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August 9-15, 2018
Leadership lessons from former Amazon global real estate exec PAGE 3
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Record & Observer First retail development CONVENTION in the works Record & Observer for eTown CROSSROAD Record & Observer JACKSONVILLE
E-Town Village Center seeking rezoning for mixed-use project east of Florida 9B.
What’s next as multiple developers, including
JACKSONVILLE
Jacksonville Jaguars owner Shad Khan, prepare
competing visions for a new city convention center.
BY KAREN BRUNE MATHIS
EDITOR
JACKSONVILLE
Retail follows rooftops, and that’s what’s happening with eTown. Eastland Timber LLC and E-Town Development Inc. want to rezone 271.4 acres east of Florida 9B at the E-Town Parkway interchange in South Jacksonville. The rezoning would change the Community Commercial General-1 zoning to a planned unit development called E-Town Village Center. Envisioned is a “compact, mixed-use development” to include office, institutional, commercial, multifamily and recreational uses. Village Center is shown as three parcels – Village Center East; two tracts for Village Center West; and Village Center North. Access would be provided on E-Town Parkway and through interconnected internal drives and streets. The written justification for the rezoning says the PUD proposes a “carefully planned” development that includes a mix of land uses; vehicular and pedestrian connectivity; a pedestrianfriendly environment; creation of employment, shopping and entertainment; and performance standards to establish “the unique quality, identity and character of the PUD.” England-Thims & Miller Inc. is the applicant. Public hearing dates were not set, according to the application.
Record & Observer BY DAVID CAWTON STAFF WRITER
I
f Jacksonville Jaguars owner Shad Khan has his way, the city’s new riverfront convention center will be the first phase of a larger development near the sports and entertainment venues. Khan’s Iguana Investments of Florida and Rimrock Devlin DeBartolo Jacksonville LLC proposed their project Aug. 2 to the Downtown Investment Authority. The proposal sets up a major decision because the city previously issued a request for proposals seeking developers SEE CONVENTION CENTER, PAGE 6
KHAN’S VISION A convention center is part of Jacksonville Jaguars owner Shad Khan’s plan to develop the area near TIAA Bank Field. Special to the Daily Record
SEE E-TOWN, PAGE 7
Basch Report: Wall Street expects another Web.com bid PAGE 8 Mathis Report: Imeson president on industrial park’s strategy PAGE 4 OBSERVER MEDIA GROUP
THE CAWTON REPORT
Steve Atkins plans next move in urban core PAGE 10 VOLUME 1, NO. 10 • ONE SECTION
Page 2 • Thursday, August 9, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
Jacksonville is going to the dogs — as a business plan
DAVID CAWTON STAFF WRITER
Kanine Social, Pet Paradise offering new ways to spend quality time with your pet. In 2018 dog owners, myself included, are tending to go above and beyond for our furry friends. In Jacksonville, pets have plenty of parks and dozens of grooming salons, specialized treatment facilities and day care options. Based on news of the past few weeks, Jacksonville certainly is going to the dogs. Puppy-inclusive amenities are growing in popularity. Apartment complex owners, bars and now an NFL team are recognizing that a pet’s happiness is important when recruiting the next wave of college graduates and young professionals to Jacksonville. Let’s begin in the Brooklyn neighborhood. Kanine Social is open to provide dog day care along with an indoor-outdoor dog park that will set up to sell adult beverages for those spending time with their pups. While day care, day camp or bringing your dog to a craft brewery isn’t new, Kanine Social’s concept is. Owners Dustin Fries and Daniel Moffatt don’t believe you should have to choose between spending quality time with your dog and hanging out
with your human friends. They created a space that allows your pups to run while you enjoy a cold brew coffee or a cold adult beverage. Dogs have free range over most of the 12,000-square-foot complex with separate indoor and outdoor park space. The day care side of the business opened Aug. 6, and the rest of the park opens to the public next weekend. Beginning Aug. 30, they’ll serve beer and wine in addition to kombucha, craft sodas and coffee — for the humans, of course. For more information about Kanine Social, visit Kaninesocial.com. Also this week, the “big cats” embraced their canine counterparts in what appears to be a unique sponsorship deal. Pet Paradise debuts its in-stadium dog park above the south end zone of TIAA Bank Field as the Jacksonville Jaguars welcome the New Orleans Saints to town Thursday for the first preseason game of the year. Each home game, 10 dogs can enjoy a bone-shaped pool and separate play area while the Jaguars handle their opponents on the field. There also will be five to 10 dogs from the Jacksonville Humane Society looking for their forever homes. Dogs are selected through a weekly contest and given a “test run” at a Pet Paradise facility before they can attend a game. A veterinarian and Pet Paradise staff will be on-site to ensure the canines have a doggone good time. The game-camp is one of the creative sponsorship deals since Shad Khan bought the Jaguars before the 2012 season. Pet Paradise and the Jaguars don’t consider the idea to be far-fetched. DCAWTON@JAXDAILYRECORD.COM @DAVIDCAWTON (94) 356-2466
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Thursday, August 9, 2018 • Page 3
Leadership lessons from Amazon Julie Benezet shares her experiences working as the global real estate director for the Internet commerce giant.
Former Amazon.com Inc. global real estate executive Julie Benezet spoke about “Navigating the New: Making Constant Change Work for You” last week with the NAIOP Commercial Real Estate Development Association, Northeast Florida Chapter. Here are some situations that force change. Entering a blighted market where land is cheap but paying tenants are hard to find.
BY MARK BASCH CONTRIBUING WRITER
Almost two decades before Amazon.com Inc. opened its Jacksonville fulfillment centers, Julie Benezet walked into its Seattle offices to begin her job as its director of global real estate. “I entered the 21st century on July 30, 1998,” Benezet said last week during a talk to the Northeast Florida Chapter of the NAIOP Commercial Real Estate Development Association. Amazon was a 3-year-old company pioneering the then little-used practice of marketing and selling products through the internet. “What was new then has become usual now, and necessary,” Benezet said at the luncheon at the Lexington Hotel & Conference Center Jacksonville Riverwalk on the Southbank. It was attended by 115 members and guests. Benezet, now a management consultant, was hired by Amazon in 1998 to help the company secure sites for distribution centers to support its planned growth. According to Amazon’s annual reports, the company had an 85,000-square-foot warehouse in Seattle and a 200,000-squarefoot facility in Delaware at the beginning of 1998. By the time Benezet left in 2002, the company had five other fulfillment centers around the U.S. and additional facilities in Germany, Japan and the United Kingdom. The company now has more than 200 million square feet of fulfillment space in the U.S. and internationally and is one of the world’s dominant corporations. Last year, Amazon opened two fulfillment centers, a sortation center and a delivery station in Jacksonville. But when Benezet joined, it was venturing into largely unknown territory, which can be frightening for some, she said. It also presents opportunities, said Benezet, who wrote a book called “The Journey of Not Knowing.”
Meeting the new CEO of a key client who thinks brokers are useless, since rental rates can be found online and they have lawyers to do deals. Restructuring your team to move someone into a senior leadership position. Starting a conversation with someone who scares you to death, but whose brain power you desperately need. Avoiding telling a business partner (aka your college roommate) goodbye after he screwed up, AGAIN, costing you major money.
Inside the Amazon fulfillment center on the Westside at Cecil Commerce Center. The company has two fulfillment centers, a sortation center and a delivery station in Jacksonville.
File image
“Scary is great when you're going to a place of discovery, you're going to a place of growth,” she said. One lesson she learned on her first day at Amazon was about dress codes, when she showed up to work in a business suit and saw her colleagues dressed more casually. She realized no one was dressing to impress. “The key was working hard, making it fun and making history,” she said. Benezet began finding sites for Amazon at a time when the
fundamentals of commercial real estate were changing. “Real estate is not about bricks and mortar anymore,” she said. “It's a different conversation than real estate people are comfortable having.” Years ago, clients wanted to talk about “carpets and paint” in their office sites, but now the conversation is about how businesses do their work and how an office can be set up to accommodate them, she said. “Real estate is really a metaphor for ideas,” Benezet said. Beyond the real estate indus-
Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com
Gerald Wilkerson was elected to the board of directors of Hope Haven Children’s Clinic. A former vice president of the Jacksonville Miracle League, Wilkerson is in private practice at the Law Offices of Gerald Wilkerson Attorneys at Law.
dent and partner.
Julie Benezet
AMAZON IN JACKSONVILLE
PEOPLE ON THE MOVE
Josserand
ECONOMIC TRENDS
How does the unknown show up?
David Josserand became vice president of development for the nonprofit Central and North Chapter of the Alzheimer’s Association. Josserand retired from the Dalton Agency as group presi-
Nita Hospel joined Ascenda BioScience as the Jacksonville area field consultant. Hospel will introduce DNA-based
diagnostic testing for the digestive system. Most recently Hospel worked for InVentive/Syneos Health. Tim Cost, president Hospel of Jacksonville University, was appointed to the board of directors of the Jacksonville Branch of the Federal Reserve Bank of Atlanta by the Federal Reserve Board of Governors in Washington, D.C. Branch direcCost tors provide economic information from the branch territory to the Atlanta Reserve Bank president and directors.
try, Benezet offers four core principles for successful business leaders: “Pursue dreams to make life better.” This isn’t about personal dreams, but dreams for your entire team to make everyone’s life better. “Get comfortable with the scariness of risk.” One example Benezet gave is opening new residential buildings in Downtown Jacksonville without really knowing how much demand there will be for Downtown housing. “Watch out for self-sabo-
taging behavior.” An example of this is micromanaging, instead of letting workers do their jobs. “Find drivers to give you fuel.” In other words, find a purpose that will encourage you to meet goals and succeed. That can be as simple as making sure you’re staying ahead of the competition. “You're always looking for something better because that's what your competitor is doing,” Benezet said. MBASCH@ JAXDAILYRECORD.COM
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Page 4 • Thursday, August 9, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
How VanTrust deal is a boost for Imeson KAREN BRUNE MATHIS EDITOR
Dan Webb, president of the North Jacksonville industrial park, talks about its strategy. When one door opens, so does another. Dan Webb, president of Imeson International Industrial Park Inc., said the pending sale of 156 acres to VanTrust Real Estate LLC will provide funds for more development at the North Jacksonville industrial center. VanTrust contracted to buy the acreage and says the sale should close soon. Webb said he hopes to complete the deal in 30 Webb days. While neither disclosed the purchase price, the sale will provide money for Webb to further build at the former airport site at northeast Main Street and Heckscher Drive. VanTrust intends to build 3 million square feet of industrial and warehouse space among three to six buildings. Webb said the purchase leaves Imeson with about 350 acres to sell or develop. He currently is building a 140,000-square-foot
Special to Daily Record
Imeson International Industrial Park Inc. is building a 140,000-square-foot speculative warehouse, which can be expanded to 322,920, at its North Jacksonville property. Another spec building is planned.
speculative building at 10531 Busch Drive for completion in November. A second phase of 182,520 square feet would expand the structure to almost 323,000 square feet. Webb also plans for another building that could start at 240,000 square feet and be expanded to 480,000 square feet. That will be at the entrance of the park at Busch Drive. Webb said the CBRE Inc. real estate firm presented VanTrust’s interest, “and we decided it would be a good synergy for both of us.” The VanTrust sale also brings more marketing power to the park, Webb said. “And it gives us the ability to reinvest some dollars in the infrastructure and new buildings in the park,” he said. Webb wants to see the park built-out at 90 percent over the next 20 years. It’s about 50 percent completed now with more than 8 million square feet
of space. The additional marketing power “will help us reach that goal,” Webb said. Webb said his group will focus on smaller projects of 100,000 to 400,000 square feet. “We are looking for customers and tenants,” he said. “The market seems to be pretty good so we are designing another speculative building.” He said there’s been a lot of interest in the 140,000-square-foot structure. In January 2017, property records show that Imeson International Industrial Park Inc. entities sold 14 buildings at the park for almost $89 million. The left Webb with 500 acres. Webb International began developing the industrial park after it bought the land about 1970. Webb said previously the company bought 1,200 acres. His father, William C. Webb,
FOOD NOTES
Special to the Daily Record
Culhane’s Irish Pub will open at the former Tilted Kilt in the Tinseltown area.
Culhane’s to add location at former Tilted Kilt Culhane’s Irish Pub bought the former Tilted Kilt building in Tinseltown with the intent to open its second location by yearend. Culhane’s, at 967 Atlantic Blvd. in Atlantic Beach, paid $2.26 million for the 8,487-square-foot restaurant at 9720 Deer Lake Court. It plans to start remodeling the space in 30 to 60 days. Jason Ryals and Katherine Goodwin of Colliers International Northeast Florida represented the seller, RibKib LLC of Miami Beach. Strategic Sites-Clifford Commercial represented the buyer. The sale closed Aug. 2.
Beach Food Post Inc. applied for a Certificate of Use for a 6,000-square-foot Dunkin’ Donuts and Circle K building at 3631 Blanding Blvd. Outback Steakhouse plans a $451,000 renovation of its 9773 San Jose Blvd. restaurant that includes remodeling of the bar, bathroom and dining areas. Sara’s Bakery Café applied for a Certificate of Use at 1566 Hendricks Ave. Keke’s Breakfast Café will build-out at 4906 Town Center Parkway, No. 104, in The Strand at Town Center. Keke’s has a restaurant in St. Augustine and another planned at The Pavilion at Durbin Park.
With the 24-hour Market open at the Hyatt Regency Jacksonville Riverfront, property owners now are renovating space in the lobby for the SHOR Tavern. It’s a $751,790 project. The city issued a permit July 30 for the renovation at 225 Coastline Drive E. The Tavern formerly was Currents Lounge. The Hyatt and other Downtown riverfront buildings were flooded in September during Hurricane Irma. After initial renovations, the Hyatt lobby re-opened Feb. 14. When the Market, a graband-go option also with a fast-casual menu, opened July 14, the hotel said lobby renovations continue this summer for the 150-seat SHOR Seafood Grill for daily breakfast, lunch and dinner and the 5,000-square-foot SHOR Tavern.
Fort Caroline location will be in addition to the Merrill Road store. She said the new store prototype features a Swirl World frozen dessert station with up to 10 flavors and 41 toppings and a large coffee area. “These stores also have a more shoppable layout, ample seating, free Wi-Fi and more lighting in the store and parking lot,” she said. There also is exterior seating. Howell said the company continues to “explore additional growth in the Jacksonville area” and the Fort Caroline site, along with one along University Boulevard, is included in the exploration process. RaceTrac wants to develop at 5221 University Blvd. W. at Richard Street in Southside, not far from a station developed in 2004 nearby at 5109 University Blvd. W. Howell said RaceTrac is working through details and the permitting process on the University Boulevard location. RaceTrac filed applications with the St. Johns River Water Management District and with city Development Services Division.
RaceTrac adding Arlington location
Venus Fashion gets solar approval
RaceTrac is heading to Buck Business Park in Arlington. Atlanta-based RaceTrac Petroleum Inc. intends to develop a 5,411-square-foot gas station and convenience store on about 3 acres at the split of Merrill and Fort Caroline roads, east of Interstate 295 and the Southside Connector. It constitutes almost two parcels in the park, owned by Buck & Buck Inc. Connelly & Wicker Inc. is the civil engineer. Buck & Buck Inc. is a familyowned real estate firm whose headquarters at 9137 Merrill Road is at the west side of the park. RaceTrac operates more than a dozen sites in Northeast Florida, including a 4,861-square-foot location developed in 2011 on almost 4 acres at 8240 Merrill Road, about a mile west of the Buck Business Park site and west of I-295 and the Southside Connector. RaceTrac Communications Manager Liz Howell said the
Venus Fashion Inc., a swimwear-maker and women’s fashion brand, will be installing rooftop solar panels. President Jim Brewster said previously the panels will provide the majority of the power Venus needs for its operations at the main building at 11711 Marco Beach Drive during the day. Venus now buys its power from JEA, which will continue to supply power. Brewster said the panels will be sourced through Advanced Roofing Inc. of Fort Lauderdale and likely will come from North America. Advanced Roofing is the contractor for the $1.29 million project. The city issued a permit Friday. Plans show the solar photovoltaic project is approved for connection to JEA’s grid. Venus is based in the EastPark business center in Southside. The 128,000-square-foot building, built in 1995, contains administration, customer service, call center, swimwear
started the business. When the older Webb retired, Dan, the second son, took over management of the Orlando and Jacksonville properties and is now sole owner.
Hyatt renovating for SHOR Tavern
Jacksonville Daily Record/Jacksonville Record & Observer manufacturing, returns processing, offices and other functions. Venus Fashion is a company within Germany-based Otto Group, which bought Venus in 2009. Venus Fashion grew from less than $30 million in annual sales at the time of its purchase by Otto Group to more than $300 million today. Last year, it added about 250,000 square feet of space at One Imeson in North Jacksonville to the 100,000 square feet it leased there since early 2015. Brewster said in April that Venus has almost 1,000 employees, split about evenly between Imeson and EastPark.
Jaguar Land Rover dealership OK’d Fields PAG Inc. won city approval to build its new Jaguar Land Rover Jacksonville dealership at 11211 Atlantic Blvd. in East Arlington. International Contractors Inc. of Illinois is the contractor for the $3 million construction job, which will create a 34,293-square-foot dealership with another 2,700 square feet of unenclosed space on 6.72 acres. The project will relocate the Jaguar Land Rover dealership from next door. Jaguar Land Rover owns the 12.1-acre property. The existing Jaguar Land Rover dealership is on the western portion of the site. Fields Automotive Group Inc. intends to demolish the existing Jaguar Land Rover building once the new facility is completed. It then would build a new facility for Fields-owned Porsche Jacksonville to move
from its current location at 10100 Atlantic Blvd.
Thursday, August 9, 2018 • Page 5
DEVELOPMENT NOTES
Mandarin, Regency Walmart stores being renovated
Walmart won permits to remodel its Mandarin and Regency area stores at project costs topping $1 million each. Walmart will remodel its Mandarin Supercenter at 10991 San Jose Blvd. at almost $1.4 million and its Regency-area location at 9890 Hutchinson Park Drive at $1.15 million. The projects are general remodeling, including interior and exterior maintenance, repair and replacement of equipment. Walmart Stores East LP, part of Bentonville, Arkansas-based Walmart, is listed as the owner. Newco Construction of America Inc. is the contractor. The San Jose store in Mandarin was built in 1987, while the Regency location was developed in 2005. Meanwhile, the Walmart Supercenter at 11900 Atlantic Blvd. store is adding an online grocery pickup.
TRUaire building at NorthPoint A California-based HVAC distributor will almost double the size of its Jacksonville warehouse now that the city issued a permit for construction in NorthPoint Industrial Park. The city approved a permit for Dana B. Kenyon Co. to build a 163,615-square-foot shell warehouse at a cost of $5.73 million for TRUaire, which intends to buy the building at 12128 New Berlin Road upon completion. It will replace the 90,000
Special to the Daily Record
The first building at Lakeside Professional Offices in Nocatee is expected to be complete in March. This is a rendering of the second phase.
Second office development planned for Nocatee Silverfield Group and Morales Group announced they started construction on their second office development in Nocatee. Lakeside Professional Offices will comprise four single-story buildings totaling 34,000 square feet. They anticipate completion of the first structure, Building 200, at 8,531 square feet, in March. Lakeside Professional Offices is owned and developed by NTC Office 2 LLC. Morales Construction Co. Inc. is the general contractor. The project is designed by Jeff M. Lane of Lane Architecture and by Connelly & Wicker Inc. NTC Office LLC was formed to own and develop Lakeside Professional Offices. Its principals are members of Silverfield Group and Morales Group. First Federal Bank of Florida intends to open an office in the Wildlight community at northeast Interstate 95 and Florida A1A in Yulee in Nassau County. First Federal Bank of Florida intends to build a 2,000-square-foot building along Floco Avenue.
square feet TRUaire leases in the park at 3509 Port Jacksonville Parkway. It took occupancy there three years ago. Pattillo Industrial Real Estate is developing the center for TRUaire. TRUaire Managing Director Tim McDonald said in July he expects the project to be completed in December or January.
Planet Fitness is renovating almost 25,000 square feet of space at 5810 Normandy Blvd., No. 2, next to Ollie’s Bargain Outlet at southeast Normandy and Lane avenues. NNI Construction Co. is the contractor for the $967,841 project. Pavilion Health Services paid $1.23 million for land at 4820 Deer Lake Drive W. in Tapestry Park for a Baptist Health primary care center. Plans in review show the 6,700-square-foot center on 1.77 acres at 4844 Deer Lake Court near Another Broken Egg Café. Tapestry Park II Commercial Venture LLC of Columbia, Missouri, sold the property. Johnny Clean Car Wash intends to open at 7147 Merrill Road. JCCW of Merrill Road LLC of Deerfield Beach intends to build a 5,726-square-foot car wash on 1.33 acres at northwest Merrill Road and Townsend Boulevard. Bohler Engineering of Boca Raton is the agent.
TRUaire employs 23 people now and will scale up as it opens. Jacksonville is one of four distribution centers that include Houston, Baltimore and at headquarters near Los Angeles. TRUaire is an HVAC manufacturer that distributes residential and commercial grilles, registers and diffusers that end up with contractors who install them in
homes or businesses. The city previously issued a permit for foundation construction. NorthPoint is a masterplanned development at Alta Drive and Interstate 295. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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CAWTON REPORT Staff Writer David Cawton uncovers how government impacts business.
MATHIS REPORT Editor Karen Brune Mathis is always first to report new projects changing Jacksonville’s economy and landscape.
THE DATA PAGE Research Director Scott Sailer shows in snapshot graphs the economic data business leaders need to know.
YOU SHOULD KNOW Profiles of business leaders making a difference at work and in the community.
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Jacksonville Daily Record/Jacksonville Record & Observer
Convention center: City faces decisions CONTINUED FROM PAGE 1
for a possible convention center project at the city-owned site of the former Duval County Courthouse and City Hall Annex. That East Bay Street location also sits along the St. Johns River. Three bidders responded. Iguana Investments did not, instead submitting its own plan on property closer to TIAA Bank Field. IGUANA’S PROPOSAL
Rimrock Devlin DeBartolo Jacksonville LLC is a partnership between Jacksonville-based Rimrock Devlin Development LLC and Tampa-based DeBartolo Development. It and Iguana submitted a 73-page package to the DIA that includes each company’s credentials and details about the plan. The Jacksonville Convention Center, as it is referred to, would be a 490,000-square-foot building with 200,000 square feet of exhibition space, 45 breakout rooms and a 40,000-square-foot ballroom with space for expansion. The group plans to build a 350room, full-service hotel with 44,000 square feet of meeting and ballroom space, ground-floor retail and restaurants next door. The hotel includes a 462-space parking garage, which would be in addition to a separate parking structure for convention-goers on what is parking Lot J outside of TIAA Bank Field.
IGUANA’S DEVELOPMENT TEAM
In Iguana’s package, its partners detail individual accomplishments, credentials and examples of work. Expansion of the Orange County Convention Center in Orlando, construction of the Jekyll Island Convention Center in South Georgia and the development of the JW Marriott Convention Center Hotel in downtown Austin, Texas, are among the 44 project examples listed. Rimrock Devlin Development states it has completed $1.5 billion worth of projects and that it is the “preferred developer for Starwood Hotels & Resorts Worldwide.” In Jacksonville, Rimrock lists the $200 million Deerwood Lake project, a mixed-use development in South Jacksonville. It also lists its work with Jacksonville University to build the North Hall dormitories and the Academic Health and Science Building. “As a Jacksonville, Floridabased company, Rimrock Devlin Development is deeply rooted in its local community and takes great pride in the city that serves as its home,” according to a company description. President and CEO Micah Linton and founder Wallace Devlin are listed as “key team members.” DeBartolo’s work includes shopping malls, residential towers and mixed-use developments over the past 70 years. Key players include President and Chief Operating Officer Edward Kobel and Rich Hartline, who leads DeBartolo’s Honolulu division. In that role, Hartline is overseeing the Ka Makana Ali’i, a $500 million, 1.4 million-square-foot mixed-use shopping center on the island of Oahu. Jacksonville-based EnglandThims & Miller Inc. would oversee construction and program management, urban planning, civil engineering, regulatory permitting, transportation, surveys
Special to the Dailly Record
Iguana Investments, owned by Jacksonville Jaguars owner Shad Khan, envisions a convention center complex to replace Metropolitan Park.
and landscape architecture. GAI Consultants would provide structural and marine waterfront engineering, landscape architecture and urban design services. Iguana lists two architectural firms. Helman Hurley Charvat Peacock Architects Inc. will oversee the architectural responsibilities for the convention center. The Orlando and Beijing-based firm states it has worked on projects in 36 countries since 1975. HKS, a global architectural company, leads the hotel project. According to its website, the company’s HKS Hospitality Group “is known globally for architecture and design for hotels.” IGUANA’S PROJECT
Rimrock Devlin DeBartolo would oversee the entire construction process “to ensure its alignment with the vision set forth by Iguana,” according to the submission, Its leadership team “will work closely with the city” to keep the project in line with the Downtown Master Plan. “Our team envisions establishing a community board consisting of key community leaders and stakeholders that meet regularly with our team and are fully briefed on the details and advancements of the development.” Before construction could start, the DIA would need to convey development rights and allow the property to be rezoned. Iguana and RDD state that the site’s environmental issues can be managed by developing the area as a Brownfield site. The city is likely to bear those costs. An early timeline suggests the “predevelopment phase” consisting of the proposal’s submission, the DIA selection process, City Council approval, a due diligence period and rezoning take the project through July 2019. Site work would start in July 2019 and the project would be completed in fall 2021. When completed, the city could use SMG to manage the facility, like it does with its other city-owned sports and entertainment venues. Or it could allow the hotel partner, which is not identified, to manage both the hotel and the convention center.
A PUBLIC-PRIVATE PARTNERSHIP
Khan indicated the project will
use public and private money. Iguana estimates the convention center will cost $305 million to $315 million, with the team using private equity and debt service to fund its share. The hotel portion is estimated to cost $115 million to $125 million, paid for with private equity and debt from Iguana and from public funds. The city’s portion pays for the connecting parking garage. “Details of the city’s participation shall be finalized at a later date based on final project cost and revenue sources,” the submission said. The project includes the city retaining ownership and footing the bill for expanding the Northbank Riverwalk, reconfiguring the Hart Bridge expressway and Bay Street, building public infrastructure and cleaning up the Shipyards and contamination. There are no costs outlined for those pieces. Iguana and the city would share ownership of different elements of the convention center, hotel and parking structures. The city would spend public money to build the parking garage attached to the hotel. It is unclear how the city and Iguana would split the revenue generated from the project. The city is expected to convey the property to Iguana for the convention center site and then enter a triple net lease to occupy the building and to operate the parking structure planned for Lot J. The NNN lease requires the tenant to pay all operating expenses. No other incentives are outlined in Iguana’s proposal, but the company does plan to find and use other subsidies. Those include land dedications, tax increment financing, real estate tax abatements, grants, historical tax credits, New Market Tax Credits, sales tax rebates, shared tax revenue, waiving of certain planning, permitting and impact fees and other concessions.
was one of those bidders, along with two Dallas-based firms Preston Hollow Capital LLC and Jacobs Project Management Co. Jacobs Project Management Co. is a subsidiary of Jacobs Engineering Group, part of the international professional services firm that provides engineering, architecture, construction and operations along with specialty consulting. Preston Hollow Capital is an independent specialty financial institution with “more than $800 million in permanent equity capital and more than $1.5 billion in investment capacity from a diverse investor base,” according to its website. Details have not been made public about those submissions, but they are expected to be similar to Iguana’s plan. THE NEXT STEP
The DIA will spend the next few months reviewing both the submissions to the RFP and Iguana’s proposal. With DIA CEO Aundra Wallace stepping down from the organization to head the JAXUSA Partnership in October, it is unclear who will lead negotiations on behalf of the city. An economic development agreement would then be drawn up, debated and ultimately voted
on by the DIA board followed by City Council. While the DIA is not bound to either site, the buildings along East Bay Street are being prepared for demolition by Environmental Holdings Group, which won the bid to tear down the structures at a cost of $7.98 million. The city gave EHG its notice to proceed July 26. The city has not said what would happen to that site if Khan’s team wins the project. Mayor Lenny Curry’s Chief of Staff Brian Hughes said previously there is no shortage of prospective developers looking to invest in Downtown. For the DIA, there also is the question of what to do with the Prime Osborn III Convention Center in LaVilla. JTA CEO Nat Ford has said he would like to incorporate the property into the transportation authority’s future, after it completes its Jacksonville Regional Transportation Center across the street. Those plans could involve bringing commuter rail back to the former train station, but no plans are currently available. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
THE COURTHOUSE-ANNEX SITE
The day before Iguana announced its project, three groups responded to the DIA’s request for proposals to build a convention center and hotel along East Bay Street. The specs outlined in the RFP are identical to those in Iguana’s plan. Also, Rimrock Devlin DeBartolo
Photo by Scott Sailer
Three groups submitted plans to the Downtown Investment Authority to build a convention center complex at the site of the former City Hall Annex and Duval County Courthouse.
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 9, 2018 • Page 7
REAL ESTATE
Top 10 sales of the week BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
Here are the top 10 real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded July 30-August 3.
File image
The SunTrust Building in Downtown Jacksonville was sold to VyStar Credit for $59 million. VyStar plans to rename the building and move its heaquarters there.
$59,000,000
$10,750,000
$7,000,000
$6,768,800
$5,200,000
76 S. Laura and 37 S. Hogan streets, Jacksonville, Duval County
4800 Ortega Farms Blvd., Jacksonville, Duval County
37031 Cody Circle, Hilliard, Nassau County
County Road 305 and Meadowbrook Road, Elkton, St. Johns County
464037 E. Florida 200, Yulee, Nassau County
Type: Office tower and parking structure Size: 2.21 acres Buyer: VyStar Credit Union Seller: Mainstreet CV 76 S. Laura St. LLC Previous sale: $16,000,000 for building in 2004; $2,205,100 for parking structure in 2014.
Type: Ortega Pines Apartments Size: 11.09 acres Buyer: QPG Ortega Apartments LLC Seller: J&M Ortega Pines LLC Previous sale: $7,536,800 in 2016
Type: Eastwood Oaks Apartments Size: 10.6 acres Buyer: Eastwood Oaks LLC Seller: Eastwood Oaks Apartments LLC Previous sale: $4,316,000 in 2016
Type: Timberland Size: 841.69 acres Buyer: Double Hook Realty LLC Seller: Skinner St. Johns County Ltd. Previous sale: $527,700 in 1996
Type: Rick Keffer Dodge Chrysler Jeep Dealership Size: 6.06 acres Buyer: Davis Yulee 2 LLC Seller: Rick Keffer Dodge Chrysler Jeep Inc.
$4,860,000
$4,225,000
$2,742,900
$2,500,000
$2,500,000
5130 and 5140 University Blvd. W., Jacksonville, Duval County
407 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County
Philips Highway, Jacksonville, Duval County
233 San Juan Drive, Ponte Vedra Beach, St. Johns County
1750, 1760,and 1780 Wells Road, Orange Park, Clay County
Type: Pet Paradise Size: 3.62 acres Buyer: Store Master Funding XI LLC Seller: University Land Investors LLC Previous sale: $2,002,100 in 2010
Type: Single-family Size: 0.31 acres Buyer: Patricia L. Hughes Seller: Dykes C. and Lisa S. Everett Previous sale: $2,500,000 in 2010
Type: Timberland Size: 174.13 acres Buyer: Wells Creek LLC Seller: Rasmus Holdings LLLP
Type: Single-family Size: 0.37 acres Buyer: LonSaxPvb Revocable Living Trust Seller: Carol Strickland Previous sale: $1,525,000 in 2016
Type: Shopping center with two outparcels Size: 10.82 acres Buyer: Kaida Florida Real Estate Inc. Seller: Brixmor GA Fashion Square-Orange Park LLC Previous sale: $3,950,000 in 2004
DEVELOPMENT TODAY These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville. OTHER Bartram Creek, 14319 Durbin Island Way, contractor is TCL Construction Concepts Inc., retaining wall, $184,000. Bartram Creek, 14319 Durbin Island Way, contractor is Bent Construction LLC, accessory building, $78,640. RESTAURANTS Triple Net Equities LTD., 10502 San Jose Blvd., contractor is Tim Young Construction Inc., 6,000 square feet, two permits for shell building and dumpster enclosure, $867,385. ROOFING Grossco Properties III LC, 4818 Victor St., contractor is BBG Contracting Group Inc., roof replacement, $67,000. Anderton Properties Inc., 3491 Pall Mall Drive, contractor is J. Adams Roofing Inc., roof replacement, $30,000.
Edwards Ornamental Iron Inc., 1333 W. Beaver St., contractor is Merritt Roofing and General Contractor Inc., roof replacement, $21,800. SIGNS Williamstown, 11962 Williamstown Drive, contractor is Bent Construction LLC, monument sign, $48,421. Ashley Home Store Outlet, Mattress Center, 9317 Atlantic Blvd., contractor is Professional Signs Inc., five permits for wall signs, $48,257. ABC Fine Wine & Spirits, 9436 San Jose Blvd., contractor is Media 1 Graphix Inc., two permits for ground and wall signs, $45,841. Deerwood, 10010 Whippoorwill Lane, contractor is Taylor Sign & Design Inc., ground sign, $12,000. Compiled by Scott Sailer
New premium lounge for JIA: A $1 million premium lounge is coming to Jacksonville International Airport. ALD Corp. will develop, manage and operate the 2,726-square-foot facility with seating for 49 guests. It is expected
The eTown Village Center conceptual site plan. A rezoning application shows commercial, multifamily residential and other uses. Special to the Daily Record
eTown: 2019 planned opening CONTINUED FROM PAGE 1
BUSINESS IN BRIEF Mayo Clinic opens new research facility: Mayo Clinic’s 190,000-squarefoot medical building for patients needing cancer, neurology and neurosurgical care is now open. Named after benefactors Dorothy J. and Harry T. Mangurian Jr., the building also will house patient-centered research and clinical trials.
E-TOWN VILLAGE
to open in early 2019. The project was approved by the Jacksonville Aviation Authority board of directors. Grant for Cecil Spaceport: The Jacksonville Aviation Authority board of directors accepted a $1.8 million matching grant from Space Florida to design and build a space operations control center, a payload preparation facility and a rocket motor testing facility at Cecil Spaceport. Compiled by Scott Sailer
The PUD written description is dated June 1. Rezonings require City Council approval. The PARC Group is developing eTown for the Davis family, which owns the land through Eastland Timber. It is rolling out details on its ETownJax.com site. It says eTown will open in 2019. The property primarily is east of Interstate 295 and Florida 9B, with some property to the west. Road signs say E-Town but the property is marketed as eTown. Several residential builders bought
land or filed plans for eTown: Catalyst Development Partners for apartments; Dream Finders Homes for townhomes; and, for single-family developments, Toll Brothers and a joint venture of David Weekley Homes and ICI Homes. Pulte Homes also bought property there but has not filed plans. A St. Johns River Water Management District filing shows the 1,478-acre mixed-use eTown will include commercial acreage as well as its focus on residential uses. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Page 8 • Thursday, August 9, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Wall Street expects another Web.com bid $28.10
Surging stock The stock price of Web.com has increased 22 percent since May. Siris Capital Group has an agreement to buy the company
Tuesday close
$25.85
June 21, stock surges on offer
MARK BASCH CONTRIBUTING WRITER
Stock surges past $28 offered by Siris Capital Group to buy the Jacksonville-based company. To no one’s surprise, Web. com Group Inc. announced Monday that Siris Capital Group LLC increased its buyout price for the Jacksonvillebased website services company. It was no surprise because from the day the companies announced the buyout agreement at $25 per share, Web. com’s stock has traded above $25. That means investors were expecting a higher bid to come in during the 45-day go-shop period, when Web.com was allowed to actively seek higher offers. Wall Street usually has a pretty good sense of those things. So, we’re now waiting for a higher offer than Siris’ new agreement to buy Web.com for $28 a share. Why? Well, Web.com’s stock jumped above $28 after the two companies announced the new price just before the market opened Monday. Web.com said one party did make a higher offer than the original agreement of $25 during the 45-day period and while the new agreement does not include a go-shop clause, Web.com said it does allow the company to accept a higher offer than $28. If Web.com agrees to an offer from another bidder, it would have to pay a $39.1 million termination fee to Siris. Web.com has about 50 million shares outstanding, so every $1 increase raises the buyout price by $50 million. The company said the total value of the original offer was about $2 billion, which included the assumption of debt. Web.com’s stock rose $2.65 to $25.85 after the original agreement was announced June 21. The stock continued to trade between $25 and $26 in the 45 days after that. The stock closed Friday at $25.40 but after the new agreement was announced, it opened Monday at $28.05 and traded as high as $28.30 that day. Web.com also last week announced second-quarter earnings of 13 cents a share, 3 cents lower than last year, with revenue about unchanged from last year's second quarter. Because of the buyout agreement, the company did not hold the customary conference call with analysts to discuss the results. The buyout by Siris is planned to close in the fourth quarter. Based on Wall Street’s expectations, we’ll be watching for a higher price to come in before then.
$25.40 BUYOUT OFFER
Friday close before increase to $28 is announced
$23.20 June 21, sale agreement is announced
$17.35 May 7
Big FRP profit from property sale After selling its portfolio of industrial warehouses for $359 million, FRP Holdings Inc. last week reported a big secondquarter profit of $120 million, or $11.87 a share. That compares with earnings of $1.7 million, or 17 cents a share, in the second quarter of 2017 when there was no Baker big property sale. With all that money available to deploy into new assets, the Jacksonville-based real estate company isn't rushing into any new deals until the time is right, CEO John Baker said during FRP's conference call. “The good news is that we believe we sold at peak values, but we certainly don't want to buy and redeploy our money at peak values,” Baker said.
Regency has faith in traditional retail
Despite warnings that the Internet is killing traditional retailers, Jacksonville-based shopping center developer Regency Centers Corp. continues to have faith. “The best grocers and retailers are not standing still,” Regency CEO Hap Stein said in the company’s quarterly conference call last week. Stein “They are focused on meeting the evolving needs of today’s consumer by allowing customers to choose how, where, and when they will shop. A physical store presence remains a critically important channel where retailers con-
nect and service their customers,” he said. Regency owns all or part of 428 shopping centers across the country, most of which are anchored by supermarkets. Its properties were 95 percent leased as of June 30. “Regency’s top grocers and retailers, including Publix, Kroger, Whole Foods, TJX, Ulta, Panera and Orangetheory Fitness, to name a few, are addressing the evolving landscape through significant investments in technology, in experience, in price and in many cases, significant store expansions,” Stein said. Regency reported funds from operations of 93 cents in the second quarter, up from 84 cents the previous year. Funds from operations basically are earnings excluding noncash charges such as depreciation and amortization expense, and are a key indicator of a real estate investment trust’s performance.
Publix sales, earnings rise Publix Super Markets Inc. last week said second-quarter sales rose 4 percent to $8.8 billion, with comparable-store sales (sales at stores open for more than one year) rising 1.7 percent. Sales rose despite a negative impact from the Easter holiday coming in the first quarter this year, the Lakeland-based grocer said. Net income in the quarter rose by 19 cents a share to 84 cents. Publix also said based on the latest appraisal, its stock price increased from $41.75 on May 1 to $42.55 on Aug. 1. The stock is made available for sale only to employees and its stock price is determined by appraisals five times a year.
Rayonier profiting from Wildlight Rayonier Inc. last week reported second-quarter earn-
ings of 28 cents a share, 8 cents higher than last year, with sales up 22 percent to $245.9 million. The Yulee-based timber and real estate company continues to profit from its growing Wildlight mixed-use development in Nassau Country. “We're very pleased to see that our real estate strategy is yielding strong results and meaningfully augmenting our core timberland returns,” CEO David Nunes said in the company's conference call.
Rayonier AM expands in Nassau Rayonier Advanced Materials Inc. also is hoping to profit from an expansion in Nassau County, the recent completion of a lignin plant in Fernandina Beach under a joint venture. “This investment was important for our business not only because it will deliver strong returns of our capital in the high teens, but it also makes our Fernandina Beach Boynton cellulose specialties plant a more reliable facility by giving us the flexibility of using the lignin as energy or as a base raw material,” CEO Paul Boynton said in Rayonier AM's conference call. The Jacksonville-based company, which more than doubled in size with the acquisition of Tembec Inc. last year, reported second-quarter adjusted earnings of 60 cents a share, up from 11 cents last year.
FIS earnings rise in second quarter Fidelity National Information Services Inc. reported adjusted second-quarter earnings of $1.23 a share, up from $1.04 a share last year. Revenue for the Jacksonville-based bank technology
company rose 6.7 percent to $2.1 billion. “We continue to see strong client engagement around investing for the future, signaling increasing demand for our solutions. Sales momentum continues to be strong with a solid pipeline and growth in our revenue backlog,” CEO Gary Norcross said in the company's conference call.
RiverTown deal fees help St. Joe The St. Joe Co. more than doubled second-quarter earnings to $26.2 million, or 41 cents a share, helped by a payment related to the 2014 sale of its RiverTown development in St. Johns County. St. Joe said Mattamy Homes, which bought the development, paid St. Joe $23.1 million that was due for impact fees for the RiverTown project, which is along the St. Johns River in the northern part of the county. St. Joe previously was headquartered in Jacksonville but moved to Watersound in the Florida Panhandle in 2010.
New contract helps Advanced Disposal Ponte Vedra-based Advanced Disposal Services Inc. reported second-quarter earnings rose by 3 cents to 19 cents a share, with revenue up 3.9 percent to $398.1 million. Burke CEO Richard Burke said in a conference call that the waste management company benefited from a large municipal contract that began in late 2017, which increased its residential business. MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 9, 2018 • Page 9
Kanine Social owners Daniel Moffatt, left, and Dustin Fries opened their business Monday at 580 College St. in a former warehouse space.
A HANGOUT FOR DOGS, HUMANS
The owners of Kanine Social just wanted a place to hang out all day with their dogs, so they built and indoor-outdoor park, day care and a taproom. BY DAVID CAWTON STAFF WRITER
J
acksonville residents now can hang out with their pets without having to sacrifice socializing with humans. Kanine Social opened Monday at 580 College St. in the Brooklyn area. It begins as a dog day care and will phase into a larger indooroutdoor dog park and taproom next week. Owners Dustin Fries and Daniel Moffatt spent most of the year reconfiguring a former warehouse space for a new North Florida concept. They spent a decade in corporate jobs before branching out in their first business together. “We wanted a place that we could come hang out all day with our dogs,” said Moffatt. Through 3M RE Holdings LLC they bought an almost 16,000-square-foot building from N&N Cabinets Inc. in November 2017. It was built at the corner of College and Rosselle streets in 1955. The strategy is this: “People want to hang out with their friends, have a beer and watch football on the weekends but they feel bad because they have to leave their dogs at home,” said Fries. Fries said that he, Moffatt and their friends often would bring their pets to craft breweries or other establishments, but couldn’t let them off the leash. “Or they would be restricted to an outdoor patio area,” he said. They also noticed that dogs didn’t really have a place to run other than outdoor parks. “Then it’s either raining or it’s 100 degrees at 9 a.m. and your dog’s just not very comfortable out there,” Moffatt said. THE CONCEPT
At Kanine Social, dogs can be off leash at all times in most of the space. Currently, dogs are not allowed in the taproom because of Duval County Health Department rules.
The owners are working with the department in hopes of changing that restriction. The dog day care, taproom and indoor dog park comprise 12,000 square feet. About 10,000 square feet is fenced off between two outdoor dog parks and a beer garden with artificial turf. During a few soft openings and private events, Fries said the dog park accommodated 70 to 80 dogs, but that number will fluctuate when the park opens next week. Guests can purchase annual memberships to access the park, or pay by the day or month. “You can also come to the taproom for free,” said Fries. “That’s for everyone. You don’t need a dog to hang out.” Dog day care services can be purchased per day or in 10- or 20-day packages. Moffatt said they’ll likely cap the day care at 45 or 50 dogs, “although we could certainly allow more than that.” “Having a lower number of dogs per staff member means the dogs get more attention,” he said. “It’s safer and it’s less stressful on the dogs.” The facility features live web cameras, and each pet receives daily “report cards” and updates from staff. Customers can order a cup of coffee to have ready when they drop off their dogs. The day care is open MondayFriday from 7 a.m. to 9 p.m. The park will open 7 a.m. to 10 p.m. daily. The taproom is open 4-10 p.m. weekdays and 10 a.m.-10 p.m. Saturday and Sunday. Fries and Moffatt said about 145 people have purchased park memberships and another 300400 have registered on the www. kaninesocial.com website. “We think that once people can really enjoy the space and have as much fun as we’ve had with our dogs over the last couple of months, we’ll get a lot more members,” said Fries.
Photos by David Cawton
The indoor dog park at Kanine Social offers a space where pets and their owners can mingle even if it’s raining.
FINDING THE RIGHT FIT
Fries said they looked for years for a building, knowing they wanted to be in the Riverside or Avondale area. “This is a very dog-friendly part of town and there are a lot of young professionals moving in or already living in the neighborhood,” said Fries. He said the space needed to be at least 10,000 square feet indoors with plenty of space outside. The 70-year-old building needed to be completely renovated. Moffatt says they’ve invested more than $850,000 into the project. “It’s taken a lot of work to get to where we’re at now,” said Moffatt, who said the build-out took about six months. “This has that industrial feel with the 16-foot ceilings, and we knew it was the right space when we saw it,” added Fries. The business can’t sell beer and wine yet. They’ve been advised that they’ll receive the necessary license from the city by Aug. 30,
just in time for the start of the college football season. “Once we’ve got that, we’ve already teed up the necessary people to get our first beer and wine order in from the distributors.” The taproom now features kombucha, premium coffee, craft sodas and water. It has three 65-inch televisions, life-sized Jenga and Connect Four games, along with other family activities. They’ve put up three bigscreen TVs in the indoor dog park. “We’ll have food trucks here on the weekends and maybe some weeknights,” said Fries. “We’ll do bar trivia and other fun stuff for families and maybe live music down the road.” PLANS TO EXPAND
While Kanine Social operates most of the building, S4 Sports Academy occupies a 4,000-square-foot space. The academy signed a two-year
The taproom area of Kanine Social will be open until 10 p.m. daily.
lease with the previous owner. “That gives us plenty of time to grow into this space and to plan for what we think can work next,” Moffatt said. In the future, they might incorporate what they call a concierge veterinarian office. “The idea is that people could drop their dogs off for day care and while they’re here, get all their checkups or shots done onsite,” Moffatt said. “They don’t have to worry about taking time off from work or taking a Saturday morning to do it,” he said. He said they’d probably use about 1,500-2,000 square feet for the veterinarian office and use the other half for a boarding facility. “That’s in the works for the future, not anything for this year,” he said. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Page 10 • Thursday, August 9, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Atkins wants more urban core development
DAVID CAWTON STAFF WRITER
With redevelopment of the Barnett Building ahead of schedule and the Laura Street Trio underway, developer looking for next project. If you’ve been Downtown recently, it’s hard not to notice the construction along North Laura Street as crews continue to restore the historic Barnett National Bank Building. Danis Builders LLC, working on behalf of SouthEast Development Group and the Molasky Group of Cos., has been active on-site since October. The “adaptive reuse” of the Barnett is the first phase of a $100 million project that includes the restoration of the Laura Street Trio and the construction of a parking garage along Forsyth Street. SouthEast Development Principal Steve Atkins watched closely last week as a crane lifted about 13,000 pounds of HVAC components above the 18-story Barnett. “It’s a pretty significant step for us,” he said of having the 450-ton construction crane Downtown. “It’s going really fast.” The Barnett is a few months ahead of schedule, Atkins said. He expects to welcome the first tenants by early 2019. The building will include 100 apartments, a satellite campus for the University of North Florida and office tenants. JPMorgan Chase is expected to occupy the first floor and mezzanine areas for retail banking. Interior work is in process. The city is reviewing a permit for Danis Builders to build-out 12,100 square feet of space on the fourth and fifth floors for UNF, which has a lease for the Coggin College of Business to include classrooms and support facilities for up to 200 students. It will include a new Entrepreneurial Center to develop and support new businesses. UNF students will work as interns at the center, earning credits while working with entrepreneurs on their emerging business programs. Soon Atkins will turn his attention to the Laura Street Trio, which will comprise a 148-room Courtyard by Marriott hotel, a high-end restaurant and underground speakeasy-style bar. “This side of the street is a little bit more complex because there’s three buildings, and they’re all treated individually when it comes to historic preservation standards,” he said. He estimates the Marriott will be completed in mid-2020. Atkins now is looking ahead at the next opportunity to renew the urban core. One surfaced at a July 30 JEA board meeting.
NEW HEADQUARTERS FOR JEA?
“We think that it's a great opportunity to bring another corporate anchor to the area or to maintain a corporate anchor for that matter. If JEA’s plans happen to coincide with our plans then that would be great.”
SouthEast Development Group’s conceptual plans for an “Energy Innovation District” in Downtown Jacksonville would include a new headquarters for the city-owned utility JEA.
STEVE ATKINS, SOUTHEAST DEVELOPMENT PRINCIPAL
Special to the Daily Record
The utility is considering several sites Downtown to relocate its approximately 836 administrative employees from its headquarters at 21 W. Church St. Atkins proposed a fourblock “Energy Innovation District” for JEA to consider. It would include demolishing JEA’s 55-year-old, 19-story headquarters and rebuilding office space while adding infill development along Main Street. Atkins said the proposal for the transitional area between the core and the Cathedral District area “was something we actually started thinking about” nearly 1 ½ year ago. “It’s not specifically designed for JEA, it was designed as kind of a second phase to this project,” he said of the Barnett and Laura Street Trio. An eight-page packet Atkins provided to JEA board members provides a look at what that could be. The JEA headquarters building, labeled as Block No. 1, would be demolished and replaced with a multistory mixed-use development with about 292 residential units, 44,000 square feet for a “national retailer” and another 10,000 square feet for other retail. Block No. 2, along Main Street between Church and Ashley streets, would be developed with a 17-story corporate complex with 250,000 square feet of office space and about 4,500 square feet of streetlevel retail. The building would include 800 parking spaces.
For Block No. 3, along Main Street between Duval and Church streets, Atkins envisions a 20,000-square-foot “innovation center,” a 125room hotel, another 15,000 square feet of retail space and 102 additional residences. For the block surrounded by Monroe and Duval streets along Main Street, Atkins’ group would add 155 residential units. Plans also show a 21,500-square-foot grocer, another 10,000 square feet of retail and another 380-space parking structure. Atkins said the 550 residential units identified in the plans would be in high demand. “We’ve had a tremendous response at the Barnett for the residential component,” Atkins said. “We have a long waiting list, so we’re really confident that we’ll be able to grow the multifamily component Downtown.” He said if JEA decides on a different location, the second phase of his urban renewal project would proceed regardless. “We think that it's a great opportunity to bring another corporate anchor to the area or to maintain a corporate anchor for that matter,” he said. “If JEA’s plans happen to coincide with our plans then that would be great,” he said. Atkins said the plans are just that – plans. “There are no agreements,” he said. “This is us looking at the future beyond what’s already on our plate.” For now, the focus is on completing the Barnett and starting major construction on
IN BRIEF Funding proposed for new fire station Jacksonville City Council members will consider spending $1.75 million to acquire property near Gate Parkway for a new fire station. The Jacksonville Fire and Rescue Department chose the 3.77-acre lot in council District 11 as the new home for Fire Station No. 63, which will enable JFRD to achieve higher National Fire Protection Association standards for the area.
New name for Jaguars roadway When the Jaguars and TIAA Bank announced the renaming of the city-owned stadium, plenty of marketing materials and identifiers had to be changed. TIAA Bank Field has new signage, but City Council now needs to enact legislation to change the name of the road leading to the stadium. EverBank Field Drive will become TIAA Bank Field Drive to reflect the financial institution’s new name. The road leads from Georgia Street, between Adams and Duval streets, to the west side of the stadium.
Democrats face off in Jacksonville Following the gubernatorial debate Wednesday between Republican front-runners at Jacksonville University, the leading Democrats will face off Thursday for the last time before the Aug. 28 primary vote. Tallahassee Mayor Andrew Gillum, businessman Jeff Greene, former U.S. Rep. Gwen Graham, businessman Chris King and Miami Beach Mayor Philip Levine are scheduled to appear in a town hall debate at 7 p.m. at Terry Concert Hall at JU. WJXT TV-4 will air the debate.
both the Laura Street Trio and a new six-story parking garage at Laura and Forsyth streets. “We’ve planted our flag in the urban core and we intend to keep it here for a while,” he said. JEA is considering five locations, including building a new headquarters near TIAA Bank Field as part of Shad Khan’s
$2.5 billion development of Lot J, Metropolitan Park and the property known as the Shipyards. The board is expected to decide by 2019. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, August 9, 2018 • Page 11
THE DATA PAGE
Northeast Florida industrial space BY SCOTT SAILER • EDITORIAL RESEARCH DIRECTOR
6.77%
On Monday the Jacksonville Daily Record reported that VanTrust Real Estate plans to develop a 3 million-square-foot industrial center at Imeson International Industrial Park. It's one of several industrial projects planned for Northeast Florida. Here’s where the region stands for industrial space in the second quarter of 2018, according to data from CBRE Inc. Availability includes vacant space and space coming open soon. The overall vacancy rate is 3.6 percent.
The average availability for industrial space in Duval, Clay and St. Johns counties, according to CBRE data.
$5.64
Availability percentage by area, second quarter 2018
Average lease rate per square foot. (NNN)*
5.7%
Beaches 3.1%
Downtown
10.3%
Northside Southside
10.4%
Westside
5.6%
Clay
10% 2.3%
St. Johns
Submarket
Total inventory
Availability percentage
Q2 2018 square feet net absorption
2018 square feet net absorption year-to-date
Square feet under construction
Average asking lease rate per square foot (NNN)*
Beaches
1,664,96
5.7%
0
39,299
0
$11.50
Downtown
2,440,595
3.1%
7,750
7,750
0
$3.57
Northside
31,678,620
10.3%
12,136
659,862
200,000
$4.08
Southside
21,599,400
10.4%
181,114
256,801
14,400
$8.21
Westside
41,754,508
5.6%
189,525
294,525
722,480
$4.08
Clay County
2,919,873
10%
0
526
0
$3.57
St. Johns County
1,684,101
2.3%
9,000
9,000
0
$4.50
*NNN is a lease agreement in which the lessee pays all building insurance, real estate taxes and maintenance on the property.
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Page 12 • Thursday, August 9, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
JUSTIN CLARK BY KAREN BRUNE MATHIS • EDITOR
Justin Clark, a commercial real estate broker, consultant and developer, is a Jacksonville native who founded Property Theater LLC in 2012. His projects include the Bay95 and Butler95 centers. His mother is entrepreneur Sue Butts. His brother, Richard Clark, served on City Council from 2005-15. While I was getting an MBA at the University of North Florida, I was up late one night and came across an infomercial that claimed I could “buy a house, no money down.� Something about creating wealth through real estate appealed to me. So, I bought the package. Although I did not pursue the program, I was inspired. It ultimately changed my course, becoming the impetus for a career in real estate. I narrowed my business focus and received a master’s in real estate finance at the University of Florida, then returned to UNF to complete my MBA. PricewaterhouseCoopers hired me in its New York office to audit commercial mortgage-backed securities. They were large, billion-dollar deals, but I felt like I was too far removed from the actual deals. I was looking at paper, not buildings. I returned to Jacksonville and started working with a family business. My mom owned three companies. One was a commercial real estate property management and brokerage company. Another was a commercial janitorial service. I was putting on a real estate hat during the day and putting on a Supreme Janitorial Service uniform at night and doing whatever it took to get the job done. I had become a CCIM and presided over a local real estate outlook conference where I had an opportunity to meet with Charlie Skinner. His family owned land around the Interstate 295 and Baymeadows Road corridor. Charlie Skinner wanted someone who had a real estate development
ABOUT CLARK Title: President Organization: Property Theater LLC Age: 46 Education: Bachelor’s degree in psychology and master’s degree in real estate finance and urban planning, University of Florida; MBA and certificate in transportation and logistics, University of North Florida
Photo by Karen Brune Mathis
and brokerage mind with limited hands-on experience so that he could train and mentor. I started working with Charlie Skinner on Sept. 11, 2001, the day of the attack. It was an awful day for our country and an odd way to start a new career, but I’ve worked with him ever since. He was an incredible mentor, but more importantly became a great friend. We started a new brokerage and development company, Property Theater. The idea is that we can give you a “be there� experience without having to be there. We frequently have web meetings where we can log everybody in and I drive the market through Google Earth and other GIS platforms. We have a Property Theater room with a huge screen where we “virtually� drive the market from the comfort of your chair
with a bag of fresh popcorn. I am an avid follower of geographic information systems. We help clients identify the best location for their businesses based on technologies that are predictive, including demographics, psychographics and drive-time analysis.
Associations: Certified Commercial Investment Member; Certified in Transportation and Logistics
I fell in love with a young lady who had been a classmate at Nease High School who was always on my mind. Destiny did not catch up with us until after college. We got engaged as I returned from New York. Mary Beth eventually became my wife. We now have four amazing sons.
Family: Wife, Mary Beth; sons Jonah, 17, Jack, 16, Morgan 14, and Aubrey, 9 Hometown: Jacksonville
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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