New life for Berkman II? Owners seeking Commercial CBD Rezone

[Captain Zissou]

GAME CHANGER ALERT!!!!

[KenFSU]

[Captain Zissou]

Seriously all my confidence in this project just went out the window. Hopefully the hotel is "phase 1" and the amusement park proposal can die a peaceful death somewhere down the road.

[Steve]

Seriously all my confidence in this project just went out the window.

Unless in next week's budget announcement, Curry is going to spend....

[KenFSU]

In all seriousness, time will tell if it ever gets built, but I do kinda love the idea of hotel/waterpark/restaurants in that area. Adds another genuine destination to the riverwalk, and really nicely compliments what we want to do with the USS Adams and Veterans Park adjacent to the property. It also nicely compliments what we want to do a block away with the convention center in that it encourages conventioneers to bring their families with them (more heads in beds). And, it gets more families into the urban core on the weekend.

I hope it gets built.

[thelakelander]

I'd love to see a concept plan. That's a small site to pile all these things on to a point where they'll be a viable attraction as described in the articles. Are they using some of the Shipyards land?

[Steve]

Apparently the sale was for $4.75M:

https://www.bizjournals.com/jacksonville/news/2018/07/19/berkman-plaza-ii-sells-for-4-75-million.html?ana=e_jac_bn_newsalert&u=11189397374e6a451121b1b0bac0c5&t=1532022003&j=82796081

The half-finished Berkman Plaza II was purchased for $4.75 million, according to newly filed records Thursday.

Buyer 500 East Bay LLC is registered to Robert Ohde, the owner of Wisconsin-based Ohde Construction. On Wednesday, Ohde identified his company as the general contractor on the project. He declined to identify the developer.

Choate Construction, the previous owner, obtained the property in 2014 after winning a foreclosure judgment under a construction lien. The building has sat dormant since a 2007 construction accident where a parking garage collapsed and killed a worker.

The building, located at 500 E. Bay St., will be redeveloped into a mixed-use project consisting of a 312-room hotel, a parking garage with around 500 spaces and a riverfront entertainment area with retail and restaurant space, Ohde told the Business Journal. He said the project is expected to cost around $150 million. Once completed, it could bring 900 jobs downtown.

[Steve]

In all seriousness, time will tell if it ever gets built, but I do kinda love the idea of hotel/waterpark/restaurants in that area. Adds another genuine destination to the riverwalk, and really nicely compliments what we want to do with the USS Adams and Veterans Park adjacent to the property. It also nicely compliments what we want to do a block away with the convention center in that it encourages conventioneers to bring their families with them (more heads in beds). And, it gets more families into the urban core on the weekend.

I hope it gets built.

Sure, I'm definitely not against it (unless some detail comes out that the city is paying some astronomical amount of money towards it).

I'm also not against a water park that has slides that drop you into a pool of Macaroni and Cheese either, but at this point I'd give either water park about an equally likely chance of happening.

[KenFSU]

I'd love to see a concept plan. That's a small site to pile all these things on to a point where they'll be a viable attraction as described in the articles. Are they using some of the Shipyards land?

Even if the garage fronts Bay Street, I can't see them fitting the scale they describe on the Berkman II property without encroaching on the Shipyards. Adventure Landing, which isn't exactly a waterpark that keeps Orlando up at night, is over 110,000 square feet for just the waterpark portion. The entire Berkman II property - which would need to fit hotel, parking garage, and waterpark, is around 80,000 square feet.

[Charles Hunter]

On the roof - Las Vegas-style?

[jaxjags]

I moved my entire 401K to fixed income today. This, Ambassador, District, Lot J does sound like 2006. My money is on the Trio, Residence Inn, and MAYBE AC Hotel at the District and Delta Hotel ONLY at the Berkman.

[KenFSU]

I think the key difference between now and 2006, particularly in terms of hotel and residential, is that this isn't speculative. The demand for more hotels downtown is clearly there. Literally just finished compiling hotel data for last quarter for a client, and downtown is experiencing some crazy growth this year on that front. A 15% lift in occupancy (76.4% for the quarter), at a higher average daily rate, with RevPAR for downtown up 18% year-over-year. We're past the point where these investors should be thought of as taking a chance on downtown Jacksonville. The demand is there and downtown hotel is now a sound investment. 70-75% occupancy is typically where you see a rush of new construction.

[thelakelander]

Which of these projects don't require incentives?

[Kiva]

I think the key difference between now and 2006, particularly in terms of hotel and residential, is that this isn't speculative. The demand for more hotels downtown is clearly there. Literally just finished compiling hotel data for last quarter for a client, and downtown is experiencing some crazy growth this year on that front. A 15% lift in occupancy (76.4% for the quarter), at a higher average daily rate, with RevPAR for downtown up 18% year-over-year. We're past the point where these investors should be thought of as taking a chance on downtown Jacksonville. The demand is there and downtown hotel is now a sound investment. 70-75% occupancy is typically where you see a rush of new construction.

The most popular Airbnb in Jacksonville is on the Northbank. What does that tell you?

[jaxjags]

Which of these projects don't require incentives?

Wallace said only Courtyard and Residence have asked for incentives. LOL. The others are not far enough along to ask yet, but believe me they will.  Only one that may not is Indigo.