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Atlanta-based Rooker can move forward with delayed plans to possibly more than double the size of proposed warehouse space on Jacksonville Aviation Authority surplus industrial property in North Jacksonville.
At its March 24 board meeting, the JAA board unanimously agreed to an amended lease agreement with the real estate developer to allow it to develop a minimum of 400,000 square feet of Class A warehouse space, up from the previously approved 288,000 square feet.
The lease also increases acreage for the project from 24 to 89 acres, including developing associated parking, circulation roads, an access drive off of Wheels Road and stormwater control facilities within the premises.
Rooker intends to develop the project through RP Perimeter West LLC.
Its original ground lease was executed July 1, 2023.
JAA Chief Developer Jay Cunio told the board the project could manifest as one large facility or two smaller ones. He said JAA staff recommends building one.
He said the original lease would have resulted in about $300,000 of annual rental revenue. The new agreement means it could be between $653,000 to $783,000 based on what a survey says how much of the site can be developed.
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 rent will now 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.
City utility JEA began reviewing a March 12 service availability determination request for a 650,000 square feet at the site for what is called the Wheels Road Warehouse. It denied the request March 13 because “flow demand assignments” did not match those of JEA or Miami Dade. The request was denied again March 21 because it did not include employee count or number of loading bays.
Why the delay?
“Unforeseen issues with permitting, along with the discovery of a conflicting JEA utility line and easement, have delayed the project,” the JAA 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.
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.
Editor at Large Karen Brune Mathis contributed to this report.
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