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Jacksonville Record & Observer 4/23/20

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April 23-29, 2020

Mathis Report: VanTrust is ‘taking a long view’ PAGE 3

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Record & Observer For hotels, a dark March JACKSONVILLE

Record & Observer

“Now there’s no business. There’s no money coming in,” OMNI CLOSED hotel owner says The Omni Jacksonville JACKSONVILLE Hotel at 245 Water St. as the COVID-19 Downtown and the Omni Amelia Island Resort pandemic shuts are two of more than down tourism. 40 Omni properties

Record & Observer closed because of the coronavirus pandemic.

BY MAX MARBUT

ASSOCIATE EDITOR

TRecord & Observer

he business shutdown caused by COVID-19 could lead to a long period of the lowest levels of local hotel occupancy on record. According to Visit Jacksonville’s March hotel report, the month began with some “small concerns” about COVID-19’s potential impact on business and leisure tourism. In the first 12 days of March, there was a “slight dip” in occupancy, but when social-distancing mandates were enacted and events started canceling, occupancy began to decline. Occupancy ended in March at 55.5%, more than 35% lower than in March 2019. With less demand for hotel rooms, the average room rate paid by guests declined $15 to $95.82. Revenue per available room dropped nearly $42 to $53.17. The percentage losses appear even greater because March 2019 was the best month in Duval

JACKSONVILLE

SEE HOTELS, PAGE 4

INSIDE Visit Jacksonville works to reschedule canceled conventions, looks to 2022 amid uncertainty. Page 4.

Jacksonville March hotel occupancy, revenue March hotel occupancy was down slightly for the first 12 days in March, averaging 80% or higher during that period, according to Visit Jacksonville. As the COVID-19 pandemic escalated, The Players Championship was canceled March 12 and occupancy began to decline. By March 31, Mayor Lenny Curry limited hotels to accepting reservations only from “essential lodgers.” Total March room revenue was $29.5 million, $22.4 million less than 2019, a decline of 43.2%, Percent Average daily Percent Revenue per Percent Area Occupancy change room rate change available room change Arlington

57.6% -37.6% $89.45 -10.6% $51.53 -44.2%

Beaches

52.1% -42.0% $163.69 -11.6% $85.25 -48.8%

Downtown

44.3% -48.8% $124.05 -11.2% $54.98 -54.5%

Northside/Airport 55.4% -35.9% $89.98 -8.5%

$49.84 -41.4%

Southside/Mandarin 58.1% -31.1%

$49.52

$85.22

-15.1%

Photo by Scott Sailer

-41.5%

Westside

64.4% -24.9% $79.68 -8.2%

$51.30 -31.1%

Overall

55.5% -35.3% $95.82 -13.3% $53.17 -44.0%

Take our COVID-19 shutdown survey To help us understand the condition of the region’s businesses and economy as a result of the COVID-19 health crisis and economic shutdown, the Jacksonville Daily Record and Record & Observer are requesting readers complete an anonymous survey. The survey should take about five minutes. The results will be published in an upcoming edition of the Jacksonville Daily Record, Record & Observer and JaxDailyRecord.com and shared with the region’s national, state and local policymakers. The survey can be found at surveymonkey.com/r/covid19nfl or by visiting the JaxDailyRecord.com homepage and looking for the “How has COVID-19 affected your business” ad. Thank you for participating.

VOLUME 2, NO. 47 • ONE SECTION


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JACKSONVILLE 23, 2020 DAILY RECORD / JACKSONVILLE RECORD & OBSERVER THURSDAY, APRIL

Big news doesn’t break just on Thursday. Here’s a look at some of the top stories published over the past week online at JaxDailyRecord.com and in the Jacksonville Daily Record that you may have missed.

Daily Record Mayor names group to help reopen city JACKSONVILLE

GOVERNMENT

HOW TOan-REACH US Jacksonville Mayor Lenny Curry nounced a 12-member group that will 10 N. Newnan St., Jacksonville, FL, 32202 advise the administration’s strategy Phone: (904) 356-2466, to reopen Jacksonville’s economy and Fax (904) 353-2628 social life. jaxdailyrecord.com City officials will use benchmarks US and criteria released this weekABOUT by President Donald Trump to create poliJacksonville Daily Record and Jacksonville Record & Observer are a division of cies to gradually Observer Media Groupreopen Inc. Jacksonville’s economy, Curry said during a virtual news conference 21. News & Daily Record, now the Jacksonville Daily Established in 1912, theApril Financial Special to the Daily Record Here are the members: Record, is published Monday-Friday and is the Official CourtMayor Newspaper of the Circuit Jacksonville Lenny Curry. • JAX Chamber President and in CEO Court and publisher of public notices Duval County. Daniel Davis Leon Haley newspaper available in • JEA Interim Director and Jacksonville RecordManaging & Observer is a free weekly business • Telescope Health CEOTo Dr.find Matthew CEO Melissa Dykesand key business nodes throughout Downtown Jacksonville Jacksonville. a Rill • Jacksonville Transportation Aulocation near you, visit jaxdailyrecord.com/rack-locations. • Florida Blue North Florida Region thority CEO Nat Ford Market President Darnell Smith County Public Schools Editorial• Duval content focuses on news and Sutrends, with a concentration on development, • Total Military Management LLC perintendent Diana Green real estate, construction, law, companies, economic and industry trends and how local President and COO Kent Stermon • Jacksonville Port Authority CEO and state government affects business. • Jacksonville Aviation Authority Eric Green • The Haskell Company Chairman STAFFCEO Mark VanLoh • VyStar Credit Union Chief Lending Steve Halverson Publisher / Matt Walsh Director of Advertising / Jay Lesowitz Officer Jenny Vipperman • UF Health Jacksonville CEO Dr.

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THURSDAY, SEPTEMBER 19, 2020 1 JaxDailyRecord.com

Daily Record JACKSONVILLE

HOW TO REACH US

Daily Record JACKSONVILLE

10 N. Newnan St., Jacksonville, FL, 32202 Phone: (904) 356-2466, Fax (904) 353-2628 jaxdailyrecord.com

ABOUT US JACKSONVILLE

Daily Record Daily Record

Jacksonville Daily Record and Jacksonville Record & Observer are a division of Observer Media Group Inc. Established in 1912, the Financial News & Daily Record, now the Jacksonville Daily Record, is published Monday-Friday and is the Official Court Newspaper of the Circuit JACKSONVILLE Court and publisher of public notices in Duval County. Jacksonville Record & Observer is a free weekly business newspaper available in Downtown Jacksonville and key business nodes throughout Jacksonville. To find a location near you, visit jaxdailyrecord.com/rack-locations. Editorial content focuses on news and trends, with a concentration on development, real estate, construction, law, companies, economic and industry trends and how local and state government affects business.

STAFF

mwalsh@jaxdailyrecord.com

jlesowitz@jaxdailyrecord.com

Publisher / Matt Walsh mwalsh@jaxdailyrecord.com

Director of Advertising / Jay Lesowitz jlesowitz@jaxdailyrecord.com

Publisher Emeritus / James F. Bailey Jr. jbailey@jaxdailyrecord.com

Advertising Coordinator / Codi Gildberg adassist@jaxdailyrecord.com

Publisher Emeritus / James F. Bailey Jr. jbailey@jaxdailyrecord.com

Advertising Coordinator / Codi Gildberg adassist@jaxdailyrecord.com

Editor / Karen Brune Mathis kmathis@jaxdailyrecord.com

Legal Advertising Manager / Janet Mohr

Editor / Karen Brune Mathis kmathis@jaxdailyrecord.com

Legal Advertising Manager / Janet Mohr legal@jaxdailyrecord.com

Managing Editor / Monty Zickuhr Owner Benjamin Porter is moving mzickuhr@jaxdailyrecord.com

Legal Advertising Associate / Rhonda Fisher location as soon as the shopping cenrfisher@jaxdailyrecord.com

Managing Editor / Monty Zickuhr mzickuhr@jaxdailyrecord.com

Legal Advertising Associate / Rhonda Fisher rfisher@jaxdailyrecord.com

RESTAURANTS

legal@jaxdailyrecord.com Cantina Louie moving ahead with plans

ahead with Legal building-out Associate Editor Affairs /the MaxRegency Marbut area Cantina Louie Mexican Street mmarbut@jaxdailyrecord.com

ter is finished within the next month

Network / Erik Wagner or so,”Administrator Porter said April 20 by email. webadmin@jaxdailyrecord.com

Depending on COVID-19, he estimates Shoppes Staff Food Writerin/the Katie Garwoodat Monument Court Typeset / Paula Steiner opening in October. center his group is developing off kgarwood@jaxdailyrecord.com admin@jaxdailyrecord.com “Overall, I feel that we are starting to north of Regency Staff Monument Writer / MikeRoad, Mendenhall Director of light Circulation Anne see the at the /end of Shumate the tunnel Square Mall at Interstate 295. mmendenhall@jaxdailyrecord.com subscriptions@jaxdailyrecord.com and we are expecting to have another “We are indeed moving forward with Staff Writer / Scott Sailer / Tim Reagan great summer,” he said. the interior build-out of the Monument Distribution ssailer@jaxdailyrecord.com Business Manager / Angie Campbell acampbell@jaxdailyrecord.com

distribution@jaxdailyrecord.com

THEPRESS DAILY BRIEF RELEASE/INQUIRY/REPRINTS to staying in the loop Submit a There’s press releaseaorshortcut editorial inquiry online jaxdailyrecord.com/submit-news-release or email editorial@jaxdailyrecord.com. Don’t miss a story. Subscribe to the Daily Brief and we’ll send our Article reprints are available at jaxdailyrecord.com top news to you Monday-Friday morning via email. To sign up, visit JaxDailyRecord.com and look for the “Sign up” box, enter your email and HOW TO SUBSCRIBE you’ll be set.

Associate Editor Legal Affairs / Max Marbut mmarbut@jaxdailyrecord.com Staff Writer / Katie Garwood kgarwood@jaxdailyrecord.com

Network Administrator / Erik Wagner webadmin@jaxdailyrecord.com Court Typeset / Paula Steiner admin@jaxdailyrecord.com

Staff Writer / Mike Mendenhall mmendenhall@jaxdailyrecord.com

Director of Circulation / Anne Shumate subscriptions@jaxdailyrecord.com

Staff Writer / Scott Sailer ssailer@jaxdailyrecord.com Business Manager / Angie Campbell acampbell@jaxdailyrecord.com

Distribution / Tim Reagan distribution@jaxdailyrecord.com

PRESS RELEASE/INQUIRY/REPRINTS Submit a press release or editorial inquiry online jaxdailyrecord.com/submit-news-release or email editorial@jaxdailyrecord.com. Article reprints are available at jaxdailyrecord.com

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Subscribe online at jaxdailyrecord.com/subscribe or contact our subscription department by phone at (877) 231-8834 or email subscriptions@jaxdailyrecord.com

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Promotions, hirings and happenings for business people in Northeast Florida. Send items to ssailer@jaxdailyrecord.com HOW TO ADVERTISE Display & Digital Advertising: Call Jay Lesowitz at (904) 356-2466 or email Kristopher Smith Candace Moody, jlesowitz@jaxdailyrecord.com joined the Local CareerSource Initiatives Support Florida LegalNortheast Advertising: Submit public notices via email to legal@jaxdailyrecord.com Corp. as community communications development officer vice president, is for dileaving the organizaFOLLOW responsible US recting LISC’s Jacktion April 30. Moody, sonville Urban Core with CareerSource MoodyJaxDailyRecord Smith Initiative to expand for 23 years, will economic growth in the Downtown work full-time as a freelance writer, POSTAL INFORMATION area. Smith was director of community speaker and career development servicesdaily for the Community Action consultant. Ron Whittington will take Jacksonville Daily Record (USPS 190-620) is published except Saturday, Council Lexington, Kentucky. over of Moody’s duties. Sunday & some legal holidays (New Year’s Day, Memorial Day,in Independence Day, Labor Day, Thanksgiving and Christmas) by Daily Record & Observer LLC, 10 N. Newnan St., Jacksonville, FL 32202. Periodicals postage paid at Jacksonville, Florida and at additional mailing offices. Under no circumstances will any news or records of Duval County be suppressed for anyone. Information in this newspaper is for our DEVELOPMENT TODAY subscribers only and must not be used by anyone for publication purposes.

These are the largest commercial building permits by job cost issued Tuesday by POSTMASTER the city of Jacksonville. Send address changes to Jacksonville Daily Record, P.O. Box 15456, North Hollywood, contractor is Taylor Sign & Design Inc., CHURCH, OTHER RELIGIOUS CA, 91615-9965 five permits for wall and menu board The Church of Eleven22 Inc., 8133 signs, $10,500. Point Meadows Drive, contractor is OFFICIAL DESIGNATIONS Bradley Bowen Construction, 864 The Official Newspaper for Thebuilding, Official Newspaper The Official STORES, MERCANTILE square Court feet, install modular the U.S. Bankruptcy of The Jacksonville Bar Newspaper of Duval Boulevard Crossing LLC, 5753 Court Beach $25,000. for theisMiddle District of Association, Nov. Blvd., 21, 1926. County by Order of the contractor Elkins Construction Florida,feet, Jan.new 4, 1947. Circuit Court, July 7, 1961. LLC, 6,826 square threeSIGNS tenant shell building, $928,000. Shipley Do-Nuts Make Life DeliAFFILIATIONS cious, Do-Nuts & Kolaches, DriveCompiled by Scott Sailer Thru, 12667 Beach Blvd., No. 101, Florida Press Association

Thursday only ..........$66 per year Single copy ......................35 cents

HOW TO ADVERTISE Display & Digital Advertising: Call Jay Lesowitz at (904) 356-2466 or email jlesowitz@jaxdailyrecord.com Legal Advertising: Submit public notices via email to legal@jaxdailyrecord.com

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POSTAL INFORMATION Jacksonville Daily Record (USPS 190-620) is published daily except Saturday, Sunday & legal holidays (New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas) by Daily Record & Observer LLC, 10 N. Newnan St., Jacksonville, FL 32202. Periodicals postage paid at Jacksonville, Florida and at additional mailing offices. Under no circumstances will any news or records of Duval County be suppressed for anyone. Information in this newspaper is for our subscribers only and must not be used by anyone for publication purposes.

POSTMASTER Send address changes to Jacksonville Daily Record, P.O. Box 15456, North Hollywood, CA, 91615-9965

OFFICIAL DESIGNATIONS The Official Court Newspaper of Duval County by Order of the Circuit Court, July 7, 1961.

The Official Newspaper of The Jacksonville Bar Association, Nov. 21, 1926.

AFFILIATIONS Florida Press Association

The Official Newspaper for the U.S. Bankruptcy Court for the Middle District of Florida, Jan. 4, 1947.


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THURSDAY, APRIL 23, 2020

VanTrust Real Estate is ‘taking a long view’

KAREN BRUNE MATHIS EDITOR

Developer completing Park Place One, Imeson Park industrial building and is working on several more projects during the pandemic. Images special to the Daily Record

VanTrust Real Estate LLC is developing the four-story, 125,000-square-foot Park Place One office building in Nocatee.

names. “There’s good activity there. We would deliver that plus another half-million square feet quickly for a total of a million square feet.” VanTrust has one more pad in Imeson Park, at northeast North Main Street and Zoo Parkway, for a million square feet of space, either as one building or two. Carey said the industrial market is active, but companies are discerning. “They’re being very careful about the decisions they are making.” The industrial market is busy primarily because of one sector. “I think it’s pretty straightforward. It’s all about e-commerce,” Carey said. Along with internet retailer Amazon.com, a lot of large companies are expanding their e-commerce distribution, he said. “We participate in a number

VanTrust Real Estate LLC is talking with prospects for its 552,000-square-foot industrial building at Imeson Park.

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of calls with market experts to talk about various sectors and clearly the e-commerce distribution side of industrial appears to be the one sector that is poised to continue to grow,” he said. The office sector may not be as clearly defined. Carey said that with social distancing and employees working from home, “nobody knows where the office sector is going to end up.” Among other VanTrust activities: • VanTrust is looking at additional land in the Town Center area for office construction. “We still think there are build-to-suit opportunities. Jacksonville as a place for financial institutions to move from a cost-effective standpoint will continue. Jacksonville will continue to benefit from that.” • VanTrust has 350 acres under contract in Savannah that would accommodate almost 5 million square feet of distribution space to serve the Port of Savannah. Carey hopes to close on the land by yearend. • In Tampa, the Hillsborough County Aviation Authority awarded VanTrust a project to develop the nine-story, 270,000-square-foot Class A SkyCenter One at Tampa International Airport office building. Carey said it should be completed in May 2021. • VanTrust has about 10 acres under contract in Lake

“

Carey said. “It’s full speed ahead.” He expects completion in January. Brasfield & Gorrie LLC is the general contractor. The Park Place at Nocatee office park is designed as 675,000 square feet of Class A space and build-to-suit projects on 60 acres. The bulk of Nocatee is in St. Johns County, just south of Duval County. Carey sees office development there as a logical step with office space almost builtout in Flagler Center at the south end of Duval County. In the 156-acre Imeson Park in North Jacksonville, VanTrust completed a 552,000-square-foot industrial building that could be doubled in size if needed. “We have had some interesting discussions but nothing is signed or finalized,” Carey said, declining to disclose prospect

Whataburger appears to be opening at the Atlantic North shopping center, the second restaurant in a week to disclose plans for a location there. JEA is reviewing a service availability request for a 3,745-square-foot Whataburger at the northwest Kernan and Atlantic boulevard shopping center owned by Sleiman Enterprises. Halff Associates Inc. is the civil engineer. On April 14, it asked JEA about the availability of electric, water and sewer services. The request doesn’t specify the site, but Whataburger builds stand-alone stores with drive-thru stores on outparcels. Whataburger has seven locations in Jacksonville, Neptune Beach, Orange Park and Yulee. The request comes as Another Broken Egg is making plans to open at the East Arlington shopping center. The city is reviewing a permit application for build-out for Another Broken Egg Cafe at 11949 Atlantic Blvd., No. 105, in Atlantic North. L&P Architecture of Akron, Ohio, is the architect for the 3,300-square foot project. Plans show a $500,000 job cost for tenant improvements for the restaurant in a building where Fancy Sushi and Verizon Wireless lease space. The city also is reviewing a permit application for landlord Sleiman Enterprises to prepare the space for build-out.

“

VanTrust Real Estate LLC expects to complete its first Park Place One office building in Nocatee in January as it works with prospects for a 552,000-square-foot industrial center in Imeson Park in North Jacksonville. The Kansas City, Missouri-based real estate Carey develop company’s Jacksonville office is working on several more projects during the pandemic. “We are taking a long view,” said John Carey, VanTrust executive vice president. “We are going to keep things going and hope that things return to normal sooner rather than later.” VanTrust started the fourstory, 125,000-square-foot Nocatee office building in March and has no plans to delay construction. ‘“We have some prospects,”

Whataburger, another Broken Egg to Atlantic North

THE MATHIS REPORT

Mary near Orlando for a fourstory, 120,000-square-foot office building off Interstate 4. VanTrust opened a Jacksonville office in January 2016, which Carey and his group leads. He remains a partner with Jacksonville-based Whitehall Realty Partners. VanTrust built and sold the Town Center One and Two buildings along Gate Parkway for $107.1 million. The sale closed in January. In July, It sold the 300,000-square-foot Cra-ZArt building in Imeson Park for $20.1 million.


4

JACKSONVILLE DAILY RECORD / J ACKSONVILLE RECORD & OBSERVER

THURSDAY, APRIL 23, 2020

JaxDailyRecord.com

bs at risk analysis factors the risk of occupations that are performed Jobs in closetocontact close proximity other employees and to the public |

Occupations that are performed in close proximity to other employees and the public based on analysis of a risk profile of more than 800 occupations. This chart is from an April 20 presentation to the Re-Open Florida Task Force by the Florida Chamber of Commerce.

d on the analysis of risk profile of more than 800 occupations

913 736 279 237 217 211 147

Education Education Finance Finance Religious & labor Religious & Labor unions unions Repair & maintenance Repair & maintenance

Information Management Utilities Mining Agriculture

Information Management Utilities Mining Agriculture

Hotels

118 117

Real Estate Real Estate Wholesale trade Wholesale trade Manufacturing Manufacturing Personal & laundry Personal & laundry services ProfessionalProfessional services

CONTINUED FROM PAGE 1

93 89 88 76 59 47 40 38 28 17 9 1 0

Convention business looks to 2022 How Visit Jacksonville markets city likely will change, CEO Michael Corrigan says. BY MAX MARBUT ASSOCIATE EDITOR

It’s nearly impossible for there to be a worse time to be in the group meeting and destination marketing business, statistics show. According to data through April 5 from Visit Jacksonville, the COVID-19 pandemic forced all the conventions that intended to come to Jacksonville in March to cancel their plans. That reduced hotel occupancy by 65% and combined hotel revenue by 79%, compared to March 2019. Countywide hotel occupancy in March was about 55%, more than 30% less than in March 2019. That won’t change until social-distancing and quarantine restrictions are

lifted, whenever that will be. “We don’t know what the future looks like. We’re working with the groups to reschedule their meetings,” said Michael Corrigan, Visit Jacksonville president and CEO. The group is the convention and visitors bureau for Jacksonville and the Beaches. Overall, group business accounted for only 10% of the hotel room bookings, a 58% decline compared with March 2019. Planning a convention isn’t done on the spur of the moment, so the business that had to cancel was put under contract at least a year – or more – ago, Corrigan said. Visit Jacksonville’s sales staff is working Corrigan remotely, but the destination marketing effort hasn’t slowed because of the pandemic. “We are selling group business in 2022 right now,” he said. When the restrictions are lifted and the market recovers, how hotels do business and how Visit Jacksonville sells the destination likely will change, Corrigan said. He expects hotels to initiate aggressive environmental sanitation processes and provide larger spaces to accommodate fewer people than before to continue to practice social distancing. Visit Jacksonville might shift its focus from national marketing to a more regional approach that would match Jacksonville’s limited nonstop airline service. “The country wants to come to Florida. We’re figuring out how to rebuild the Jacksonville market as quickly as possible. There could be opportunities for nontraditional Florida destinations that could make Northeast Florida more attractive,” Corrigan said. MMARBUT@JAXDAILYRECORD.COM (904) 356-2466

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He said he’s concerned about the effects social distancing and the other COVID-19 restrictions will continue to have on the hospitality business, particularly the possible cancellation of Jacksonville’s annual sports events that fill TIAA Bank Field and area hotels. With large-scale spectator events likely curtailed for the foreseeable future, the local hotel downturn could last for months. Patidar cites as examples the FloridaGeorgia college football game Oct. 31 and the TaxSlayer Gator Bowl, played in late December or early January. The loss of business from COVID-19 likely will persist longer than the effect on the hospitality industry caused by the Great Recession 12 years ago, Patidar said. At the time, the city, through the Duval County Tourist Development Council, mounted an advertising campaign to promote leisure tourism by visitors who lived within a five-hour drive of Jacksonville to compensate for the loss of convention and group business. Patidar doesn’t see that as an option with COVID-19, considering the stayat-home and work-from-home restrictions. “The corporate market won’t come back soon,” he said. “The confidence will not come back for the traveling public for at least six months.” Patidar doesn’t expect business to pick up until year-end. “We won’t see business until November or December, which are the slowest months in Jacksonville,” he said. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

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County’s history, the report says. The bottom line: Room revenue was down $22.4 million compared to March 2019. “We anticipate April’s loss to be higher as it will likely be a full month of COVID-19 mandates with numerous cancellations and postponed events,” the report concludes. The loss is across the board from the large convention hotels Downtown to tourism-dependent properties at the Beaches and smaller, limited-service hotels in the suburbs. The Omni Jacksonville Hotel is closed. The local phone number wasn’t answered. The operator at Omni’s national toll-free number said no one was available to comment. According to Omni’s website, the Downtown hotel and the Omni Amelia Island Resort are two of more than 40 Omni properties closed because of the coronavirus pandemic. Owners and managers of the DoubleTree by Hilton Hotel Jacksonville Riverfront, Hyatt Regency Jacksonville Riverfront and Lexington Hotel & Conference Center, Downtown properties that were open this week, did not respond to calls and emails requesting comment. Kirit Patidar leads a group that owns Hampton Inn & Suites at 13733 Beach Blvd. and manages Best Western Plus Cecil Field Inn & Suites at 525 Chaffee Point Blvd. Patidar said that in early March, he and other area hoteliers were booking guest rooms for people attending The Players Championship golf tournament in Ponte Vedra. It was canceled March 13 after the first of four rounds over concerns about the spread of COVID-19 among the thousands of people in the crowded galleries lining the fairways at the TPC Sawgrass Players Stadium Course. That’s when everything changed. “Now there’s no business. There’s no money coming in,” Patidar said. Despite revenue at his hotels being down by about 90%, he has kept most of his employees on their regular work schedules, except for the housekeeping staff. “They come in and clean one or two rooms, then they go home,” Patidar said.

“The corporate market won’t come back soon. The confidence will not come back for the traveling public for at least six months.”

Apply by sending resumes to Deanna.VanHoose@adeccona.com.

334083-1

Accommodation & food Accommodation & food (tourism) (tourism) Retail Retail Construction Construction Administrative Administrative & sports Recreation &Recreation sports Healthcare Healthcare Government Government Transportation Transportation

Total in Florida, Total vulnerable vulnerablejobs Florida jobs, inthousands thousands


JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER

JaxDailyRecord.com

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THURSDAY, APRIL 23, 2020

BY SCOTT SAILER • STAFF WRITER

Here are the top 10 commercial real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded April 13-19.

File image

Tampa-based American Landmark Apartments bought Sentosa Beachwalk apartments in the Beachwalk community in St. Johns County for $79.5 million. It renamed the community The Elysian.

ST. JOHNS

ST. JOHNS

CLAY

BAKER

CLAY

$79,500,000

$16,390,300

$10,300,000

$8,600,000

$4,098,250

65 Sentosa Drive, Saint Johns

Interstate 95, Hastings

222 Blairmore Blvd. E., Orange Park

Black Bottom Drive, Macclenny

Type: Sentosa Beachwalk apartments Parcel size: 21 acres Number of units: 348 Buyer: Elysian AL LP Seller: Sentosa Beachwalk Apartments LLC.

Type: Timberland Parcel size: 4,446.11 acres Buyer: Saint Augustine I-95 West LLC Seller: Rayonier Forest Resources L.P.

Type: The Park at Blanding apartments Parcel size: 13.29 acres Buyer: Park at Blanding LLC Seller: Roco-Park at Blanding LLC Previous sale: $6,660,000 in 2016

Type: Timberland Parcel size: 5,293 acres Buyer: Blackbottom Holdings LLC Seller: Heartwood Forestland Fund VII LP

4630 S. County Road 209 and 1200 Clear Hall Lane, Green Cove Springs

DUVAL

DUVAL

DUVAL

DUVAL

DUVAL

$3,001,394

$2,025,000

$1,746,000

$1,415,480

$1,365,000

7431 Atlantic Blvd., Jacksonville

4316 Southside Blvd., Jacksonville

6420 and 6430 San Jose Blvd., Jacksonville

8145 E. San Jose Manor Drive, Jacksonville

1128-1140 N. Laura St., Jacksonville

Type: CVS Parcel size: 1.33 acres Building size: 13,652 square feet Buyer: Kacish RE LLC Seller: SCP 2002E-7 LLC

Type: Arby’s Parcel size: 0.76 acres Building size: 3,604 square feet Buyer: SIDLYD SSA Investors LLC Seller: LG Southside Jax LLC Previous sale: $1,700,000 in 2018

Type: Vacant residential Parcel size: 2.42 acres Buyer: Vitocore Partners LLLP Seller: Anthony T. and Bonnie C. Sleiman Previous sale: $1,335,000 in 2001

Type: Villa Pines at Baymeadows apartments Parcel size: 2.32 acres Buyer: VPB3 LLC Seller: MJH Baymeadows LLC Previous sale: $1,450,000 in 2017

Type: Office Parcel size: 0.55 acres Building size: 7,707 square feet Buyer: TC Jacksonville LLC Seller: 1128 Laura LLC Previous sale: $280,000 in 2017

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Type: Light manufacturing Parcel size: 12.75 acres Building size: Three buildings totaling 122,132 square feet Buyer: HRH Realty II LLC Seller: JPHCC Unit 1 LLC

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Top commercial sales of the week

5

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JACKSONVILLE DAILY RECORD / J ACKSONVILLE RECORD & OBSERVER

|

THURSDAY, APRIL 23, 2020

JaxDailyRecord.com

Mixed results Total vision product sales dropped 5.5% at Johnson & Johnson.

7.7%

U.S. sales of Acuvue contact lenses made in Jacksonville

MARK BASCH CONTRIBUTING WRITER

But company says a coronavirus vaccine could be ready in early 2021. Demand for contact lenses should not diminish much in a pandemic. While some lens wearers may opt for their eyeglasses since they’re not leaving the house anyway, many people will continue to order new supplies of contacts. Johnson & Johnson grew sales of its Acuvue contact lenses made in Jacksonville during the first quarter. However, the expansion of the global medical products giant into other eye health products caused overall sales to drop at Jacksonville-based Johnson & Johnson Vision Care Inc. Johnson & Johnson last week said contact lens sales in the U.S. rose 7.7% in the first quarter, but global sales of eye surgical products plunged by 16.9%. As a result, total vision products sales fell 5.5% to $1.067 billion in the quarter. The company said the COVID-19 pandemic is sharply reducing demand for eye surgical products, such as its cataract-related products. Johnson & Johnson reported adjusted earnings of $2.30 for the quarter, up from $2.10 in the first quarter of 2019 and well above the consensus estimate of $2.03 of analysts surveyed by Zacks Investment Research. However, the company expects the pandemic to lower earnings for the rest of the year. After previously forecasting earnings of $8.95 to $9.10 a share, it now projects $7.50 to $7.90. Meanwhile, Johnson & Johnson reported optimistic news on its efforts to develop a COVID-19 vaccine, which it said could be

16.9% Global sales of eye surgical products

ready early in 2021. Johnson & Johnson’s stock rose $6.26 to $146.03 on April 14 after its earnings report.

Stein Mart is considering plans to lift stock price

After Stein Mart Inc. was forced last week to terminate its buyout agreement with a private equity firm, its stock not surprisingly dropped to a new low April 17. The Jacksonville-based fashion retailer said April 20 it is evaluating options to lift its stock price to meet Nasdaq minimum price requirements. The options could include a reverse stock split, which would reduce the number of shares outstanding and increase the price of the remaining shares. Stein Mart’s stock has traded below $1 for most of the past year. An affiliate of Kingswood Capital Management L.P. agreed in January to acquire the company for 90 cents a share. After the market collapsed in February, sending Stein Mart’s stock even lower, the two sides agreed last week to terminate the buyout agreement. Stein Mart’s stock fell as much as 12 cents to 23 cents April 17 after the announcement. The company had been under a July 6 deadline to raise its price above $1 to meet Nasdaq listing requirements, but Nasdaq last week announced it is providing temporary relief from the price requirements for all companies because of turmoil in the stock market.

Stein Mart said it now has until Sept. 18 to regain compliance with Nasdaq rules.

Coach keeping its distribution centers open

Like Stein Mart and other retailers, handbag and accessories company Coach has had to close its stores during the pandemic. Parent company Tapestry Inc., which also owns the Kate Spade and Stuart Weitzman brands, said April 20 it is taking several cost-cutting measures, including laying off 2,100 part-time workers at its North American stores. It will furlough more employees May 30 if stores haven’t reopened by then. However, Tapestry is committed to keeping its distribution centers open, including its facility at Jacksonville International Tradeport that handles all Coach distribution in North America. The company has not reduced its workforce of 340 at the Jacksonville facility, Tapestry spokeswoman Andrea Shaw Resnick said by email. The distribution center has implemented safety precautions including social distancing and enhanced cleaning procedures, she said.

Duos Technologies Group gets first analyst coverage

Duos Technologies Group Inc. raised its profile in February by getting its stock listed on the Nasdaq Capital Market.

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The upheaval in the markets makes a sale unlikely soon, but one analyst said last week

ParkerVision Inc. last week reported a 2019 loss of $9.45 million, or 30 cents a share. Revenue was just $74,000 as the Jacksonville-based company shut down marketing of its one product, an in-home Wi-Fi system called Milo. ParkerVision’s sole focus now is pursuing several patent infringement claims against major telecommunications manufacturers, alleging they have been illegally using wireless technology developed by the company. The company’s annual report said it had 10 full-time and two part-time employees at the end of 2019.

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Fidelity National Information Services Inc.’s stock fell 13% in the first quarter, a relatively modest drop considering the overall poor performance of the market. UBS analyst Eric Wasserstrom sees potential for the company known as FIS to recoup those losses. He upgraded the stock from “neutral” to “buy” last week. “Our upgrade of FIS represents our view of the relative durability of its revenues given its orientation to processing and the mix of exposures within its merchant acquiring unit, and the upside potential to our $146 price target,” Wasserstrom said in his research note. The Jacksonville-based financial technology company was trading at $123.60 at the time of Wasserstrom’s report.

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that Kraft Heinz Corp. should consider a sale of its Maxwell House coffee business as it restructures the company. “Aside from exiting some small brands, we think the platforms most sensible to exit are coffee and Oscar Mayer,” Wells Fargo analyst John Baumgartner said in a research report. The company’s Downtown Jacksonville plant, which employs about 200 people, is Maxwell House’s lone remaining U.S. plant. The company has not publicly discussed it but speculation about a sale of the business has persisted for more than a year. “It is hard for us to envision where coffee slots into the go-forward model for KHC. It’s clearly not a ‘powerhouse’ business nor would it likely fall into the ‘protect’ bucket given share declines,” Baumgartner said. “While profit margins and free cash conversion may be above corporate averages, commodity volatility is significant and we sense that management would rather commit cash to businesses with better growth than have it tied up in coffee working capital,” he said. Baumgartner upgraded his rating on Kraft Heinz from “equal weight” to “overweight.” “Over the past five years, market sentiment around KHC has swung from euphoria to despair and now, we think investors can benefit from extreme negativity,” he said.

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Now the company has its first analyst coverage. Benchmark Co. analyst Michael Legg initiated coverage of Duos Technologies last week with a “speculative buy” rating. Jacksonville-based Duos provides intelligent security analytical technology, with a focus on railroad industry applications. “We believe the Company’s cutting-edge railcar inspection technology and associated Artificial Intelligence interface will revolutionize the railcar inspection process, effectively eliminating manual car inspections providing significant cost savings to class 1 railways,” Legg said in his report. “We believe Duos is uniquely positioned with its Railway Inspection Portal system to capture the lion’s share of outsourced inspections,” he said. Duos reported revenue of $13.64 million in 2019. The company has been projecting revenue of $20 million this year, but has said the pandemic could affect that. Legg projects revenue of $17.6 million this year, and forecasts it to grow to $36 million by 2022.

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THE BASCH REPORT

COVID-related sales drop at J&J Vision


JACKSONVILLE DAILY RECORD / JACKSONVILLE RECORD & OBSERVER

JaxDailyRecord.com

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Inn of Court taking applications

Special to the Daily Record

Working remotely is changing business model for Marks Gray

MAX MARBUT ASSOCIATE EDITOR

Law firm might invest more in technology and less in office space. Founded in 1899 in Jacksonville, it’s safe to say the Marks Gray law firm has been through the world’s good times and bad times. The COVID-19 pandemic is setting precedents. “This is all new territory. We’re learning from this experience,” said Kevin Russell, the firm’s chief operating officer. Technology has allowed the firm’s attorneys and staff to continue the work necessary to serve clients, but other aspects

of practicing law are having to be developed on the fly. “The day-to-day is going fine. Other aspects of lawyering are being tested,” said Frederick Kent III, partner. Now working remotely, the attorneys meet as a group each week on Zoom. Attorneys are appearing at hearings and taking depositions remotely and the support staff is depending more on electronic documents rather than paper. That’s causing a change in the firm’s business model. “We’ve expanded our tech base and invested in more bandwidth. We’re talking to all of our Russell departments to determine what’s working,” Russell said. Traditionally, lease cost has been about 6% and technology cost about 4%. Kent said with more people working remotely, possibly on a permanent basis, the cost ratios for office space and technol-

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ogy might change places. “Some of these trends were on the way, but this Kent event has accelerated all that. It’s a dose of medicine we needed to take,” Kent said. The transition to more digital and remote practice also could impact the most basic aspects of operating a law firm. “Law firms may reduce their office footprint. There could be other changes, like the cost for parking and even coffee and tea in the break room,” Russell said. Kent said travel decisions will be made by clients – and they may want to reduce that part of legal service cost. “We used to fly all over the country to take depositions. Now we’re doing it on Zoom. Clients may choose to exercise expense control,” he said. Even with all the changes brought on by the pandemic, Kent believes one aspect of law practice won’t change, no matter how many functions can be

performed remotely. “You’ll still need counsel. You will need your lawyer,” he said. Kent saw the firm through the Great Recession that began in late 2007, but this crisis is different, he said. “In 2008, everybody was just trying to survive and the focus was on repairing the business,” he said. “The way this pandemic has hit, it’s much more people-oriented. We want to keep people employed and look out for their health on a large scale.”

Clerk offering payment plans Florida’s court clerks and comptrollers want the public to know that payment plans are available for those who owe court-ordered financial obligations. With the economic downturn caused by measures to slow the spread of COVID-19, people may find themselves in difficult financial circumstances. Duval County Clerk of Courts Ronnie Fussell said people who

The Chester Bedell American Inn of Court is accepting applications for membership for the 2020-21 Inn year. The application deadline is May 11. Members may serve as pupils, students at accredited law schools; associates, lawyers with fewer than five years of experience; barristers, lawyers with more than five and up to 15 years of experience; or masters, more than 15 years of experience. The term for pupils and associates is one year. The term for barristers is three years. There is no term for masters. Applications are available at inns.innsofcourt.org under Membership on the home page. Questions may be directed to membership chair Courtney Grimm at Courtney.Grimm@ claycountygov.com or (904) 269-6303.

THE MARBUT REPORT

need to make payment arrangements may call (904) 255-2300 to speak with a clerk representative or visit duvalclerk.com/ status to download a payment plan form.

The Marks Gray team gathered for a group photo Nov. 14, the law firm’s 120th anniversary. With anticipated permanent social distancing policies, they may not again be this close to each other in the office.

7

THURSDAY, APRIL 23, 2020

Volunteers needed for appointments A position is open for one lawyer to serve a three-year term on the Florida Legal Services Inc. board of directors beginning July 1. The 15-member board provides judicial advocacy through co-counseling with local program attorneys and volunteer pro bono attorneys. Also, the Florida Lawyers Assistance Inc. board of directors is seeking two nonlawyers to serve three-year terms beginning July 1. The 15-member board assists the legal community in securing counseling and treatment for emotional and chemical dependency problems for lawyers. Applicants for either vacancy may download the Application for Special Appointment at floridabar.org or call Florida Bar headquarters at (850) 5615757 to obtain the application. Completed applications must be received no later than the close of business April 30. Resumes will not be accepted in lieu of the required application. The board of governors will review all applications and may request telephone or personal interviews. MMARBUT@ JAXDAILYRECORD.COM (904) 356-2466

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JACKSONVILLE DAILY RECORD / J ACKSONVILLE RECORD & OBSERVER

|

THURSDAY, APRIL 23, 2020

Top 10 home sales of week BY SCOTT SAILER • STAFF WRITER

Here are the top 10 single-family residential real estate sales in Northeast Florida, comprising Baker, Clay, Duval, Nassau and St. Johns counties. The sales were recorded April 13-19.

DUVAL

$2,765,000 4352 Ponte Vedra Blvd., Jacksonville Beach About the property: New two-story coastal home features four bedrooms, 4½ baths, master guest suite, pool, spa and three-car garage.

Type: Single-family Lot size: 0.4 acres House size: 4,590 square feet Buyer: LMMC Trust Seller: SH Design LLC

DUVAL

DUVAL

ST. JOHNS

$2,750,000

$2,500,000

$2,450,000

5396 Bentpine Cove Road, Jacksonville

1325 Beach Ave., Atlantic Beach

355 S. Roscoe Blvd., Ponte Vedra Beach

Type: Single-family Lot size: 1.03 acres House size: 7,630 square feet Buyer: The White Sandy Beach Trust Seller: Josep Genebriera De Lamo and Nicholas L. Ekland

Type: Single-family Lot size: 0.3 acres House size: 2,554 square feet Buyer: Fred H. Lambrou Jr. and Patricia D. Andrews Seller: Atlantic Beach Family Property LLC

Type: Single-family Lot size: 0.55 acres House size: 5,350 square feet Buyer: Cameron Smith Seller: Mark A. and Joan M. Refaosco and the Mark A. Refaosco Living Trust

JaxDailyRecord.com

ST. JOHNS

NASSAU

$2,225,000

$1,378,000

417 Triple Crown Lane, Saint Johns

1553 Fletcher Ave. N., Fernandina Beach

Type: Single-family with barn Lot size: 11.54 acres House size: 8,535 square feet Buyer: Merritt Family Revocable Living Trust Seller: April A. Vaccarello Previous sale: $1,400,000 in 2008

Type: Single-family Lot size: 0.18 acres House size: 3,216 square feet Buyer: Scott T. and J. Candee Cundy Seller: Leonard R. and Natalie Nall

DUVAL

NASSAU

$1,525,000

$1,200,000

1697 Atlantic Beach Drive, Atlantic Beach

5007 First Coast Highway, No. 102A, Fernandina Beach

Type: Single-family Lot size: 0.16 acres House size: 3,890 square feet Buyer: The Nathan P. Hale Revocable Living Trust Seller: Billy G. Coley and The Billy G. Coley Revocable Declaration of Trust Previous sale: $1,300,000 in 2017

Type: The Landings on Amelia River condominium Condominium size: 3,257 square feet Buyer: John and Carol E. Gasbarro Seller: Amelia River Range LLC Previous sale: $1,300,000 in 2011

ST. JOHNS

CLAY

$1,425,000

$1,160,000

24578 Harbour View Drive, Ponte Vedra Beach

1102 Wyndegate Drive, Orange Park

Type: Single-family Lot size: 0.30 acres House size: 5,052 square feet Buyer: The Chuck Weber Trust Seller: Ramin and Shamiran Eivaz Previous sale: $1,350,000 in 2010

Type: Single-family Lot size: 2.26 acres House size: 7,642 square feet Buyer: Ronald J. and Evelyn R. Greshake Seller: Andrew B. and Nancy D. Brown and The Nancy D. Brown Living Trust Previous sale: $335,000 in 1989

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