Feature Photo (above): JPS Health Network hopes to partner with a private developer to bring a multifamily-retail complex to the east (left) of the Mag & May luxury residential project at Magnolia Ave. and St. Louis Ave. Image: Google Streets.
by Adolfo Pesquera
Fort Worth (Tarrant County) — CBRE was anticipating selecting a developer in December, on behalf of JPS Health Network, for a commercial mixed-use project on the Near Southside, but no announcement was forthcoming by year’s end.
Back in August, a Request for Qualifications and RFP were issued by CBRE, acting as agent for JPS (Tarrant County Hospital District). JPS is looking for a deal that will maximize revenue by developing two lots that combined total 5.6 acres. This project is in addition to an $800 million bond-financed list of projects reported in VBX on Nov. 9.
The boundaries of the proposed mixed-use project site are West Magnolia Avenue to the north, Bryan Avenue (east), East Morphy Street (south), and St. Louis Avenue (west). The lots are within the northwest corner of the hospital system campus and include a 4-acre surface parking lot west of South Main Street and a 1.6-acre block that has one building on it–the JPS Eligibility and Enrollment offices.
JPS Health Network hired CBRE to broker a deal with a private developer for a mixed-use project on the northwest corner (red area) of its Near Southside campus. Google map with VBX graphic detail.
JPS plans to profit from the deal by earning fair market value on a fully capitalized ground lease or a partially capitalized ground lease with rent payments. JPS is also considering accepting alternative value scenarios, such as reserving space within the new development for JPS use, participating in gross revenues, or proceeds from sales or refinancing.
The project scheduled required responses by mid-October, a final selection by December and the execution of a contract by January. David Walters, the senior vice president at CBRE’s Fort Worth office, told VBX on Wednesday that he could not disclose any information at this time. Any binding contract must also be approved by Tarrant County Commissioner’s Court and no such document has yet been posted for consideration.
The 1,400-acre Near Southside district is best known for its medical districts, but in recent years it has benefited from a community-wide campaign for smart growth. Dozens of historic building restorations, as well as new construction, have taken place.
The JPS project site borders South Main Village and Magnolia Village. A five-story Hudgins Companies luxury residential development, Mag & May, has been under construction across St. Louis Avenue from the JPS project site. JPS hopes to leverage the surrounding new development by providing a complementary development of its own.
Architectural rendering of the Mag & May luxury mid-rise. Courtesy: Hudgins Companies.
At a minimum, JPS wants the private developer to construct a multi-family, multistory complex with ground floor retail and/or medical office space for lease.
“Preference will be given to projects offering the most economic value to JPS and those leveraging its components and amenities for the betterment of JPS staff and faculty (i.e. fitness center, community room, public spaces),” the August RFP stated.
The 500 parking spaces on the 4-acre surface lot will have to be replaced, meaning any project will require a parking structure with sufficient space to the hospital’s needs as well as its own.
While JPS assumes no financial risk, there is the possibility of government assistance. The site is within the city’s TIF 4, which is administration by Fort Worth South Inc. (aka Near Southside Inc.). Several multifamily developments–HighPoint on South Main, South 400, and Oleander Apartments–are among the many projects that Near Southside Inc. participated.
Mid-summer 2018 view of the Mag & May construction site, located immediately west of the surface parking lot that JPS wants to convert to a similar high-end multifamily/retail use. Image: Google Streets.