Atlanta-based Rooker appears to want to more than double the size of its proposed warehouse on Jacksonville Aviation Authority surplus industrial property in North Jacksonville.
City utility JEA is reviewing a March 12 service availability determination request for an increased size to 650,000 square feet for what is called the Wheels Road Warehouse.
Rooker intends to lease the land along Wheels Road, which connects to Duval Road at northwest Interstate 95 and I-295. The site is near Jacksonville International Airport and an Amazon fulfillment center.
Applicant Almond Engineering asks to update an existing JEA availability letter to accommodate a 650,000-square-foot building comprising warehouse and some office space.
JEA had issued a service availability letter Oct. 23, 2023, for Rooker to develop a 264,000-square-foot warehouse, and that was a change from previous plans for a 288,000-square-foot warehouse.
JAA board to consider amendment
The JAA board, which conducts the business and sets the policy for Jacksonville’s system of four airports, is scheduled to consider an amendment to the initial ground lease with Rooker for a larger warehouse on the full 89.5-acre parcel owned by the authority.
The board is scheduled to meet at 8:30 a.m. March 24 at the JAA Administration Building near Jacksonville International Airport.
Rooker Vice President Cason Bufe said March 19 that the company’s investment remains at least $20 million, per the lease. He said there was no project cost yet.
“That will depend on what size building we land on, so I don’t have a cost yet,” Bufe said.
“Our ground lease agreement stipulates that it’s a $20 million minimum.”
The lease amendment calls for a minimum of 400,000 square feet of Class A industrial warehouse space to include associated parking, circulation roads, an access drive off of Wheels Road and stormwater control facilities within the premises.
The rent now will start Jan. 1, 2026. The lease had called for it to begin when the project was completed or July 1, 2025, whichever was first.
The amendment says rent is no longer conditioned upon completion of the project. JAA retains the right to terminate the lease if the site work or construction has not started by June 30, 2026.
Also, the project now must be delivered by Dec. 31, 2027.
JAA management recommends approval.
On July 1, 2023, JAA and Rooker had agreed to a ground lease for about 24 acres of the 89.5-acre site to develop a speculative warehouse, proposed then at 288,000 square feet.
“Unforeseen issues with permitting, along with the discovery of a conflicting JEA utility line and easement, have delayed the project,” the JEA amendment says.
“Given the delays, along with additional improvements being required by COJ and JEA, Rooker approached Management with the request to expand the premises, modify the scope of the development to address current market conditions, and revise the delivery and commencement dates called for under the Lease,” it says.
It did not specify the additional improvements required by the city of Jacksonville.
“We started discussions with the Jacksonville Aviation Authority back in 2021,” Bufe said in October 2023. “We have been interested in developing one or more buildings on their surplus land since that time.”
Reasons for a larger project
JAA says that Rooker is a full-service real estate development, design and construction firm that specializes in the industrial segment of the market.
Rooker intends to develop the project through RP Perimeter West LLC.
Bufe said Rooker is designing the site for a 650,000-square-foot building to meet the needs of a prospective tenant “if we find a customer that needs that size.”
In any event, the size will be between 400,000 and 650,000 square feet.
“We are doing all this on spec,” he said.
“We are open to a build-to-suit deal if we find one.”
The site is east of International Boulevard and south of the Jacksonville International Tradeport industrial park.
“It is a proven location for Class-A industrial. The Jacksonville International Tradeport has been a high-performing industrial park for many years, but it is fully built-out,” Bufe said.
No tenants yet
Bufe said Rooker had no specific tenants now.
“We think that there is momentum in tenant activity in the bigger size ranges right now,” he said.
“The leasing has been slow generally this year in the last six months, slower than we would like, but I know there are a number of tenants in the market in all size ranges that are looking for space. We are hoping a lot of leases will get signed in the next 30 to 60 days.”
Bufe said tenant activity has been slower in leasing activity, but there are tenants in the market. He said Rooker has analyzed the market in terms of what is available and what tenants are seeking.
“And we think a larger ground lease and a larger building is justified in our analysis,” he said.
Bufe said that while Rooker hopes for opportunities to work further with the JAA, the company is focused on the Wheels Road land for now.
Rooker has been active in Jacksonville. It developed Perimeter West at northeast I-295 and Pritchard Road.
The company has one building now in Perimeter West. Bufe said the 185,000-square-foot building has leased 75% of the space, about 138,000 square feet, to HemaSource, a medical product supplier. About 47,000 square feet is available for lease.
Bufe said Rooker developed three buildings at Perimeter West and has leased and sold the first two.
“Our Jacksonville developments have worked well over the years,” he said.