by Sean McManus
Staff Writer
The answer is yes, and no. As downtown’s building boom continues to cascade and the approaching Super Bowl ignites historic revitalization, some who keep their eyes on the city’s core are reluctantly admitting that downtown may be the one of the “hottest” real estate markets in Duval County.
Hot isn’t an easy word to quantify. “It’s a subjective word,” said Bruce Jackson, who is a vice president at commercial real estate firm CB Richard Ellis. “I guess if you had to define it, it means a part of town that is receiving a new level of interest and that is very active compared to other submarkets.”
Schultz Foster Addison’s Bob Knight, who owns and lists commercial and historic buildings all over downtown, said there’s more buzz about downtown than anywhere else.
“I’m getting calls every day from potential developers who want to talk about starting restaurants and clubs, as well as from artists who are interested in cultural venues,” said Knight . “There’s not enough space for all the clubs people want to open.”
Knight said the two areas that are generating the most attention right now are East Bay Street where there is a proposed entertainment town center project in the works and the corner of Adams and Laura streets near the Elks Building and the old Barnett Bank. It is there, he said, that the level of pedestrian activity makes it possible for retail and other types of commercial use to prosper.
“The only problem with that area around Hemming Plaza is that you can’t put a lounge there since it’s too close to a church that owns a lot of property downtown,” he said.
While there is a lot of talk, Knight said, many of the groups expressing interest in music and dance clubs are still only in the idea stage.
“It’s still a little premature to say that downtown is going to explode,” said Knight. “But everybody is very expansive right now.”
Knight, whose firm leases space to offices and hotels on the Southbank Riverwalk, said that area has also been an enormous success.
“I’d say that with the exception of the beaches, downtown is the hottest market in town,” said Knight.
Al Battle, managing director of the Downtown Development Authority, said that while downtown may not be the hottest spot in town, it is certainly experiencing greater interest that ever before.
“It’s an exciting time to be in real estate downtown,” said Battle, who hears about downtown development projects before anyone else. “I’d say that if you want the highest return on your investment, parcels in the Central Business District — whether for adaptive reuse, infill, or joint ventures — are where it’s at.”
Battle said LaVilla remains an attractive spot for those who want to take advantage of the proximity to the new U.S. Courthouse and Duval County Courthouse.
“And for for those with a out-on-the-horizon mentality, the Brooklyn area, with the new St. Joe Paper and Marks Gray buildings, is going to be very strong, very soon,” he said.
Knight said the City has done a good job encouraging downtown development.
“I know there’s talk that we’ve gotten to the point where we can get rid of incentives,” said Knight. “But the problem is that if you really want to restore a historic building and keep the architectural integrity in tact, it’s expensive and you need extra incentives to make it a reality. Even if you spend the extra money to restore an old building, you’re still only going to get market rent.”
Michael Dunlop, who is an architect with an office on West Adams Street and a house in Neptune Beach, said the beach is the hottest market Jacksonville, but that downtown is second.
“I get calls every day about Bay Street,” said Dunlap. “People really want to extend the entertainment district into that part of town.”
Dunlap said he’s also close to completion on a secret project across the street from his office on West Adams Street that will launch soon.
“Galleries and cafes are the buzz,” he said.
Bob Selton, who is a vice president at Colliers Dickinson, was slightly less optimistic. “The Southside is still the hottest market,” said Selton. “That’s where you have the fastest growth and the most interest. The beach is hot, but the problem there is that there’s not much land left. Downtown’s steady.”
Citing the Nocatee development and other projects in St. Johns County, Selton said that downtown still has the burden of changing people’s mentality about leaving the suburbs for urban living.
“They’re working on it with Shipyards, Berkman and 11 East Forsyth,” he said. “But people’s minds don’t change over night.”
Selton said the Landing is a dark spot on the movement to create a booming downtown.
“If we can’t support that, then we’ve still got a way to go,” he said.
But Selton, who handles deals all over the city, said that there is definitely a massive push by law firms to relocate near the new courthouse, which is spurring downtown’s commercial growth.
And it is that kind of professional growth that Jerry Moran, who opened La Cena, and Frank Gallo, who opened Sterling’s in the Seminole Club, are counting on.
“If it’s any indication, we’re doing pretty well out of the gate,” said Moran. “I’ve been pleasantly surprised. Things are moving downtown. I’m not sure if it’s the hottest, but it’s definitely hot.”