The Downtown Jacksonville block that comprises the vacant historic Ambassador Hotel and Central National Bank building has a new owner – Gateway Jax – with plans to bring it back to life.
The 1.48-acre property comprises the block of Duval, Julia, Church and Pearl streets.
Gateway bought the block Feb. 14 through 420 Julia St LLC for $17 million. Gateway Jax CEO Bryan Moll confirmed the deal.
420 Julia St LLC took out a $16.68 million mortgage with DLP Capital. St. Augustine-based DLP is one of the owners of Gateway Jax.
Gateway Jax is developing a mixed-use development called Pearl Square adjacent to the south of the hotel block.
The hotel at 420 N. Julia St was the site of a previous failed redevelopment project and a lawsuit involving multiple parties. Those owners are now gone.
The deed recorded for $17 million was with AXIS 404 Julia LLC. It was signed by George Bochis and Bryan Greiner, the leader of Augustine Development Group, who had led the failed effort to redevelop the property.
Gateway also acquired properties from Axis Annex LLC and Axis Hotels LLC. Those deeds for those properties were recorded at $10 and signed by Bochis and Greiner.
Augustine Development Group planned to transform the Ambassador into a 127-room La Quinta Inn and Suites.
Moll said Gateway Jax also plans to renovate the Ambassador into a hotel of a yet-to-be determined brand and build a parking garage.
He said Gateway plans an adaptive reuse of the Central National Bank building, with residential and some commercial.
He said long-range plans for the property include residential at the southwest corner of the property, which is now vacant.
Today, the Central National Bank building still stands and the Ambassador is a hollow shell, with most windows missing and doorways boarded up.
Gateway Jax project now has a portfolio of Downtown properties that span more than 30 acres and, if fully built-out, would involve more than $2 billion in investment.
The property previously gained city incentives. In January 2019, the Jacksonville City Council approved an economic development agreement with St. Augustine-based Axis Hotels LLC to support the project. Council approved a $4.9 million Recapture Enhanced Value Grant for the Central National Bank and a $1.5 million historic preservation grant for the Ambassador Hotel.
Total construction costs were estimated at $38 million, and the original estimated time of completion was listed at 14 months. The city approved permits for the project in March 2019.
Augustine Development Group bought the block in 2018 for $5.4 million.
Associate editor Ric Anderson contributed to this report.