City officials are set to consider granting $1 million in incentives for a completed office-to-multifamily conversion in the former Federal Bureau of Investigation field office in Arlington.
According to a memo from the Office of Economic Development to the Mayor’s Budget Review Committee, the city would award a 10-year, 75% Recapture Enhanced Value Grant to Theotokos Holdings LLC for a portion of the three-building property at 7820 Arlington Expressway.
A REV grant is a refund on ad valorem tax revenue generated by a new development or property enhancement. It can apply to property and tangible personal property.
The memo said the grant would apply to one of the three buildings in the office complex. The structure housed the FBI, while the other two were used for other office purposes.
In January 2026, Interra Apartment Homes opened in the building after a more than yearlong renovation. The six-story, 95,256-square-foot structure was renovated into 95 one- and two-bedroom apartments and two studio units.
Jacksonville City Council approved a previous REV grant for the apartments in 2021, according to the memo, but delays in the project meant that the developer could no longer receive the incentives.
That previously proposed incentive was approved for a 10-year, 75% REV grant that capped at $820,000.
The increase in potential incentives comes from higher construction costs, according to the memo, which have risen from $14.5 million to $20 million in the past six years.
According to a 2021 memo from former Mayor Lenny Curry’s administration, Theotokos Holdings, the developer, purchased the properties along the Arlington Expressway in 2019 with the expectation the project would cost $9.26 million.
During the COVID-19 pandemic and after, project cost expectations more than doubled, according to the OED.
The 2026 OED memo says the city and developer had discussions surrounding a larger REV grant for an affordable housing redevelopment in other buildings. That project has “not materialized,” the memo states.
The other two buildings on the property were former Offshore Power Systems office buildings that have been long vacant and vandalized.
Theotokos Holdings LLC is associated with the property’s owner and developer, Marc Kozman, who acquired the properties in separate deeds totaling $8 million through Arlington Florida LP. That limited partnership is affiliated with AXIA GeoCapital LLC, which operates in the U.S. and Canada.
Nickolas Georghiades, principal with AXIA GeoCapital LLC and AXIA GeoCapital Inc., said in January that his group envisioned a long-term plan to renovate all three buildings and add more.
“I think we are getting in early but I think 10 years from now we will be very happy we did this.”
The MBRC is scheduled to meet June 8. The Office of Economic Development has sought the committee’s approval to file legislation containing the grant to Council, which would have final authority on the incentive.