The Downtown Investment Authority is proposing a swap of two city-owned riverfront properties for a privately owned office building that the city would provide for the University of Florida graduate center campus.
As contained in newly filed DIA legislation, the city would exchange the riverfront properties to acquire the former Interline Brands Inc. building at 801 W. Bay St., which is owned by the developers of the Gateway Jax project.
The resolutions are scheduled for review by the DIA Retail Enhancement and Property Disposition Committee at its Feb. 13 meeting.
One of the city-owned properties in the proposed exchange is in the northeast corner of the site of the demolished Jacksonville Landing. The footprint of the former mall is now called Riverfront Plaza, part of which is under development as a city park.
The other property is an adjacent parking lot partially covered by the Main Street Bridge and its off-ramps.
In a Feb. 6 news release, the city said Gateway Jax planned to build a mixed-use development on the Riverfront Plaza development pad that would include 11 floors of residences, five floors of hotel rooms, two floors of podium parking and lobbies, a floor of public food and beverage space, and a public sky garden terrace.
Gateway Jax is a partnership between principal developer Bryan Moll, JWB Real Estate Capital and DLP Capital. The team has amassed more than two dozen properties in Downtown and Springfield, where it plans mixed-use developments with a total investment exceeding $2 billion if fully realized.
"This land swap with the City of Jacksonville will provide the University of Florida with a turnkey space that will be available for classes as early as this fall," Moll said in an emailed statement. "Furthermore, as a result of the land swap, we are thrilled to have the opportunity to transform the Jacksonville waterfront with a new luxury hotel and residential project at Riverfront Plaza. We look forward to sharing our vision and working with all stakeholders to make this vision a reality.”
The partners broke ground on their first construction project, a seven-story building called Pearl Square, in October 2024.
Details of the land swap
In presentations Feb. 3 and Feb. 4, Boyer told City Council members that the city was working on a property swap for the Interline building.
Under DIA Resolution 2025-02-04, the city would offer the Riverfront Plaza site along with an option for the parking lot property. A related agenda item, Resolution 2025-02-08, would allow Gateway access to the property to perform due diligence for environmental issues, geotechnical exploration, surveying and other site work.
If approved by the DIA board and City Council, both properties would be offered to the public for disposition, in accordance with DIA bylaws for city-owned properties within Downtown’s eight districts.
“If no alternate responsive and qualified proposals are received, or if they are determined by the CEO to be lower in value or unresponsive, the DIA authorizes its CEO to finalize negotiation of a Redevelopment Agreement with Gateway” on the properties, the resolution states.
The resolution notes that the parking lot property contains a number of building restrictions, such as a 30-foot sewer line that may not be moved, a 50-foot easement along the Main Street Bridge and an intruding off-ramp with an estimated cost of at least $3.25 million to remove.
The resolution states that the city “anticipates the fair value of the 801 W Bay Street property improved with a vacant 38,378 square foot building will exceed the fair value of the unimproved Riverfront Plaza Development Pad and East Landing Lot with various development limitations.”
Gateway paid $4 million for the two-story, 38,136-square-foot Interline building through 801 Bay St LLC on Oct. 31.
The 1-acre Riverfront Plaza property was the site of New York-based developer American Lions LLC proposed 44-story residential tower, for which the DIA approved a $36.93 million incentives package in 2022.
Rising interest rates and construction costs sank that project, leaving the land subject to be placed back up for disposition.
In 2024, Jacksonville-based Cross Regions Group proposed building a 720-foot condo tower with a restaurant and retail space on the 1.6-acre parking lot property.
DIA board members raised questions about the feasibility of the plans due to the building restrictions on the site and a redevelopment agreement with Cross Regions was never reached.
UF plans
Plans call for the Interline building to be one of five city-owned properties that the city would provide for the UF campus.
Others are an undeveloped lot immediately north of the Jacksonville Terminal train station, an adjacent paved parking lot to the east across Park Street, the train station building and an adjacent property that includes the newer portions of the Prime F. Osborn III Convention Center and stretches west to Interstate 95.
Kurt Dudas, vice president for strategic initiatives for UF, said the university hoped to begin offering classes in the Interline building in August 2025. It would become the home of an architecture master’s program that currently operates out of the Groover-Stewart Building, 25 N. Market St.
Dudas said plans also called for the Florida Semiconductor Institute to be located in the Interline building in the near term before being moved elsewhere on the campus.
Dudas said UF also planned to begin classes for a business program in January 2026, with further programs starting in fall 2026.
The first new construction for the campus is planned on the lot north of the train station building.
UF says enrollment could reach 20,000 or more if plans come to full completion. Construction could take up to 20 years.
The DIA REPD committee meets at 10 a.m. in the Lynwood Roberts Room at City Hall, 117 W. Duval St.
This story has been updated with a statement from Bryan Moll.