Berkman II Property Sold to Choate

[acme54321]

https://www.jaxdailyrecord.com/news/2024/jul/15/berkman-ii-property-sold-at-auction-to-third-party-bidder/

[heights unknown]

So what are they, or he going to do with the Berkmann II property? Sit on it? Do nothing with it? Keep it undeveloped in hopes that someone buys it, making them rich?

[Jax_Developer]

Sit on it until the jail moves. Wait for everything to happen around it. Then re-appraise the land and roll that into your stack. It could realistically be worth $15M+ in 5-10 years. All depends on a lot of if's though. Waiting for a higher-end market to materialize is the goal here.

[heights unknown]

Sit on it until the jail moves. Wait for everything to happen around it. Then re-appraise the land and roll that into your stack. It could realistically be worth $15M+ in 5-10 years. All depends on a lot of if's though. Waiting for a higher-end market to materialize is the goal here.

Aerosmith, 1972 song I believe called, "DREAM ON" (dream until your dreams comes true and through). With Jax, that might be never. I'll be dead, and most of you will be old and rickety in 10 to 15 years.

[Jax_Developer]

Yup they will either look smart or we will see this for sale again sometime in the next 5 years. There's a lot of headaches with these properties downtown, so you need someone that really knows what they are doing for permits/designs etc. They are going for a homer.

[jaxlongtimer]

It looks to me like the purchase price was based on their unpaid lien on the property and was not strictly related to its market value.  I don't think there were any other bidders.  They basically paid themselves if no one else was willing to bid more.  They obviously believe the land is worth at least this much on a bad day.  Not much downside for them given their history with it to-date.

The biggest risk to this property would appear to be resiliency/flooding.  Anything going on it will need to be elevated at some cost.  Wouldn't be so bad if the City added it to our downtown green spaces along the river  .

[fieldafm]

Yup they will either look smart or we will see this for sale again sometime in the next 5 years. There's a lot of headaches with these properties downtown, so you need someone that really knows what they are doing for permits/designs etc. They are going for a homer.

Not at all, no.

Choate was the GC when the original Berkman II garage collapsed 17 years ago. The property was tied up in various lawsuits over about a 12-year period. Choate is simply protecting the judgement they won from David Berkman so they can recoup all of their unpaid costs all these years later.  How they escaped their OSHA fines or wrongful death liability is puzzling, but the legal system worked in their favor.

If you honestly think that the Sheriff's Office is coming off the existing jail site or police HQ site when either move, then you are sadly mistaken.  JSO does not dispose of properties, nor do they give up any assets or accept lower budgets, insert ____ else here.  The FDLE property a few blocks away is a great example of that. JSO moved out, and it still sits empty and decrepit. This city has very perverse incentives when it comes to publicly-owned properties- particularly downtown.

Unfortunately, Berkman II has had nothing but a sad corral of shysters circling the site even before the first doomed concrete columns were poured... recently including but not limited to the still-very-strange Stewart Family/Brian Hughes connection and perennial loser Park Beeler (who couldn't even drive his own car to his press conferences) that was bailed out by emergency demo orders signed by the former Mayor's office after he came up with some rinky-dink partial demo scheme to save money that he never had to begin with.

[Jax_Developer]

No actually, I don't think the jail will move, nor do I think they will sell off their assets. Just like the city placing a blanket 'easements' across 40+ acres of the Sports District, we aren't capable of addressing the real detriments to DT infill. There's still discourse on if the jail even has negative externalities & there's zero discourse around the parking item (lol).

The fact remains that, they didn't need to purchase this property at auction, nor were they forced. I'm sure there would have been someone there at a sales price with a $3 at the front. 215 N Market (a worse parcel) is likely under contract at near or for more than that amount. They wouldn't be made whole, but they wouldn't be sinking more time & $$ if they didn't have a plan with it beyond what has previously happened. They probably have more than $250k worth of reports/plans alone for that parcel.

Jaxlongtimer is right though. There won't be a high-rise market here for quite some time, which is this parcel's only private market end-use.

[fieldafm]

The fact remains that, they didn't need to purchase this property at auction, nor were they forced. I'm sure there would have been someone there at a sales price with a $3 at the front. 215 N Market (a worse parcel) is likely under contract at near or for more than that amount. They wouldn't be made whole, but they wouldn't be sinking more time & $$ if they didn't have a plan with it beyond what has previously happened. They probably have more than $250k worth of reports/plans alone for that parcel.

That's not how the process works.  Choate was the original GC on the Berkman site. They already held a $5.1MM lien on the property. They didn't pay $5MM cash last week, the property reverted back to them.

215 N Market is not under contract. It already went through an auction process in the 1st quarter of this year with no bidders.

[Jax_Developer]

The fact remains that, they didn't need to purchase this property at auction, nor were they forced. I'm sure there would have been someone there at a sales price with a $3 at the front. 215 N Market (a worse parcel) is likely under contract at near or for more than that amount. They wouldn't be made whole, but they wouldn't be sinking more time & $$ if they didn't have a plan with it beyond what has previously happened. They probably have more than $250k worth of reports/plans alone for that parcel.

That's not how the process works.  Choate was the original GC on the Berkman site. They already held a $5.1MM lien on the property. They didn't pay $5MM cash last week, the property reverted back to them.

215 N Market is not under contract. It already went through an auction process in the 1st quarter of this year with no bidders.

Well, goto the actual foreclosure page. It states it was sold to a third party bidder. If you were correct, it would say "Sold to Plantiff" instead. They placed a bid above their stated amount. You're not proving anything. The fact remains they placed a bid for the property, because they have a 'plan.' The idea that they placed a bid without a plan is an ignorant opinion.

215 N Market? Also once again, incorrect.

https://www.loopnet.com/Listing/215-N-Market-St-Jacksonville-FL/30168842/

[jaxlongtimer]

As the Berman turns...  .  What could be next for this property?  Maybe the tower planned for the Landing site could go here instead.

https://www.jaxdailyrecord.com/news/2025/jul/28/berkman-ii-property-on-downtown-northbank-sold-for-73-million/

Berkman II property on Downtown Northbank sold for $7.3 million

The deal ends decades of involvement in the failed condo project by Choate Construction Co.

The Berkman II property on the Downtown Northbank at 500 E. Bay St. has a new owner.

The 2.02-acre site along the St. Johns River is west of the USS Orleck Naval Museum and across Bay Street street from the Duval County Jail.

Atlanta-based Choate Construction Co. sold the property July 18 to Curtis D. Hodgson of Addison, Texas, for $7.3 million.

Hodgson is the founder and director of Legacy Housing Corp. in Bedford, Texas. Legacy says it builds, sells and finances manufactured homes and "tiny houses."

Also on July 18, Hodgson entered into an exclusive option agreement for the property with Florida Innovation Capital 500 E Bay Street Parent LLC of Jacksonville.

Florida Innovation Capital is managed by Jacksonville developer Michael Munz and was created in April. On his LinkedIn page, Munz says he is the founding partner and CEO. He says it is a " venture capital fund focused primarily on startups in the state of Florida."

Hodgson said he provided financing for the sale personally, not through Legacy, and was not involved in any development plans for the property.

"I'm just the money man," he said. "I'm holding it until they get their ducks in a row." 

Munz and Peter Rummell worked for years to develop what is now called RiversEdge: Life on the St. Johns on the Downtown Southbank. Preston Hollow took control of that project in 2020. Munz also was an executive at the Dalton public relations firm.

Munz, contacted by text message July 28, said he was traveling and asked to be reached another time.

The sale ends decades of involvement in the Berkman II by Choate.

The Berkman II was a condominium development where construction was halted in December 2007 after the parking garage for the building collapsed, killing one worker and injuring others.

It left a ruin along the riverfront that stood for decades.

After years of litigation, Choate, one of the building's contractors, acquired it in a foreclosure auction and secured the property for $100 in April 2014.

Failed development efforts led to Choate acquire the property in another foreclosure auction in July 2024 for $5.13 million.

The city condemned and demolished the Berkman II in 2022. Its lot remains empty.

[MakeDTjaxGre@tAgain]

https://m.youtube.com/watch?v=Fy6tmVv_vdo&pp=ygVbRm91ciBTZWFzb25zLCBSaXZlcmZyb250IFBsYXphIGFuZCBNZXRybyBQYXJrOiBUaGUga2V5IGNvbnN0cnVjdGlvbiBwcm9qZWN0cyBtYWtpbmcgaGVhZHdheQ%3D%3D

Interesting vid. But in it, Mike talks about some of the projects that are underway, legal hurdles with LSTrio, as well as future projects. It's hard to tell, but seems as though Berkman II will potentially be a hotel. Not definite by any means. Also not definite is the closing statements - he did hint at wanting to host another Super Bowl(2032?) . Probably a long shot until the core has been built out a bit more and has more entertainment. Hotel count has to rise also. With the minimum 30% stadium of cap hotel rooms needed. We are right on the line. But I'll save that for another thread.

[Jax_Developer]

As the Berman turns...  .  What could be next for this property?  Maybe the tower planned for the Landing site could go here instead.

https://www.jaxdailyrecord.com/news/2025/jul/28/berkman-ii-property-on-downtown-northbank-sold-for-73-million/

Berkman II property on Downtown Northbank sold for $7.3 million

The deal ends decades of involvement in the failed condo project by Choate Construction Co.

The Berkman II property on the Downtown Northbank at 500 E. Bay St. has a new owner.

The 2.02-acre site along the St. Johns River is west of the USS Orleck Naval Museum and across Bay Street street from the Duval County Jail.

Atlanta-based Choate Construction Co. sold the property July 18 to Curtis D. Hodgson of Addison, Texas, for $7.3 million.

Hodgson is the founder and director of Legacy Housing Corp. in Bedford, Texas. Legacy says it builds, sells and finances manufactured homes and "tiny houses."

Also on July 18, Hodgson entered into an exclusive option agreement for the property with Florida Innovation Capital 500 E Bay Street Parent LLC of Jacksonville.

Florida Innovation Capital is managed by Jacksonville developer Michael Munz and was created in April. On his LinkedIn page, Munz says he is the founding partner and CEO. He says it is a " venture capital fund focused primarily on startups in the state of Florida."

Hodgson said he provided financing for the sale personally, not through Legacy, and was not involved in any development plans for the property.

"I'm just the money man," he said. "I'm holding it until they get their ducks in a row." 

Munz and Peter Rummell worked for years to develop what is now called RiversEdge: Life on the St. Johns on the Downtown Southbank. Preston Hollow took control of that project in 2020. Munz also was an executive at the Dalton public relations firm.

Munz, contacted by text message July 28, said he was traveling and asked to be reached another time.

The sale ends decades of involvement in the Berkman II by Choate.

The Berkman II was a condominium development where construction was halted in December 2007 after the parking garage for the building collapsed, killing one worker and injuring others.

It left a ruin along the riverfront that stood for decades.

After years of litigation, Choate, one of the building's contractors, acquired it in a foreclosure auction and secured the property for $100 in April 2014.

Failed development efforts led to Choate acquire the property in another foreclosure auction in July 2024 for $5.13 million.

The city condemned and demolished the Berkman II in 2022. Its lot remains empty.

Turns out, they had a plan! $2M in a year is pretty good.

[jaxlongtimer]

https://m.youtube.com/watch?v=Fy6tmVv_vdo&pp=ygVbRm91ciBTZWFzb25zLCBSaXZlcmZyb250IFBsYXphIGFuZCBNZXRybyBQYXJrOiBUaGUga2V5IGNvbnN0cnVjdGlvbiBwcm9qZWN0cyBtYWtpbmcgaGVhZHdheQ%3D%3D

Interesting vid. But in it, Mike talks about some of the projects that are underway, legal hurdles with LSTrio, as well as future projects. It's hard to tell, but seems as though Berkman II will potentially be a hotel. Not definite by any means. Also not definite is the closing statements - he did hint at wanting to host another Super Bowl(2032?) . Probably a long shot until the core has been built out a bit more and has more entertainment. Hotel count has to rise also. With the minimum 30% stadium of cap hotel rooms needed. We are right on the line. But I'll save that for another thread.

I would suggest a riverfront hotel that caters to future UF guests (maybe UF hosts lots of conferences/symposiums here?) topped by condos with retail/restaurants on the ground floor/facing a riverwalk which might be a best-of-all-worlds model.  Multi-use to hedge one's bets.  Does this property also have marina rights with the existing Berkman or to add later?

[Ken_FSU]

It's hard to tell, but seems as though Berkman II will potentially be a hotel. Not definite by any means. Also not definite is the closing statements - he did hint at wanting to host another Super Bowl(2032?) . Probably a long shot until the core has been built out a bit more and has more entertainment. Hotel count has to rise also. With the minimum 30% stadium of cap hotel rooms needed. We are right on the line. But I'll save that for another thread.

Not at liberty to go into specifics, but what's rumored, assuming it comes to fruition, would be very different, but equally as much of a "get" as the Four Seasons.