The second portion of a land swap between the city of Jacksonville and the Gateway Jax development partnership has closed, the parties announced Dec. 22.
Gateway Jax said it had acquired a city owned development pad at Riverfront Plaza, the former Jacksonville Landing site, in exchange for the former Interline Brands Inc. building and grounds at 801 W. Bay St. The city also confirmed the closing, with spokesperson Phil Perry saying the deal “will only accelerate the significant momentum that is already underway (Downtown), from riverfront park development to the UF graduate campus.”
On Dec. 19, the University of Florida announced that it had closed on the 801 W. Bay St. property along with five other properties the city of Jacksonville provided for UF’s proposed graduate campus in LaVilla.
“We are immensely proud of our team and partners for reaching this milestone, and we are thankful to have wonderful partners in the City of Jacksonville,” Gateway Jax principal Bryan Moll said in an emailed statement. “We view this closing as one more step to starting work on this transformative project that will revitalize an iconic parcel on the St. Johns River. We look forward to announcing the hotel brand in the next few months.”
The city acquired the 801 W. Bay St. property from Gateway Jax on Dec. 19, according to the deed. Gateway conveyed it through 801 Bay St LLC.
The acquisition of the Riverfront Plaza property by Gateway Jax was not recorded by the Duval County Clerk of Court as of 5:30 p.m. Dec. 22.
In June, Jacksonville City Council voted to direct the city to exchange the Riverfront Plaza pad plus an option on an adjacent property for the Interline Brands buildings. In its agreement with the city, Gateway Jax committed to building a 17-story tower on the former Landing site that would include a hotel, condos, restaurant and retail square footage, and public spaces.
Gateway Jax bought the building in November 2024 for $4 million. In 2025, appraisals obtained by the DIA listed the property’s value at $5.35 million to $6.75 million.
A DIA appraisal on the two Riverfront Plaza properties involved in the deal valued them about $5.5 million combined. The Council auditor’s office estimated the combined property value at $5.02 million.
Council members considered legislation to purchase the Interline Building for up to $8 million before approving the swap. Moll and Gateway partners JWB Real Estate Capital and DLP Capital preferred the exchange, saying it would provide property for UF while also allowing for development that would boost Downtown and Gateway’s other projects.
Gateway has amassed 25 acres across 32 city blocks in Downtown for a development that if fully built would involve an investment of more than $2 billion. Two blocks of the first phase of the development, Pearl Square, are under construction.
During Council discussion of the swap, Moll said development of the UF campus was a high priority for Gateway Jax.
In the Dec. 22 statement, Moll said “we cannot wait to welcome the University of Florida to Downtown Jacksonville.”
“We look forward to the work ahead, and to sharing this reimagined space with everyone who calls Jacksonville home, as well as its future visitors,” he said.
UF plans to spend $7 million to retrofit the Interline property as its initial instructional building for the campus. The university’s original timeline for establishing the campus called for classes to start in the Interline building in the fall of 2025, but UF later revised the anticipated start date to fall of 2026.
History of the swap
During discussions of the swap among the Downtown Investment Authority board and City Council, Moll estimated that he and his partners would need a $20 million completion grant to develop the Riverfront Plaza tower project.
In a March 31 interview, Moll said any developer would need incentives to build on the Riverfront Plaza site because Downtown’s current economic situation makes the tower project financially infeasible.
He said the city would receive $1.50 to $1.75 long-term from every $1 of public funding it provided for the development.
Some Council members have pressured the city to rein in completion grants, which involve payments that directly draw down the city’s operating reserves. They differ from Recapture Enhanced Value Grants, which are refunds on ad valorem tax revenue generated by a new development or property enhancement.
REV Grants involve the city forgoing a portion of tax revenue, while completion grants require direct payments from the general fund.
For and against
Proponents of the land exchange included the DIA staff and Mayor Donna Deegan, who said it positioned the city for a project that would boost the historic core of Downtown.
Supporters said they had faith that Gateway had the experience and know-how to build the tower.
Moll’s previous projects include the $3.5 billion Water Street redevelopment district in downtown Tampa and the multibillion-dollar Amazon HQ2 National Landing site near Washington, D.C.
In a March interview, Moll said there have been conversations with hotel brands about the Riverfront Plaza property.
“They are very interested and specifically working with us on this site because they worked with us before they’ve seen what we’ve done before,” he said. “They trust us they believe we can execute and do a fantastic job here.”
He said brands he has worked with include Marriott and IHG Hotels & Resorts.
The other properties
Including the Interline building, the city has provided UF with six properties totaling 25.28 acres and valued together at a minimum of $30.22 million.
The other five properties and their values as listed by the city are:
The historic Jacksonville Terminal train station, which UF plans to adapt for campus use while maintaining its appearance: $1.68 million
Site A, the designation that the DIA has given to a parcel immediately north of the train station: $3.25 million.
Site B, which is located across Lee Street from Site A: $1.84 million.
The Prime F. Osborn III Convention Center, of which UF plans to demolish the newer portions that are attached to the train station: $15.52 million.
A lot on West Bay Street that is surrounded on three sides by the convention center parking lot: $3.23 million. The city obtained that property through a land swap with multifamily developer Vestcor Inc. for a property at 200 N. Lee St. where Apex Business Forms previously operated under a ground lease with the city.