The Capital Stack for Community-Owned Infrastructure
How blended capital (philanthropic, impact, market-rate) funds district-scale regeneration; why investor alignment matters more than check size; invite accredited investors to request deal flow.
Funding the Future of Cities
As the world becomes increasingly urbanized, the need for sustainable, equitable development has never been greater. One community-focused developer, Future of Cities, is pioneering a new model that harnesses blended capital to finance district-scale regeneration.
Led by Tony Cho, a founding board member of the Wynwood Business Improvement District in Miami, Future of Cities brings 60+ years of combined executive experience in Florida district-scale development. Their latest project, PHX JAX, is an 8.3-acre art + innovation district in the urban core of Jacksonville, Florida.
"PHX JAX sits on the Emerald Trail, adjacent to over $8 billion in announced projects like the Four Seasons, Stadium of the Future, and the University of Florida's downtown campus," says Cho. "Jacksonville is one of the fastest-growing metro areas in the US, with a severe housing shortage that's driving strong real estate fundamentals."
Blending Capital for Community Impact
To fund the PHX JAX district, Future of Cities has assembled a diversified capital stack, blending philanthropic, impact, and market-rate investment. This approach allows the team to align incentives across stakeholders and unlock a spectrum of return profiles.
"We're seeing increasing interest from impact investors and family offices who want to deploy capital for positive community outcomes, not just financial returns," explains Cho. "By pairing this 'patient' capital with more traditional real estate equity, we can fund catalytic placemaking initiatives alongside the vertical development."
For example, the PHX JAX offering includes an "art + innovation" program, seeding the district with creatives, entrepreneurs, and community-serving tenants. Philanthropic grants and impact investments help subsidize these below-market leases, creating a vibrant, inclusive environment that in turn drives value for the overall real estate.
Aligning Incentives, Not Just Checkbooks
While the PHX JAX offering is open to accredited investors, Cho emphasizes that check size matters less than overall alignment.
"We're not just looking for the biggest checks — we want investors who share our vision for equitable, sustainable development," he says. "That means being thoughtful about the capital stack, ensuring everyone's incentives are properly aligned."
For the PHX JAX Qualified Opportunity Fund, the target investors include family offices and real estate private equity firms with conviction in the Southeast/Florida market, as well as impact and placemaking capital drawn to the art + innovation program.
"Ultimately, we're building not just physical infrastructure, but social infrastructure that empowers the local community," says Cho. "That kind of transformative change requires a diverse coalition of capital and stakeholders, all rowing in the same direction."
Interested accredited investors can request the PHX JAX deal flow at https://invest.phxjax.com/.