Spotlight On: Alex Sifakis, President, JWB Real Estate Capital
September 2024 — In an interview with Invest:, Alex Sifakis, president of JWB Real Estate Capital, discussed the company’s milestones over the past year, including raising $220 million, acquiring 20 city blocks in downtown Jacksonville, and securing $100 million in city incentives for a major mixed-use development.
What have been the key milestones or achievements for JWB over the last year?
Over the last 12 to 18 months, our company has made notable progress. In our core single family business, we hit 6,000 properties under management, making us one of, if not the, largest single-market property management companies in the country. In our downtown development sector, which garners the most attention, we raised $220 million and acquired about 20 city blocks in downtown Jacksonville. We secured all necessary city approvals and received $100 million in incentives from the city for the first phase of development. In September, we will break ground on three high-rises in downtown Jacksonville, marking the beginning of a four-phase, 10-year project that will total about $2 billion in development. This project is focused on mixed-use residential, with ground-floor retail spaces including bars, restaurants, nail salons, grocery stores, and gyms, creating a vibrant street-level experience and high-end residential units above.
How have recent trends in the real estate market and population growth affected the demand for single-family rental properties in Jacksonville?
Our core business at JWB involves building 400 to 500 homes per year, most of which we rent out and then sell to investors as rental properties. Over the past two years, the market has slowed due to high interest rates, but we still see strong interest from investors in Jacksonville’s single-family properties, driven by the strength of the market and the single-family sector.
Currently, single-family occupancy rates and rents are stronger than those for multifamily properties. There’s been a lot of new multifamily supply, which has slowed rent growth compared to two years ago. However, with the significant population growth of about 100 people moving to Jacksonville each day, occupancy rates have remained high, particularly for single-family homes. Our core business focuses on single-family development and property management. We manage close to 6,000 properties in Jacksonville, including about 5,200 single-family homes and around 800 multifamily units.
How has your market strategy evolved recently, and what steps are you taking to prioritize affordable homeownership?
We maintain flexibility in our market approach, which has helped us navigate various economic cycles over our 18 years in business. Recently, we’ve shifted our strategy to sell more homes to homeowners rather than investors. Two years ago, the majority of our homes were sold to investors, but now it’s about a 50-50 split, with around 200 homes sold to investors and another 200 to owner-occupants annually.
Affordable housing has always been a priority for us, and we’re now focusing on affordable homeownership. We’re collaborating with the city, nonprofits, and communities to build homes that people can afford. For example, last year, out of 405 homes sold for less than $300,000 in Duval County, JWB built 169 of them. This focus makes sense in the current market, as high interest rates make financing investment properties less appealing.
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What role does Jacksonville’s economic landscape play in JWB’s success and investment strategies?
Jacksonville’s robust economy has provided us with significant advantages. The city has experienced strong tailwinds, with businesses relocating here and rapid population growth. Jacksonville was recently named the No. 2 job market in the country by the Wall Street Journal, and we’ve consistently moved up in the rankings over the past few years.
The high quality of life and affordability in Jacksonville attracts many people, especially those who can work remotely. As the most affordable large city in Florida, Jacksonville appeals to those seeking a great quality of life at a lower cost. This influx of people and businesses creates a virtuous cycle of economic growth, attracting more talent and further boosting the job market.
Ten years ago, Jacksonville was considered the best-kept secret in Florida, but it’s no longer a secret. This growth provides tremendous economic opportunities for everyone, creating a rising tide that lifts all boats.
Community engagement and sustainability are very important for many investors and residents. How do you incorporate these values?
Community engagement is huge for us at JWB. All the owners live, work, and play in Jacksonville, so we have a vested interest in improving the community. We give the entire company a half-day off every other month for volunteering, serving as team-building activities and a way to give back.
We have our own nonprofit, JWB Cares, through which we organize fundraisers like our annual golf tournament, raising about $200,000. With these funds, we build and give away a house to a deserving individual. This year, we used the funds raised from the golf tournament to gift a house to one of our 6,000 residents, which was incredibly rewarding.
Additionally, we work closely with the city on affordable housing and homelessness initiatives. This community focus is critical to our mission, and we’ve been recognized for it. We’ve been named a Company with Heart by Jacksonville Magazine and consistently listed as a Best Place to Work for the past 15 years due to our strong culture and commitment to community engagement.
What are your top priorities and goals for your organization over the next two to three years?
Our primary goal is to continue growing in Jacksonville and providing affordable housing, which is crucial for maintaining a high quality of life. With demand increasing, we need to build enough homes to keep Jacksonville affordable for residents and newcomers. Working with the city and local nonprofits to maintain affordable housing is our top priority.
Our second goal is to complete our downtown projects, which will be transformational for Jacksonville. Significant projects include park developments, the Jaguars’ Four Seasons Hotel with a marina, restaurants, an office building, our Gateway Jax project, and a high-rise on the South Bank. We aim to complete the first phase of our Gateway Jax project in the next two to three years.
Additionally, we are keen on leveraging technology and innovation in construction and real estate. We are exploring modular building technology, 3D printing, and smart home technologies to make homes more efficient. Our shipping container apartment complex in Jacksonville was our initial foray into modular construction, and we are investing in pioneering companies.
In Jacksonville, construction costs are relatively low compared to the rest of Florida, making it challenging to justify investing in advanced building technologies. However, we anticipate this will change and want to be ready and at the forefront of these innovations.
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