JLL Capital Markets announced Feb. 7 that it has arranged $60 million in acquisition financing for a two-property, 2.01-million-square-foot industrial portfolio fully leased to Winn-Dixie in Jacksonville and in Hammond, Louisiana.
JLL said it worked on behalf of the borrower, Cannon TTM, led by Tyler Mateen, to secure the 10-year, fixed-rate CMBS loan.
The Jacksonville site at 5050 Edgewood Court is at southwest Edgewood Avenue and Beaver Street, north of Interstate 10 in West Jacksonville.
“Situated in prime industrial corridors, the properties provide easy access to major highways and airports serving the Southeast,” said the announcement from JLL.
“The Jacksonville location is 12 miles from Jacksonville International Airport in the Riverside submarket, while the Hammond site is equidistant to New Orleans and Baton Rouge. Both assets serve as mission-critical distribution centers for Winn-Dixie, a subsidiary of Southeastern Grocers (which is a subsidiary of Aldi).”
It’s unclear how the late afternoon announcement Feb. 7 that a consortium of private investors, led by CEO and President of Southeastern Grocers Inc. President and CEO Anthony Hucker, and C&S Wholesale Grocers acquired Southeastern Grocers and its Winn-Dixie and Harveys Supermarket banners from Aldi U.S.
Aldi U.S. bought Southeastern Grocers in March 2024.
The agreement includes the acquisition of SEG grocery and liquor store operations under the Winn-Dixie and Harveys Supermarket banners, comprising about 170 grocery stores in Alabama, Georgia, Louisiana, Mississippi and Florida, as well as the existing Winn-Dixie liquor store business.
Aldi said it intends to complete its plans to convert 220 Winn-Dixie and Harveys Supermarket stores to the Aldi format by 2027.
JLL said its Debt Advisory team was led by Senior Managing Director Jeff Sause and Associate Joshua Blank.
“This financing highlights the continued momentum of the CMBS market, especially for well-located industrial assets with strong tenancy,” Sause said in the release.
“The long-term occupancy by Winn-Dixie and strategic locations in growing Southeast markets made this an attractive opportunity for lenders. We’re pleased to have secured highly competitive terms that aligned with our client’s investment objectives.”
JLL Capital Markets said it is a full-service global provider of capital solutions for real estate investors and occupiers. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
Cannon TTM is a privately operated real estate investment and management company based in Los Angeles with a reach across selected regions of the United States in its holdings. Its real estate portfolio includes office, retail, multifamily and industrial assets.
JLL is a global commercial real estate and investment management company with annual revenue of $20.8 billion and operations in more than 80 countries. JLL is the brand name of Jones Lang LaSalle Inc.
Cannon Commercial Inc. bought the former Winn-Dixie Stores Inc. headquarters and distribution center Dec. 11, 2024, for $36.4 million.
Through JKFL Industrial LLC, Cannon bought the property at 5050 Edgewood Court from ZSF/WD Jacksonville LLC, which is in care of Zurich Alternative Asset Management LLC of New York City.
ZSF/WD Jacksonville LLC, then affiliated with Euclid Warehouses Inc. in New York City, bought it in 1999 for $40.79 million from Sunbelt-Dix Inc., based in New York.
It appears that Winn-Dixie Stores Inc. and First Union National Bank sold it in 1988 to Southeast Dix Properties Inc., which internally conveyed it to Sunbelt Dix Inc.
The property comprises 891,262 square feet of office and industrial space among seven buildings on 57.7 acres. Those include parking lots and vacant land.
Jacksonville-based Newmark Phoenix Realty Group Senior Vice President and Principal Ladson Montgomery and Senior Vice President Taylor Calfee along with the Newmark Capital Markets group represented the seller.
The hometown grocery store hasn’t been based there for years. The headquarters moved to Baymeadows in 2016, after a merger that created Southeastern Grocers, and the distribution operations are in leased space in far West Jacksonville.
Aldi previously said it would maintain those Baymeadows operations, which is unclear with the acquisition by Hucker’s group.
Jacksonville-based Winn-Dixie moved to town in 1944 as the Winn & Lovett Grocery Co. Corporate records show it operated along West Beaver Street before moving to 5050 Edgewood Court by 1954 and changing its name to Winn-Dixie Stores Inc. in 1955.