The Downtown Investment Authority will begin negotiations with Atlanta-based developer Carter to build The Hardwick at The Ford on Bay, a $140 million mixed-use residential development.
The DIA Board of Directors voted 6-0 on January 19 to grant Carter the 2.4-acre riverside parcel at 330 E. Bay St. After the company scored the top six in the city’s request for proposals to redevelop the former Duval County Courthouse site.
Carter’s proposal consisted of 332 apartments in a 300-foot-high tower and 75-foot-tall plinth with retail stores on the ground floor.
The vote followed a unanimous recommendation on January 18 by the Board of Directors’ Retail and Property Disposal Promotion Committee.
Board members Bill Adams and Braxton Gillam attended the January 19 meeting via Zoom and were unable to vote. Ron Moody was absent.
Carter has worked since 1958 with a national spread, according to CBRE, which provided real estate analysis for The Ford on Bay bids.
The DIA Board of Directors voted 6-0 on January 19 to award Carter a 2.4-acre riverside plot at 330 E. Bay St.
Scott Taylor, Carter’s president and CEO, said Jan. 18 that his company sees Jacksonville’s job growth rate, quality of life and “affordable” cost of living putting the area’s development market on an “upward trajectory.”
“Frankly, we think Jacksonville has a tremendous amount of opportunity to be that next frontier,” Taylor said.
Carter said his design was inspired by mid-century modern architecture and designs by Jacksonville architect Taylor Hardwicke.
Hardwicke’s projects include the Haydon Burns Library and the Fountain of Friendship. The library is now the Jesse Paul DuPont Center.
During a panel discussion on January 18, board member Oliver Barkat said The Hardwick’s proposed architectural quality and honoring of a prominent local voice in the building’s design “took it to another level.”
“You look at all the comments and controversy around the (former Jacksonville) landing site, Riverfront Plaza, you see a city that wants something unique and iconic,” Barakat said.
“I think Carter has made brilliant use of our history and also capitalized on this newfound appreciation for mid-century architecture and in open spaces and pressed a lot of our hot buttons.”
DIA CEO Laurie Boyer said she hopes to complete negotiations on the terms of the land deal and a potential incentive package by March to return to the board of directors for additional approval.
The resolution passed on January 19 calls for 75 days to complete the talks. If these fail, the board can consider one of the other five bids.
Carter said he plans to claim an enhanced value grant of 75% payback for 20 years, a property tax refund, and for the city to offer a riverfront site at no cost.
Boyer said the legislation that would finalize those requests could be submitted to city council as soon as possible in April.
Hardwicke includes a 300-foot residential tower and a 75-foot condominium base with 332 housing units.
The DIA board said the $140 million price was an attractive part of the offer but that it had some concerns about how long it would take Carter to secure equity and fund it.
The only bid that offered a higher capital investment was SouthEast Development Group’s $253.45 million bid from Hard Rock Hotels, Apartments and Retail.
Board members liked The Hardwick’s proposed rental rate of $2.79 per square foot for its apartments, but they also didn’t want financing issues to repeat the last time DIA attempted to develop The Ford on Bay.
DIA has canceled an initial deal with New York City-based Spandrel Development Partners LLC for a $136 million mixed-use, multi-family retail project after negotiations failed.
DIA described the former court site The Ford on Bay in 2019. The adjacent 2.39-acre site included the former City Hall building at 220 E. Bay St. and 3.1 acres of land submerged in the St. Johns River.
Only this time, the Ministry of Interior included the court’s location in its request for project bids.
CBRE says Carter has invested in assets worth $1.2 billion in the past decade, primarily in mixed-use, multi-family projects, and student offices and residences.
Two restaurants, one on the riverside, are part of The Hardwick’s plans.
In Florida, the company has approximately $300 million in a multi-family development under construction as of summer 2022 near Orlando, Tampa, and Lakeland.
Taylor also told the commission that he is working to raise funds locally with Ross Singletary, managing partner with investment advisory firm Arcus Capital Partners.
The Carter executive said the company has a $25 million domestic investment commitment in the project.
Taylor said he did not go out to the market to raise capital, but Carter indicated in his presentation that he expected $91 million in debt financing and $49 million in equity investment.
Boyer said Jan. 19 that she is optimistic that Carter’s team can deliver financial results.
“I don’t think the board would have chosen this project if they didn’t think it was financially feasible and that it was actually going to happen,” Boyer said.
“This does not mean that there have been no other unconfirmed responses.”
Be the first to know the latest news and information that business leaders rely on in this fast-paced economy in Northeast Florida. Business news, trends and regional statistics needed to grow your business. Upcoming major events that you won’t want to miss and much more.