Dallas-based developer Hillwood reports that it continued discussions in the first quarter of 2024 toward two large potential leases in West Jacksonville.
As the city’s master developer for AllianceFlorida at Cecil Commerce Center, Hillwood provides quarterly activity reports.
In Hillwood’s first-quarter report for January-March 2024, Hillwood said it continued two sets of discussions:
• It continued discussions that began in the fourth quarter of 2023 with a prospect interested in leasing 600,000 to 1 million square feet of space for “automated distribution.” As of March, the prospect was evaluating its size and requirements.
• It continued discussions that began in the fourth quarter with a prospect interested in leasing about 400,000 square feet of manufacturing space. The first-quarter discussions involved a more detailed review of the prospect’s requirements and timeline and continued as of March.
In other marketing activities during the first quarter, Hillwood:
• Received and responded to a broker representing a client interested in buying 50-85 acres for industrial development.
• Received an inquiry from a broker representing a client interested in buying all of Parcel V, about 20 acres, for a nonindustrial development.
• Received an inquiry from a broker representing a client interested in buying about 20 acres for retail or mixed-used development.
• Received an inquiry from a developer interested in buying 8 to 10 acres for industrial development.
The report did not identify the brokers, prospects or clients.
Hillwood’s report did not refer to a 562,500-square-foot speculative distribution center that the city and Hillwood are considering.
City utility JEA received a service-availability determination request and the St. Johns River Water Management District is reviewing plans for the project, described on 46.91 acres on Parcel E.
That site is north of Normandy Boulevard at northwest POW-MIA Memorial Parkway and Finger Lake Street. It is east of Inspiration Avenue.
The city Office of Economic Development is the property owner and applicant. Hillwood is the operator and co-applicant.
BGE Inc. in Jacksonville is the civil engineer. SES Environmental Resource Solutions LLC of Jacksonville is the environmental consultant.
Hillwood Executive Vice President Dan Tatsch said May 24 a decision is pending for the development.
“That permit filing is merely intended to shorten our delivery timing if we do decide to move forward,” Tatsch said June 30.
Industry observers also have mentioned AllianceFlorida as a potential site for a proposed $100 million, 450,000-square-foot autonomous vehicle manufacturing and assembly plant on about 40 acres that Holon is considering.
Holon is an autonomous, fully electric vehicle brand spun off from Germany-based Benteler Automotive Group.
The Jacksonville City Council agreed June 11 to offer $7.7 million in incentives for the project.
Tatsch had no comment about whether AllianceFlorida is a potential site for that deal.
The master development agreement calls for Hillwood to build-out AllianceFlorida on about 4,499 acres of city property, the former Naval Air Station Cecil Field, off Normandy Boulevard and 103rd Street.
It is designed for the city to share in the profits. As the master developer, Hillwood typically secures the tenant, buys the land from the city, develops the project and then sells the property to an investor.
The agreement is designed for the city to share in the profits. Hillwood typically secures the tenant, buys the land from the city, develops the project and then sells it, sharing the proceeds with the city.
By the third quarter of 2023, Hillwood’s total profit-sharing payments to the city reached $10 million since its 2010 agreement to serve as master developer.
Tatsch said previously the checks quantify the success of the concept.
He said in January 2024 that Hillwood has developed about 3.225 million square feet at AllianceFlorida.
That includes the two 1 million-square-foot centers for online retailers Amazon.com on about 86.5 acres and home-furnishings company Wayfair on 80 acres.