Submarket Spotlight As that demand continues to rear its head, condo conversions and new developments move full speed ahead, especially in areas that offer desirable amenities such as water exposure, downtown locations, or suburban environments.
The coastal market, in particular, has seen major condominium activity for years. In St. Augustine, Montecito Property Co. recently bought and converted the luxury Las Palmas community on the Intercoastal market. The same company is responsible for The Venetian on the Ortega River, a nine-building project originally constructed in 1969 as offices for the U.S. Navy. Now it has been converted to condos, which are selling from the high $100,000s to the $400,000s.
The Oceans Edge apartment community just one block off of Jacksonville Beach also was recently sold for $126,000 per unit. The 182-unit complex built in 1973 is now among the highest-priced sales in the market. It is currently being converted to condominiums.
Though not as dynamic as the coastal market, Southside near the University of North Florida and along the J. Turner Butler corridor is alive with emerging employment centers. Local businesses include Merrill Lynch, Blue Cross/Blue Shield, and a quadrant of hotels and office parks. The completion of the new Interstate 295 has further infused the market, creating an eastern link around the city and opening new areas for office, retail, and multifamily development.
One significant multifamily project in this market is Marina San Pablo, a 14-acre, $100 million condominium development in which the average price per unit will range from $500,000 to $700,000. On the conversion front, Tarragon South Development Corp. is repositioning The Madison at Deerwood. The company purchased the year-old complex for $121,300 per unit. The 444-unit project is located in one of Southside’s fastest growing neighborhoods.
Topping the list is downtown. According to CALEX, this submarket has seen an 11 percent increase in occupancy since fourth quarter 2003. This is in part due to the $2.25 billion Better Jacksonville Plan, a growth-management initiative funded by a half-cent sales tax and approved by voters in September 2000. The plan is responsible for a new Jacksonville Veterans Memorial Arena, the Baseball Grounds of Jacksonville, new libraries, and a new one-million-square-foot courthouse encompassing eight city blocks. The improvements are encouraging residents to re-enter the downtown living environment.
In the last 18 months, approximately 2,000 new units have been approved, constructed, and partially absorbed in downtown, and more than 800 have been approved or are on the drawing board.