Jacksonville Fails to Sell Land at Auction
Jacksonville’s real estate market faced a setback on Wednesday as the last undeveloped quadrant near Gate Parkway failed to attract the necessary bids in an online auction. The auction, which closed just after 2:20 p.m., featured two parcels of land totaling 91 acres, but the highest bid of $269,000 fell short of the undisclosed reserve price.
Who is Involved?
The parcels are owned by Darshan Patil, a real estate broker based in North Miami Beach. The properties were introduced to the auction by the Bowman Post Group, a division of NewGen Advisory, known for their focus on commercial sales.
What Happened?
Initially scheduled to close at 1:15 p.m., the auction saw an increase in bids just seconds before the cut-off time, prompting the auction clock to extend by three minutes with each new bid. The bidding began early on Wednesday morning with an initial offer of $135,000 and escalated to the final amount of $269,000. However, none of the bids attained the reserved minimum required for sale.
Where is the Property Located?
The two parcels, located off State Road 202 and the Gate Parkway area, are positioned near the Secret Cove Community and boast over 1,100 feet of frontage on SR 202. Despite their prime location, the area has been scrutinized due to developmental restrictions.
When Will the Land be Available Again?
Both parcels remain on the market despite the failed auction. According to David Bowman, Executive Vice President of NewGen Advisory, “The seller is not required to sell the property unless the bid is equal to or above the reserve price.” The properties will not be auctioned again but are actively available for purchase.
Why Didn’t the Sale Go Through?
A significant reason for the auction’s failure can be attributed to the conservation easements placed on both parcels. These easements restrict the land from being developed, posing a hurdle for potential buyers. While conservation easements can be challenged and potentially overturned, this process is often lengthy and complex.
What’s Next for the Land?
The parcels were purchased by Patil in two separate transactions; one in 2021 for $52,100 and another in 2022 for $32,600. The 47-acre parcel is zoned for industrial business park use, while the 44-acre parcel is designated as a planned unit development. The investment sales teams, including brokers from NewGen Advisory and Cornerstone Commercial Associates, are prepared to continue seeking buyers.
As the market watches closely, the outcome of these properties will be of great interest. Land use regulations, coupled with the conservation easement restrictions, will play a crucial role in shaping future interests in this highly coveted region of Jacksonville.
