JACKSONVILLE, FL – EJF Capital and Chance Partners announced that they will develop Eastborough, a two-building, 226-unit apartment complex in the San Marco neighborhood of Jacksonville, FL. The Project is located in an area that is certified as an "Opportunity Zone" under the Tax Cuts and Jobs Act of 2017 ("TCJA"). The TCJA offers investors attractive tax breaks to invest in opportunity zones to create economic growth in lower-income areas.
The project is located on a 6.62 hectare property and will be built on with two multi-family houses, each with four floors, surrounded by an above-ground parking lot. Synovus Bank provided construction financing of $ 25.29 million for the transaction.
"We have put together a successful team in EJF and Chance and we see great momentum in Jacksonville," said Neal Wilson, co-founder and co-chief executive officer of EJF. “We believe Jacksonville's growth trajectory continues to be strong and its prospects are excellent. The project will benefit the San Marco neighborhood by continuing to provide much-needed workforce housing for hundreds of new residents. In conjunction with The Exchange and Barlow, these projects will provide a solid economic foundation for a growing community. "
Unlike other suburban Jacksonville multi-family submarkets that are not within walking distance, San Marco is a historic, leafy neighborhood dominated by low-density business parks, single-family homes, and community parks and plazas.
"San Marco is not a typical Jacksonville neighborhood," said Jeff Rosen, Principal at Chance Partners. “It's a pedestrian-friendly, comfortable community that encourages neighborhood interaction and offers a central location. It should focus on the whole person and the quality of life. "
Rosen added, "Given its proximity to the Southbank Health Complex, downtown Jacksonville, access to I-95, and San Marco's dining and social scene, we believe the project is perfect for young professionals."
San Marco is close to Southbank and its health complexes, which are anchored by the Baptist Medical Center, one of six MD Andersen Cancer Centers, and Wolfson Children's Hospital.
Unlike other chain-dominated markets, San Marco offers eclectic and diverse retail tenants. It has also attracted large corporations lately, attracted by the market dynamics. Regency Centers broke ground this year for a retail center anchored with Publix in the heart of San Marco. It is scheduled to open at the end of 2022.
"Eastborough is well placed to attract tenants who previously did not have new Class A rental options in San Marco," said Asheel Shah, Senior Managing Director and Head of Real Estate Development, EJF. "It is also attractive for employees who want to shorten their commutes by being closer to home, and it does justice to the nationwide trend towards living in urban, mixed-use communities."
The project also benefits from the fast-growing Jacksonville MSA, which is the fourth largest in Florida with nearly 1.56 million residents. The Jacksonville area has gained nearly 211,000 people since 2010, up about 15.6 percent, which is more than double the national growth rate. According to government employment projections, healthcare is expected to be one of the fastest growing sectors in the region by 2028, creating more than 15,600 jobs.
