Springfield Mixed Use?

Question

When I was living in Jax a couple years ago, Springfield seemed a long way off from appreciating like Riverside/Avondale had with Murray Hill looking like the most likely next growth neighborhood. How do things look these days? Looking at a CRO mixed-use property with fairly weak current cash flow on paper, but a moderate price cut and a positive outlook on rent and lease growth would  make it a lot more appealing. This would be my first foray into non-residential investment and I'm anxious that I may be trying to swallow too big a fish.

Joey Hamaoui · Answer

I'm in the same boat. First quarter of 2018 we can start buying again once the tax return is filed.

John Fabros · Answer

@Joseph Hamaoui I'm in a pause right now, need another year of 1099 income to qualify for favorable financing but Jacksonville remains a more appealing investment market.

Joey Hamaoui · Answer

@John Fabros That's fair. Are you still looking at the Jacksonville market or you're focused on Washington, DC?

John Fabros · Answer

@Joseph Hamaoui I did not. Particularly given the commercial financing terms I was given, the deal did not cash flow and required far more working capital than I had access to. I will probably regret not trying to be more creative in 5 years but as it was, the deal exceeded my risk tolerance.

Joey Hamaoui · Answer

Hey @John Fabros did you end up doing that deal in the end?

Maxwell Lee · Answer

Is that the one at Main and 8th? With the Walgreens pharmacy? It definitely looks appealing to me. I like that location, I think Springfield is finally next in line and a lot of things are happening to prepare that area....but....it's still a very slow process in Jax and you're probably looking at a good 5 years or so before it becomes the demand starts to creep to the point of overtaking supply (imo). Basically what I'm saying is it's still early but you may have to get in early. Do we see a correction before that happens? Perhaps. But hopefully it won't be enough to stop the progress there.