DLP Capital founder and CEO Don Wenner says the Pearl Street District Downtown will be a big part of the growth in Northeast Florida.
He wants DLP to be a part of it, too.
“It had to happen at some point and this is a great time to do it,” he said.
Wenner said St. Augustine-based DLP and Jacksonville-based JWB Real Estate Capital, whose president is Alex Sifakis, sponsor and own Gateway Jax, a commercial estate company that is leading the redevelopment of more than 20 blocks Downtown.
JWB initially bought the majority of the properties that now are part of the Gateway Jax portfolio.
They are starting with a $500 million redevelopment of five blocks into apartments, grocery, retail and public space.
Wenner said DLP and JWB own Gateway 50-50.
He said Gateway CEO Bryan Moll has some ownership through JWB.
State Division of Corporations records show JWB and DLP Capital formed the DTJ Fund LLC in June 2022.
DLP said in a news release it is providing the majority of capital for the Jacksonville developments through its private evergreen funds that invest “in building thriving communities.”
Wenner said DLP will be the primary lender and will hold two-thirds of the equity with JWB owning the other third.
“We are bringing $200 million along with $100 million of their funds,” Wenner said.
He said JWB set up a fund to raise capital from investors.
Wenner has been a St. Augustine resident for nine years and DLP has been headquartered there for seven.
He said DLP became involved in the Pearl Street District deal about 2½ years ago.
“Alex Sifakis is a longtime friend and client of ours. He came to me looking to see if they want to partner in redeveloping Jacksonville, so we got involved with them,” Wenner said.
“We are heavily involved in the actual business plan,” he said, including developing the master plan.
He said that when he moved to Jacksonville, his group evaluated the market as the most undervalued along the coast.
“I think Jacksonville has always been the stepchild of Florida. That has changed the past few years since COVID,” Wenner said.
Wenner said DLP Capital, a private, diversified real estate investment firm, is a partner and lender on JWB projects as well as with Corner Lot and Southern Impression Homes.
DLP’s core focus is investing in, developing and financing “attainable housing,” including multifamily and single-family rental homes along with other investments such as RV resorts.
It has more than $5 billion of assets under management.
“We are all over Northeast Florida,” Wenner said.
The target market for the Pearl Street District apartments are people working in the Downtown area.
“It will be skewed younger,” he said. “Professionals working Downtown will be the primary base of residents.”
Another market could be housing for graduate students.
The news release said JWB Real Estate Capital and DLP Capital each are donating $500,000 toward development of the proposed $400 million University of Florida graduate campus planned in or near Downtown.
Wenner hopes the campus site is within or near the Pearl Street District, but that has not been decided.
“UF will be a big part of this,” Wenner said.
That means apartments and amenities for students, residents and staff.