November 28, 2023

Housing Finance Development

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The Vestcor Companies intends to start construction in the first quarter of 2023 on Lofts at San Marco East, a 172-unit apartment building at Philips Highway and St. Augustine Road.

Ryan Hoover, president of TVC Development Inc., part of Vestcor, said the project will comprise eight studios and 61 one-, 89 two- and 14 three-bedroom units that will rent from $830 to $1,200 a month.

The project is targeted for people who apply and verify annual income of 60% or less of the area median income, which is $35,160 for one person and up to $50,160 for a family of four.

An artist’s rendering of the clubroom at Lofts at San Marco East with computers, TVs, billiards and shuffleboard. Additional amenities will include a fitness room and a dog walk area.

The property is on 5.64 acres at 3036 and 3114 Philips Highway.

“The area has great access to all other areas of town and areas of employment including downtown,” Hoover said by email.

“It has also had major growth with the new units that have come online and that are still under construction.”

The area is near several new market-rate apartment communities close to the historic San Marco neighborhood.

Through Lavilla IV LLC, Vestcor bought the property in two deeds for more than $3.1 million.

Hoover estimates a $42 million investment in the project, which he expects will be completed in spring 2024.

It comprises one four-story building with elevators. Apartments other than studios will have balconies.

Amenities include a fitness room, a community room with TVs, billiards and shuffleboard tables, computers and a dog walk area.

The city is reviewing permits for Realco Recycling Co. Inc. to demolish the vacant facilities on the property. 

Hoover said the project will be financed by owner equity; federal-state Low-Income Housing Tax Credit equity; a State Apartment Incentive Loan from the Florida Housing Finance Corp.; a gap loan and Multifamily Housing Revenue Bonds issued by the Jacksonville Housing Finance Authority; and a HOME funds loan through the city Neighborhoods Department. 

Those are U.S. Department of Housing and Urban Development funds designed to increase homeownership and affordable housing opportunities for low and very low-income Americans.

In September 2021, TVC Development Inc. said it had a contract to buy acreage at Philips Highway and St. Augustine Road for development of workforce housing. 

City Council approved legislation in October 2021 to rezone the site and change the land use.

A written description described the apartments as affordable housing but did not elaborate.

“Redeveloping the Property from an abandoned motel to a multi-family use will improve the aesthetics of the lot and bring additional business to the area,” said a written description.

The engineer is Abbey Civil Engineers Inc. Group 4 is the architect.

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