Hazel Street Industrial sees opportunity for smaller warehouse tenant spaces

The Miami Beach company is developing Park 295 Landing at the entrance to Park 295 Industrial Park in North Jacksonville.


Miami Beach-based Hazel Street Industrial designed Park 295 Landing, a 101,000-square-foot speculative building at Ignition Drive and Duval Road near Interstate 295. It sits at the entrance to Park 295 Industrial Park.
Miami Beach-based Hazel Street Industrial designed Park 295 Landing, a 101,000-square-foot speculative building at Ignition Drive and Duval Road near Interstate 295. It sits at the entrance to Park 295 Industrial Park.
  • Columnists
  • Mathis Report
  • Share

Hazel Street Capital, which is rebranding to Hazel Street Industrial, expects to complete Park 295 Landing, its first Jacksonville project, in the fourth quarter of 2025.

The Northwest Jacksonville site is at southwest Interstate 295 and Duval Road, near Jacksonville International Airport as well as JaxPort and I-10 and I-95. It sits at the entrance to Park 295 Industrial Park.

Miami Beach-based Hazel Street designed the 101,000-square-foot speculative building for four 25,000-square-foot tenants with the flexibility for two 50,000-square-foot tenants.

Robert Fitzgerald

Co-founder and Managing Partner Robert Fitzgerald said Nov. 13 the suites will include 1,300-square-foot office spaces and the tenant units will be painted and lighted.

 “Our focus is delivering the best product for this size range that these tenants have available in the market,” Fitzgerald said.

In Jacksonville, he sees a market with strong economic fundamentals and a tight supply for space in its target tenant market.

He also says tenants in that size range move quickly to lease space and start operating.

“We want someone to walk into our space and see themselves operating in it,” he said.

“And we want to get people into the building as soon as possible.”

Hazel Street expects demand from service-based businesses, such as building supply and HVAC companies that use the space for headquarters, storage and distribution.

Fitzgerald also anticipates demand from smaller regional third-party logistics companies, regional distributors and import-export businesses, given the location.

“When we look out in the market, we see that those tenants usually are constrained to older vintage buildings that aren’t functional for their use and for their tenancy, and a lot of the new industrial buildings that are coming online are trying to target larger tenants,” Fitzgerald said.

“We have seen that theme throughout the past five years where the majority of the new development targets the 100,000-square-foot-plus tenant.”

The site plan for Park 295 Landing, which will sit at the entrance to Park 295 Industrial Park at Ignition Drive and Duval Road near Interstate 295 in Jacksonville.

Fitzgerald said Hazel Street intends to attract the underserved tenant in the smaller size “with new Class A functional space that is designed properly for their use.”

Hazel Street Capital LLC and investment partner Faropoint paid $1.743 million Nov. 1 for the Park 295 Industrial Park property where it is building what permits show is a 101,307-square-foot building.

Faropoint is a real estate investment manager based in Hoboken, New Jersey.

Through FP-Hazel Park 295 Owner LP of Hoboken, Hazel Street and Faropoint bought 7.58 acres from Northpoint Development LLC of Kansas City, Missouri.

NorthPoint Development is the developer of Park 295 Industrial Park. It sold the land to Hazel Street through NP Jacksonville Industrial LLC.

Park 295 Industrial Park in Northwest Jacksonville with the adjacent Park 295 Landing warehouse planned at the entrance.

FP-Hazel Park 295 Owner LP was registered with the state Sept. 12, 2024, with the Hoboken address.

The sale comes as the city issued a site-clearing permit Oct. 31 for Hazel Street to clear land to build Park 295 Landing. 

It is east of the four completed buildings in Park 295 Industrial Park that Northpoint developed. 

ARCO Design/Build is the contractor for the almost $3.64 million project to clear the property at 2555 Ignition Drive and to build Park 295 Landing.

BGE Inc. of Jacksonville is the civil engineer and landscape architect. ECS Florida LLC of Jacksonville is the environmental consultant and geotechnical engineer.

The city received civil engineering plans July 15 for Hazel Street to develop the proposed Building A.

The city issued a concurrency reservation certificate May 31, identifying Hazel Street Capital LLC as the developer and prospective buyer of the land from NP Jacksonville Industrial LLC.

JEA issued a service availability determination letter May 7 for the project. 

Fitzgerald said the group is keeping the investment amount confidential.

About Hazel Street

James Ryan

Florida Division of Corporation records show Fitzgerald and James Ryan registered Hazel Street Capital LLC with the state April 8, 2024.

Fitzgerald said they are moving the domain to Hazel Street Industrial and will be doing business under that name.

Fitzgerald and co-founder Ryan previously worked together at Iconic Equities Group, which Fitzgerald said he helped to launch about five years ago. Before that, Ryan was with EQT Exeter, which buys, develops, leases and manages industrial, mulitfamily, office and life science properties.

The website for Iconic Equities Group – IconicEquitiesGroup.com – previously listed Fitzgerald as director of acquisitions and Ryan as director of asset management and construction.

“During our time at Iconic, we kept seeing this theme of tenants in this size range not having available Class A space,” Fitzgerald said.

“After covering Florida for the past seven years, we launched Hazel Street to prove out the thesis that tenants in this size range will gravitate toward class A space that is not only designed for their specific use, but space they can take pride in occupying,” Fitzgerald said.

Fitzgerald said Newmark Phoenix Realty Group Senior Vice Presidents Bryan Bartlett and Richard Antczak will represent Hazel Street in tenant negotiations.

Bartlett represented Hazel Street and Faropoint in the purchase.

Antczak said May 31 the 7.5-acre Building A site was under contract for sale. He represented NorthPoint in the property sale.

Before the sale, Park 295 Industrial Park owner NorthPoint planned five buildings totaling about 1.7 million square feet of industrial space on its 139 developable acres.

The first four buildings, totaling 1.6 million square feet of space, are developed and leased.

Through NP Jacksonville Industrial LLC, NorthPoint paid almost $4.77 million in August 2018 for the park property.

Antczak and Newmark Phoenix Realty Group President and principal John Richardson and Senior Vice President and principal Ladson Montgomery are the agents and the landlord representatives for NorthPoint.

Fitzgerald said Hazel Street is under contract on a few other properties in the state and is assessing more in Jacksonville.

“We are absolutely assessing more sites in Jacksonville and hopefully this is the start of a long-term development process throughout Jacksonville.”

 


 

×

Special Offer: $5 for 2 Months!

Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.