders that have gone through the underwriting process and then declined to finance the project as opposed to simply refusing to lend based on the pandemic,' Boyer wrote. "

This is the first I've heard of anyone having a hard time securing financing in recent years.  Sounds like the development group doesn't have their act together or the numbers just don't work for the project.

[Charles Hunter]

The effect of COVID on travel and the hospitality industry appears to have something to do with it:

In a March 10 letter to the DIA, an attorney for AXIS Hotels said a [b[tax credit investor it secured to provide project financing notified the company on March 23, 2020, it was "indefinitely suspending" investments in hospitality projects due to the coronavirus pandemic[/b] and related lockdown orders.

Although, that was early in the pandemic.  The article doesn't quote any more recent correspondence from potential lenders.

[CityLife]

The effect of COVID on travel and the hospitality industry appears to have something to do with it:

In a March 10 letter to the DIA, an attorney for AXIS Hotels said a [b[tax credit investor it secured to provide project financing notified the company on March 23, 2020, it was "indefinitely suspending" investments in hospitality projects due to the coronavirus pandemic[/b] and related lockdown orders.

Although, that was early in the pandemic.  The article doesn't quote any more recent correspondence from potential lenders.

One initial investor backed out one year and three months ago. We don't even know what percentage of the project they were financing.  They've had plenty of time to secure additional financing during that period and there is no shortage of money being thrown around these days, even for hospitality. I know a mid-sized hospitality group in Florida that is still actively pursuing deals the same way they did pre-covid and mixed-use projects that are still moving forward with the hotel component unchanged.

This is one area the DIA may be strong in. Their Director of Real Estate's bio says "With nearly thirty years in the banking industry, starting with Barnett Bank in 1991 and continuing through TIAA Bank in 2020, Steve brings significant experience in underwriting debt and equity to meet the mutual needs of investors and lenders, principally related to commercial real estate.

In recent years, Steve's roles with two regional banks focused primarily on leading economic development efforts and providing capital for affordable housing developments leveraging federal tax credits and other programs across the state of Florida and the Southeast Region."

I would imagine he and Boyer are able to determine when there are legitimate issues with a groups ability to pull a deal off.