JACKSONVILLE, FL - EJF Capital and Chance Partners announced the acquisition of a 284-unit multifamily housing community under development in the San Marco neighborhood of Jacksonville, FL. The project, known as San Marco Promenade, is expected to be complete in the third quarter of 2020 in an area certified as an “Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”). The TCJA offers investors tax benefits to invest into Opportunity Zones with the aim of spurring economic growth in lower income areas.
EJF OpZone Fund I LP and Chance Partners acquired the Project from a majority owned joint venture of the Carlyle Group, one of the world’s largest investment firms, based in Washington, D.C. Synovus Bank provided nearly $29 million of financing to the transaction. Additional financial details regarding the transaction were not disclosed.
This is the second project EJF and Chance Partners have embarked upon in the San Marco neighborhood. Last year, the companies announced the development of a two-building, 486-unit multifamily housing community called San Marco Crossing in the historic neighborhood.
“We are thrilled to partner again with Chance Partners on the acquisition of San Marco Promenade,” said EJF Co-Chief Executive Officer Neal Wilson. “This project will benefit the San Marco neighborhood in many ways, including adding much needed housing inventory for roughly 400 new residents. We believe the connectivity to Southbank and its nearby healthcare complexes will continue to make San Marco a hub of activity.”
Asheel Shah, EJF’s Senior Managing Director and Head of Real Estate Development, said, “In spite of economic interruptions brought on by the pandemic, both the EJF and Carlyle teams worked with great fortitude and collaboration to make this deal come to fruition. Everyone involved was focused on making sure this transaction went as smoothly as possible. We are very pleased with the results.”
Judd Bobilin, Founder of Chance Partners, said, “We are excited to continue our great partnership with EJF in the rapidly changing San Marco community. We look forward to seeing the evolution of this historic neighborhood.”
Jacksonville-based Live Oak Contracting is the General Contractor for the Project.