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Swanky Orlando lounge buys building next to Florida Theatre
June 28-July 4, 2018
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JACKSONVILLE
Record & Observer Warehouse proposed across from Amazon
REALJACKSONVILLE ESTATE
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NorthPoint Development plans 553,000-squarefoot speculative facility in North Jacksonville.
JACKSONVILLE
Record & Observer WHO’S BY KAREN BRUNE MATHIS EDITOR
BUYING UP Record & Observer BROOKLYN? JACKSONVILLE
Photo by David Cawton
Park Street at Jackson Street in Brooklyn, the neighborhood where a group of companies has spent more than $4.4 million to acquire property.
A group of companies, all linked to the same law firm, has spent millions acquiring the vacant, run-down and aging properties in the neighborhood on the edge of Downtown.
BY DAVID CAWTON STAFF WRITER
A
group of companies is quietly purchasing property in Brooklyn. Since 2014, the group has amassed entire blocks along Park Street, between Forest Street and Myrtle Avenue, totaling at least 11.6 acres. The investment so far tops $4.4 million. Altogether, 13 companies have invested in Brooklyn. Each is tied to three other Jacksonville-based groups — Contega Business Services LLC, North Platt LLC and Ascona LLC. The common denominator is a Jacksonville law firm. All share an address with the Driver, McAfee,
Hawthorne & Diebenow PLLC law firm at One Independent Drive, Suite 1200, in the Wells Fargo Center. Attorney Steve Diebenow said his client was not interested in discussing the purchases. “I am afraid you are going to have to write from the public records,” he said. While the buyer’s identity is private, what is planned is surfacing. “They’re looking to do mixed-use development similar to what’s started in Brooklyn already,” said Downtown Investment Authority Chief Executive Officer Aundra Wallace. That means more residential, retail and office space, he said. “Not like you see already in the area,” he said of potential office tenants. “But more tailored to the SEE BROOKLYN, PAGE 10
A Missouri-based company wants to develop an almost 553,000-square-foot warehouse in North Jacksonville. NorthPoint Development, based in Kansas City, proposes to build the center at the Park 295 industrial park. No tenant is identified, indicating it is a speculative building. “It is NorthPoint’s plan to deliver a 553,000-square-foot speculative building in the first quarter of 2019,” said Ladson Montgomery, senior vice president and principal of Newmark Grubb Phoenix Realty Group. Newmark Grubb Phoenix Realty Group represents the current ownership and is working on the deal with NorthPoint. Montgomery deferred further comment until the property is purchased. The 167-acre business park is along Interstate 295 at southwest Duval and Armsdale roads, across the interstate from the Amazon. com fulfillment center that handles small consumer items. The site is about 2.5 miles south of Jacksonville International Airport. It is west along I-295 from the Dames Point and Blount Island marine terminals. A city Concurrency Reservation Certificate signed Tuesday describes the NorthPoint project as a high cube warehouse, which is a distribution center primarily used for the storage or consolidation of goods before distribution SEE WAREHOUSE, PAGE 5
The Cawton Report: Anna Brosche reflects on year as president PAGE 6
Web.com CEO: Buyout is positive
The Mathis Report: Tenant looking at closed Best Buy space. PAGE 4
The company’s largest shareholder sells its shares. PAGE 8
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VOLUME 1, NO. 4 • ONE SECTION
Page 2 • Thursday, June 28, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
WHAT’S TRENDING
Investors now embracing Downtown redevelopment
KAREN BRUNE MATHIS EDITOR
And it’s not just Jacksonville residents realizing its potential. A trend is developing Downtown concerning ownership. More people want in on it. David Cawton reports today about a significant set of acquisitions in Brooklyn, which is part of Downtown for development purposes. Those making the purchases for the unidentified buyer aren’t saying what will happen – but it’s apparent that they’re banking on redevelopment. Also, operators of Team Market Group in Orlando paid more than $1 million for two 100-year-old-plus buildings along East Forsyth Street for development of nightlife and possibly housing. A Team Market Group owner said the group bought the 2,000- and 12,000-square-foot buildings along East Forsyth Street, next to the Florida Theatre, because “We believe in the Downtown district and want to be part of its growth.” He said they are looking for more opportunities. The seller of the larger 120 E. Forsyth St. site, which will become a second-floor speakeasy lounge with first-floor potential for another Orlando concept, said the sale makes another point. Jacksonville public affairs consultant Mike Langton said it shows him, after four years of ownership, that people from outside Jacksonville “understand the potential of
Downtown Jacksonville where some in the city don’t get it.” High-rises also are attracting interest. Jacksonville-based VyStar Credit Union intends to buy the 23-story SunTrust Tower. VyStar President/ CEO Brian Wolfburg chose the site for the credit union’s headquarters, which will relocate from Blanding Boulevard, because it was the most economical option. He said the choice to buy a building rather than develop a suburban campus will allow VyStar to improve the workplace for the 700 jobs it will move Downtown, “truly making it the best choice for our members.” And Ash Properties, also based in Jacksonville, is the high bidder, at $23.3 million, for the 18-floor BB&T Tower. Ash Properties COO Randall Whitfield said the real estate group has been interested in the Downtown office market. “We want to take full advantage of that to participate Downtown and do our part for Jacksonville,” he said. So far, none of the buyers of the four sets of sales mentioned requested taxpayer incentives to make their moves, although that doesn’t mean they won’t seek assistance as they pursue development. We could go on about other buildings Downtown, as well as interest by local investors in more property, but the reason for the transactions is encouraging for those waiting for redevelopment. It’s for the opportunity to get in on ground floor of what’s coming and in these instances, on the Northbank in or near the historically struggling urban core. The purchases show there is interest, desire and money to make calculated investment risks Downtown and that the buyers consider Downtown to be the place, and now to be the time. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Duluth Trading Co., the casual and workwear clothing company whose quirky animated ads tout its Buck Naked underwear and Fire Hose pants, is planning its first Florida store at River City Marketplace. Belleville, Wisconsin-based Duluth Holdings Inc. wants to occupy a new 14,560-square-foot building at 13000 City Station Drive. The property is along Interstate 95 on the west side of the Regal River City Marketplace Stadium 14 movie theater.
GAS STATIONS Buc-ee’s advances plans for store Buc-ee’s, the Texas-based (and Texas-sized) convenience store, submitted site engineering plans to the St. Johns River Water Management District for development of its 13.71-acre site at 655 World Commerce Parkway southwest of the Interstate 95 and International Golf Parkway interchange. Plans indicate a 53,254-square-foot, single-story building with 104 fueling stations and 392 parking spaces.
GROCERY STORES Walmart Neighborhood Market opens The first Walmart Neighborhood Market built from the ground up in Jacksonville opened Wednesday at 9550 Baymeadows Road. It’s the return of a grocery store to a shopping center that more than a decade ago held a Food Lion. The store is competition for Publix across the street. A nearby Winn-Dixie store closed in the the spring when Southeastern Grocers filed for a Chapter 11 bankruptcy reorganization.
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Thursday, June 28, 2018 • Page 3
Swanky lounge buys home near Florida Theatre Orlando-based Mathers Social Gathering says it chose site “because we believe in the Downtown district and want to be part of its growth.” BY KAREN BRUNE MATHIS EDITOR
Mathers Social Gathering, an Orlando-based concept described as a swanky, sophisticated hideaway that serves classic cocktails, will join the nightlife scene Downtown along East Forsyth Street near the Florida Theatre. Orlando investors spent $1.08 million to acquire adjacent buildings next to the Florida Theatre and plan to turn one into the social gathering lounge. Orlando-based 120 E Forsyth LLC closed Monday on the twostory, almost 12,000-square-foot structure next to the Florida Theatre. Property records show it was built in 1909, although the buyers are awaiting more precise history details. It bought the property for $830,000 from LB Jax Development LLC. “We chose this site because we believe in the Downtown district and want to be part of its growth,” said operator Team Market Group partner Romi Mawardi. “We also love old historic buildings and repurposing them for others to enjoy,” he said Monday. The buyers intend to open their second Mathers Social Gathering on the second floor of the building. ‘HUGE HIT’ IN ORLANDO
Mawardi said Mathers has been a “huge hit” in Orlando and the team looks forward to bringing the concept to Downtown Jacksonville. He said there is no expected opening other than before New Year's. He said the location will be similar to the Orlando Mathers. He hopes to submit plans in a few weeks. T h e 6,0 0 0 - sq u a re - fo o t Mathers Social Gathering at 120 E. Forsyth St. also will serve as
space for events, such as corporate parties and weddings. Mawardi said the group is talking to business owners in Orlando to see if they are interested in bringing concepts to the first floor. For now, it is available for short- or long-term lease and he invites anyone interested to email edgar@teammarketgroup.com. Team Market Group also bought the adjacent Ann Teague Bonding Agency Inc. building at 112 E. Forsyth St. on May 22. Through 112 E Forsyth LLC, Team Market Group paid $250,000 for the roughly 2,000-square-foot, three-story structure built in 1904. Ann Teague Bonding Agency bought the property in 2003 for $150,000 from WW Properties LLC. Mawardi said that will be used for office space for now.
Special to the Daily Record
The interior of Mathers Social Gathering in Orlando. The lounge plans to bring a similar design to Jacksonville.
BIDDING WAR FOR PROPERTY
Margie Seaman of Seaman Realty and Management Co. represented the sellers. Lincoln Property Co. Associate Matthew Weinberger in Orlando represented the buyer. Seaman said she understands that 112 E. Forsyth St. is slated for residential development. LB Jax bought the 120 E. Forsyth St. building in 2014 for $450,000 from Old Republic National Title Insurance Co. Mike Langton, managing member LB Jax, said that when he bought the building he tried to bring in a restaurant or bar. When that didn’t happen, he decided about a year ago to sell it. Seaman said four bidders made offers. Langton said a bidding war among two raised the asking price of $800,000 by $30,000. “It probably shows to me that people outside of our Jacksonville environment understand the potential of Downtown Jacksonville where some in the city don’t get it,” Langton said. He said the speakeasy planned on the second floor “is just a spectacular place and it’s going to be a center of activity and meeting for a lot of our Downtown people.” Langton said Team Market Group is interested in acquiring other Downtown buildings and he
Photo by Karen Brune Mathis
An Orlando nightlife investment group paid more than $1 million for adjacent buildings next to the Florida Theatre.
will assist them in terms of identifying city incentives, grants or other assistance. “I am going to stay involved,” he said. ‘ALL THE COOL BUILDINGS’
Mawardi said Monday the 112 and 120 E. Forsyth St. plans are a big move for the Team Market Group. He considers Team Market Group the leader for hospitality development in downtown Orlando. “We chose Jacksonville because of all the cool buildings and the need in Jacksonville for some nightlife and fun,” Mawardi said. Mawardi said the Orlando Mathers serves a high-end clientele. The drink menu shows cocktails, “social potions” available in decanters, wines, spirits, beer, champagne, juices and other drinks. Cocktail prices range from $12-$18. By the glass, beer is $7 and wine is $10 to $15.
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The “Bites” menu includes a cheese board, a charcuterie board of cured meats, a feta plate of cheese and pita slices, a Mediterranean prosciutto sandwich, caprese skewers and more. Bites items at the Orlando Mathers range from $7 for a blend of olives to $24 for the cheese board. Mawardi also said every aspect of the design is created through Team Market Group, which won design awards. Mathers in Orlando is described as “a stylish, dark wood exposed brick filled hideaway housed on the third floor of a vintage furniture store from the late 1800s” at 30 S. Magnolia Ave. “Ample parlor seating allows patrons to relax with their friends and mingle with other guests while enjoying the swanky, historical atmosphere” reminiscent of late 1800s Orlando. Its “dapper bartenders” create classic and modern drinks and
Mathers offers small plates for food service. Mawardi said the group does not disclose the investment it makes in redevelopment. Teammarketgroup.com calls itself “one of Orlando’s most successful companies in entertainment and nightlife management.” Team Market Group was created in 2006 by brothers Keith, Daniel and Romi Mawardi. “The company has built a firm reputation as being influential in the hospitality industry, specializing in nightlife operations, marketing and entertainment,” says the site. It says it created Tier Nightclub, ONO Nightclub, Team Events, Celine Orlando and Mathers Social Gathering. Its website also includes ONO Poke Shop in Miami as based on the Hawaiian delicacy of poke with a Japanese twist. It describes Tier Nightclub as more than 10,000 square feet of party space with resident and guest DJs. ONO Nightclub is a highenergy dance club. Celine is a multifaceted entertainment space with capacity for 1,000 occupants. Team Market Group says it also created and sold Vain Nightclub (sold in 2011), Saddle Up All American Bar (sold in 2016), Knights Pub UCF (2017), and 23, Sound Bar, Oak Room and Native (all sold in 2013). “The team has worked tirelessly to design, develop and curate each one of our brands in-house,” says the website. “The goal is to turn its businesses into a multifaceted and recognized brand name among the marketplace.” KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Page 4 • Thursday, June 28, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE MATHIS REPORT
Tenant looking at former Best Buy space KAREN BRUNE MATHIS EDITOR
Markets at Town Center also has looming vacancy in Toys R Us space next door. A new tenant is pending at The Markets at Town Center to take the 31,200-square-foot space Best Buy vacated when the retailer moved the business across the street. Property Manager Helen Ciesla said Hines is “aggressively in discussion with a prospective tenant to occupy the former Best Buy space.” “We are getting closer to concluding a leasing deal,” she said. She declined to identify the prospective tenant or the type of retail store that would lease at 4873 Town Center Parkway. Best Buy moved into more than 36,000 square feet of space across the street at 4906 Town Center Parkway in The Strand at Town Center next to PGA Tour Superstore. Meanwhile the 70,000 or so square feet being vacated by Toys R Us and Babies R Us is subject to change, too. Those retailers liquidated under a bankruptcy order and the lease is subject to the bankruptcy auction, Ciesla said. Asked about industry talk that a grocery store might lease the space, Ciesla said she could not comment. “We are moving forward with a replacement tenant for Best Buy.”
Dream Finders plans to build eTown townhomes
Dream Finders Homes LLC is the builder behind the proposed townhome project at eTown. The St. Johns River Water Management District is reviewing an application by Jacksonville-based Dream Finders Homes to develop what appears to be 90 townhomes
IFly going up near Town Center The iFly Indoor Skydiving center near St. Johns Town Center is on the rise. The city approved permits Monday for ARCO/ Murray Construction Co. of Tampa to build the $4.37 million structure to house the facility and its flight chamber at 10579 Brightman Blvd., west of Interstate 295 and south of Topgolf.
Special to the Daily Record
File image
About 70,000 square feet of space opens up at The Markets of Town Center with the closure of Toys R Us and Babies R Us. The lease on the property is subject to the bankruptcy auction.
among 14 buildings on 12.71 acres. ETown is east of Interstate 295 and Florida 9B in southern Duval County. The eTown property is owned by Eastland Timber LLC, which has been selling land for residential development and also has land for commercial use. Most of the property is east of I-295 and Florida 9B although some is west of it. ETown Parcel E9 is at 9735 R.G. Skinner Parkway. England, Thims & Miller Inc. is the agent and civil engineer. The site is south of Baymeadows Road and east of I-295. R.G. Skinner Parkway will be extended as E-Town Parkway. Single-family communities and apartments already are planned in eTown, as it is called for marketing purposes. David Weekley Homes and ICI Homes are developing in a joint venture and Toll Brothers also is planning homes. City records also show plans for a four-building multifamily project. The PARC Group of Jacksonville is developing eTown for the Davis family, which owns
the land through Eastland Timber. While called E-Town in public documents, PARC Group is marketing it as eTown and says it will open in 2019. The PARC Group continues to issue the statement it has offered since the project began taking shape, evident by the exit signs along I-295 that show “E-Town Parkway”: “We are preparing preliminary plans and permits for the future eTown land, which will include, among other uses, single family and multi-family communities,” said the statement. A St. Johns River Water Management District permit filing shows the 1,478-acre mixed-use project will include commercial acreage with much of the developable property dedicated to residential use.
Bainbridge Apartments coming to Kernan
The Bainbridge Jacksonville Apartments are coming to northwest Butler and Kernan boulevards on vacant prop-
DEVELOPMENT NOTES The city approved a foundation permit for the TriBridge apartments planned at 555 Bishopgate Lane in Riverside. TriBridge Residential is the contractor for the $868,377 project. Pavilion Health Services site plans are in review for Tapestry Park. Baptist Health intends to build a 6,700-square-foot primary care center on 1.77 acres at 4844 Deer Lake Court near Another Broken Egg Café. Tapestry Park II Commercial Venture LLC of Columbia, Missouri, owns the property. Prosser Inc. is the civil engineer. Baptist hopes to open the center in summer 2019. Jacksonville University was cleared to start construction on its Jacksonville Lacrosse Center at its Arlington campus at 2800 University Blvd. N. Completion is expected in the fall. The city approved a permit for Jacksonville-based Stellar Group Inc. to build the 8,600-square-foot center on an acre next to D.B. Milne Field at a construction cost of $1.6 million.
erty south of the University of North Florida being sold by the Skinner family. The city is reviewing 21 permit applications for The Bainbridge Companies LLC to build 276 units at a construction cost of about $24 million at 5000 Kernan Blvd. Permits show 90 one-bedroom, 150 two-bedroom and
36 three-bedroom apartments among 10 apartment buildings. There also will be six sixcar garages, a clubhouse, pool pavilion, maintenance garage with more functions, and two mail kiosks. Plans show that Bainbridge Companies LLC will develop the project on 17.3 acres. Zev Cohen & Associates Inc. of
Jacksonville Daily Record/Jacksonville Record & Observer Ormond Beach is the civil engineer. Plans were prepared for Bainbridge Communities Acquisitions III LLC, a subsidiary of Wellington-based The Bainbridge Companies. The Bainbridge Companies website says it manages about 25,000 apartment homes in more than 70 communities in Florida, Maryland, New York, North Carolina, Virginia and Washington, D.C. This would be the company’s first community in Northeast Florida. Tyler Nilsson, a director of ARA, A Newmark Company, said previously his company is the broker representing Bainbridge and that Bainbridge expects to break ground at the end of the summer after closing on the land purchase. Nilsson said this week the purchase is scheduled to close in September and the construction schedule has not been finalized.
Cross-dock warehouse OK’d in NW Jacksonville
J&J New Kings Road LLC, led by Seattle-based Lake Washington Partners, won city approval to build its $11.4 million crossdock distribution center in Northwest Jacksonville. The Conlan Co. is the contractor for the proposed 373,650-square-foot warehouse distribution center on 25 acres at 10940 New Kings Road. No tenant has been announced.
Scrubbles buys Breezes Car Wash
Scrubbles Atlantic Express Wash LLC acquired the former Breezes Car Wash at 835 Atlantic Blvd. in Atlantic Beach
and closed it for renovations to reopen in about four months. It took out a $2.5 million mortgage from Community Bank of Georgia. Scrubbles opened in May in The Crossing at St. Johns Town Center. It also intends to open at Fleming Island. Todd Buckner, the former Florida and South Georgia franchisee for Goo-Goo Express 3 Minute Car Wash, said in December the international car wash company IMO bought Goo-Goo corporate in the summer as well as his five Goo-Goo franchise locations in Georgia and Lake City, which remain operating as Goo-Goo. Because of the Goo-Goo sale, Buckner decided to brand his own Scrubbles 3 Minute Express Wash concept.
Pilot buys land for Pilot Express on Zoo Parkway
Pilot Travel Centers Inc. paid $1.35 million for 5.72 acres at 3535 Zoo Parkway, near Interstate 295, to develop a Pilot Express. The Knoxville, Tennesseebased company bought the vacant land from Sandlot Holdings Inc. of Saginaw, Michigan. Pilot Express is part of Pilot Travel J, which plans a 6,248-square-foot express convenience store and fueling center on the site. The Pilot Express is smaller than the typical Pilot Travel centers. Pilot caters to commuters, truckers and the neighborhood with fuel, food outlets, retail goods, a tire center and other amenities.
KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
Thursday, June 28, 2018 • Page 5
FOOD NOTES
File image
The former Applebee’s near Queen’s Harbour is planned to become a Panera Bread.
Panera moving ahead with East Arlington plans Site plans were filed for Panera Bread to renovate and expand the former Applebee’s Neighborhood Grill & Bar at 13201 Atlantic Blvd. near Queen’s Harbour Yacht & Country Club. Plans show Panera taking over the standalone building on 1.53 acres and expanding it to accommodate a drive-thru. Tampa-based Brightwork Real Estate, through BW Atlantic 90 LLC, paid $1.7 million for the property in February and is redeveloping it. Panera, based in St. Louis, has not responded to questions by email or telephone about the location or what would happen to the Panera that operates just a half-mile west at 12959 Atlantic Blvd. That location does not have a drive-thru. St. Johns Town Center announced that True Food Kitchen will open in November. It is renovating the former Mitchell’s Fish Market. Keke’s Breakfast Café is in review for final
tenant build-out at The Strand at Town Center. No contractor is listed for the $600,000 buildout of almost 4,400 square feet at 4800 Town Center Parkway. A previous permit shows an initial build-out of $210,000 for the shell space at a more precise address of 4906 Town Center Parkway, No 104. Keke’s has a restaurant in St. Augustine and another planned at The Pavilion at Durbin Park. Operating hours are 7 a.m. to 2:30 p.m. Burger King is renovating its store at 7725 Lem Turner Road at a cost of 150,000. The permit application indicates interior and exterior renovations. Caribbean SIG Inc. applied to the city for a zoning exception to serve all alcoholic beverages at Seafood Island Bar & Grille at 1959-1963 San Marco Blvd. It now serves beer and wine. Caribbean SIG is led by Charley Akel.
Warehouse: Estimate indicates cost up to $26M CONTINUED FROM PAGE 1
to retailers or other warehouses. The developer is shown as NorthPoint Development LLC. Prosser Inc. is the agent. No cost is listed. Industry estimates of $40 to $50 per square foot for similar projects indicate a $21 million to $26 million cost. NorthPoint is a privately held firm that focuses on Class A development in the industrial, senior housing and self-storage
markets. It is active in 16 states. It says on its beyondthecontract.com website that it developed more than 49 million square feet of industrial space since it began in 2012. It says that last year, it leased more than 13.2 million square feet of warehouse space. Its largest customer is General Motors, which it helped to develop supplier parks to support manufacturing operations. Other customers include Ama-
zon, Walmart, Grainger and UPS. The park is owned by HG Industrial Commons LLC and HG Industrial Partners LLC, both of Elgin, Illinois, near Chicago. They bought the property in 2008 and 2009 as the national recession stalled real estate development. Newmark Grubb Phoenix Realty Group is the exclusive agent for the land, which is entitled for up to 2.1 million square feet of industrial development, according to a marketing brochure.
The property is described as about 175 acres, of which 139 acres is developable. The land has been for sale at $48,750 per developable acre. The land use is governed by a Planned Unit Development. A conceptual site plan with the marketing brochure shows four buildings of about 125,000 square feet to about 661,000 square feet. However, the PUD verification plan filed with the concurrency application shows the proposed
warehouse, called Building B, and three future buildings of different sizes. The 552,634-square-foot initial warehouse comprises 50,000 square feet of office space and 502,634 square feet of industrial space. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Jacksonville Daily Record/Jacksonville Record & Observer
THE CAWTON REPORT
Brosche ‘bittersweet’ as presidency ends DAVID CAWTON STAFF WRITER
She reflects on the Confederate statue issue, her battles with Mayor Curry — and what she will do next. Anna Lopez Brosche served at her last City Council meeting as president Tuesday. “I had been advised by prior council presidents that it was going to feel like it was two minutes long and indeed it was,” Brosche said of her year as leader of the 19-member body. “It’s bittersweet,” she said Tuesday. From taking an inventory of Confederate monuments to leading the charge against privatizing JEA, Brosche said she was able to pursue her issues. It was an active year, preceded by her win over 2016-17 council Vice President John Crescimbeni, upsetting the traditional ascension to the presidency. From there, Brosche said her approach was to take issues as they came up. “I really was careful not to develop a lot of expectations because expectations, in general, are the basis for disappointment,” she said. She said she’s particularly proud of the work of the Task Force on Civil Rights History she established and her work to address the city’s parks. Through the year, Brosche found herself in the middle of conflicts. CONFEDERATE MONUMENTS
Brosche became council president July 1. Her first real challenge came on the heels of racially motivated violence in Charlottesville, West Virginia, in August when she called for an inventory of Jacksonville’s Confederate War monuments and memorials. She said it was an attempt to see if they should be relocated from public parks to a museum or educational institution. One of the highest profile monuments is the statue of a Confederate soldier in Hemming Park adjacent to City Hall. Nearly a year later, Jacksonville residents still speak out
Photo by David Cawton
Anna Lopez Brosche will complete her term as Jacksonville City Council president Saturday. She will return to her role as an at-large member.
at council meetings for and against potentially moving the statues. Those comments, Brosche said, led to her decision to push for a memorial to honor lynching victims alongside the Confederate soldier statue. “The sentiment was let’s not move it, but let’s contextualize it,” Brosche said. This year, the National Memorial for Peace and Justice opened in Montgomery, Alabama. It features 1,600 steel columns across a 6-acre park that represents the U.S. counties where documented lynchings occurred from 1877 to 1950. The memorial is asking those counties to claim their columns to create their own memorials in places of prominence. Jacksonville had seven documented lynchings during that time, and Brosche said it’s time to bring the Duval column home. “I think it’s appropriate to tell our history and own it,” she said. She introduced legislation Tuesday to bring the memorial to Hemming Park and form a committee to oversee the installation. JEA FIGHT
In February, JEA board Chair Alan Howard presented the findings of a financial analysis to council of how the public utility would fare on the open
market. Mayor Lenny Curry called the Feb. 14 meeting, but Brosche caused a collective gasp in the audience when she quashed his attempt to address the council. She has remained a vocal opponent of privatizing the electric, water and sewer utility and questioned the JEA board’s naming of Aaron Zahn as interim CEO. Zahn, who has no utility experience, has applied for the permanent job. “I would say that putting the brakes on the freight train called ‘selling JEA’ was a big deal for me,” she said. “Also, helping the public engage in that process because I feel like they should be engaged in all of our processes.” Brosche said she believes the utility would have taken steps toward privatization if she were not president and that there are governance problems with the independent authority. “Right now, I don’t know that things are working in a way that people expect and in accordance with some defined rules,” she said. “Hopefully that will change.” INDICTMENTS
Brosche, a Republican, won over Democrats representing Districts 7-10 to secure the win over Crescimbeni. In return, she placed them on critical council committees. Two Finance Commit-
tee members, Katrina Brown and Reginald Brown, are now defendants in a federal fraud case and are suspended. Federal prosecutors allege they used a group of companies to illegally siphon money from a federal loan and a city-backed loan and grant to prop up a failed barbecue sauce plant in Northwest Jacksonville that was owned by Katrina Brown and her family. The pair pleaded not guilty Monday to multiple fraud charges. Brosche said while she knew Katrina Brown was having issues with her family business, she wasn’t aware that the problems had escalated to an FBI investigation that eventually led to a federal indictment. Katrina Brown was elected to District 8 and Reginald Brown to District 10. “At the time of me making the decision to put them on Finance, that was an effort for me to provide Districts 7, 8, 9, and 10 with a voice,” she said, “to set forth a path for diversity on the council, both in leadership and in service like we’ve never seen before.” Brosche said hindsight is 20/20 and that had she known the scope of the legal issues she would not have placed them on Finance. “Nevertheless, I can’t put toothpaste back in the tube, and I made some swift changes as soon we were aware of these challenges,” she said.
Both were relieved of council assignments after the indictment. Brosche said neither could have independently made a significant difference or pushed an initiative on council without nine of their peers supporting their activities. “Ultimately, each of them is one of seven on a committee and they’re one person of 19 (on council),” she said. THE FUTURE
With her term ending Saturday, Brosche said she’s ready to return to her role as an at-large council member. She said she will continue to push for government transparency and for the work of the Task Force on Civil Rights History. “I’m 150 percent behind seeing that work continue, but I haven’t quite figured out a mechanism for how to do that,” she said. Brosche has clashed with Curry, generating speculation that she might challenge him in next year’s mayoral race. She acknowledges but does not confirm the rumors. “I’m looking forward to evaluating the future and my priorities,” she said.
DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
IN BRIEF
Billy wins good governance award
Bowman to be installed as president
City Council Auditor Kyle Billy was honored Tuesday with the Robert O. Johnson Good Government Award presented by council President Anna Brosche. She said Billy’s 29 years of service made him a deserving candidate. Billy’s office serves as a financial “watchdog” for council and the public, reviewing budgets and financial matters on behalf of the legislative branch. The annual award is given to a person who “personifies the outstanding public service and exemplary reputation for integrity and honesty to the City Council and to the people of Jacksonville.”
Aaron Bowman will be installed as City Council president at 6 p.m. Thursday at the Times-Union Center for the Performing Arts. He’ll be joined by new council Vice President Scott Wilson. Bowman is senior vice president of business development at the JAXUSA Partnership and former commanding officer at Naval Station Mayport. On council, he serves District 3. Wilson serves District 4 and has been in public service since he was 18. Their leadership term begins July 1. Photo by David Cawton
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 28, 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 June 18-22.
File image
One Imeson in North Jacksonville sold for $47.75 million to Arsenault Holdings LLC. The two-story, 1.7 million-square-foot distribution and office building comprises 1.45 million square feet of industrial space and almost 250,000 square feet of office space.
$51,300,000
$47,750,000
$14,709,538
$13,800,000
86016 Christian Way, Yulee, Nassau County
1 Imeson Park Blvd., Jacksonville
7585 and 7595 Baymeadows Way, Jacksonville
8659, 8657, 8649 and 8647 Baypine Drive, Jacksonville
Type: Oak Grove Plaza offices Size: 26.35 acres Buyer: Somera Road Baymeadows Road LLC Seller: Cabot Oak Grove 1 LLC
Type: Spring Lake Business Center Size: 16.65 acres Buyer: IPCP Spring Lake VI LLC and TCG Spring Lake Holdings LLC Seller: Deerwood Investors LLC Previous sale: $19,200,000 in 2005
Type: The Reserve at Amelia Apartments Size: 24.52 acres Buyer: BW Amelia LLC Seller: The Reserve Amelia LLC
Type: Warehouse Size: 73.48 acres Buyer: RCS Imeson LLC Seller: GIV Imeson LLC Previous sale: $16,293,600 in 2011
$12,600,000 995 Florida 16, St. Augustine, St. Johns County Type: Commercial Size: 1.87 acres Buyer: Real Sub LLC Seller: PX Mission Trace LP Previous sale: $8,915,000 in 2012
$8,500,000
$3,150,000
$2,995,000
$2,400,000
$2,000,000
11650 Central Parkway, Jacksonville
Pritchard Road, Jacksonville
1102 Ponte Vedra Blvd., Ponte Vedra Beach, St. Johns County
3011 Marbon Road, Jacksonville
1751 Marshall St., Jacksonville
Type: Warehouse Size: 12.47 acres Buyer: Liongate Investment LLC Seller: GTG-JAX LLC and Liongate Investment LLC Previous sale: $5,750,000 in 2012
Type: Vacant Industrial Size: 104.75 acres Buyer: Crossjax Distribution LLC Seller: RPC LA Florida Venture LLC Previous sale: $7,500,000 in 2008
Type: Commercial/ residential Size: 9.48 acres Buyer: First Coast Energy LLP Seller: Jacksonville Transportation Authority
Type: Warehouse Size: 8.73 acres Buyer: AD Investment Florida LLC Seller: Superior BC Land Inc. Previous sales: $989,000 in 2014
Architectural Shingles
Type: Single-family Size: 0.54 acres Buyer: HSH PVB LLC Seller: Benoit C. and Bonnie S. Pineau Previous sale: $725,000 in 2008
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Page 8 • Thursday, June 28, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
THE BASCH REPORT
Largest Web.com holder sells its stake then run by Dewan. Dewan is best known for growing Jacksonville-based MPS Group Inc. into a major staffing and consulting company before it was acquired by Adecco Group Inc. in 2009. Another former MPS executive, George Bajalia, became president of GEE last year. Thorpe is replacing Andrew Norstrud, who is resigning to pursue other interests, as CFO of GEE. Norstrud was CEO of GEE before Dewan was brought in after the Scribe deal.
MARK BASCH CONTRIBUTING WRITER
Okumus Fund Management sells 6 million shares in wake of Jacksonville-based tech firm’s buyout deal. Web.com Group Inc.’s $25-a-share buyout agreement with Siris Capital Group includes a provision to let the company seek higher offers for 45 days. But the company’s largest shareholder isn’t waiting. After Jacksonville-based Web.com announced the buyout last Thursday, Okumus Fund Management sold its 6 million shares, according to a Securities and Exchange Commission filing Monday. The filing shows Okumus sold the shares at prices between $25 and $25.12. The agreement with Siris includes a “go-shop” period which allows Web.com to seek other offers until Aug. 5. Web. com’s stock has reached a high of $26.15 since the buyout agreement was announced, indicating Wall Street expects a better offer. During a town hall meeting with employees after the deal was announced, Web.com CEO David Brown said the $25 price is a good one for stockholders. “We went through a very thorough evaluation of their proposal, and it was very compelling because I think as shareholders, not just ourselves but all of our shareholders, it gives our shareholders immediate cash value and a significant cash value,” he said, according to a transcript of the meeting posted in an SEC filing. “We’re going to go out to the rest of the world and see if there are other people that might be interested in acquiring us at even a higher price,” he said. “We’ve inserted into our purchase agreement the ability to entertain offers from other folks to get our shareholders even more consideration, or there may be someone that is just a better fit for us as well. So, we’ll see what the world brings there.” Brown has deflected questions about a possible buyout of Web.com in recent years, but he said at the meeting that he has been talking to Siris for three years. “I didn’t wake up yesterday and concoct this idea. This is a company that’s been here many times. They’ve always been interested in us, and it just was the right time and the right place today,” he said in the Thursday morning meeting. Web.com said last week that it doesn’t expect major changes under Siris’ ownership, and it is going forward with its plans to move into a
Gun sales still falling at American Outdoor Brands
File image
Web.com CEO David Brown said the company could get more than the $25 a share buyout price it agreed to with Siris Capital Group. “We’re going to go out to the rest of the world and see if there are other people that might be interested in acquiring us at even a higher price,” he said.
new Southside headquarters building under development. “Siris itself doesn’t come in and run companies. They rely on the management teams that are there. They buy good companies with good management teams and good teams themselves, good employee bases, and then they just help us execute the strategy. That’s how they do this,” Brown said. B. Riley analyst Sameet Sinha said in a research note that Web.com “has struggled to regain its growth footing in the past two years,” so the buyout could be good for the company’s future. “We believe going private should allow the company to re-tool its product strategy without the pressure from quarterly execution,” he said. Web.com said the deal is worth about $2 billion. The company has about 50 million shares outstanding, but the $2 billion price includes the assumption of debt. Okumus owned 12.8 percent of the company’s stock as of March, according to Web. com’s proxy statement. Okumus had begun buying Web.com shares in 2014 and in early 2015, Web.com agreed with the fund to put two new directors on the board. Okumus never indicated any disagreement with management, and the company did not say why it agreed to appoint the new directors. The stock sale by Okumus leaves activist investment firm Starboard Value LP as the largest shareholder. Starboard, which began buying shares in May, has 9.4 percent of the stock, according to a recent SEC filing. Starboard has not made any public comment or filing about Web.com since the buyout was announced.
Investor James Dahl active again James Dahl is a well-known Jacksonville investor who has been largely out of the news for the past two decades. However, last week Dahl disclosed in an SEC filing that he is resuming an activist role
with a letter to Pope Resources’ board of directors. Dahl’s letter said he is the largest shareholder of Pope, a publicly traded limited partnership that owns and manages timberland in the Northwest. He believes the company is undervalued as a limited partnership. “Recently, I communicated to you the potential benefits that could be derived if Pope were acquired in exchange for stock in a public REIT. Despite the potential benefits that a transaction of this nature could have for all unit holders, you informed me that the Board of Directors and General Partners of Pope are not interested in selling or converting to a REIT,” the letter said. A REIT, or real estate investment trust, is a real estate company that pays out most of its income as dividends to shareholders. Dahl’s letter urged other unit holders to lobby the board to take action. Dahl has experience in real estate and timber investing, according to his biography on the website of Jacksonville investment firm Rock Creek Capital, where he is a founding partner.
It says Dahl has oversight over all of the firm’s real estate investments, and he previously founded a timberland investment firm called Timbervest, which was sold in 2004. The letter to Pope is included in a Schedule 13D, filings that are made by parties with more than 5 percent of the stock of a public company. According to the SEC database, this was the first 13D filing by Dahl regarding any company since 2004.
GEE Group adds Jacksonville exec GEE Group Inc. is headquartered outside of Chicago, but the staffing company has hired another Jacksonville executive to a top position. The company last week announced Kim Thorpe was appointed senior vice president and chief financial officer. Thorpe’s experience includes a stint as chief financial officer of FPIC Insurance Group Inc., a Jacksonville-based medical malpractice insurer that was bought out in 2011. GEE’s chief executive officer is Derek Dewan, who joined the company in 2015 after GEE acquired Scribe Solutions Inc., a Jacksonville-based company
GUN SALES SLUMP
33%
American Outdoor Brands, the owners of gunmaker Smith & Wesson, reported total sales in the fiscal year that ended April 30 dropped 33 percent to $607 million.
With firearms sales continuing to drop, the parent company of gunmaker Smith & Wesson is continuing to rely on sales of other outdoor products, including some from a Jacksonville company it acquired. American Outdoor Brands Corp. last week reported total sales in the fiscal year ended April 30 dropped 33 percent to $607 million. Adjusted earnings for the fiscal year were 46 cents a share, down from $2.58 the previous year. Meanwhile, its outdoor products and accessories business grew sales by 21 percent to $157.9 million, bringing the outdoor business to 26 percent of total sales. That business generated 14 percent of sales in fiscal 2017. The outdoor business operates out of two warehouses, a 100,625-square-foot facility in Jacksonville and another in Missouri, according to American Outdoor’s annual report. The company acquired the Jacksonville warehouse when it bought Ultimate Survival Technologies in Jacksonville in 2016. UST markets outdoor survival and emergency preparedness gear. American Outdoor is expecting current trends to continue, projecting fiscal 2019 sales to basically be flat compared with 2018, between $570 million and $600 million. Earnings are projected between 40 cents and 50 cents per share.
MBASCH@ JAXDAILYRECORD.COM
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 28, 2018 • Page 9
Dan Portnoy, consultant, retired retail executive Sam Garrison, attorney Kopelousos, Bradley, Garrison & Komando
The Daniel Kids board of directors promoted Lesley Wells to president and CEO. She Wells has been chief operating officer since 2011.
File image
The study found that 18.2 percent of urban Jacksonville area residents live in “high end” neighborhoods, like San Marco.
ECONOMIC TRENDS
Study: Jacksonville leader in ‘emerging economic centers’ JACKSONVILLE POPULATION
The Juvenile Diabetes Research Foundation added five board members: Jessica Jones, director of people development and administration, Jacksonville Jaguars, Bold Events, Jaguars Foundation and Union JAX Nathan Goldman, executive vice president, chief legal officer and corporate secretary, CSX Transportation David Berlin, director of franchise operations, Firehouse Subs of America
These are the largest commercial building permits by price issued Tuesday by the city of Jacksonville. APARTMENTS
BY MARK BASCH
Franklin A. Risk, 7304 Sandhurst Road S., contractor is Builders Trust Construction Co. Inc., three permits for repair, $48,000.
CONTRIBUTING WRITER
Urban population growth is picking up in the largest U.S. cities, and Jacksonville is at the forefront of one trend in urban growth, according to a study released last week by the Urban Land Institute. Jacksonville has the largest percentage of its urban population in what the study describes as “emerging economic centers,” which it defines as “former singlefamily or low-density commercial areas that are evolving into new urban cores.” The study of the 50 largest metropolitan areas conducted for the nonprofit institute by RCLCO Real Estate Advisors found the national urban growth rate was just 1 percent between 2000 and 2015 but when it narrowed down the years 2010 to 2015, the growth rate rose to 3.4 percent, close to the suburban growth rate of 3.7 percent. It divided urban areas into six categories and found that emerging economic centers were growing the fastest of the six, at 9.9 percent. Jacksonville, with 11.9 percent of urban residents living in emerging economic centers, led the nation in that category. “Once characterized by single-family residential or low-density commercial land uses, these locations are rapidly emerging as new urban cores,” the study said. “These places are generally welllocated but underutilized, and they tend to offer more opportunities for groundup development than other, more established urban locations.” RCLCO’s online map (www.rclco. com/neighborhood-atlas) identified two Jacksonville neighborhoods as urban emerging economic centers, Riverside and the Town Center area. The most Jacksonville urban residents – 33.6 percent – live in “challenged neighborhoods,” described as “areas with lower home values and apartment rents and minimal new development, often bordering former industrial and manufacturing districts.” Challenged neighborhoods on the map included the area north of Downtown, areas around the Arlington Expressway and the Englewood area east of Interstate 95 and south of Emerson Street. At the other end of the economic scale, 18.2 percent of urban Jacksonville area residents live in “high end” neighborhoods, described as places with “upscale single-family and multifamily housing, typically in historic areas with conve-
81.6% suburban
OFFICE, BANK, PROFESSIONAL
11.4 urban 7% other Population mix in urban neighborhoods Jacksonville Economic center
U.S.
5.4%
5.5%
Emerging economic center
11.9%
2.1%
High-end
18.2% 16.7%
Mixed-use
The Florida Small Business Development Center presented the Florida Rising Star Award to Blake Stockton, a business consultant at the University of North Florida. The award honors SBDC employees under age 35 with fewer than five years of experience with the network.
0% 14.8%
Stable
30.9% 44.1%
Challenged
33.6% 16.9%
Florida Family Insurance, 12574 Flagler Center Blvd., No. 300, contractor is Ash Construction LLC, 16,818 square feet, tenant build-out, $221,537. Parallon, 8501 Westside Industrial Drive, contractor is Dav-Lin Contractors LLC, 4,440 square feet, tenant build-out, 176,879. Tricon American Homes, 5220 Shad Road, No. 204, contractor is Duckworth Construction Co., 3,110 square feet, tenant buildout, $23,000. ROOFING Jacksonville Power Sports Inc., 10290 Atlantic Blvd., contractor is Rooftec Systems Inc., roof replacement, $136,000.
SCHOOL, LIBRARY, OTHER EDUCATIONAL Bolles School, 2264 Bartram Road, contractor is Scherer Construction of Northeast Florida LLC, 3,952 square feet, building addition, $774,048. SIGNS Tidal Pointe, 11303 Sunset Gates Ave., contractor is Creative Sign Design LLC, monument sign, $13,695. Greyhound, 1111 W. Forsyth St., contractor is Creative Sign Design LLC, ground sign, $7,150. The Deerwood Academy, 7575 Centurion Parkway, contractor is Harbinger LLC, wall sign, $3,350. UTILITIES Sprint, 1831 Everlee Road, contractor is Crown Castle USA, cell tower upgrade, $65,000. Compiled by Scott Sailer
Source: Urban Land Institute
nient access to shops and dining.” Avondale and San Marco fall into the high-end category. The study found no Jacksonville urban areas fit its description of mixed-use districts, which feature “high density housing often mixed with upscale retail.” “This framework provides a nonjudgmental platform for discussing the unique tapestry of neighborhood types that make up American cities,” RCLCO Managing Director Adam Ducker said in a news release. “Recognizing this diversity is key to facilitating productive conversations about the economic, demographic, and societal trends occurring in each neighborhood and the impact these trends are having on real estate.” Jacksonville remains a heavily suburban community, with just 11.4 percent of the total population living in urban areas, the study said. The Urban Land Institute said in the study that healthy metro areas will “continue to feature a wide range of urban and suburban neighborhoods.”
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DEVELOPMENT TODAY
Riverside and the Town Center areas are at forefront.
Executive Vice President Rachael Tutwiler Fortune will serve as interim president of the Jacksonville Public Education Fund advocacy organization.
The Florida Small Business Development Center presented the Florida State Star Award to Cheryl Lynch, a business consultant at the University of North Lynch Florida, for efforts to secure supplemental funding in 2017 for the Agricultural Export Marketing Plan.
PEOPLE ON THE MOVE
Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com
Page 10 • Thursday, June 28, 2018
Jacksonville Daily Record/Jacksonville Record & Observer
Photo by David Cawton
With development succeeding along Riverside Avenue in Brooklyn, companies have been buying up the land along Park Street.
Brooklyn: Buyers interested for years BROOKLYN BUYERS
Altogether, 13 companies have invested in Brooklyn. Each is tied to three other Jacksonvillebased groups — Contega Business Services LLC, North Platt LLC and Ascona LLC. They are: Block Two LLC Block Five LLC Block Eight LLC Block Nine LLC Block Thirteen LLC Block Fourteen LLC Bedopas LLC Four Hitter LLC Melps LLC RES Properties LLC Park FH LLC West Bedopas LLC 2025 Dev LLC
“They’re looking to do mixed-use development similar to what’s started in Brooklyn already.” Aundra Wallace CEO, Downtown Investment Authority
CONTINUED FROM PAGE 1
smaller to medium-size businesses from that standpoint.” He declined to say who was behind Contega Business Services, other than they’re being represented by Diebenow's law firm. Brooklyn historically was a residential neighborhood when it was settled in 1801 as Dell’s Bluff. The area once was home to Civil War soldiers, specifically African-American or Buffalo Soldiers. It was annexed by the city of Jacksonville in 1887. The roughly 0.5-square-mile neighborhood is bound on the east by the St. Johns River, on the west by I-95, and on the north by McCoy’s Creek. Interstate 95 also represents the southern boundary. In the early 20th century the area started to transform from a mainly residential neighborhood to one with commercial, office and industrial properties. Today Brooklyn is a mix of office, industrial and residential properties, although commercial and office users have had more success south of Forest Street. Most of the neighborhood north of Forest Street and west of Park Street either is vacant, run-down or old, with a few exceptions. That area seems to be the focus for Contega Business Services. Brooklyn falls under the umbrella of the DIA, which oversees Community Redevelopment Areas that span the Southbank, the Northbank and the urban core. In addition to City Council, the six-member DIA board has oversight on the sale of cityowned property, and the development and long-term strategy for Downtown. APPROACHING TO SELL
The buyer has been shopping for a while. In February, longtime Brooklyn retailer Pennock Floral sold the building and property it has occupied since 1946 to Block Eight LLC, one of the 13 companies buying property in the neighborhood. It wasn’t the first time Pennock was approached to sell. “They tried to buy the building
Photo by David Cawton
With a few exceptions, most of the Brooklyn neighborhood north of Forest Street and west of Park Street is run-down or vacant.
a few years back, but we weren’t interested,” said General Manager Larry McCall. When the decision was made to relocate Pennock from 260 Park St. to a location on Dennis Street, McCall said attorneys representing Block Eight were ready to buy. “It was very fast,” McCall said. “I think the whole thing closed in something like 10 days.” The $565,000 sale was recorded Feb. 22. But not all owners are dealing. The owners of Brinton’s Paint Co. at 200 Park St. say they were approached by Tripp Gulliford, senior managing director of the commercial real estate firm CBRE Jacksonville. “We weren’t interested,” said co-owner Bob Brinton. “I’m always very cautious when people approach dad (Burk) with those kind of things.” He said currently he has no desire to relocate from the block they’ve occupied since the mid1970s. Brinton said he was not against development if it “makes sense for the area.” Gulliford declined to comment, saying he was not at liberty to discuss the accumulation of property in Brooklyn by his client, which also is represented by Diebenow’s firm. Some plans already are in the open. Bedopas LLC proposes to redevelop an old church on Dora
Street near Chelsea Street on a combined 0.4 acres it purchased for $129,700 in April 2015. It has acquired another quarter-acre in the area since 2016. The group presented plans to the DIA and Downtown Development Review Board this year to convert the church into a brewery and restaurant. ANOTHER BUYER
While Contega Business Services continues to focus on Park Street, another group is buying homes closer to Myrtle Avenue. Several subsidiaries under the JWB Real Estate Companies LLC umbrella paid about $745,000 for 3.4 acres since 2014. President of JWB Alex Sifakis said Brooklyn has potential. “It is a great asset for Jacksonville right now, but not everyone has realized it just yet,” he said. JWB specializes in buying properties in what Sifakis refers to as “B” and “C” neighborhoods and remodeling them as rentals. “We don’t really have any big development plans. We’re really just trying to help spur eventual development by assembling all these piano keys parcels,” he said, referring to slices of property not generally large enough for individual uses. Sifakis said his company’s interest is not large-scale, mixeduse development. He said the neighborhood still
has a lot of individual property owners who are starting to realize that the interest from developers could mean a windfall. “You see people who don’t like change, or some that are totally unreasonable with their asking prices,” Sifakis said. “Then you have those who are willing to sell and are happy to work with us.” Sifakis said Brooklyn will look much different in the next two decades, assuming the economy remains stable. “It’s going to be a while before development gets to the section of Brooklyn we are, but hopefully when it does it will be easier for us to develop or for other to do it,” he said. Sifakis also sees opportunity. “The retail struggled because there wasn’t enough density there, but that’s going to change.” THE FUTURE
Council member Reggie Gaffney represents the area in District 7. While he does not have specific details of individual projects, he knows there are plans for mixeduse. “One of the first projects will be to address the affordable housing there,” he said of the half-acre of property owned by the Jacksonville Housing Authority at the corner of Stonewall and Spruce streets. Through conversations with Diebenow and other Contega Business Services representatives, Gaffney said he’s been told their plan is “long-term and focused on getting people to live Downtown.” “I’m happy people are looking at Brooklyn to bring more housing because we need more people living Downtown,” he said. He said to expect a second and third wave of mixed-use development, starting along Park Street and fanning out from there. Sifakis said Brooklyn, the urban core and neighboring LaVilla have momentum. “Anything going Downtown complements everything going on Downtown.”
DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
Jacksonville Daily Record/Jacksonville Record & Observer
Thursday, June 28, 2018 • Page 11
220 Riverside helped ignite Brooklyn resurgence Hallmark Partners development “gave the comps for all the projects getting done today.” BY DAVID CAWTON STAFF WRITER
The Brooklyn neighborhood began to change in 2011 and 2012. That’s when Jacksonvillebased Hallmark Partners and Franklin, Tennessee-based Bristol Development Group broke ground on 220 Riverside, a six-story, 294unit apartment and retail complex along Riverside Avenue. Alex Sifakis, Sifakis who buys infill residential properties for renovation and construction, said every prospective developer should thank Hallmark for pushing the project. “220 Riverside is the reason anything in Downtown Jacksonville is getting developed right now,” he said. “It gave the comps for all the projects getting done today,” said Sifakis, referring to development characteristics that help determine appraisal values. Atlanta developer Pollack Shores then built the five-story, 390-unit Brooklyn Riverside apartments between Magnolia and Park streets. Pollack Shores sold its property in 2016 for $58 million to BR Riverside DST, a subsidiary of New
York City real estate investment trust, Bluerock Real Estate LLC. Bristol Development Group and NAI Hallmark Partners plan another project on property next to 220 Riverside. Last year, the Downtown Investment Authority and the Downtown Development Review Board, which approves architectural and other standards for the properties in DIA boundaries, approved the 10-story Vista Brooklyn apartment and retail development. It will feature 308 apartments, a rooftop pool and beer garden and private dog park built into the accompanying parking deck. Another 13,000 square feet of retail, restaurant and entertainment space is planned for the first floor fronting Riverside Avenue, near the established Brooklyn Station on Riverside retail center. “They’re out with their equity partners shopping for the rest of the capital to do the project,” said DIA CEO Aundra Wallace. “That’s about all I know right now.” Keith Goldfaden, a principal with NAI Hallmark Partners, said by email the development group is working through the design and development process toward a fall groundbreaking. RETAIL RESURGENCE
As 220 Riverside opened, Jacksonville-based Regency Centers Corp. began building what would become Brooklyn Station between Riverside Avenue and Magnolia Street. The 49,870-square-foot shopping center is anchored by The Fresh Market, with Zoës Kitchen,
Photo by David Cawton
Weeds fill a vacant lot near 220 Riverside, the six-story, 294-unit apartment and retail complex along Riverside Avenue that helped launch growth and interest in the area.
BurgerFi, Burrito Gallery, First Watch and other tenants on three outparcels. The Ferber Company Inc. plans to build a 12,500-square-foot retail and dining project on 1.5 acres along Riverside Avenue and Leila Street called Brooklyn Place. Tom Mundy, Ferber vice president of retail development services, said Tuesday his team is negotiating a development agreement with the city. “We should have that wrapped up by the end of the year, and then we can break ground soon after,” Mundy said. He did not disclose potential tenants. Not all projects have thrived in Brooklyn. Three restaurants closed at 220 Riverside. Sbraga & Company closed
in 2016 followed by Hobnob Food & Social Exchange, which announced in January it would close as a restaurant but continue as a private event space, and Brixx Wood Fire Pizza in May. In D e c e m b e r, the 17,000-square-foot retail portion of 220 Riverside was sold for $3.5 million to CRE Properties of Miami Lakes in lieu of foreclosure. The city also spent $2.6 million to help build the adjoining Unity Plaza, which was billed as an entertainment hub for the area. Since then, entertainment has been sparse. The unity-plaza.org website, run by the former Unity Plaza Inc. nonprofit group, shows no major events for the rest of 2018,
outside of twice-a-week outdoor yoga sessions. According to Florida corporate records, the nonprofit has been inactive since 2013. Unity Plaza LLC, another group, was active until 2016. The phone number listed on the website is not in service. Wallace said he believes that struggles are temporary at Unity Plaza and for the shops at 220 Riverside. “Retail in Unity Plaza will work itself out when you cater to the retail to the area,” he said. “When they tailor retail that works for the people that live there and who work there Monday through Friday, retail is going to survive,” he said. Corner Bakery Cafe, part of the Brooklyn Station complex, also closed. First Watch renovated it and moved in, which Wallace considers finding the right fit for the neighborhood. “It plays very well for people working out at the YMCA, being able to find the type of meals that they’re looking for,” said Wallace. “That has worked from a second go-round.” Sifakis, president of JWB Real Estate Companies LLC, said Brooklyn has potential and opportunity. “The retail struggled because there wasn’t enough density there, but that’s going to change,” he said. DCAWTON@ JAXDAILYRECORD.COM @DAVIDCAWTON (904) 356-2466
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DENNIS CHAN BY KAREN BRUNE MATHIS • EDITOR
Dennis Chan opened Blue Bamboo, tag-lined a “Hip Asian Kitchen,” 13 years ago at 3820 Southside Blvd., carrying on a family tradition. He serves on the board and was the 2016-17 president of the Florida Restaurant & Lodging Association Northeast Chapter. I was born and raised in Jacksonville. My family has had 12 Chinese restaurants in town in my lifetime. I went away to culinary school and to work for bigger restaurant companies and then started Blue Bamboo in 2005.
ABOUT CHAN Title: Chef-owner
My grandfather had his first restaurant, Eng’s Chop Suey, in LaVilla. As recently as maybe eight years ago, it was a pool hall. I think the building’s gone now. My first memory of the industry was of standing on a little stool next to my grandfather and watching him cook in his wok. As a teenager, I worked in my uncle’s restaurant and he taught me a lot.
Organization: Blue Bamboo restaurant Age: 46
I tried to do other things. I took the law school entrance exam; I took premed classes in college; and nothing really, really interested me as much as the food world, the restaurant business. After college I went to work for Disney in customer service and guest relations. I learned to give the orientation program and the Disney way of doing things. Knowing I wanted to open my own restaurant one day, I went to The Culinary Institute of America and had the best two years immersed in the food world. I worked at Bravo Development Inc., now the Bravo Brio Restaurant Group, in Orlando and Palm Beach Gardens, five years. I learned a lot about the restaurant business and a lot about financials and then I felt like I was ready to continue this family legacy. Part of our training at The Culinary Institute of America is an externship. Mine was at a place called Blue Ginger in Boston
Special to the Daily Record
and Ming Tsai, the chef-owner, is a graduate of Le Cordon Bleu. He has TV shows on the Food Network and on PBS. His two restaurants are Blue Dragon and Blue Ginger. When I told him I wanted to open my own restaurant, he said whatever you call it, it has to have the world Blue in it. He said it’s good luck. I asked him, how about Blue Bamboo? His two words were “like it.” That his blessing and I knew we could do something great. Our menu is a lot of the food I like to eat. It’s a little bit Southern, because I grew up in Jacksonville, with an Asian twist and Asian technique and some Asian flavor. One of our signature dishes is Red Curry Shrimp and Grits, a perfect blend of East and West.
I’m often asked, why wouldn’t you open a second restaurant? If I could clone everyone that worked here and how much they care about the place, then I would do it in a heartbeat. But that’s not possible so we continue to grow by taking care of everyone that comes in. The property’s owned by my uncle. If you were to put a dart in the center of Jacksonville, it’s close to where we are. All my family’s in town. We seem to be the gathering place. Thanksgiving is always here at Blue Bamboo. We do a potluck, so everyone brings something. KMATHIS@JAXDAILYRECORD.COM @MATHISKB (904) 356-2466
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Education: Bachelor’s degree in East Asian Languages and Literature, University of Florida; Associate in Occupational Studies in Culinary Arts, The Culinary Institute of America Family: Married, one child Hometown: Jacksonville Hobbies: Dining out at other restaurants, oneday road trips