A deal to sell the Duval County Public Schools headquarters on the Downtown Southbank to a private developer and relocate the district offices fell apart after the buyer terminated its agreement.
Chase Properties announced in a Feb. 12 news release that it had pulled out of the deal.
“Chase Properties has made the difficult decision to terminate its purchase agreement for the former Duval County School Board property after discovering the existence of a substantial Community Development District (CDD) encumbrance that was not disclosed during the solicitation, appraisal, or negotiation process,” Chase said.
DCPS responded with a statement posted on its website saying it had dropped its deal on an office building at 8928 Prominence Parkway in Baymeadows.
“As a result of Chase Properties’ decision, DCPS has exercised its option to terminate its related purchase contract with Dream Finders Homes secured the right to purchase the renovated office building for approximately $13.65 million as part of the linked transactions,” the statement read.
On Nov. 4, 2025, the school board voted to accept Chase’s offer to purchase the district’s riverfront headquarters at 1701 Prudential Drive for $17.2 million. Chase said it intended to demolish the building and build a high-rise with 300 condominiums, 300 apartments and 200,000 square feet of commercial and retail space.
At the same meeting, the board also voted to purchase the office building in Baymeadows that would become its new headquarters.
In Chase’s release, it did not provide details about the CDD encumbrance or its name.
The headquarters building is west of The District CDD, which was created in 2018. That development, on the former site of JEA’s Southside Generating Station, is now called RiversEdge.
Chase said the appraisal for the property was ordered by DCPS and formed the basis of the negotiated purchase price, that the appraisal assumed no special assessment burden and the subsequently identified CDD obligation materially alters the economic feasibility and valuation of the project.
“Importantly, Chase Properties does not believe individual School Board members were aware of this issue. Based on our understanding, the failure appears to have occurred at the administrative, broker, and consultant level during prior land transactions and entitlement processes,” Chase said.
Chase said it remains fully committed to the redevelopment of Jacksonville’s Southbank.
“We continue to believe this riverfront site represents a transformational opportunity for the community and a catalyst for long-term economic growth. Chase stands ready to proceed immediately at the originally negotiated price and terms, provided the CDD encumbrance is removed, equitably reallocated, or otherwise fully cured so that the property reflects the conditions under which it was offered, appraised, and contracted.”
The school board said no new timeline has been established for future proposals or decisions.
“DCPS will continue operating from its current Prudential Drive location while evaluating options that align with district priorities, including school facility needs, capital planning, and broader downtown revitalization efforts,” it said in its statement.