Studer Community Institute

Capital, confidence at heart of building boom

May 21, 2015
/ Carlton Proctor
/ economy

There’s no question downtown Pensacola is on the cusp of a building boom. New residential apartments, office space, lodging and other commercial expansions are in the works, with more to come. So, what do the experts say is driving this latest wave of growth? Simply put: Capital and confidence. “I think we’re definitely in a building boom downtown, and what’s driving it is a pent-up demand for investment opportunities by several local individuals who know this market very well,” says Scott Luth, CEO of the Community Economic Development Association. “They have the insight, the capital and confidence to invest in downtown,” said Luth. “And because of their commitment, it’s driving interest in other folks with capital who have not done deals in the community in quite a while, and they are starting to recognize new investment opportunities.” Noted urban planner and consultant Chuck Tessier agrees. “I think what's happening in Pensacola is the result of two things,” Tessier said. “First, the obvious thing is the ending of the real estate downturn and the general economy, both locally and nationally, improving.” Secondly, Tessier said, the boom is the payoff for a lot hard work and planning by thousands of people who helped transform downtown, build the Maritime Park, get rid of the Main Street Wastewater Treatment Plant and built Gallery Night into a major, regular attraction. “All those things contributed to a new spirit to downtown Pensacola that has given the private development community the confidence to invest here,” Tessier said. “Like many successful cities, you have here certain people, like Quint Studer, Bobby Switzer, Ray Russenberger and Justin Beck, who have stepped forward and gotten out ahead of the crowd and are leading the charge,” he adds. Building a suburban downtown Developers like Studer and Switzer are striving, Tessier said, to transition Pensacola from a “suburban” downtown, where people work during the day but go home to the suburbs at night, to an “urban” downtown, where people live, work, shop and seek entertainment and leisure activities. “What investors like Quint Studer and Bobby Switzer are doing is vital to downtown Pensacola's future and its prosperity,” said John Peacock, chair of the Downtown Improvement Board. “In the end, their projects will create more tax revenues that can be used to take care of, and improve, the downtown area’s infrastructure.” Having high density residential and commercial properties downtown, Peacock said, is critical to the overall aesthetic and investment atmosphere that leads to more growth and more investment opportunity. Here is a rundown on the major projects, either under way or proposed, that have the potential to reshape the downtown demographic and foster further investment and growth over the coming decades. — Former Pensacola News Journal site. Without question the centerpiece of this next wave of downtown development is the $50 million, 260-unit apartment and retail building planned for the former PNJ site at Romana and Jefferson streets.

Demolition of the PNJ building's interior structures has been in the works for several weeks. Andrew Rothfeder, who heads Studer Properties, said crews will begin demolishing the building’s exterior within the week. The city’s Architectural Review Board will review the architectural renderings at today’s regular meeting. “As we go through design development, we are seeing a well-defined commercial section closer to Palafox (Street) that then transitions to more of a residential feel towards Tarragona (Street),” said John Myslak, an independent contractor for the Dawson Co., which is the project manager. Plans call for the building be completed and ready for occupancy by late 2016. Quint and Rishy Studer purchased the site for $3.4 million in 2013. — Downtown YMCA. Accompanying the Studers’ apartment project are plans for a new, $15 million YMCA on a parcel within the 5.85-acre PNJ property. Along with a $5 million cash pledge, the Studers donated a one-acre parcel to the YMCA within the 5.85-acre PNJ property. [caption id="attachment_8352" align="aligncenter" width="850"]

The gymnasium of the new downtown Pensacola YMCA, which faces Intendencia Street.[/caption] During the past several months several local benefactors, including the Bear Foundation, Teri Levin and the Switzer Family have made major gifts to the YMCA's fund drive. The proposed YMCA facility, which will house athletic, educational and health and wellness programs, is expected to get under construction by late fall. — One51 Main. A model for the new urban downtown is Beck Partners’ One51 Main, a three-story office/condominium just weeks away from completion at a site within the Community Maritime Park. [caption id="attachment_23643" align="alignright" width="450"]

Beck Properties new building, One51 Main, is nearing completion on the Community Maritime Park. Shannon Nickinson/Pensacola Today[/caption] Beck Partners’ President Justin Beck said the building features commercial offices on two of the three floors facing Main Street. At the rear of the building, on the top two floors, four condos have been built and are facing Pensacola Bay. Beck says the building’s mixed use is “an exciting new development that represents the renaissance of what's happening in downtown Pensacola.” — IHMC building. Also well along in construction is the 30,400 square foot expansion of the Institute for Human and Machine Cognition’s Alcaniz Street headquarters. IHMC spokesman Will Raab said the work, which started in February, is proceeding smoothly and the $7.3 million building is expected to be ready for occupancy by March 2016. The new building will more than double IHMC’s current work space, and the new facility is expected to help with recruitment and retention of its top employees, Raab said. — Main Street Holiday Inn Express. With design plans already approved, developers of a proposed 100-room Holiday Inn Express on Main Street are expected to present the Architectural Review Board with construction plans later this summer. [caption id="attachment_17208" align="aligncenter" width="1002"]

Rendering for a proposed five-story hotel for the site at 101 E. Main St.[/caption] At that point, the ARB will be given more details about the hotel’s exterior walls, windows and other architectural details. Plans to construct the hotel were unveiled in February. The hotel will be owned by Heetesh Patel and Siddiqi Holdings of Knoxville, Tenn. Plans call for completion of the hotel building and occupancy to take place in late 2016. — Blount, Brent buildings. Perhaps the biggest downtown development news this spring was the $7.5 million sale of the Brent and Blount building property to One Palafox Place, LLC. [caption id="attachment_6476" align="alignright" width="450"]

The Blount Building is now under new ownership. One Palafox Place LLC, led by Bobby Switzer, has purchased the Pensacola landmark.[/caption] Headed by local investor Bobby Switzer, One Palafox Place’s plans call for a renovation of the century-old Brent Building's upper floors, now office space, into residential units. The seven-story Blount Building will be first to undergo a makeover of its façade. Several office buildings facing Garden Street will get facelifts. Switzer is working with urban planner Tessier to guide the development and renovation of both buildings. Switzer has hired a New Orleans-based architectural firm to deliver design plans for transformation of the Brent Building’s upper three floors to residential units. The ground floor of the Brent Building, which faced Palafox Place, currently is occupied by several shops, retail stores and restaurants. Those leases will remain intact during the renovations, Switzer said.

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Capital, confidence at heart of building boom

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