Jacksonville-based mostly Hanania Automotive Team proprietor and CEO Jack Hanania has a deal to obtain the former Stein Mart setting up on the Downtown Southbank for $20.6 million.
He intends to transfer his corporate headquarters there and set the Hanania title on the building.
“I have a whole lot of enthusiasm for our Downtown and our neighborhood,” explained Hanania, who grew up in Lakewood and life in San Marco, both neighborhoods in close proximity to the Southbank.
“I think Downtown is poised to explode.”
It also is the very first time in memory that a single individual has bought a higher-rise developing Downtown to put a identify on it.
Hanania claimed July 25 he hopes it encourages other people to do the exact same, declaring such expense implies to outside the house firms that neighborhood buyers are willing to place revenue into the group.
“It will assist stimulate more Downtown initiatives,” he stated.
Hanania and expenditure companion Joe Hassan currently individual two Downtown Northbank buildings – the 6-story historic Dyal-Upchurch Constructing at 6 E. Bay St., ordered in 2017, and the 3-tale Title & Trust Corporation of Florida Creating at 200 E. Forsyth St., acquired late past 12 months.
“I grew up in Jacksonville and I want to do my part to preserve Downtown Jacksonville,” Hanania said when acquiring the Title & Rely on setting up.
Hanania is purchasing the Stein Mart residence on his have and intends to include it. He mentioned the invest in is scheduled to near by Aug. 31.
The 10-story Course A constructing has 200,627 rentable sq. ft and an adjacent 6-stage, 525-area parking garage. The home comprises 1.92 acres at 1200 Riverplace Blvd.
An affiliate of Virginia-based mostly Lingerfelt CommonWealth Partners bought the garage and making, developed in 1985, for $23.625 million in 2016, in accordance to Duval County residence records.
Jacksonville-primarily based style retailer Stein Mart Inc. experienced its headquarters in the developing, but the company filed for Chapter 11 personal bankruptcy in August and went out of business enterprise, vacating its workplaces. The Stein Mart identify was eradicated from atop the setting up in November.
Lingerfelt CommonWealth Companions experienced scheduled the residence for auction this 7 days.
The TenX industrial actual estate exchange business and Jacksonville-centered Newmark Phoenix Realty Team declared the auction in May well. The initial on the internet listing mentioned commencing bids would be $7 million.
They scheduled the auction for June 14-16, postponed it a month and then one more week. The constructing has been eliminated from the on line website.
Hanania said the auction was postponed for the reason that of the discussion and negotiation.
Hanania stated he started speaking with Lingerfelt CommonWealth Companions in Could. They started off at $25 million and negotiated to $20,650,000.
“It was a very good selection for all parties,” Hanania reported.
Lingerfelt CommonWealth Associates issued a assertion July 26 by e mail.
“We are joyful that our sale of 1200 Riverplace to Hanania Automotive Group will convey supplemental work opportunities and investment decision into downtown Jacksonville,” said Robert Valentine, vice president of investments and asset management.
An additional Downtown HQ
Hanania will transfer the group’s company headquarters into 10,000 to 12,000 square feet of the tower, to be called The Hanania Developing, in the upcoming six months.
Hanania Automotive Team now is centered among the its Blanding Boulevard dealerships.
He intends to place the Hanania identify at the prime of the structure.
“I want to join the brand identify with the local community,” he reported.
Hanania will go 25 headquarters staff members Downtown to start out but has not determined on which flooring of the constructing.
Downtown Investment Authority CEO Lori Boyer welcomed the obtain.
“I am delighted with Mr. Hanania’s continued expenditure in Downtown and the likely relocation of his corporate headquarters,” Boyer mentioned by electronic mail July 26.
“Jack is a prudent trader and businessman and his ongoing commitment to Downtown speaks volumes about our development in recent several years and the vivid upcoming forward. We are thrilled about the possibility to backfill the former Stein Mart HQ with the headquarters of a further rising neighborhood business enterprise.”
The automotive group employs about 1,000 individuals whole amid the office and dealerships, including 600 in Jacksonville.
Hanania’s group has 16 vehicle dealerships in Florida, Alabama, Pennsylvania and Tennessee.
A 17th is scheduled for design in Myrtle Seaside, South Carolina, to open by the stop of 2022.
Its dealerships include things like Acura, Audi, Honda, Hyundai, Genesis, Infiniti, Subaru, Volkswagen, Ford, Chevrolet, Mitsubishi and Buick GMC.
Hanania Automotive Group has 3 collision facilities in Florida and Alabama.
Hanania claimed the Southbank place is centrally obtainable to his dealerships together Blanding Boulevard in Southwest Jacksonville Atlantic Boulevard in East Arlington and in St. Augustine.
The 10-X on the internet auction listing reported the creating is 40.28% occupied. Stein Mart vacated about 109,000 sq. toes, which includes the prime floor with views of the river, Northbank and alongside the neighboring Southbank.
“The Assets offers certified proprietor end users and traders the option to obtain a trophy asset with major upside by filling vacant space and push rental growth,” states the auction supplies.
“They will benefit from attaining an asset nicely down below replacement prices in a accurate city infill area.”
At a general amount of $600 for each sq. foot, the development charge of replacing the business office making would be $120 million.
Hanania intends to make investments in home upgrades and bring in tenants to the composition. He stated the parking garage and coated obtain into the creating will support.
He said he will use a authentic estate expert for illustration and management but has not done so however.
Redevelopment in look at
The 1200 Riverplace residence is in an place surrounded by redevelopment.
To the west are the continuously increasing Baptist Well being campus the redeveloping River Metropolis Brewing website into apartments and the Museum of Science and Historical past, which intends to transfer to the Northbank and make its house offered.
To the east are The District, now called “RiversEdge: Life on the St. Johns” the Duval County Public Educational facilities headquarters making that is envisioned to be redeveloped and the Kings Avenue and Hendricks Avenue corridors of investment decision and construction.
“We sense like it will be accessible for advancement on the Southbank,” Hanania explained.
Across the St. Johns River on the Northbank, the riverfront is poised for redevelopment with the Shipyards space by Jacksonville Jaguars operator Shad Khan.
Also together the Northbank are the vacant previous Metropolis Corridor and Duval County Courthouse sites the Jacksonville Landing/Riverfront Plaza house and the One Riverside Avenue challenge proposed by Atlanta developer Jeff Fuqua.
Hanania also said the Laura Street Trio redevelopment and other assignments in the Downtown main are encouraging.
“That would be a video game-changer,” he said.
He claimed Jacksonville-centered VyStar Credit score Union’s financial investment into getting a tower and office environment constructing for a campus display area company determination.
Hanania explained his acquire also is an allegiance to the town and his organization.
“It’s likely to add a large amount to our skill to mature and guidance our staff.”