New Infrastructure and Development in Jacksonville, Florida

[Patrick Capriola]

There is significant debate in Jacksonville about the benefit that the recently proposed Shipyards could bring to the city and surrounding areas. I want to solicit the feedback of the bigger pockets community to see what your thoughts are regarding downtown development, infrastructure spending, and their possible impact on real estate and real estate investors. For those of you not familiar with the Jacksonville market these two links highlight the proposal recently brought to the city by Shad Khan - owner of the Jaguars and someone who has been keen on investment there since our new mayor opened the city up for investment and development. 

http://www.bizjournals.com/jacksonville/news/2015/...

http://www.bizjournals.com/jacksonville/news/2015/...

The plan includes commercial space, residential space, retail space, hundreds of boat slips, public parks, an amphitheater, and dock space for the USS Adams to become a museum. Additionally, another developer has proposed a large aquarium near this development. We currently have a few SFR's in the suburbs and wonder what a project like this means for the future of the local market.

- Since these are currently just proposals, is the significant upside potential of growth in the city worth buying SFR's in the suburbs now with the hopes that the city will draw new interest for those looking to relocate to FL?

- As a small investor would you attempt to invest on the ground floor (or as close to the ground floor as is allowed) in some of the new residential space being proposed in the Shipyards?

- What are the potential negative effects of a project of this scale on a small city like Jacksonville? What are the potential risks for small investors?

- For those of you who are investors in Jacksonville - what are your thoughts regarding the project and its relationship to your local business?

I understand that there are some obvious answers to these questions - but my experience with the BP community it that there are always robust conversations around those answers and many contributions that were not so obvious at first glance. Thanks everybody. 

[Tim Czarkowski]

I personally would love to see the shipyards finally developed. However that seems unlikely given the scope of the project. It seems more likely that several smaller projects will be completed and then if they're successful we could see something like this. I live in Riverside and it would be great if downtown had as much going on as here or Avondale. 

There are 600 residential units and some commercial space along Riverside Ave in Brooklyn that are nearing completion. They are apparently selling/renting well because they are already planning on building more. All of this will bring a lot of people on the doorstep of downtown and then maybe we'll have something going on after business hours. There are plans to develop the Laura St Trio also but this is probably the fifth plan in as many years, so we'll see. 

I wouldn't base my current investments on a project  that may or may not be completed years from now. Jacksonville will continue to grow either way and that's good enough for me. If you were interested in investing in downtown it would be a different story but right now that's going to be high risk. 

I wouldn't consider buying any residential units they would be selling unless I was going to be living in it. You'd be paying full retail and have no cash flow. It would be a straight appreciation play, not my thing personally. 

I don't think the project brings much if any risk for small investors. And as  far as the city is concerned if it was tried and failed it might set back the redevelopment of downtown, but what else is new?