San Marco Publix project still alive

[thelakelander]

Construction starts this summer:

http://www.jaxdailyrecord.com/showstory.php?Story_id=542279

Publix will open in about a year and the rest will be completed by 2017.

[copperfiend]

Great news.

[Kerry]

While I like the addition of apartments, retail, and a grocery store - I hope this doesn't effectively shift the center of the neighborhood from Balis Park to the intersection at Atlantic and Hendricks because right now that intersection lacks any kind of a sense of place.  Of course, that could be easily resolved by installing some unique architectural feature at the intersection.

[Tacachale]

Awesome. Can't wait for this to happen.

[For_F-L-O-R-I-D-A]

Amazing news!

[thelakelander]

While I like the addition of apartments, retail, and a grocery store - I hope this doesn't effectively shift the center of the neighborhood from Balis Park to the intersection at Atlantic and Hendricks because right now that intersection lacks any kind of a sense of place.  Of course, that could be easily resolved by installing some unique architectural feature at the intersection.

I doubt there will be a shift. However, I do believe there will be a lot more people walking on the sidewalks along Hendricks and Atlantic (a few blocks in each direction).  The character of that intersection will also change because instead of it being anchored by an empty weed filled lot, there will be a zero-setback multi-level mixed-use structure with 44,000 square feet of grocery, retail and dining at street level.

[jcjohnpaint]

wonderful to hear the news. 

[thelakelander]

East San Marco financing more challenging than anticipated

Although the East San Marco Publix project is moving forward, its developer says securing an equity partner has been more challenging than he anticipated.
"We have been surprised that we haven't had much more interest than we've had," said John Carey, principal of Whitehall Realty Partners. "It's just a tough deal — it's a relatively expensive project."

full article: http://www.bizjournals.com/jacksonville/blog/morning-edition/2014/03/east-san-marco-financing-more-challenging-than.html

[thelakelander]

Sounds like what Simms has repeatedly stated in the past about the Jax market:

In addition to being an expensive project, East San Marco faces additional challenges. Jacksonville is largely viewed as a tertiary city by investors — meaning that with less demand, real estate development projects pose more risk. "Mixed-use in most other cities in the Southeast is routine," Carey said.

[Tacachale]

I was talking about this with some folks this weekend. The bigger issue than just finding an investor is the type of project. As the article says, mixed-use developments are rare in Jacksonville compared to any number of other cities, so there's not much out there to gauge by. The reason they're having trouble (such as it is) is because Jax is behind the curve on this type of development, not because it's a difficult market to invest in. If this were another residential only or commercial only development there'd be no problem, especially on that location. Fortunately we're finally trying for something a little better in this case, but playing catchup can clearly be more difficult for the first couple of people trying it out.

[edjax]

I see where the company (Whitehall Realty) that was to develop the real estate part of the revamped plans has pulled out of the project per article on JBJ. Regency states they are hopeful to have another company in place for the real estate portion by end of 2014.  Wow. 

[Tacachale]

Some not-to-pleasant news from the Jacksonville Business Journal

Apr 4, 2014, 11:46am EDT
Residential developer pulls out of East San Marco Publix deal
Ashley Gurbal Kritzer

Regency Centers Corp. is looking for a new residential developer for East San Marco.

The residential developer who was pursuing the East San Marco project is out of the deal, leading Regency Centers Corp. to look for a new partner and leaving the fate of the project up in the air.

"Regency Centers is seeking a residential developer to construct the 280-unit upscale multi-family residence portion of the project including a residential parking garage and courtyard. Once started, the project is expected to be complete in 24-30 months," the Jacksonville-based retail real estate investment trust said Friday in a statement.

...

http://www.bizjournals.com/jacksonville/news/2014/04/04/residential-developer-pulls-out-of-east-san-marco.html

[Tacachale]

More:

Apr 4, 2014, 2:49pm EDT
Developer: 'A bit of reticence' from equity investors slowed East San Marco
Ashley Gurbal Kritzer
Reporter- Jacksonville Business Journal

In the months that John Carey had the East San Marco site under contract, he said he approached "quite a few" equity partners to invest the apartment-and-retail deal at the corner of Atlantic Boulevard and Hendricks Avenue.

None of them were willing to back the project, though, and at the end of March, his contract with Regency Centers Corp. (NYSE: REG) expired.

"There's a complexity and cost to it that is probably higher than any that's been seen in Jacksonville," Carey said. "So there's a bit of a reticence to jump into that."

...

Mixed-use projects like East San Marco and 220 Riverside are not only expensive and complex undertakings — they're pioneering projects in Jacksonville, with no succcessful examples to assure equity investors that the numbers can work and they'll make money.

...

Hopefully this will get back on track. Kudos to the developer for trying something a little better than we're used to.

[BoldBoyOfTheSouth]

These types of developments happen all over the country.

Retail on the first floor and condos above.

San Marco Square is a thriving area in a desperate need for a neighborhood grocery store.

Why does Jacksonville think it's reinventing the wheel?

[Bolles_Bull]

It's funny because to me 220 riverside seems like such a riskier project than east san marco.  In my opinion east san marco would EASILY work in that space, brooklyn may be a bit too up and coming.

I wish the projects could have gone East San Marco first to prove the concept in Jax.  Im worried 220 Riverside wont lease up and we will be set even further back for mixed use developments here in jax...