SOUTHEAST SNAPSHOT, MAY 2004

Jacksonville Multifamily Market

James Morgan, CCIM Senior Advisor Sperry Van Ness-Investec Services

Significant developments in the Jacksonville, Florida, area include the Better Jacksonville Plan, which is resurfacing all roads in Duval County and creating a new downtown arena, a new AA baseball park, a new $230 million county courthouse, and a new downtown main library plus additional regional libraries. Additional plans call for the expansion of the Alltel Jaguar Stadium, the home of the 2005 Superbowl.

The 2005 Superbowl is less than a year away and is slated to prepare Jacksonville for a much higher level of awareness nationally and internationally as key corporate visitors and international media come to visit the city and better understand it.

The completion of 9A, an interstate (295) beltway around Jacksonville, is increasing the service to the surrounding suburban areas and improving the transportation linkages to adjoining residential and outlying suburban residential and business centers.

Significant development is taking place throughout downtown Jacksonville, representing an increased interest in the convenience of urbanization triggered in large part by the new development activities and the Better Jacksonville Plan.

Southeastern Jacksonville, which includes the I-95, U.S. 1 and 9B corridors running into St. Johns County, has a new hospital and two developments of regional impact communities in Nocatee and Bartram Park underway. Additionally, the expansion of the World Golf Village and other smaller developments with residential and smaller business parks are being planned in those corridors.

In the J. Turner Butler, Touchton, 9A and Baymeadows areas, significant new apartment/condo development and planned unit development along with single-family areas are taking place. Retail is following the residential lead in those market areas.

The I-95 N/Airport corridor has new activity with more than 1 million square feet of retail, apartment and single-family development being proposed with construction beginning in late 2004 and completion planned in phases for late 2005 and 2006. The continued expansion of the airport terminal facility along with increased accessibility is generating additional interest in the airport area. The north Jacksonville area surrounding that has had continued dramatic single-family growth over the last several years and actually had more single-family starts than the historical leader of Jacksonville’s Southside submarket. This is paving the way for new retail services and opening the door for new multifamily projects.

The new St. Johns Town Center at J. Turner Butler Boulevard and St. Johns Bluff creates a new centralized, market-area, upscale mall for Jacksonville with construction beginning this spring and occupancy complete by March 2005. This project will be done in two phases: Phase I will be 1.1 million square feet of stores and restaurants and Phase II will expand the center to 1.5 million square feet. This represents the promised, long-wished-for “upper scale” mall in the Jacksonville area.

New developers to the area include Krook Douglas Development, which has proposed two 48-story residential towers on the south bank of the St. Johns River in downtown Jacksonville and redevelopment of the Aetna office building. American Land Housing Group has proposed two residential towers (one 38-story and one 36-story) and a seven-story office building on the south bank of the St. Johns River in downtown Jacksonville. McRae & Stoltz Jacksonville LLC bought the 296-unit Berkman Plaza, the first luxury riverfront apartment tower, and will convert it to condos.

Keep an eye on the following areas:

• The I-95 corridor, both north and south, is hot, but particularly south into St. Johns County.

• The 210 East-West corridor from the southern end of Ponte Vedra across the northern end of St. Johns County to the Riverton area is providing a great deal of planned development, both suburban and with additional developments of regional impact coming into those areas.

• The 9A corridor, particularly on the eastern side of the city where it connects to I-95 and U.S. 1, continues to be an impact growth corridor.

• Another key area includes Branfield/Chafee Road on the west side of town, which connects Middleburg to I-10 and provides direct linkages to Cecil Field and to the rapidly expanding Oakleaf Plantation.

• Highway 200-A1A in the Yulee area moving into Fernandina Beach has more than 10,000 homes planned over the next few years in a relatively small market area, almost doubling its size.

The northeast Florida/greater Jacksonville area is a dynamic area being caught in a swell of new appreciation and recognition, which it derives from its young workforce population base, and is made more attractive by its water-oriented lifestyle with beach, river and marsh ecosystems. This combination of moderate seasonal weather, Florida lifestyle, young workforce and attractive costs is creating a living and working environment that has made Jacksonville the Number 1 expansion center in the country over 2 of the last 3 years. These attributes have also caused two Fortune 500 relocations in 2003: the CSX corporate headquarters and Fidelity National Information System corporate headquarters from California. The unique environment continues to bring retirees, second-home buyers and executives into the market area.

— James Morgan is senior advisor with Sperry Van Ness-Investec Services in Jacksonville, Florida. Paul Gregory, advisor, contributed to this article.

Summit Contractors provides general contracting, construction management, design/build, pre-construction, construct ability analysis, value engineering and cost module services nationwide. The company currently has a number of projects underway in the Jacksonville area: Madison Woods Apartments/Tax Credit Location: Lem Turner Road, Jacksonville Owner: Paramount Community Development Corporation Size: 18 buildings/240 units Amenities: clubhouse, pool, volleyball court, covered picnic area, gated entry Start Date: August 2003 Completion Date: August 2004 Project Manager: Mike Appleman The Springs @ Orange Park/Market Rate Location: 6347 Collins Rd., Orange Park (south of Jacksonville) Owner: Continental Properties Company Inc. Size: 15 buildings/300 units Amenities: clubhouse, pool, carwash, recreation areas, 120 garages, entrance gate Start Date: October 2003 Completion Date: December 2004 Project Manager: Tacy McGinty Collins Cove Senior Apartments/Tax Credit Location: 5400 Collins Lake Dr., Jacksonville Owner: Finlay Development Size: 4 buildings/160 units Amenities: clubhouse, pool, picnic pavilion Start Date: January 2004 Completion Date: January 2005 Project Manager: Dean Moore

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