Gateway Jax, a Jacksonville-based commercial real estate development firm sponsored by JWB Real Estate Capital and DLP Capital, has received unanimous approval from the Jacksonville City Council for a redevelopment and incentive package for its Pearl Street District project. The package was passed during the council’s meeting on Aug. 13.
This approval paves the way for Gateway Jax to break ground on Block N11 of the Pearl Street District by October, pending receipt of city permits. The other blocks of the district would start in subsequent months.
“Gateway Jax and our sponsors, DLP Capital and JWB Real Estate Capital, are honored to join forces with the City of Jacksonville and the Downtown Investment Authority to bring our transformational development vision for the Pearl Street District to life,” said Bryan Moll, CEO of Gateway Jax. “This vote of confidence from the City Council speaks to our shared commitment to energizing the urban core of downtown,”
The Pearl Street District is Gateway Jax’s debut development in downtown Jacksonville.
The mixed-use plan will deliver more than 1,000 new residential units; more than 100,000 square feet of leasable retail space; new public spaces, including widened and shaded sidewalks; park spaces surrounding the historic Porter House mansion; and a signature curbless festival street on Pearl Street with abundant outdoor dining.
Anticipated retail tenants include a full-service grocer, a high-end fitness club, restaurants and daily service providers like salons and shops.
To date, Gateway Jax has acquired real estate holdings that span 25 blocks in downtown Jacksonville. The company plans to deploy an estimated $2 billion in private development investment over the next decade.
Gateway Jax’s redevelopment is expected to directly create approximately 2,700 permanent jobs and spur more than $750 million in annual economic impact at full build-out. When factoring in the follow-on demand induced by the catalytic nature of development at this scale, Gateway Jax’s development pipeline could generate more than $475 million in annual tax revenues to the City of Jacksonville upon full completion. Gateway Jax is led by real estate professionals with experience managing similarly complex, mixed-use, public-private projects in Tampa and Washington, D.C. This firsthand knowledge, coupled with Gateway Jax’s sizable portfolio and strong financial backing through its capital sponsors, were important factors in the legislation’s review and approval.
The legislation authorizes the Downtown Investment Authority (DIA) to execute redevelopment agreements with the City of Jacksonville and Gateway Jax for four planned blocks of the Pearl Street District; grants a tower crane license agreement in support of the project; and approves an incentive package totaling $98.5 million, comprised of $59.6 million in Recapture Enhanced Value (REV) grants over 17 years and $38.9 in completion grants, which are not paid until the projects are complete and on the city’s tax rolls. “Throughout this project’s evolution, the Gateway Jax team has demonstrated their commitment to delivering a visionary project that truly creates a new and vibrant downtown neighborhood and generates a positive return for the entire city,” said Lori Boyer, DIA’s chief executive officer. “We are eager to see this transformational project break ground in the fall.”
For more information on the project and Gateway Jax, go to gatewayjax.com.
