Dallas-based developer Hillwood told the city it was eliminated by a prospect for an up to 2 million-square-foot industrial lease because of infrastructure timing.
As the city’s master developer for AllianceFlorida at Cecil Commerce Center, Hillwood provides quarterly activity reports.
Hillwood provided its fourth-quarter report for Oct. 1-Dec. 31, 2023.
In the report, Hillwood said it continued its discussions, which started during the third quarter, with a prospect interested in leasing 1.2 million to 1.5 million square feet of industrial space.
During the fourth quarter, the prospect delivered a written Request for Information to Hillwood that provided an updated size requirement of 1.5 million to 2 million square feet, “as well as details about the prospect’s electrical and water-supply requirements (both of which were very large),” the report said.
Hillwood wrote that JEA, the city’s utility, “indicated that satisfying the prospect’s electrical & water requirements would require the construction of new infrastructure, which could not be completed within the prospect’s required time frame.
“Hillwood conveyed this information to the prospect. As of the end of Q4, the prospect had eliminated AllianceFlorida based on timing considerations.”
Hillwood did not provide further details.
In November, civil engineer BGE Inc. applied to JEA for a service availability determination for a 1.5 million-square-foot “food-grade manufacturing company” on Parcels L and M at 650 Waterworks St. in AllianceFlorida at Cecil Commerce Center.
The two parcels total about 261 acres, but it was not clear whether the project would need both parcels or parts of each.
JEA issued a service availability letter Nov. 21 that said the potable water connection was “currently unable to meet the demand.” It outlined other connection conditions.
The project was not identified.
In other marketing activities specific to the fourth quarter, Hillwood said:
• It received an inquiry from a developer interested in buying a portion of Parcel 8, north of the Wayfair distribution center, as part of a land assemblage for a multifamily development. It provided no further details.
• It received and responded to a preliminary inquiry from a broker representing a prospect interest in leasing 600,000 square feet to 1 million square feet of space for “automated distribution.”
• It received and responded to a request for proposals from a prospect interested in leasing about 400,000 square feet of manufacturing space.
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 in West Jacksonville.
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.