I'm Bruce Berkowitz, Chairman of the Board of The St. Joe Company. It's my pleasure to welcome all of you to our 2024 Annual Shareholders Meeting. In accordance with the notice of meeting, I officially call the meeting to order at 9:00 A.M. Central Time, 10:00 A.M. Eastern Time. Each of you should have registered as you entered the meeting. If anyone has not registered, please do so at this time. We will conduct this meeting in accordance with the agenda you were given when you registered this morning. On the reverse side of the agenda is a list of the rules of conduct for this meeting. To ensure an orderly meeting, we require that all participants abide by those—these rules. As is our custom, we will conduct the business portion of our meeting first.
After the formal business portion of the meeting has been adjourned, we will provide an opportunity for questions and answers. Only validated shareholders may ask questions in the Q&A session. Out of consideration for others, please limit yourself to no more than two questions. We will answer as many questions this morning as time allows. Now, I'd like to introduce the other members of the board who are present in person: Howard Frank, of course, Jorge Gonzalez, and Tom Murphy. I'd also welcome Director Cesar Alvarez, who's right over there. Say hi, Cesar. Attending virtually. Also with us today are representatives of Grant Thornton, the company's independent registered public accounting firm, who will be available to answer any appropriate questions during the Q&A portion of the meeting. Company's Chief Legal Officer, Lisa Walters, will act as the secretary of the meeting.
We are being assisted today in the tabulation of proxies and ballots by James Hagan, an agent for Broadridge Financial Solutions. At this time, I appoint James Hagan as Inspector of Elections. The notice of the meeting has been mailed to each shareholder of record as of April 4, 2024. The Inspector of Elections has informed me that 53,003,769 shares of the company's voting stock are present in person or by proxy, constituting a quorum for today's meeting. A list of shareholders on March 20, 2024, the record date, is available and may be inspected during the meeting by any shareholder who has signed in. The final report of the Inspector of Elections will include the votes, if any, of shareholders present and voting during the meeting.
The company's mailing agent, Broadridge Financial Solutions, has provided an affidavit of mailing to show that notice of the meeting was given on or about April 4, 2024. A copy of both the notice and the affidavit will be incorporated into the minutes of this meeting. Okay, next, I will describe each proposal to be acted upon today, and then we'll take the vote. Since no director nominations or proposals for business were properly filed by a shareholder in advance of this meeting, the business of this meeting is limited to the following four proposals. The first proposal before the shareholders is the election of five directors to serve for a one-year term until the next annual meeting. I am standing for re-election as a director today, along with the following nominees: Cesar Alvarez, Howard Frank, Jorge Gonzalez, and Thomas Murphy.
All of these nominees are in attendance today, present and virtually. We recommend the election of these nominees. The second proposal is the ratification of the appointment of Grant Thornton as our independent registered public accounting firm for the 2024 fiscal year. The Audit Committee retained the services of Grant Thornton to audit the company's financial statements for 2024, and the board recommends that the shareholders ratify the appointment of Grant Thornton. The third proposal is a proposal to approve, on a non-binding advisory basis, the compensation paid to our named executive officers, as described in the Compensation Discussion and Analysis section, the compensation tables and related narrative disclosures set forth in the company's 2024 Annual Meeting Proxy Statement. We recommend the approval of the compensation of our named executive officers.
Okay, so now, we will now vote on the proposals. Those shareholders voting in person should now mark their ballots. If you have previously voted by proxy, you do not need to vote again today unless you want to change your vote. If you would like a ballot, please raise your hand and one will be provided to you. Would you like a-- No problem. Thank you. We'll just pause for a moment. Do you have the weather forecast for today? Just wait another moment, and the Inspector of Elections will collect the outstanding ballot. Again, if you brought your proxy, you wish to vote by ballot, please provide your ballot or proxy to the Inspector of Elections at this time. You okay? All right, we'll collect your ballot. Thank you. Okay, so looks like everyone wanting to vote by the ballot has done so, so the polls are now closed.
Will the Inspector of Elections please report the results of the balloting when you are ready?
Mr. Chairman, this initial tally is subject to verification, and the final tabulation may reflect small changes in the vote I have announced. The final tabulation will be set forth in the formal report of the Inspector of Elections to the Secretary of the company, which will be made after the count has been verified. I certify that a majority of the votes cast as voted for the election of each of the nominees as director of the company. In addition, the votes cast favoring the ratification of the appointment of Grant Thornton has exceeded the votes cast opposing the action. Lastly, the proposal to approve the compensation of the named executive officers has received more votes for than votes against.
Thank you, Mr. Chairman.
Thank you. I hereby declare that the director nominees have been duly elected, that the appointment of Grant Thornton as the company's independent registered public accounting firm has been ratified, and that shareholders approve the compensation of the named executive officers. This concludes the official business of the 2024 annual meeting. The annual meeting is adjourned, and we'll now continue to the informational portion of our meeting today.
Prior to opening up for your questions, I will ask Jorge Gonzalez, the company's President and Chief Executive Officer, to provide a brief overview of company operations.
Thank you, Bruce. I wanna welcome everybody who is joining us online, and I particularly wanna welcome those of you who are here. We really appreciate owners coming to visit us. That's something I encourage and recommend often, and you've heard me say that, 'cause really, for the kind of company we are, with the type of assets that we have, you have to come here. You have to come here and look at the region, look at what's happening, and look at our assets. Thank you for taking the time, being here. We are rotating the annual meetings. For those of you who were here last year, we're rotating them really so our owners can see and experience the different hotels and resorts that we have. Last year, we had our annual meeting at Embassy, this year at Camp Creek.
Welcome to Camp Creek. We opened this gorgeous facility last summer. We're pretty excited about it. There's a lot of potential with this facility. It's not just lodging with the inn, but we have a pretty robust amenity package here. If you haven't seen it yet, I encourage you to see it, and we're hopefully the rain's gonna hold up, so we'll be able to take a walking tour of the amenities right after. I think at 12:30 P.M. is when we're gonna gather at the lobby. So I'm gonna go through a presentation, then we'll have questions and answers. But before we do that, like we do every year, I wanna show you a brief video clip.
It's about a four- or five-minute video clip that really captures the journey we've been on the last few years as a company, and it really shows you the seeding and harvesting cycles that I often talk about as it relates to our company. So let me show you the video first, then I'll go through my presentation.
So you notice the music got a little bit happier in the future part of the video. That's because I think we're all going to be happy about the future. That was on purpose. So I can't help but notice, how many annual meetings have you been at where you can look out the window, and you see a dad with his young son playing? It's a pretty unique setting. So thank you for being here again. So let me take you through a, the presentation. And where I always like to start is- Oops! I moved too fast.
Okay, so, I always like to start with, what are we doing, right? That's a very basic question, and that speaks to business strategy. These are the three core aspects of our business strategy: expand portfolio of income-producing commercial properties, develop residential communities with long-term, scalable, revenue, repeatable revenue, and grow resorts and leisure segment. Now, you notice, it doesn't say hospitality segment. It says resorts and leisure. That's because this, this was taken, this slide, verbatim from a slide we had in the 2018 annual meeting. We've been consistently executing the business strategy, for quite some time now. So the next question after what we're doing is how we're doing.
So that's, I want to just take you through briefly, how we're doing. So we took each one of those core business strategies, expand portfolio of income-producing commercial properties, and we tried to enumerate or quantify what the difference has been in our execution of that strategy, since 2016. So building square feet in our leasing portfolio has grown from 600,000 sq ft to over 1,000,000 sq ft. Multifamily and senior living portfolio has grown from zero to over 1,200. We, we didn't have that asset, in 2016, that asset type. And our leasing revenue has grown from $9.8 million to fifty, over $50 million. The, the next business strategy, line item is develop residential communities with long-term, scalable, and repeatable revenue. So in 2016, we sold 106 home sites. That's not a typo. That's 106 home sites.
In 2023, we had our all-time record year for selling home sites and homes at over 1,700. So in that time period, we grew the residential segment from 106 sales to over 1,700 sales, which is pretty remarkable. Our revenue grew from $19.4 million to $155.7 million, and that $155.7 million is only consolidated revenue. I know Marek is happy that I mentioned that. So that doesn't include unconsolidated revenue, for example, from the Latitude joint venture, which is a pretty significant number. But even without the unconsolidated revenue, that's a pretty remarkable increase from $19 million to $155 million.
Then the last one, grow resorts and leisure segment. Back in 2016, we had a total of 126 hotel rooms, which is pretty incredible when you think about it, right? Panama City Beach has 20 million visitors a year. South Walton has 12 or 13, and we had 126 hotel rooms. That tremendous amount of tourism that comes into this area, and we had a very small hotel portfolio. So we've grown that from 126 rooms to 1,177 rooms. So this was as of the end of 2023. Since then, the Residence Inn has opened in Pier Park, so that has grown a little bit. Club members, we've grown since 754 to over 3,300 private club members. Again, a pretty significant increase in that time period.
Revenue in the segment, in the hospitality segment, as we call it today, we used to call it the resorts and leisure segment. We've grown it from $57 million to $152 million. And one of the interesting data points, $152 million, the revenue for hospitality segment last year, exceeded the company's total revenue in 2015 and 2016, which is pretty remarkable. Just one segment, exceeded the revenue of the entire company, not that long ago, when you really think about it. So, just as a reminder, how is the company positioned? So we own approximately 168,000 acres. 87% of those acres are in three counties: Bay, Walton, Gulf.
We have entitlements or approvals as of right to develop over 170,000 homes and over 22 million sq ft of commercial or non-residential, and that's just within the Sector Plan. I'll talk a little bit about the Sector Plan in a minute. We have entitlements above that, too, outside of the Sector Plan. This is-- We've talked about this before. You saw it in the video, I mentioned it in my annual letter to owners. Right now, the majority of our revenue is derived from 2%, a little bit less than 2% of our land holdings, just to give you some context about where we are. So one of the questions I get is: Aren't you going to run out of land to execute the business strategy?
I think the technical answer, the right technical answer to that question is yes, at some point, but it's going to be a long time. Let me give you two data points to enumerate that a little bit. We own 168,000 acres. Since 2016, there's two data points. One is, how many acres have we sold on average every year from 2016 to 2023, and then how many acres we sold from 2000 to 2015. The reason why we have those two data points, those are the two time frames when the company changed the business strategy significantly. Starting in 2016, our focus was on recurring revenue, so we became really picky sellers of commercial land.
If there's an opportunity to develop an asset, whether it's commercial, hospitality, we're going to look at that first and not just sell that land and let another landowner get the appreciation of that land value because of other things we're doing in the region. So pretty remarkable, right? So since 2016, we have averaged a little bit over 1,000 acres per year. So you can do the math. You can draw your own conclusion on how much time we have and how much land we have to continue to grow the company the way we've been growing it. Prior to our business strategy, the average was 51,000 per year that we sold. So we were on two totally different tracks, right? In terms of when we would run out of land.
So again, yes, at some point we may run out of land, but it's going to be a very long time. So I'm going to take you through slides that we show every year. These are what I call trajectory slides. One thing is to have the business strategy, but another thing is to kind of show the trajectory that we're on in executing the business strategy. So this is our balance sheet from 2016 to 2023. We've grown it from $300 million to over $1 billion with consolidated, unconsolidated, excuse me, with investments that include unconsolidated also. That's a compound annual growth rate of about 19%. One thing that I always want to remind everybody that these numbers are based on cost basis. They're not based on market value of the assets.
So the next slide is consolidated unconsolidated revenue. We've grown it in that same time period from $96 million to over $740 million, consolidated unconsolidated. If you just want to look at the consolidated revenue in 2023, that was $389 million, which was a pretty big increase from the year before at $252 million. And the average growth rate has been 34% in that time period of time. So this is a slide that I really like, 'cause it's one that we get to control the most. So one thing is to grow, another thing is to grow efficiently and to grow by leveraging scale. So this slide shows you the corporate SG&A, our overhead, as a percentage of revenue.
So in this same time period of time, from 2016, that percentage has dropped. So this is one of the few bar graphs that dropping is really good, having the downward trajectory. So back in 2016, our SG&A was 24% of our revenue. In 2023, it's 6%. So again, it's easy to grow. It's not that easy, as easy to grow and be efficient in leverage scale. And this is just a consolidated revenue of $389 million in 2023. If we actually show you the percentage with unconsolidated, it's going to be much lower than the 6%. So again, we have a business strategy, we've been executing it, and we've been executing it fairly efficiently as we've grown.
EBITDA, we've grown EBITDA from $26 million to $159 million at an average rate of 30%. We show this slide every year. We showed it last year. Just to give you an update, we obviously update the numbers. Project debt. We only have project debt. We don't have corporate-wide debt, so every project stands on its own cash flows. As of March 31st, our debt, total project debt combined, was, is 29% of the company's total assets. 66% of outstanding debt has a fixed or swapped interest rate. Average weighted effective interest rate is 5.3%, and the average remaining life in years is 17%. This is a slide we're going to show every year and update it, so our owners get a sense of how we're doing on the debt side.
Net income. Net income tends to be a little bit more nonlinear, a little bit. There's other factors involved in it, a little bit more, kind of wavy. In 2016, our net income was $15.9 million. Last year, it was $77.7 million. Average growth rate of 25%. One of the things that I do want to mention, 'cause this has grown significantly, as we've been developing new assets and bringing them into service, our depreciation has grown significantly. Depreciation is a non-cash item, but it's separate from net income. So in 2023, our depreciation was $38.8 million, which is non-cash. And when you compare that to what our depreciation was in 2016, we almost had no depreciation in 2016. It was really, de minimis. So last year was $38 million.
Again, non-cash item. Earnings per share from $0.21 to $1.33. Average growth, compound annual growth rate of 30%. Again, if we take that depreciation number and do it on a per share basis, in 2023 was $0.66 per share, which is pretty significant for a company of our size. That's what depreciation represented, $0.66 per share. So let me talk a little bit about this, because this is something I get asked questions about, too. Staying on the topic of depreciation. So depreciation is not cash, but it does take cash to upkeep and maintain our properties. So this is just a simple table that kind of gives you a better sense of how depreciation, and then what we call sustaining capital, the actual cash we use to maintain our properties, how they look.
So our net income was $77.7 million. Depreciation was $38.7 million, as I mentioned. Then last year, in 2023, our sustaining capital, the actual cash that we used to upkeep and maintain our properties, was about $8 million. That's actual cash that went out to maintain the properties. Again, depreciation is non-cash. So the bottom line, the total $108.5 million, that just gives you, at a high level, a better sense of cash generation that we had in 2023. These are projects that we completed in 2023. So we had 12 projects in residential, we had 11 projects in commercial, and then five projects in hospitality. Those five were a lot more involved than the others combined.
Finishing five hotels and opening five hotels is, was really quite an undertaking. I'm not sure anybody in their right mind would do that on purpose, because hotels are operating properties. They're not really real estate properties. They're operating properties. It takes a lot of effort to open a hotel, and we opened five last year, if you can believe it. In fact, we opened five in the first six months of the year, which was a crazy time. Patrick came back, so we're happy about that. Patrick Murphy runs our hospitality segment. 2024, these are anticipated project completions and openings. We've already completed and opened several of these. Watersound Fountains in Watersound Origins, our senior living project, that's completed and open. Residence Inn is a hotel I mentioned that opened in Pier Park about a month ago.
We have a couple of residential projects that are also completed, but most of these are gonna be completed throughout the rest of the year. So let me talk about the future a little bit, and I wanna... Just first, some technicality, because I think it's important for everybody to understand it. We've often talked about the Bay- Walton Sector Plan, which is 110,000 acres of our property that we went through a process many years ago with Bay and Walton counties to create a land use framework for those 110,000 acres of entitlements, of approvals, what we can build, how much we can build. We did that, even though it took a couple of years, to have certainty, right?
Because in order to grow the company, it's very difficult to do that rezoning by rezoning for every project, right? If you have to go to a county or city commission and get a rezoning every single time, to grow the company, that's a hard way to make a living. So we made a decision to create this framework for 110,000 acres. We got approvals as a right. The second step in activating the Sector Plan is to obtain what's called, in Florida law, Detailed Specific Area Plans. The Sector Plan process is enabled by Florida law, Florida statutes. So Detailed Specific Area Plans are the more specific, master plan or site plan within the Sector Plan. They require 1,000 acres at a time, a minimum of 1,000 acres.
So as we've been growing the company, we've also been quietly busy planning for the future by preparing, submitting, and getting DSAPs approved. So this map here, this slide, slide 15, shows you all the Detailed Specific Area Plans we have gotten approved over the last few years as we've been simultaneously growing the company. So, we had nine DSAPs approved, and, four of those, only four we have started. So five of those DSAPs, we haven't even started yet. The four that we started, we barely have started. And then, I know it's hard to read, but you do have a booklet with you, by the way. We made a booklet of our presentation, so you can look at the numbers a little bit more detail.
In each DSAP, we have the number of residential units, number of commercial square feet, so that gives you a sense of the scale of those DSAPs. One thing I want to mention, since the Sector Plan, 50-year planning document, we worked hard to create as much optionality and flexibility as possible. So when you see the residential number of units or the commercial square feet , keep in mind, in the Sector Plan, we have language that we drafted, that was approved, that allows us to convert residential to commercial, commercial to residential, because with a 50-year planning document, you need that optionality, that flexibility to react to market conditions. So if you see a DSAP that has 2 million sq ft of commercial, that doesn't necessarily mean that we're planning on 2 million sq ft.
We'll see when we get there, what the market conditions are, and if there's more demand for residential, we can very easily, as a right, convert the commercial square feet to residential. So this is, this next slide is something I mentioned in my annual shareholder letter. So these are commercial and hospitality areas of focus. They're more immediate than those DSAPs. And in fact, these, I think we have seven areas of focus, and five of them are outside of the Sector Plan. So as I mentioned earlier, of the 170,000 homes, 22 million sq ft, that's what we have approval within the Sector Plan. We have other approvals outside of the Sector Plan. These areas of focus represent most, a lot of those.
So let me take you through these, and we have some master planning document site plans, just to give you a sense. These are things that we've, some of them, we've already started, but just barely started. Others, we're about to start. So the first one was the Watersound Town Center, which is a commercial town center across the street in front of Watersound Origins. We obviously have started that, but we have a long way to go in terms of opportunities. So the site plan or master plan for the middle part of this master plan and what's on the right-hand side of the slide, that's about 400,000 sq ft. The west side of it or on the left side, that's probably another 300,000-400,000 sq ft.
Again, it's going to be all market-based, but this is a pretty significant opportunity for us, for us to have a portfolio, to add to our leasing portfolio of some pretty high-end tenants and pretty high-end rates. So we'll be focused on the Watersound Town Center for, for quite some time. So East Lake Powell, this is an opportunity for us to create a really neat experience. It's a beautiful property, right on Lake Powell, which is a lake just east of us. It's a coastal dune lake that connects to the Gulf. It's beautiful for those of you who are familiar with it.
So, we've been planning this property for some time, and the way we're envisioning this property is to create a mini Camp Creek opportunity, where we're going to have opportunity for high-end custom home sites, just like we do at Camp Creek. We're going to have an opportunity to have amenities for our club members, and then also potentially lodging, potentially having a boutique-ish inn right on Lake Powell, which I think will be a really, really nice experience. Again, as it relates to our hospitality segment in general, and specifically our club membership program, one of the things that we think about all the time is how can we add to the member experience? We constantly want to be adding to the member experience.
So as we're growing our club membership program, and you saw the numbers from 600-700 to 3,300-3,400, we're not static in the facility and the experiences. We're constantly are thinking about and planning and executing additional facilities and experiences for our club members. West Bay Center, so this is the commercial area in front of Latitude. It's actually not part of the joint venture. As you know, Latitude itself is a joint venture with Minto, between Minto and us. The commercial part is just us, not part of the joint venture. We have barely started that center. We have our golf cart agency, which is a joint venture in and of itself, that's open. We're currently developing a bank. And then, hopefully, pretty soon, we're going to start a grocery store with some inline retail space.
I can't say who the grocer is yet, but it's probably pretty easy to figure out. This is a pretty significant opportunity for the company. Latitude, and I'll go through the numbers later in the presentation, has been growing exponentially, something that has never, ever been seen in this region. And it's a captive audience of residents and consumers, right? And then we own all the land around it. So we have an opportunity to create a commercial town center that's going to be very scalable and very profitable for us over a period of time. So this site plan that you see right now, this, I think, represents 500,000 sq ft. And that's not the entire property. The southern part of the property, we haven't gotten to master plan yet.
We think we can easily add another 300,000 sq ft to it. So again, just between this and the Watersound Town Center that I mentioned, you can do math in your head pretty quickly, that in just with two more projects, we can easily double, more than double our existing commercial leasing portfolio. So FSU TMH Medical Campus. Healthcare is as this region grows, growing both the quantity and quality of healthcare is really important. When it comes to quality of life, there's nothing more important than healthcare, in our opinion. So, we a number of years ago embarked on a vision to create a world-class campus. It's not just a medical clinic to check a box to sell more homes to Latitude. We would have done that already 10x .
That would have been really easy. This is about kind of rising and raising the quality of healthcare in the region for everybody. We're all consumers of healthcare, who we live here, and we know we need more of everything, and we need higher quality. So, we did a lot of research. We talked to a lot of different partners. A lot of partners were interested. Healthcare partners, clinical research were interested in being a part of this, and we made a decision on the partners that were going to be a part of this. And really, the core strategy of this campus is to leverage the natural synergy between teaching, research, and clinical delivery.
When you look at academic health centers, that's really the most successful healthcare model that exists in the country, academic health centers that have all three components: research, teaching, and clinical delivery. And that's the vision that we have for this campus. This is going to be one of the stops we're going to make today in the tour. The first phase. Let me first talk about the partners. So the partners are FSU and FSU College of Medicine, and then TMH, Tallahassee Memorial HealthCare in Tallahassee, who's very significant. They have a very significant footprint in Northwest Florida. So the entire campus is going to be branded FSU Health. So to the consumer, to the patient, it's going to be a seamless experience, FSU Health.
Over time, as the campus develops, and all the phases are finished, the idea is not just to have those three components, teaching, research, and clinical delivery with residencies in the hospital, and research activity, but also to have the entire spectrum of clinical delivery services. So as consumers of healthcare in this region, now we all know that we have to drive to 20 different places to do, you know, different lab work, see different specialists, do different imaging. The goal here is really to have everything in one location. So everybody can go to that one location, and unless you're really, really ill, really extreme exceptions, you can have everything taken care of on that one campus. This is something we have spent a lot of time on. It was our vision originally, and so far, so good.
The first phase of the campus is an 80,000 sq ft medical office building. Again, we're going to stop by there this afternoon. That's going to start being operational and open late this summer. So as early as late this summer. That's the first phase of it. The second phase is going to be a hospital, which we'll talk a little bit more about when we do the tour this afternoon. Pier Park East, we're pretty simple. This is property that's east of Pier Park. So, this is about, I think, 70-80 acres that we own in Pier Park. As everybody knows, who's familiar with our market, Pier Park has become really the downtown, the commercial center of our region, particularly Bay County and Walton County.
So this is property that we've been, we've master planned, we've received approvals and entitlements for, again, outside of the Sector Plan . But we've been really picky about, the tenants that would go there. Over the years, we've gotten interest from fast-food restaurants and different folks, but we, we weren't interested in doing that. We really want to create the town center within the town center. We want to create, an entertainment district within Pier Park, not just retail. So this, this master plan gives us an opportunity to do a pretty wide range of uses: entertainment, businesses, hotels, even apartments, high-density apartments. And this is where we announced, we issued a press release not long ago, this is where Topgolf, is going to go.
So we think Topgolf is going to be an ideal anchor for the tenant. It fits our region really well. It's family entertainment, wholesome family entertainment, and they're going to be doing their full-size Topgolf here. It's not going to be a smaller Topgolf for smaller markets, which tells you something about, how our region has grown, that we're actually become a Topgolf market now. Breakfast Point East, this is going to be another stop. I think we're going to do this stop tomorrow. This is the public-private partnership that we executed a number of years ago with the TDC, Bay County, and the school board. The TDC invested, I think, $40 million to build, state-of-the-art, sports fields, outdoor sports fields for amateur travel sports, soccer, baseball, lacrosse.
Then we own all the land around it, and as part of that public-private partnership, we got approval for our master plan, which allows 750 hotel rooms, a couple hundred thousand sq ft of commercial, multifamily. And again, we own all the land around it. So the first development we've done in this project is the Homewood Suites, which again, we'll see it tomorrow. We have an opportunity to do three or four more hotels there. The TDC, and we're going to have the CEO of the TDC there tomorrow to tell a little bit about what they're planning. But they've been working on building potentially an indoor facility to complement the outdoor facility.
That indoor facility is going to be another significant investment, and then that's going to attract gymnastics, basketball, volleyball, and it's going to be year-round, and it's not going to be subject to weather. So, if that comes to fruition, we're going to need to step up our game on the next couple of hotels because the Homewood Suites has been doing really well just with the outdoor fields. If an indoor facility is added, it's going to be a pretty significant addition. So Point South Marina in Port St. Joe, we opened the redevelopment of that marina last year. We increased the size significantly of it. It's mostly dry storage. We do have some. That's where the marina market is, dry storage. We do have some wet slips, but it's mostly dry storage.
We have master plan, an area around the marina, barn, and the barn in this master plan is the area in yellow. We think we can create a really cool and special town center, that's really close to Reid Avenue , which is the Port St. Joe's downtown, which has been thriving, has been doing really well. And we think we have an opportunity to do a waterfront hotel, which is going to be really, really cool, in addition to commercial, entertainment, shopping, activities, all next to the marina. So complement the marina. As you guys know, we love to make investments at, we call it the virtuous circle , right? We make an investment in one segment, and then that segment helps the other segment. We make an investment in that other segment, and it helps our third segment.
As we call it, the virtuous circle . So when we run performance in for projects, obviously, we look at the performance of that one project, but we also look at what that project may potentially do to our other segments. And this is one that we think will be very helpful to the marina. We do have a lot of customers in that marina that are not locals. They come from different places, Columbus, Georgia, other locations, and we think if we do a nice boutique waterfront hotel there, a lot of our customers in that marina will be able to take advantage of that. So this is a slide we show often just to give you a snapshot of our residential home site pipeline.
So, as I mentioned before, we really, if you look at the box on the right-hand of the slide, the one that says 16,177, that's kind of where our pipeline starts. That's the most conceptual. We have entitlements, and we have a concept plan where we have a sense of yield. How many units can be accommodated in a particular master plan or site plan? Then we move down the line, of the assembly line, as we call it. We get into engineering and permitting. We have 3,193 in that segment of the pipeline. And then, those two boxes are what we call soft dollars, right? We haven't put dollars in the ground yet.
The third box, which is platted or under development, that's where the hard dollars are being spent, and that's where we're building the infrastructure to grade the home sites. So in total, what we have in our pipeline now is over 21,000, 21,503 residential units. Again, this is not all the entitlements we have. We have way more than this. These are the ones that we've taken off the entitlement shelf and have actually started doing planning, engineering, or development. So right now, our builder program, we do sell some custom home sites, for example, at Camp Creek and at Origins, we've done that. But most of our residential home site transactions are with builders. We have 20 builders right now in our builder program, which is pretty significant.
Remember, in 2016, we sold a little bit over 100 home sites. Back then, we had one builder. Now we have 20 builders. So we have two nationals, kind of on both ends of the demographic spectrum, D.R. Horton and Toll Brothers. We recently announced Toll Brothers, the most luxury national home builder. Then we have many regional and local builders in between. And to be honest with you, we kind of like having that diversity. We like having a nationals, regionals, and locals. They all kind of behave differently, and so we like having that diversity. Right now, with those 20 builders, we have a total of 1,335 home sites under contract with them.
So one of the questions I get asked often, and I call it a canary in the coal mine, when folks start getting nervous about the market, about interest rates rising, the canary in the coal mine for us are our home builders. So the conversations usually start, they'll call me, and they say, "Hey, we have a takedown coming up in 30 days, can we delay that by two weeks or 30 days?" And I haven't had those phone calls in four or five years. So, and we haven't gotten any phone calls that are even near that. So that's a canary in the coal mine for us, and our home builders still feel pretty good about the market, even with the higher interest rates.
I think part of the, because that's a question I get asked, "So how with the higher interest rates, how are you still. You had a record year last year, right?" We did, 1,700 home sites. I think a lot of it, probably a couple of different answers to that question, but the main one is the migration that's happening in this region is so significant, from folks who are coming from, places we hadn't seen before, right? Because traditionally, we've seen folks from the Southeast. We've been seeing folks from all over California, Oregon, Colorado, Illinois. The migration is so significant of folks moving here to live full-time, that creates a margin of error, right?
So, yeah, higher mortgage interest rates, obviously, that has an impact on purchasing power and timing of decisions, but we certainly haven't seen a material slowdown in any way. And I do think that migration is a major part of that. And again, the canaries in the coal mine, I haven't gotten those phone calls from any of our builders. So the last number here is homes under contract at Latitude, and I have a slide that's going to focus on Latitude. It's 562. That's above and beyond the home sites we have with our 20 builders. So this is a slide we didn't show last year. You've seen it before.
So what we try to do is we create milestones by asset type, and then we put a year to it on when we want to reach a milestone. These are not hard goals necessarily, because we do everything market-based. The last thing we want to do is build buildings to check a box, and then the buildings are empty, right? And we have to calibrate everything to the market. Not just the market in general, but locations, right? If we have an apartment complex that we're planning on building, and there's another apartment complex that was built down the road, we kinda watch that. We kinda see how that apartment complex is doing, how the rents are, and how absorption is going.
So these 2024 unit milestones, we set these at the annual meeting in 2022. So in 2022, we said by 2024, these are the milestones that we want to reach by asset type. So home sites is a little bit different because that's a per year, obviously. That's not a portfolio. So we had 2,000. Last year, we were at 1,704, so we were 85% of that milestone. Multifamily and senior living, 2,500, we're at 1,383, so that's at 55%. A footnote to that is, as many of you know, we decided to sell Sea Sound Apartments on 2022. It was just an opportunity that we couldn't pass.
That was 300 units that were subtracted from that number, so the number would be a little bit higher if we kept the Sea Sound. But again, we don't make decisions based on reaching these percentages. This is just for our owners to calibrate the growth that we're planning. We're always gonna make sound financial decisions, project by project. Hotel rooms, 1,500, we're at 1,298. That does include the Residence Inn that we just opened about a month ago. So we're at 87% of the milestone. Commercial sq ft and operational properties, 1.8. We're a little bit under 1.4, or 77%.
Club membership, memberships, we set a goal or a milestone of 3,250, and the time that we did it, I know our hospitality folks were really nervous about that because it was a really ambitious goal. We've exceeded it. So 3,317, we're at 102% of that milestone. And then, we added boat slips in 2022, 750, we're at 424, so that's 57% of the milestone. Again, it's just a tool for our owners to look at in terms of potential growth of the different assets that we have, but every decision we make is going to be market-based, it's going to be a sound financial decision.
So Latitude. Latitude is our joint venture with Minto for a 55 and better community. We located that property, we identified where we wanted to develop Latitude, and when you look at a map of the Sector Plan , Sector Plan is literally in the middle of the Sector Plan , literally in the middle. We did that on purpose, 'cause we hope that this would have really good velocity, and it would help everything around that part of our Sector Plan . We didn't need help on the edges of the Sector Plan in Panama City Beach and Walton County. We needed some help in the middle of the Sector Plan . So, for this initial phase of the joint venture, we're planning 3,500 homes. The sales center opened in May of 2021. As of the end of March, I believe these numbers are--w e've had over 1,700 sales, 1,181 closings.
Our backlog, backlog is homes under contract, not finished yet, 562, about $300 million in sales value. So this is really the significant data point. And when I say that this region has never seen this before, this pace, I think many parts of Florida haven't seen it, right? For one community. Of course, The Villages, we're very familiar with that, but right now, we're at a pace of 67 home completions per month. So that was the number in March 2024. So it varies from month to month, it's in the 50s and 60s, but in the month of March, we finished 67 homes in one month, which is incredible.
That volume. It's taken time, as you would imagine, to create the assembly line of production, 'cause this is--w e've never seen this kind of production before, so in terms of the trade base, the suppliers, the vendors, it has taken some time to get to this pace, but it's incredible that we are at this pace right now. I mentioned this in my shareholder letter, one of the DSAPs. I mentioned that we got approval, one of the nine over the last couple of years, quietly, is for a property to the west of the 3,500 homes. So we have started planning that one already as an extension of the joint venture.
No, no permitting yet, no money in the ground, 'cause we still have a good bit to go here, but in our business, you have to kind of plan a couple of years ahead. We've had a total of 1,561 home starts, and the amenity, which those of you that were here last year, you saw it last year. It's an incredible amenity. We own 20 miles of water frontage on the Intracoastal Waterway, and this amenity was really the first time that we've activated the Intracoastal Waterway. And then, we're gonna go, we're have a boat tour planned for those of you that signed up tomorrow. And one of the stops on the boat tour, we're gonna go and show you the Latitude amenity from the waterside.
Then we're also planning a pretty significant marina, to the west of the Latitude amenity, and we'll show you that, too, tomorrow. I'm not gonna read the reconciliation, and I'm certainly not gonna read the forward-looking statement.
So, that concludes my presentation. So we'd love to open the floor up for questions.
So, anyone wishing to address the meeting should rise and speak into the microphone, as this meeting is being webcast. After I recognize you, please state your name and whether you are a shareholder or a proxyholder, and proceed with your question or comment. Please remember to conduct yourself in accordance with the rules of this meeting, including limiting your time to two questions. It will help us if your question is brief and covers only one topic per question. Step on up.
Thank you. Nice year. Congratulations. My name is Dan Haigh, and I'm a shareholder. This is my first annual meeting, so I apologize if this question gets asked every year, but, as you mentioned, the migration continues to this part of the country. I'm sure it's part of your, part, really part of your DSAP planning, but the, traffic congestion, the roadway systems, all those sorts of things, can you walk us through how you guys are planning for that, and if that makes you nervous?
Well, yeah, everything makes me nervous. But that's just, that's just the way I am. Dan, thank you for coming. Really appreciate you taking the time and being here. So obviously, infrastructure, community infrastructure, whether it's transportation, the roadway network, schools, healthcare, those are all things that we spend a lot of time planning years ahead. One of the challenges with transportation is we need the public sector to be part of that planning with us, whether it's the State Department of Transportation, local government. And they're just not built to plan years. And I'm not saying anything negative about them. They're all great people, and we work with them great. But election cycles are two and four years. So when you fix a pothole, that's when you get reelected.
When you solve a problem 10 years from now, that's, that's irrelevant to reelection, right? So that's just the reality of our world. So we're constantly, constantly, pushing our partners to think into the future and to think about infrastructure, to think about the roadway network. And what we like to do is create public-private partnerships, where they don't have to acquire the land necessarily, right? If we come up with a plan of action to create a new roadway, where they're going to invest in that roadway, and it makes sense, and it fits in the Sector Plan, 'cause we already planned the roadways in the Sector Plan, and the state and local governments approved them. So it's a matter of execution. So does it keep me up at night? Yes, it's something that we, we spend a lot of time on.
It's constantly, constantly reminding our public sector partners that we need to plan ahead. It's not just about fixing the potholes that exist today.
Matt, why don't you show the example of the Watersound Parkway and the work that's being done there on chart 16?
Okay, so this is just one. If you look at the Sector Plan documents. And by the way, we kept the Bay- Walton Sector Plan webpage alive, so you can just Google Bay Walton Sector Plan, and you can pull all kinds of maps and engineering studies about transportation, about schools, about different things. So this is just one of those roads. There's many, many other roads. But the West Bay Parkway goes from 79, just that line north of where you see Watersound , West Bay Center. It goes all the way through, crosses the Intracoastal Waterway, and ends up in South Walton, near our South Walton Commerce Park.
So we've been working with the Florida Department of Transportation for quite some time on that concept. These kind of regional roads take a long time, with our public partners, and they have a lot of steps, very structured. So they've approved, essentially what's called the PD&E, which is the alignment of the road. That's been approved after several years of public hearings and meetings, and a lot of consultants that they hired to identify environmental challenges and so forth. Right now, we're working on the next step, which is to secure funding for engineering of that road. We hope to be able to finalize that process, relatively soon. And then the next step after that is to work with them to identify funding.
So that's a pretty significant road 'cause it's gonna help the congestion on 98, particularly for traffic in South Walton. We all know how much South Walton has been growing. Once that road is built, South Walton residents will be able to get on that road and go right to the airport, go to State Road 79, without having to get on 98. A portion of it has been built already. The easternmost portion is essentially through Latitude, and that's been built already as part of Latitude. You can tell the difference, the solid blue line, and then the dotted line.
Another question?
Hey, guys. I'm Greg Malachowski, shareholder. I guess I have two questions. The first one, when I look at Latitude, it's awesome, and how fast that's come about, too, just looking at over three years, is indeed spectacular. So I guess what I was wondering, is where do you see, especially given just the kind of very robust financial profile of the buyers there, an opportunity to perhaps associate some sort of club amenity or a club option, because, again, like, right now, you go through the area there, and they're almost grumbling about, "We want shopping, we want restaurants, we want things like that." You look at what they don't have, which is necessarily beaches and golf, and that's something that clubs is providing.
I was just wondering where you see or if you see an opportunity to maybe do something with clubs over, around Margaritaville.
Yep, so maybe you have our office bugged. That's something that we absolutely see an opportunity for that, pretty robust opportunity. We've been spending time planning that concept. So yes, absolutely. Kind of the details of it, is it part of the same club? Is it a different club? Is it a hybrid? What would be the amenities, the facilities that would be a little bit different? 'Cause obviously, our club here, it's very family-centric, right? Where with Latitude, the club amenities and the experiences would probably be less family-centric. So, yes, short answer to your question, absolutely, we see a tremendous opportunity, and we have already started that process.
Okay, my second question, what in the world are you guys doing at 30A West ? 'Cause I've looked into that, and even watching, I think, the Board of Commissioners meeting, like, the people reviewing this, raving about, I think the words were, one of the most beautiful projects they've ever seen, well thought out, well done. It's magnitudes bigger than some of the projects you've mentioned in your reports. But, you know, I've spent over a year looking at it, and it's very hard. I don't even think I've seen the name St. Joe associated with it. So I just kinda, I was wondering if it's not something you want to keep too close to the chest. You know, what's going on there? Because every time I drive down that way, there's more dirt moving around, and it looks like there's clearly things happening.
And then, everything I've been able to find, it's a spectacular project. And, you know, you guys have been relatively quiet about that, so I was just wondering if you could maybe share some details.
So, he's referring to a property that is on 98, the north side of 98, just where 30A terminates on the west end. So it's in Miramar Beach, closer to Destin. So we've been planning that project some together with an adjoining property owner, Keith Howard of the Howard Group. He's the owner of several entertainment shopping centers in our area. We think the world of Keith and his team. He owns property to the east of us, we own property to the west. So we've been planning that property together. The dirt moving that you see there has nothing to do with the project. We haven't broken ground on the project yet. We're still in the planning process of the project.
What you're seeing there is we stockpile fill dirt, and that's used for other projects. So, we haven't finalized that, the planning process. We haven't finalized a potential partnership on that project. The process that you saw was a public process that we had to go through to obtain the entitlements, to obtain the approval, and that's been obtained. So by having that master plan approved by Walton County and obtaining the entitlements, essentially has created value for both of our properties. And we still need to kind of finalize the structure of that and what we're gonna do with that. So we haven't been quiet on purpose, it's just we've been busy with a lot of other things. And Keith and his team have taken the point on that, obviously, with coordinating with us.
Hi, Glen Rollins , I'm a shareholder. I plan on being a shareholder for a very long time, and so I have a question for each of you. The first one's for you, Jorge. With all this success, with a strong hand, with the hand getting stronger, and with all these tailwinds, how, how do you make sure that the culture doesn't get complacent, with all this success?
No, that's a great question. So far, the best question, not to tell anybody else anything different. We talk about culture all the time. It is, in our opinion, in my opinion, culture trumps strategy every day of the week, especially with an organization like us. We do so many different things, right? We're a very diverse company. We just don't do one thing. So that process of how we create our culture, where it's an owner-centric culture, you've heard me say that before, right? We want all of our employees to think and act like owners. And owners don't get complacent, right? Owners don't get complacent. So it's something we work at literally every day.
We're very careful in who we hire, how-- In making sure that when we bring them on board, we, that we instill that, so I call it software, that software of, of culture. There's not one answer to that. It's literally recognizing that that's important and, two, working at it every day. But that's at near the top of our list.
Yeah. Thank you. A question for you, Bruce. I'd love to hear at a high level, how you think about having really high return on invested capital in activities that take so much capital?
Well, years ago, I looked at the history of wealth creation in the United States, and how families did it. At the time, it seemed to me that families did quite well over generations, investing in real estate and developing real estate, from farmland and forestry, which eventually led me to St. Joe. Which led to a, you know, recreating and reshaping of St. Joe, to the point where I'm very happy with the progress of St. Joe. I frankly don't need to be on the board of St. Joe anymore. They're all doing a great job, and I see many years of growth. But St. Joe is complex to the extent that it's a story that's going to last for many decades, and it's going to have a very high terminal value.
It's not a question of if, it's just a question of when. And it's complex when you start to think about return on invested capital, so I want us to measure out the cash flows. Well, it's becoming easier to measure out the cash flows as you continue to see the growth of the company, and to see the free cash generation, and to see the trajectory that the company is on, and to see the pipeline. Because in many cases, St. Joe is now a question of, okay, how do you get to. Let me rephrase that. The last question is: How do you get to 2,000 homes and home sites a year? The next question is going to be: Well, how do you get to 4,000 per annum?
What does it take to get to 4,000 homes and home sites? What kinds of commercial facilities, and what kind of hospitality? And how is that hospitality going to drive the home site? How the home site is gonna drive the commercial. So you're starting to see it, and, but the tough part is to determine what the value of all that land is. Besides, you know, it's easy to look at the cash flows and say it's worth this multiple. So what is all that, what is all that land worth that's on the books for practically nothing, that was bought decades and decades ago? And that I leave up to investors.
Dave and Karen DeMeester, we're shareholders. We live in Latitude Margaritaville Watersound. My question is in regards to EMS service in that area, EMS fire service in that area. I hear there's a plan for a fire station on the new 388. I've been working with Bay County through Margaritaville. Just wondering the status of that as far as providing healthcare. I mean, we're 55 and better. We're a little bit older than people in that area. So our concern was response times, and again, with the hospital time frame for the hospital to start and things like that.
Yep, absolutely. So that's a great example of part of the answer provided previously. So we've been working with Bay County on that for quite some time, and they're great partners, great folks. It's taking a lot longer than we anticipated. But the agreement has been executed, and then we're gonna be moving forward with that facility and start pretty soon. I forget what the time frame is, Lisa, but it's--o r Bridget, do you remember when we start?
We're getting started on the site planning and engineering of it. So our intent is to get started on that, have a fully designed and permitted facility, and start construction and some work with that.
I talked to Bob Majka in regards to that, so--
Yeah, so the way--
I got the same answer, yeah.
So the agreement has been executed. The county commission approved it. So you can, you can look that up at the county commission meeting, fully executed. We're moving forward, and I've taken the lead to kind of do this, and then the county is gonna pay us for it, essentially.
Then the hospital is gonna be big, obviously. We don't have an exact date when it's gonna break ground, but don't discount the medical office building. So, the 80,000 sq ft that's gonna start becoming operational this summer. Hopefully, by the end of the year, it'll be mostly full. That's gonna have an entire floor of orthopedics, an entire floor of cardiology, I believe seven outpatient surgery rooms, an urgent care, full diagnostics, and family practice. So that's before. Obviously, when the hospital is done, it's gonna be terrific, but you don't have to wait until the hospital to start seeing an increase and an improvement in the level of service and the quality of healthcare. You're gonna start seeing that as early as later this summer.
[audio distortion] What time is the tour this afternoon there?
I forget what time.
[audio distortion] We will probably be there in the afternoon, maybe, around 2:00 P.M., 2:30 P.M.
We can just show up?
Yeah.
[audio distortion] You can, and I-- My number is on your back. If you want to, I can text you and let you know when we're on our way.
And in fact, by then, you're gonna be tired of hearing me talk, especially on the bus. So, we're having Andrew Starr. Andrew is gonna be the President, on the clinical side of the campus. He's gonna be there. He's gonna talk about the plans and kind of the timing and the physician groups that are coming on board.
Jorge, what is the ultimate, the ultimate goal for this, what are we talking about, 80 acres medical campus?
Yeah. So the master plan, again, having all three components: teaching, research, and clinical delivery. So the hospital has been designed for, I believe, 486 rooms, which is a pretty big hospital, and that's gonna be phased over time. And it's been fully designed. The core or the guts of the hospital will be built on day one. What will be phased over time are the rooms. So the phase one rooms haven't been finalized yet, but the hospital has been designed for 486 rooms. It's gonna be a full teaching hospital, with residents there, and that's what really makes us excited, right? 'Cause the research is pretty clear. Where docs do their residencies, they tend to stay, right? 'Cause their families develop relationships in the community.
So that's really the end goal. So, a squishy goal that we have, we all know that a lot of folks in our region, they go outside of our market for healthcare, right? UAB in Birmingham, maybe Shands in Gainesville or in Jacksonville. We really wanna kind of reverse that, right? The goal, we really want it to be world-class. It's gonna take time, right? It's not gonna happen overnight. But our ultimate goal is really to reverse that, where folks in this region don't have to travel if they don't want to. And in fact, we hope to attract some people from other parts of the Southeast to come here. That's really the ultimate goal.
The investment dollars are gigantic. I don't think, there's gonna be no change when this is all done from $500 million.
Yeah, at least.
This is going to be a world-class, top-notch medical facility for the residents. It's just gonna take some more time to get there, and we could just keep, keep taking one step forward, right?
Yeah.
Three steps forward every year. I think, to me, the progress, if you, if you thought about this five years ago, this, this would be incomprehensible, where we are today. I think five years from now, I think you'll have a big smile on your face.
Thank you.
The key is, I can't say this enough, having that academic health center model, 'cause that is the way to attract docs and retain them. The days of physicians getting together, creating an LLC and running a business, those days are in the rearview mirror. Having an academic health center model where physicians are attracted to quality research, they're attracted to, teaching, and so are patients, right? That's really the--
There are all sorts of cool elements to this campus also, especially the focus on aging. Like, the home, you know, elements of, I've heard of it, the home of the future, remote monitoring, you know, keeping healthy. The technology is quite amazing.
It's one of the things we're working on, 'cause medicine is changing, right? AI is gonna be a big part of, of medicine in the future. There's a lot of things, a lot of technology available already at the home level, digital technology that will help, and we're, we're in discussions with FSU nursing school, the medical school, to kind of, we're probably gonna do some test cases at Latitude.
Yeah, I think the first place you'll see the home of the future will be Latitude.
Thanks. Hi, I'm Mayor Kenya. I'm a shareholder. First I wanted to say, I appreciate you guys being thoughtful about, one, holding an annual meeting, and then also sort of designing a tour structure around it for us as shareholders to kind of get a better sense of what's going on. I also appreciate your thoughtfulness and detail in the presentation today, 'cause I think it's helpful seeing where things are going and the amount of work you guys do in advance to get things to where they are now. My question specifically is more around the marinas, the two marinas you guys have built.
In the quarterly release, I think, you sort of mentioned your, your- you see positive developments there and, and are starting to think more about kind of building that whole ecosystem around the marinas. I just wanted to kind of understand better, what exactly do you see that sort of encourages you? Is it absorption of the slips, or is it, like, the clientele that you're attracting there? What kind of gives you that enthusiasm?
That's a great question. So it's a couple things. So we've done several studies and have some good data. This area is fundamentally underserved from a marina perspective. If you go to other parts of Florida, and we have a lot of water, right? Not just the Gulf, but the bays and the Intracoastal. So we're fundamentally underserved. Marinas have a natural barrier to entry. It takes 10 trillion years to permit one, right? They're very difficult to permit, particularly with the federal government. They just try to wear you out. Well, they're not gonna wear us out. We're here, right? And we're gonna move forward with them. So number one, we see a market opportunity on its own. We're already in the marina business, so we understand it. We understand the drivers for profitability.
The second answer to that question is that virtuous circle that I mentioned to you. So we wouldn't move forward with marinas, expanding our marina portfolio, if we didn't think they were profitable in and of themselves. But in addition to them being profitable, they're experiences and amenities to residents that move into our communities, right? They're experiences to club members. So that's a part about return on capital and analyzing the projects that we put together. It's very easy to do pro forma for a marina, but then what does that do to the value of everything else, right? And we constantly think about that. So we definitely see a pretty, pretty significant market opportunity for marinas. Obviously, we're gonna be thoughtful about the where, the when, and so forth. And we're very familiar with the business 'cause we're in that business.
So the next marina we're gonna go buy in the boating tour, we've been permitting that one for, I think, for a long time. And it's a pretty significant marina on the Intracoastal Waterway, just west of the Latitude amenity. The master plan for that marina is over 700 dry slips, so it's gonna be pretty scalable. It'll be our biggest marina. Even though it's gonna be next to Latitude, and residents at Latitude will be able to take their golf cart to the marina, it's also gonna be open to the public. And our concept is to have a full concierge marina. You have an app, click your app, what time you want your boat in the water, you know, menu rolls out, what supplies you want in your boat, take your golf cart, and there's your boat.
So that, that is an amenity. Even though it's a freestanding business, it's an amenity to residents.
It's pretty obvious with 15 miles of Intracoastal Waterway, both sides, the possibilities for marinas. I mean, the possibilities are endless. Water taxi systems, shuttling. I mean, you can have, you know, you can have unbelievable vision. It just takes time, and I mean, it's obvious where the next four, five marinas can go. It's just a question of how do you get from A to B, and the timing of them.
It's similar to what I mentioned about hotels in our market, right? So 20 million visitors a year in Panama City Beach, 12, 13 in Walton, and in 2016, we had 126 hotel rooms. Doesn't make sense, right? Similar to marinas, we have so much water here and so many opportunities that it just—it's a business opportunity that if we ignored, I don't think we'd be doing our job.
It would be nice if every community that we sponsor and help to build is a golf cart ride away from a marina. You deserve it.
I guess, and I appreciate that answer because that's helpful to understand. What about the existing two, like, Point South, and then the other one in at Port St. Joe? How are you seeing absorption and the sort of metrics coming out of those facilities currently?
Yeah, we're a little bit ahead of our business plan, our budget on both. They're both, they're fundamentally different. So Bay Point are all wet slips, primarily big boats. That was obviously a marina we redeveloped after the hurricane, Hurricane Michael. And we, when we planned that marina, we planned for big slips because we figured there'd be big boats. We underappreciated that dynamic, and there's even bigger boats, and we'll see it tomorrow. You'll see the scale of it. So what you've seen that we built there is just the first phase. We haven't built out that marina yet. So that's ahead of schedule. Port St. Joe Marina, which is mostly dry storage, the absorption has been even faster than Bay Point. And it's incredible. The--
You'll, you'll see it at Bay Point. We won't go to Port St. Joe, but it's amazing, these huge center consoles with three outboard motors are, what, $300,000-$400,000? Or even more.
Correct.
It's like, well, how does that happen? 'Cause we have so many of those boats, 'cause they're so big, and they have their fishing machines with, you know, tall towers. So they'll take up two slips, right, vertically in our dry storage. So a lot of people ask me, "How in the world can, you know, locals from Port St. Joe have, you know, so many boats that are so expensive?" Well, we do have some folks there, but a lot of folks are coming from the outside, right? And they're storing the boat there. That's why we're seeing an opportunity for some lodging, some other things.
We're renting at this juncture. We're not selling.
Yeah.
Selling is, you know, if you really wanna understand the slip market, look at what the sales price is per linear foot for slips around Florida, which is a whole different story compared to rental rates. I mean, a piggy-- What do you call them? Piggy banks.
Yes. Yes, all of our assets are piggy banks.
Right? We may be slowly doing it by renting, but when you look at what the transaction values are for these assets, t hey're quite large.
We've only broken one piggy bank.
Only, yeah-
That Sea Sound Apartments.
We've only broken one piggy bank.
Can you cap rate them?
Yes, it was very good.
All these projects that Mr. Jorge is saying, they're just growing piggy banks everywhere, and we used to give away the piggy bank. Now, we keep the piggy bank, and we get it nice and big, and we wanna make sure that when you move to Latitude Margaritaville, there's not gonna be an ugly project next to you. We wanna make sure that these communities fill in really well, and they blend well together, which makes everything much more valuable.
It's funny, one last thing about the marinas, speaking of Latitude. We knew Latitude residents were gonna be focused on healthcare and grocery stores and convenient shopping. The big surprise was the interest in boating and marinas. We started seeing that in the sales center. Every time I go to our sales centers often just to see what's going on. Early in the process, the sales folks in our team, they would try to sequester me and ask me, "What about the marina, the timing, the timing?" What I realized is that there was so much interest in the marinas, we gave them marketing collateral that was consistent. We didn't want everybody telling people different things. Then we did a survey. You guys probably saw a survey.
Last year, I think we did it, where we surveyed the residents of Latitude on boats and what size boat and their interests and, and would they boat, and we were blown away by the interest, just blown away. Just a lot of interest. And it makes sense, right? 'Cause it's not so much deep-sea fishing on the Gulf, 'cause that's a full contact body sport, for those of you who have done it, right? That is not a casual--b ut the beauty of this area with the bays and the interconnectivity of the bays, it's prime for leisure boating, right? Leisure boating, that you can, you can go out on your boat and, you know, and, you're gonna have a, a nice time, not, you know, go out on deep-sea fishing. And that's where this market is fundamentally underserved.
Thank you for changing the trajectory. Thank you for changing the trajectory of the region, from selling all the land to development.
Yeah, it's very exciting. Takes time, but very exciting.
So any more questions? Maybe one more question, if that's okay, 'cause I do wanna play one more video before we, we break.
Good morning, Mark Hoffman, shareholder. Can we go back one slide just to understand the scale of the land holdings? So yellow are specific area plans that have been started and brown have been approved, and then green. With all three of those colors together, does that represent the 110,000 acres?
Yes.
Okay. The green, is that all envisioned to be developed someday, or is it a mix of natural land?
It's a mix of natural and development, but the green represents St. Joe property within the Sector Plan that has the approval for 170,000 homes.
Okay, so 170,000 homes across 110,000 acres?
Right.
Okay, great. Thank you.
Yeah.
Well, thank you for all of your questions. We appreciate your participation. We look forward to next year, and we look forward to seeing you on the tour bus.
So, let me. If I could, let me read a couple of. If I don't do this, I think Rhea will remind me. So lunch on your own. We're gonna meet at lobby at 12:30 P.M., and I think the weather's holding up. We're gonna do a little walking tour of the amenities in Camp Creek. The bus is gonna depart around 1:00 P.M. in the tennis court area. We're gonna have a cocktail reception after the tour around 5:30 P.M. We're gonna have it out here. Then tomorrow, looks like the weather's gonna hold up for the boat tour. We're gonna meet in the lobby at 8:00 A.M., and we'll take the bus.
We're gonna have a couple stops, like at the sports complex, and then we're gonna go to Bay Point Marina and do the boating tour.
Yeah, think of tomorrow's boat tour as our first step in the processing of a water taxi system.
I want to play one more video. This is a video. I think it'll be very informative to you. It focuses on hospitality, but it's got a really good script on each one of our hospitality assets. So I think you'll get an appreciation for those hotels or hospitality properties you have not been to or seen. I think this will connect a lot of dots and fill in some of the blanks.
With its world-renowned beaches, a vibrant shopping and dining scene, and unmatched natural beauty, Northwest Florida has been attracting vacationers for generations. The St. Joe Company's hospitality portfolio stretches from Santa Rosa Beach to Port St. Joe. From luxury resorts to budget-friendly select service hotels, travelers from all parts of the country looking to enjoy the Northwest Florida lifestyle can find accommodations to suit their needs. Restaurants, retail stores, recreational activities, and a growing marina presence add to St. Joe's diverse hospitality offerings. Today, we embark on a journey to explore these offerings and the genuine southern hospitality each property exudes, thanks to the friendly disposition of the staff and the focus on providing the best guest experience possible.
Welcome to Home2 Suites.
Located in Santa Rosa Beach off U.S. Highway 98, Home2 Suites is a four-story hotel featuring 107 guest rooms and one-bedroom suites. The amenities include a pool, a fitness center, and an outdoor lounge with a fire pit.
Welcome to WaterColor Inn.
WaterColor Inn offers 60 Gulf-facing rooms and 7 family suites. Amenities include the hotel's 2,800 sq ft pool, WaterColor Beach Club, Camp WaterColor, as well as multiple dining options, including the hotel's signature restaurant, Fish Out of Water. Additionally, WaterColor Store and WaterColor Kids offer an assortment of clothing, jewelry, and other lifestyle products.
Hey, y'all, welcome to Scratch Biscuit Kitchen.
Scratch Biscuit Kitchen offers breakfast favorites along with lunch and dinner options like patty melts, sandwiches, salads, and more, all in a relaxed, family-friendly atmosphere. Located in the heart of WaterColor Town Center, it's the perfect casual choice for families seeking a quick and affordable meal while on vacation, with the menu available for dine-in or to go.
Welcome to The Lodge 30A.
The Lodge 30A is a boutique hotel nestled in the heart of Seagrove Beach in South Walton. The hotel offers 85 guest rooms that combine comfort and convenience with contemporary coastal style, providing an approachable experience that feels equal parts laid-back and luxurious. Guests have convenient access to Greenway Station , restaurants, and shops, as well as options to access Watersound Beach Club and two private golf courses.
Welcome to Watersound Inn.
The Watersound Inn boutique hotel is situated within the second and third floors of the gatehouse, an entrance landmark of Watersound Beach. With its impressive Nantucket-style design, each of the 11 spacious condominium-sized rooms have private balconies overlooking the Watersound Beach Sundial and Yacht Pond.
Welcome to the Watersound Club experience.
Set in picturesque Northwest Florida, the Watersound Club encompasses limitless opportunities for adventure, exploration, wellness, and relaxation. From pristine pools and private beach club to award-winning golf courses and tennis courts, members enjoy an array of amenities. Camp Creek and Shark's Tooth golf courses offer challenging shots, quiet solitude, and beautiful views. Restaurants include ANR, Bark 'N Brine, 30°86°, Beach Break Grill, Shark's Tooth Grill, Gather Kitchen + Bar, and 1936. Members also have access to lodging at both Watersound Inn and Camp Creek Inn boutique hotels.
Welcome to Camp Creek Inn.
Located in Inlet Beach, along the 30A corridor, Camp Creek Inn features 75 guest rooms and access to Watersound Club amenities. As a member for a stay, guests enjoy an expansive amenity package, inclusive of a resort-style pool complex, three dining venues, a wellness center, tennis and pickleball courts, and more. Located adjacent to the acclaimed Camp Creek Golf Course.
Welcome to The Pearl Hotel.
With its distinctive old-world European architecture and sun-drenched turrets and terraces, The Pearl Hotel provides guests with a thoughtfully curated luxury experience. This 55-room, award-winning boutique hotel features beautifully appointed accommodations, destination-worthy cuisine at Havana Beach Bar & Grill, with veranda seating and a rooftop bar, as well as a welcoming spa in the heart of South Walton's Rosemary Beach community.... As we bid farewell to Walton County, our adventure continues eastward to Bay County. From the oceanfront resort getaway at Embassy Suites next to Pier Park, to the modern coastal charm at Hotel Indigo, Bay County offers a diverse array of experiences for every traveler.
Welcome to the Hilton Garden Inn.
Conveniently located near the Northwest Florida International Beaches Airport, the Hilton Garden Inn features 143 guest rooms, meeting space, and a full-service restaurant serving breakfast, lunch, and dinner seven days a week. The hotel site at VentureCrossings Enterprise Center is just a short drive to Panama City Beach's world-famous white sand beaches and the Pier Park hotels, shopping, and dining areas, making it a convenient option.
Welcome to Embassy Suites.
Just a few steps from white sandy beaches, Embassy Suites by Hilton Panama City Beach Resort features 255 guest suites, a zero-entry pool and water slide, meeting space, a business space, a fitness center, three on-site dining venues, and over 15,500 sq ft of event space. A spacious courtyard with outdoor furniture and fire pits invites guests to enjoy the breeze right off the Gulf of Mexico. Shopping, dining, and events at Pier Park and Aaron Bessant Park are less than a mile away.
Welcome to the Homewood Suites.
Homewood Suites by Hilton is now open in Panama City Beach with 131 rooms and suites. Each of this four-story hotel suites are equipped with a full kitchen and refrigerator. Amenities also include a swimming pool, fitness center, and complimentary hot breakfast. The hotel is located adjacent to the $40 million public sports complex and a short drive from the area's beaches.
Welcome to Point South Marina at Bay Point.
Bay Point's proximity to the Gulf of Mexico and the Intracoastal Waterway make it a true paradise for sportsmen. Nestled in the Bay Point community, Point South Marina Bay Point, a full-service marina and fuel dock for boaters with 30-foot to 120-foot vessels. With 127 large state-of-the-art slips and modern facilities, customers can be sure that their boating experience will be nothing short of extraordinary.
Welcome to Hotel Indigo.
Hotel Indigo is a stylish and vibrant boutique hotel in Panama City's downtown waterfront district. Overlooking St. Andrews Bay, this pet-friendly boutique hotel is near several dining and retail establishments in the downtown area, but also features its own rooftop bar and grill, Steam on 5, and all-day dining at Tarpons.
Welcome to Harrison's Kitchen and Bar.
Harrison's Kitchen and Bar is the newest addition to Panama City's historic downtown area, with beautiful views of the Panama City Marina and St. Andrews Bay. The cuisine reflects the area's history as well, with dishes equally inspired by traditional Southern flavors and fresh Gulf seafood. Inside, the restaurant features comfortable seating and a large full-service bar, while outside dining will include covered and open patio seating, plus a fireplace and room for games within the restaurant's garden walls. And finally, we make our way to the tranquil shores of Gulf County, a place where everyone is welcomed by a quiet, laid-back lifestyle.
Welcome to Point South Marina, Port St. Joe.
Our newly built marina at Port St. Joe is a favorite location for boaters to explore the pristine St. Joseph Bay, make their way along Florida's Intracoastal Waterway, or head out into the Gulf of Mexico. It's a major landmark in a small town and a hub of activity for locals and visitors alike. We are a full-service marina and fuel dock for boaters with 25 up to 70-foot vessels. Point South Marina offers 252 state-of-the-art dry slips, 48 water slips, and modern facilities to ensure one's boating experience will be nothing short of extraordinary. Across Northwest Florida, The St. Joe Company offers lodging, dining, and recreation opportunities at a variety of price points, service levels, and locations. What ties all of these properties together, though, is a commitment to the friendly and generous reception and entertainment of our guests.
Hospitality is about more than just providing a bed or a meal. It's about creating a welcoming and enjoyable atmosphere that makes people feel comfortable and at home, a feeling for which every St. Joe establishment strives.
I think one of the things that you can tell from the video, it gives you a good visual perspective of the diversity. We just don't have diversity in types of assets, but even in lodging, right? We've, from the very beginning, as the tourism in this area grows, we wanna create a lane for every price point, for every person, and this gives you a pretty good idea of that. The last thing before we break is those are actual general managers of each one of the facilities. We talk about culture. We spend a lot of time talking to our general managers, where we want them to own their property. We want them to behave like owners, walk the properties all the time. So those are our actual general managers. Thought it'd be good for you guys to see them, too.
That's also the story of hospitality's development over the past six years.
Absolutely.
Much of that did not exist.
Very little of it existed.
[audio distortion] I actually just have a quick question relating to that. It's kind of piqued my interest. I saw maybe about a month ago, Dan Velazquez left the company. I always viewed him as a very kind of nice piece to have, doing what he did, given his history and his time in the area. So I'm just wondering, as you know, when you're little, when you're little, you know, it's easy to be overlooked, but once you start being successful and, you know, to use a sports analogy, once you start winning. You know, the Yankees and Dodgers start coming for your players. And I was just looking maybe at something, Bruce, you could answer, how you balance keeping, you know, the SG&A in line with also retaining people like Jorge or Marek or Rhea, or people at the operations that are integral to the success of it? How obviously, there's a balance there between retaining key people, paying them well, while also kind of making that balance between how do we keep SG&A where it should be?
Yeah, the board's job is to keep Jorge. Jorge's job is to keep everyone else. And in terms of Dan, great guy, wish him well, did a great job. He have to spend some time with Will.
Yeah, so William, we love to promote from within. So that, again, speaks to culture, right? So all the GMs in our hotels last year, we promoted from within. They were number twos. So William Brock has taken over our commercial segment. He's been with us for a long time, and it's gonna be a very seamless transition. Dan has been great. His daughter lives out west, and he wanted to be closer to his daughter. So but William has taken over, and we haven't skipped a beat yet.
We're all replaceable at the end of the day, right?
Indeed.
I mean, when the day you think you're not replaceable, then it's over.
[audio distortion] Two months ago, and then you become Howard Hughes , which is impossible.
What? Yeah. I don't think you're gonna--
All right, one last question, because I know we kept you here long.
[audio distortion] I just want to know if that video is going to be on your website.
Yes.
Okay.
Yep.
Everything should be on the website.
Well, thank you, everybody, for coming. Really appreciate it. We'll see you at 12:30 P.M. for the--