Source: JaxUSA Partnership
For the third time recently, an industrial portfolio has traded in JAX. The latest was Cabot Properties’ exit of the market with the sale to NY-based DRA Advisors of about 924k SF of warehouse-distribution space in five buildings around town, four up at Alta Lakes and one at Flagler Center, plus some 16 acres at Alta Lakes.
Earlier in January, MDH Partners of Atlanta paid $54.6M, or $42/SF for seven buildings and 1.3MSF of warehouse space around Imeson Park on the north side of town and Boston-based STAG Partners paid $34.3M of about $34/SF for seven area buildings.
Karen Brune Mathis of The JAX Daily Record has the article on all three here.
An unnamed company is seeking incentives totaling some $8.3M from the state and city for the proposed construction of a 1 million square foot distribution center that could be built at city owned Cecil Commerce Center in Jacksonville’s Westside submarket.
The project sounds very similar to the Amazon distribution center that was announced earlier this year, which was being referred to as Project Rex when they were at this stage of the process. There is a strong possibility that the company behind Project Vero could be Amazon, who has built more than one distribution center in the same market before. In fact, it is somewhat common for Amazon to build one distribution center to pick, pack and ship smaller items, and another to process larger items, such as furniture, sporting equipment, TV’s and other larger consumer products.
The Cecil Commerce location would be about 23 miles south of the location that was already announced, which is at 12900 Pecan Park Road, right off I-295 and just south of the Airport.
There is a lot of speculation regarding a project being referred to as “Project Rex”, which is seeking $18.4M in state and city incentives to locate a business in the area. The company promises to bring 1,500 jobs to the area, and estimates the payroll to be upwards of $51M. The development cost is estimated at $200 million.
Here are some of the facts leading to people to speculate that Project Rex is Amazon:
BMW of North America just announced that it will spend over $30M to construct a 450k SF Distribution Center (DC) within Westside Industrial Park, a park owned and managed by Pattillo. The DC will replace an existing, 210k SF facility already located there. The new facility will be located at 600 Imeson Road, and will be ready for occupancy in April 2017, and fully operational by October of 2017.
The Intermodal Container Transfer Facility (ICTF for short) that is currently under construction near the Dames Point JaxPort terminal is set to be “substantially complete” this month, according to senior JaxPort officials. The ICTF will provide increased efficiency for logistics companies shipping products thru Jacksonville. An ICTF allows for the transfer of TEU’s from large container ships to rail lines in a much more efficient manner, which will in turn make Jacksonville a more attractive place for logistics firms to do business. Expect increased activity in the Northside industrial submarket in coming months following the completion.
Calavo Growers, an international avocado processing company, says it will bring 262 new jobs over the next five years to Green Cove Springs in Clay County, in the southwest section of the JAX metro area, where the California-based company just leased a 208k SF distribution facility formerly occupied by Food Lion. Clay County beat out a competing location near Atlanta. The company has $782M in annual revenue according to its 2014 annual report and an article from Carole Hawkins of The JAX Daily Record.
The 6-year old (and just 22% occupied) NorthPort Logitics Center with 873k SF in Northeast JAX and about 2.5 miles from the Blount Island Terminal, sold to Real Capital Solutions, a Colorado-based investor for $33M from Oakmont Industrial Group of Atlanta. It was built to take advantage of the burgeoning container shipping business that slowed considerably because of the recession. Karen Brune Mathis has the article for The JAX Daily Record.
Competing against three other locations in the Southeast, Anheuser-Busch’s Metal Container Corp. on the city’s Westside will expand in a $170M addition and hire 75 more persons. They make the aluminum “bottles” for Budweiser and Bud Light beers. Roger Bull and Drew Dixon of The Florida Times-Union have the story here.
After buying PSS World Medical in 2013, McKesson has decided to close its Westside warehouse where it employed some 16 persons, and consolidate its distribution function into a Chicago location. Karen Brune Mathis has the story for The JAX Daily Record.