EJF Capital LLC (“EJF”) and Chance Partners LLC (“Chance”) today announced that they will develop Southgate (the “Project”), a three building, 295-unit multifamily community in the St. Nicholas neighborhood in Jacksonville, FL. The Project is in an area certified as a “Qualified Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA offers investors potential attractive tax benefits to invest into Qualified Opportunity Zones to create economic growth in lower income areas.

The Project consists of two parcels totaling 9.49 acres and will be developed with three multifamily buildings each with four stories surrounded by a surface parking lot providing over 400 parking spaces. Southgate will feature the latest fixtures, finishes and modern amenities in the home and communal spaces. Integrated smart home technology provides keyless entry, WiFi thermostats, 1G hi-speed internet, along with access control to buildings, garages and to all homes. A robust resident amenity package will include co-working spaces, indoor and outdoor social areas, resort-inspired pool and sundeck, 24/7 fitness center, dog park and pet spa, and walking trails. Initial delivery of Southgate is anticipated in the fourth quarter of 2023.

“Exceptional market”

“Jacksonville is an exceptional market with vast investment opportunity, and we along with our partner, Chance, believe the economic underpinnings could not be stronger,” said EJF Co-Founder and Co-Chief Executive Officer, Neal Wilson. “Factors that make this such a compelling location include strong demand for multifamily housing, robust population growth, and a diverse economy with healthcare leading the way.”

The Project is EJF and Chance’s fifth in the Jacksonville market following Eastborough, The Exchange, Barlow, and San Marco Promenade, which benefit the infill St. Nicholas and San Marco neighborhoods by adding much needed workforce housing for hundreds of new residents.

“Five projects in a single market demonstrates our conviction to the future of the San Marco and St. Nicholas neighborhoods to meet residential demand serving these historic infill locations,” said Jeff Rosen, Principal with Chance Partners. “We like everything about this market, especially its location, which is minutes from the Southbank district and its array of healthcare complexes, which are anchored by Baptist Medical Center and Wolfson Children’s Hospital.”

Robust market dynamics

In contrast to other markets that are dominated by retail chains, San Marco and the burgeoning Kings Avenue retail corridor offer eclectic and diverse retail tenants. It has also recently attracted major corporations that have been drawn by its market dynamics including the Regency Centers Publix-anchored retail center in the heart of San Marco that will open later this year.

“The prospects for growth in close proximity to the Southbank and its adjacent historic neighborhoods of San Marco and St. Nicholas are unquestionable,” said Asheel Shah, EJF’s Senior Managing Director and Head of Real Estate Development. “We like its diversity, which not only includes healthcare but a thriving banking, insurance, and investment services sector, as well as two major naval bases. The simple fact is that more people are moving to Jacksonville, and these infill neighborhoods provide an extraordinary location and amenities.”

The Project also benefits from the rapidly growing Jacksonville MSA, which is the fourth largest in Florida by population with nearly 1.56 million residents. The Jacksonville region has added nearly 211,000 persons since 2010, up roughly 15.6 percent. Healthcare is projected to be one of the fastest growing sectors in the region through 2028, adding more than 15,600 jobs, according to state employment projections.

The venture acquired the Southgate Plaza shopping center located on Beach Boulevard and intends to start demolition later this month.

About EJF Capital

EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of December 31, 2021, EJF manages approximately $5.5 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its strategy to invest in Qualified Opportunity Zones.

About Chance Partners

Chance Partners LLC is fully integrated real estate firm specializing in the acquisition and development of high quality, infill, multifamily and mixed-use communities. Backed by a deep understanding of the markets, a commitment to excellence and a track record of success, Chance Partners, led by Judd Bobilin and Jeffrey Rosen, is redefining its targeted communities, one building at a time. Since 2010, the company has developed or acquired more than $700 million of premier assets ranging from multifamily and student housing to hospitality and retail in strategic walkable locations throughout the Southeast. Chance Partners provides the full suite of investment management, asset management and development services to minimize risk in each investment opportunity. Chance Partners has a successful track record working alongside multiple communities, institutional equity partners, and national and community lenders.

For more information regarding this press release, contact: Susan Masucci | (904) 994-0448 | susan@createaruckus.com

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