Union Terminal Warehouse renovation work planned for US $ 61 million Jax Daily Record | Jacksonville Daily Record
Atlanta-based Columbia Ventures LLC is negotiating $ 9.2 million gap financing with the city for the proposed adaptive reuse of the historic Union Terminal Warehouse near Jacksonville’s Eastside for $ 61 million.
An April 15 statement from Columbia and documents it submitted to the Downtown Investment Authority describe a 228-unit redevelopment of the 108-year-old warehouse at 700 E. Union St.
The workforce and affordable housing will allow Columbia to fund approximately 70% of the project with a 40-year fixed-rate insured mortgage from the U.S. Department of Housing and Urban Development, the filing said.
In their report to DIA, Columbia officials said the market effects of COVID-19 require a “fulcrum” from private funding to HUD-backed funding.
“Saving this magnificent old building and giving it a new life inspired by decades of small business activity is a challenging undertaking that has required years of planning and capitalization,” said Dillon Baynes, Columbia Managing Partner Ventures, on April 15 in an emailed statement.
The 7.35 acre Union Terminal Warehouse property is located on the edge of downtown.
The city council voted on April 13 to designate the 330,000 square meter Union Terminal as a local landmark. This makes Colombia’s project suitable for the DIA program to preserve and revitalize the inner city.
The company wants $ 9.2 million from the deferred capital and loan and grant incentive program, though Steve Kelley, DIA’s director of downtown real estate and development, said in an email that the term sheet of the City for business is not complete.
Columbia also plans to pay approximately 15% of the project through the equity of the federal Historic Tax Credit.
I’m looking for historical status
The developer says in his report to DIA that the state’s Department of Monument Preservation has approved his application for inclusion on the national register of historic places.
Columbia said it also got National Park Service approval under certain conditions.
Turner Construction Co. built the Union Terminal Warehouse from 1912-13. The developer says it was once the largest commercial building in Florida.
According to the report, it was empty for a short time in the 1970s.
The property documents show that the location in E. Union St. 640-648 was expanded until 1990.
The Union Terminal Warehouse was completed in 1913.
According to Colombia’s report, the project was on track to start construction with traditional funding in the third quarter of 2020, but there have been delays due to the coronavirus pandemic.
If the developer hits its Nov. 26 goal of closing funding and starting construction, the Union Terminal’s rehab will be completed in the summer of 2023, according to Columbia.
Columbia is planning studio, one-, two- and three-bedroom apartments in the warehouse.
The developer also wants to build 20,233 square meters of commercial space inside the warehouse to serve 44 tenants.
Another 24,607 square meters would be manufacturer / artist studios for 11 tenants and 4,205 square meters for a restaurant and a café.
Columbia intends to keep the water tower as a design feature on the rooftop communal garden. There are also plans to restore one of the industrial freight elevators in the warehouse.
Other apartment amenities are listed as washer / dryer connections in the unit. a large gym; individual conference call rooms; an arcade room; a hardware store; and charging stations for electric vehicles.
Officials from Colombia say the community’s commercial space is for startups, entrepreneurs, and small businesses.
According to Columbia, the main building is now 90% rented and is inhabited by creative loft spaces for artists, woodworkers, manufacturers and manufacturers.
A depiction of commercial space in the community at the north end of the first floor of the Union Terminal Warehouse. 228 apartments, a café and a restaurant are planned.
The other buildings have office space, car repair services and rented storage space.
Baynes said in January that he wanted to keep as many of these creative tenants as possible.
The developer estimates that the commercial space will support 262 permanent part-time and full-time positions as well as 150 construction jobs.
Columbia purchased the property in December 2018 through East Union Property Owner LLC for $ 4.6 million.
The company received a $ 4.5 million mortgage from the Jacksonville office of Local Initiatives Support Corporation (LISC) as part of its acquisition pre-development loan program.
The property is located in a Federal Opportunity Zone. Columbia announced to DIA employees that they intend to own the Union Terminal for at least 10 years in order to take full advantage of this program.
Documents show that the project partners include:
■ Dasher Hurst Architects
■ McVeigh & Mangum Engineering Inc.
■ Atlantic Engineering Services civil engineering company
■ Civil engineering company Prosser Inc.
■ Driver, McAfee, Hawthorne & Diebenow
■ Environmental company Geosyntec Consultants
Part of downtown?
The 7.35-acre Union Terminal Warehouse Package spans the DIA’s border.
While much of the site is outside of what defines the city as downtown, DIA CEO Lori Boyer said the Union Terminal continues to be eligible for downtown financial incentives.
The Union Terminal Warehouse area.
Boyer said on April 15 that the downtown preservation and revitalization program was written to include an entire package of incentives, although some of it may be outside of the downtown Northbank redevelopment area.
Boyer says DIA employees are interested in how the development will interact with Hogans Creek and the future Emerald Trail that is adjacent to the property.
Baynes said the trail helped spark Colombia’s interest in the Union Terminal package.
“When we’re done, historic adaptive reuse will be on an excellent course for decades to come,” said Baynes.
“The Emerald Trail potential sealed the deal with our desire to own and redevelop the property.”
The project was previously reported as having up to 750,000 square feet of residential and non-residential use in existing or new buildings. That would have allowed up to 473 residential units.
Baynes said while zoning the property would allow that scale, the latest proposal shows “the approach for the foreseeable future – massive in itself.”