Tech founder, shopping center owner hopes to play big role in downtown’s future
JACKSON, Miss. (WLBT) – Kumar Bhavanasi’s office in the Pinnacle Building overlooks a large swath of downtown Jackson, from the historic King Edward Hotel to the McCoy Federal Building.It’s a view the New Jersey-based property owner says can’t be replicated in the suburbs and one that could be part of the formula to bring people and businesses back to the area.“This is a beautiful and clean downtown to be proud of,” he said. “It’s cool, and rents are very affordable.”Bhavanasi comes to downtown on the cusp of what will be a renaissance of sorts for the area, years after downtown was pummeled by the COVID-19 pandemic, the Jackson water crisis, and years of high crime.He is confident that he can help turn the tide and bring forward the downtown revival that’s been talked about for years.In fact, he’s already spent millions of dollars toward that effort, purchasing two high-profile properties along East Capitol Street and working to close on another, with plans to invest millions more on upgrades and additional purchases.These upgrades, in turn, are designed to attract hundreds of residents and workers, all of which he says will help boost the local economy.“I specialize in leasing spaces. That’s what I do,” he said. “I buy shopping centers that are underutilized, I make capital improvements, find the best leasing agents, get the best-performing tenants… I’m already working on amenities – I’m bringing five or six things, and I’m going to bring more.”In recent months, the New Jersey-based tech founder and property owner has purchased the Pinnacle Building and the Deposit Guaranty Building, both on East Capitol Street. And last month, he won an auction to acquire the Regions Plaza facility, which he expects to close on in the next 30 days.Now, he is eyeing another purchase – One Jackson Place. He’s also planning to invest tens of millions of dollars into his most recent purchases, including $40 million to transform Deposit Guaranty into a residential structure with 150 to 200 units.“The elevators are against the wall. If not able to move them, then it’s 150,” he said. “If I move it to the center, it is 200. I’m OK either way.”Bhavanasi is the founder of First Tek, Inc., an IT services provider. It and its subsidiaries have 1,200 employees and revenues of $140 million a year.He also owns 35 shopping centers across the United States, which offer a combined 3.2 million square feet of retail space.The husband and father of two first came to Jackson in 2019 when he purchased the shopping center on U.S. 18 anchored by the Walmart Supercenter. Today, that facility is home to a Cricket Wireless retailer and an Angry Rooster restaurant.“That was my first trip to Jackson. I remember driving through downtown,” he said. “I was like, ‘Wow, beautiful downtown.’”Last summer, while he and his family were in Italy, he got a call from a broker about the Deposit Guaranty Building, which was up for sale.“The only problem was the building didn’t have parking,” he said. “After a little research, many buildings in Jackson don’t have parking. That’s generally the way buildings in downtown are.”He agreed to buy the structure sight unseen after he and his team had researched the facility. As for the parking, he said he would figure it out.“I was able to overcome the hesitation because it was in an Opportunity Zone and because it’s historic,” he said. “It’s very hard to make the economics work if you don’t have incentives because construction costs are so high… Historic [tax credits] and Opportunity Zone [incentives] help you cross that hurdle.”After buying that building, Bhavanasi’s broker, Jeff Speed, told him about the Pinnacle Building, which would soon be up for sale.The sun sets behind the Pinnacle Building in downtown Jackson.(WLBT)He visited the facility during a second trip to Jackson and was thoroughly impressed. “I went into the lobby, and I was stunned. It was beautiful. These kinds of buildings you only see in New York,” he said. “I said if it was available, and I get a shot, I’m going to buy it.”Bhavanasi is expected to add more to his portfolio in the coming weeks after submitting the high bid for the Regions Plaza during a public auction last month. The building went for just under $3 million.Bhavanasi said the 345,000-square foot, 22-story building is more than 60 percent leased out, and he’s got additional potential tenants in the works. Meanwhile, the Pinnacle building boasts 200,000 square feet, with an additional 60,000 square feet under its parking garage.He is investing between $6 million and $7 million on improvements to both of those facilities. “People need to see things happening. So, I’m working on many improvements… landscaping, painting the parking lot – these are the things I’m doing already,” he said.As for the Deposit Guaranty, plans for the apartments are still being drawn up. “We’re probably four months away from the final plans,” he said. “I want to complete those… by the end of 2027.”Bhavanasi also is busy on the tenant front, having already inked a deal to bring a new tea bar to the Pinnacle, while talks are about to wrap up on a new coffee shop for Regions.Downtown Jackson Partners President Liz Brister announced ‘Sippsi Good Tea would be moving to the Pinnacle last month.As for the coffee shop, Bhavanasi said it’s too early to divulge the name but said he would once the lease is signed. “We’re almost there. It’s going to happen.”He said amenities like those, coupled with improvements to Jackson’s water system and the expansion of Capitol Police, will likely play a major role in drumming up interest in downtown. He also believes the state’s decision to do away with the income tax will also be beneficial.Regions Plaza next to One Jackson Place in downtown Jackson.(WLBT)Bhavanasi said that even so, security remains one of the top concerns for people looking at downtown, adding that the recent shooting in the hours after the Hal’s St. Paddy’s Parade didn’t help.[READ: Authorities detail ‘chaos’ leading to Jackson mass shooting that left one dead and 7 injured]To help alleviate that concern, he’s planning to bring on additional 24-hour security, as well as 24-hour property management.“Crime can happen anywhere… You see it across the country. I have shopping centers, and I have stores broken into [in all demographic areas],” he said. “What does that tell you? There’s no pattern anymore. I think it’s a nationwide problem.”Want more WLBT news in your inbox? Click here to subscribe to our newsletter.See a spelling or grammar error in our story? 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