Quote(https://photos.moderncities.com/Cities/Jacksonville/Development/404-Julia-Street-/i-sh6C99n/0/50447f38/L/Marine%20National%20Bank-L.jpg)
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/
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.
Quote from: marcuscnelson on November 06, 2020, 01:35:16 AM
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.
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.
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)
Quote from: Ken_FSU on November 06, 2020, 09:41:11 AM
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.
Quote from: thelakelander on November 06, 2020, 09:21:58 AM
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
^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:
(https://photos.smugmug.com/Cities/Jacksonville/History/Ed-Austin-State-Attorneys-Office/i-vvDLvgR/0/99b20058/X2/20190823_112428-X2.jpg)
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.
^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.
Quote from: Ken_FSU on November 06, 2020, 09:41:11 AM
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
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.
I hope they can break ground by July 31st. That date will be here pretty quick.
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.
The effect of COVID on travel and the hospitality industry appears to have something to do with it:
Quote
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.
Quote from: Charles Hunter on June 15, 2021, 09:04:09 AM
The effect of COVID on travel and the hospitality industry appears to have something to do with it:
Quote
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.
If they aren't able to pull the Ambassador off as a hotel, I do wonder how it will impact the other two projects tied to it?
Quote from: thelakelander on November 06, 2020, 09:21:58 AM
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.
Great assessment and post Lake...thank you. However, as you well know, they NEVER think through ANYTHING; they almost ALWAYS act on impulse and "knee jerk" assertions.
Quote from: Ken_FSU on June 14, 2021, 07:24:02 PM
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.
still the same parent corporation - TRYP makes more sense and may help in securing financing (higher end chain)
They're getting their extension.
https://www.jaxdailyrecord.com/article/dia-board-grants-extensions-to-ambassador-hotel-developer
Hopefully it's enough.
100% complete by December 31, 2022?! A historic restoration at that? I'll be surprised if they get that building done by then. I assume that they still need DDRB approval for the exterior?
Its amazing how even these restorations let alone new construction move at a snails pace.
Shows you how weak the market is. Yet in Southside, SJC they fire these projects out.
Quote from: landfall on June 17, 2021, 04:37:00 PM
Its amazing how even these restorations let alone new construction move at a snails pace.
Shows you how weak the market is. Yet in Southside, SJC they fire these projects out.
To be fair, there's not much historic restoration being done in the Southside
I don't think it's the market per se, maybe, but I think it's more Jax than anything.
Ambassador Project should begin this month after securing a construction loan.
QuoteAugustine Development Group President Bryan Greiner told the Business Journal via email that the group closed on a construction loan Wednesday that will allow it to move forward with a project to redevelop the historic Ambassador Hotel building.
https://www.bizjournals.com/jacksonville/news/2021/07/02/ambassador-hotel-project-secures-construction-loan.html
Great news to hear!
Quote from: Zac T on July 04, 2021, 10:21:27 AM
Ambassador Project should begin this month after securing a construction loan.
QuoteAugustine Development Group President Bryan Greiner told the Business Journal via email that the group closed on a construction loan Wednesday that will allow it to move forward with a project to redevelop the historic Ambassador Hotel building.
https://www.bizjournals.com/jacksonville/news/2021/07/02/ambassador-hotel-project-secures-construction-loan.html
Good, and, great news. Drove by there this morning and boy what a depressing looking eyesore. I had many a good times though in that basement lounge.
The DDRB unanimously approved the plans to turn the Ambassador Hotel into a La Quinta Inn & Suites. Big win for downtown
Quote from: Zac T on July 15, 2021, 02:55:55 PM
The DDRB unanimously approved the plans to turn the Ambassador Hotel into a La Quinta Inn & Suites. Big win for downtown
YAYYYYY!!!!!!!
Permit in hand:
https://www.jaxdailyrecord.com/article/city-issues-permit-for-dollar4-million-in-ambassador-hotel-improvements
Quote from: thelakelander on July 29, 2021, 08:45:14 AM
Permit in hand:
https://www.jaxdailyrecord.com/article/city-issues-permit-for-dollar4-million-in-ambassador-hotel-improvements
Never thought I'd see the day this would happen... Glad to read the developer plans to revitalize those 2 blocks. That's a huge win for an area that's been dead for 2+ decades. Imagine buying up a few units in City Place back when they were going for $10-15k around 10 years ago. Those owners are going to make bank.
Fun write-up by the T-U.
https://www.jacksonville.com/story/business/real-estate/2022/03/22/jacksonville-ambassador-hotel-become-tryp-wyndham/9450948002/
I stayed at a Tryp by Wyndham in NY and it was honestly one of the worst hotels I've ever stayed in. Hopefully just an issue with that one location and not the brand as a whole.
I've never stayed in a Wyndham brand (I'm a Marriott guy with too many points to veer elsewhere) but I wish them well. Just happy to see a building being reused as opposed to being razed.
The "basement" level of this building used to house Sunshine Stamp and Coins during the 60's and 70's. Was the only such store at the time in Jax as I recall and they charged like it :).
There was a Bar on the north basement side that I used to frequent in my younger days; the Ambassador Lounge. Had some good good times in that place. Hole in the wall yes, but much juicy drama went on down there.
Quote from: pierre on March 22, 2022, 12:39:19 PM
I stayed at a Tryp by Wyndham in NY and it was honestly one of the worst hotels I've ever stayed in. Hopefully just an issue with that one location and not the brand as a whole.
I stay at Wyndham hotels quite often and they can be hit or miss. I too have stayed at a Tryp in New York, as well as one in Savannah - they were both good.
QuoteDIA board gives Ambassador Hotel developer until March 2023 to complete work
A city agency is giving Augustine Development Group LLC more time to complete its estimated $17.6 million renovation of the historic Ambassador Hotel in Downtown because of what the developer says are supply chain-related slowdowns.
The Downtown Investment Authority Board voted 6-0 on Oct. 20 as part of its consent agenda to allow Augustine Development subsidiary AXIS Hotels LLC, until at least the end of March 2023 to complete renovations on what the company says will be a 127-room TRYP by Wyndham hotel and restaurant.
Full article: https://www.jaxdailyrecord.com/article/dia-board-gives-ambassador-hotel-developer-until-march-2023-to-complete-work
Quote from: thelakelander on October 20, 2022, 06:20:49 PM
QuoteDIA board gives Ambassador Hotel developer until March 2023 to complete work
A city agency is giving Augustine Development Group LLC more time to complete its estimated $17.6 million renovation of the historic Ambassador Hotel in Downtown because of what the developer says are supply chain-related slowdowns.
The Downtown Investment Authority Board voted 6-0 on Oct. 20 as part of its consent agenda to allow Augustine Development subsidiary AXIS Hotels LLC, until at least the end of March 2023 to complete renovations on what the company says will be a 127-room TRYP by Wyndham hotel and restaurant.
Full article: https://www.jaxdailyrecord.com/article/dia-board-gives-ambassador-hotel-developer-until-march-2023-to-complete-work
Not too surprising. The lead times for some items is beyond 12 months at this point, especially for technology stuff. Glass is another biggie. Hopefully they didn't bite off more than they can handle, it really does feel like we are at some kind of inflection point for greater DT.
I have not driven by in some time, but I did not realize that they were so far along with the project? Does finishing by March or June really seem feesible?
They've been moving along. June seems realistic and within reach.
I rode my bike by a few weeks ago and it looked like they had completed interior demo but there is no way that's done by March IMO.
Supply chain issues? Seems like it's not really their fault. And I've driven by of late and it's humming right along. Windows are being put in and insides are coming along as well. Old Independent life is being worked on diligently though we all know that will take some time. Lot of work to be done on that one.
I was afraid this would happen. When I went by the Ambassador sight there was no sight of any workers or work having been done on the building in months and was told they still had a problem ordering the windows but it just seemed this project had died a slow death. But unfortunately, it appears this company, already way over their head working on the Ambassador, has financial problems also affecting the Independent Life building (which did seem to have some construction activity) and any future plans for the Central National Bank building.
https://www.jacksonville.com/story/news/local/2023/06/28/downtown-jacksonville-developer-deals-with-liens-and-foreclosure-suits/70331767007/
Hate to think of this as another Desperate Downtown Desperately Disperses to get Desperate Developers situation...
Didn't we give incentives for this? Jeez.
Quote from: marcuscnelson on June 28, 2023, 01:41:46 PM
Didn't we give incentives for this? Jeez.
Incentives that are not paid out until the project is complete
Quote from: tufsu1 on June 28, 2023, 03:31:21 PM
Quote from: marcuscnelson on June 28, 2023, 01:41:46 PM
Didn't we give incentives for this? Jeez.
Incentives that are not paid out until the project is complete
I believe an issue with incentives is that they sometimes (1) seduce developers into thinking the project risk is much less to them than otherwise so they, and their backers/financiers, are less cautious/thorough in vetting their projects which enables projects to go forward that possibly should not and/or (2) act as "found money" for developers who initiate projects they think will enable them to grasp the "golden ring" at the project's end, blinding them to the risk of doing the project.
Developers tend to be the ultimate optimists and risk takers, based on my observations, so you could knock some of them over with a feather... effectively the role played by incentives in some cases.
While the City may not be out many dollars if a project doesn't get completed, the process soaks up lots of time and resources that could be more productively used advancing the City's interests. Further, an incomplete building is a blight on the neighborhood and it may be difficult to salvage the efforts already made for many years, if ever, making a future project for the subject site even more difficult to get done.
If someone is "fool enough" to give them incentives, developers are likely going to do whatever it takes to "earn" them. That tells you that incentives may not be necessary, at least to the degree offered.*
* While not a developer, Jinko Solar does demonstrate that people ask for incentives just because they can:
QuoteNate Monroe: Solar company under federal scrutiny reveals valuable lessons for city officials
COMMENTARY | The topsy-turvy tale of JinkoSolar took an intriguing twist this week: the company, whose Westside manufacturing plant was raided last month by Homeland Security agents, said it would still move forward with a planned $50 million expansion despite the Jacksonville City Council withdrawing legislation that would have provided the company a multi-million dollar tax break.
City officials had previously said that financial incentive was a necessary pot-sweetener to convince JinkoSolar to expand in Jacksonville "as opposed to another location."
Apparently it wasn't....
https://www.jacksonville.com/story/news/columns/nate-monroe/2023/06/16/what-a-troubled-solar-company-can-teach-city-hall-nate-monroe/70329832007/
^^^I'm very open to your line of reasoning here. In many cases with residential projects, our downtown simply doesn't have the rents to pencil most projects. They received incentives in the form REV Grants, however, both Vista Brooklyn and the Doro are either achieving rents at north of $2.50psf or asking rents at north of $2.50psf (blended for each).
Riverside St. Johns not far behind, Southerly at Southbank a bit further behind. The Barnett also does pretty damn well in terms of rents. If Doro achieves what it's asking and has a pretty strong leasing velocity, then I think that will be a signal to the market. We need existing signals of underlying achievement to prove out the concept of downtown living and the often significantly higher downtown living proforma demands. It should "de-risk" downtown investment to a degree (I think).
Maybe with Doro we'll get to a place of sustainability and there will be increased interest and activity from outside investors who can better take on these sorts of projects.
Quote from: JaxJersey-licious on June 28, 2023, 01:26:43 PM
I was afraid this would happen. When I went by the Ambassador sight there was no sight of any workers or work having been done on the building in months and was told they still had a problem ordering the windows but it just seemed this project had died a slow death. But unfortunately, it appears this company, already way over their head working on the Ambassador, has financial problems also affecting the Independent Life building (which did seem to have some construction activity) and any future plans for the Central National Bank building.
https://www.jacksonville.com/story/news/local/2023/06/28/downtown-jacksonville-developer-deals-with-liens-and-foreclosure-suits/70331767007/
Hate to think of this as another Desperate Downtown Desperately Disperses to get Desperate Developers situation...
I just walked by these buildings. No movement going on at the Ambassador today. There are workers on-site inside the Independent Life building.