The city issued permits Oct. 13 for two shell warehouses for the Commonwealth Logistics Center at a construction project cost of $26.8 million.
Dana B. Kenyon Co. is the contractor for the warehouses, totaling 502,250 square feet on 39.13 acres at Commonwealth Avenue and Imeson Road in West Jacksonville.
Counting property purchase and preparation costs, the center is an investment of more than $39 million.
The city issued permits June 30 for Dana B. Kenyon Co. to build the foundations for two warehouses at a combined cost of $3.4 million.
The city issued a permit for site clearing and site work May 17 at a construction cost of $4.88 million.
The multitenant buildings comprise:
• The 230,060-square-foot Building 1 at 7489 Commonwealth Ave. at a building cost of $12.28 million. It is a traditional single-load warehouse, meaning there are dock doors on one side.
• The 272,190-square-foot Building 2 at 1700 Imeson Road at a construction cost of $14.53 million. It is a cross-dock center. Cross-docking is a logistics practice of unloading products from an incoming truck and immediately reloading into outbound trucks or trailers.
Ponte Vedra Beach-based developer InLight Real Estate Partners bought the Commonwealth and Imeson property April 5 from N.G. Wade Investment Co. for $3.95 million.
InLight Real Estate Partners deeded the property under development to Denver investment company Ares Management Corp.
Through AIREIT Commonwealth Logistics Center LLC, Ares Management LLC paid $8.9 million for the land June 30, according to the deed recorded July 1 with the Duval County Clerk of Courts.
InLight Real Estate Partners owned the property through Commonwealth Avenue Jacksonville Propco LLC.
Cushman & Wakefield Managing Directors Tyler Newman and Jacob Horsley are representing Commonwealth Logistics Center, which is scheduled for delivery for tenant build-out in the second quarter of 2023.
“This is more of an investment venture with Ares than a sale,” said InLight Managing Partner David Burch in an email July 2.
“Deeding the property to the new LLC is part of the structure we agreed to with Ares. We will continue as the developer and handle leasing with Cushman and Ares through construction completion,” he said.
“The market conditions really boil down to one thing: uncertainty about future interest rates, Burch said.
“The development market, however, remains very competitive because tenant demand remains robust, he said.
“We are continuing to pursue good land and redevelopment sites.”
