Town Center II, Southside Quarter could be fit for ‘Milan’

Project, matching McKesson, OK’d for city incentives.


An artist’s conception of an office building planned for Southside Quarter along Gate Parkway at southwest Butler Boulevard and Interstate 295.
An artist’s conception of an office building planned for Southside Quarter along Gate Parkway at southwest Butler Boulevard and Interstate 295.
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Two proposed office buildings planned on sites along Gate Parkway appear to be the primary candidates for Project Milan, a health care company.

Town Center II, by VanTrust Real Estate, and an office building at Southside Quarter each fit the specifications for Milan.

Both are the appropriate size, both await a lease by an anchor tenant and both are owned by their developers.

That means each is positioned for a quick start if needed.

Both are south of St. Johns Town Center along Gate Parkway, at southwest Butler Boulevard and Interstate 295.

Milan’s identity has not been announced, but it matches the description for McKesson Corp., a global supplier of health care products and services.

That announcement is expected within weeks now that tax incentives are in place.

City Council adopted a resolution Tuesday for a $700,000 Recapture Enhanced Value grant for Milan, described as an expansion of an existing company.

Milan proposes to lease and furnish a Class A office building that would be built in South Jacksonville.  Milan needs 90,000 to 95,000 square feet of space.

The capital investment in building-out and equipping the space is estimated at $28.5 million.

John Carey, executive vice president of VanTrust Real Estate, said Friday his group has presented the proposed Town Center II project to McKesson, but is not aware of a decision.

He said McKesson has not indicated it is Milan.

VanTrust recently agreed to lease its five-story, 160,000-square-foot Town Center I building to Availity LLC. The structure is under development at 5555 Gate Parkway.

VanTrust bought additional land to develop between 250,000 and 300,000 square feet of office space among Town Center II and III. Carey said VanTrust has flexibility with the square footage of each building.

Lane Gardner, managing director of Hines, said there has been a lot of interest in its Southside Quarter office, retail and housing development, but he cannot discuss any prospects.

Hines said office sites in the first phase include up to two 125,000-square-foot build-to-suit structures that would be available to office tenants with signage opportunities and parking.

A McKesson spokeswoman said Friday the company regularly reviews its real estate footprint.

She said McKesson was “evaluating our options in the Jacksonville area as a normal course of business. It would be premature to discuss any speculation.”

San Francisco-based McKesson bought Jacksonville-based PSS World Medical Corp. in 2013.

PSS World Medical distributed medical products and services to physicians and caregivers throughout the United States.

McKesson took over PSS’s leased headquarters offices in a Southpoint building with 104,358 square feet of rentable space.

In 2015, a spokesman said the company employed about 500 office staff in Jacksonville, not much larger than the size of the workforce for Project Milan.

The city legislation says Milan committed to retain 428 jobs and create at least 10 more full-time positions by Dec. 31, 2021.

While it committed to the 10 jobs, it said it might create 50 by year-end 2022.

Facelift pending for rebranded Gates of Pottsburg Plaza

Hakimian Holdings is preparing to remodel the facade of its recently acquired and rebranded Gates of Pottsburg Plaza.

Jacksonville-based Hakimian wants to invest at least $203,650 into remodeling the front of the shopping center at 23 University Blvd.

Coastal Contracting of North Florida Inc. is the contractor.

Hakimian bought Pottsburg Plaza at northeast University and Atlantic boulevards in June and signed a lease with MCCI Medical Group for 11,000 square feet there next to Walgreens. That buildout is $1.36 million.

Through Gates of Pottsburg Plaza LLC, Hakimian paid $2.64 million for the property, comprising the 14,000-square-foot Walgreens and a 22,000-square-foot multitenant building.

Walgreens has a long-term lease. Other remaining tenants include a hair salon, Boost mobile and Hot Wok restaurant. Developer Ben Hakimian said previously about 8,000 square feet remains available for lease, and he foresees more medical tenants.

Records show the multitenant structure at 23 University Blvd. was built in 1953 and the Walgreens at 11 University Blvd. was developed in 1996.

Emerson and Philips getting Gate Express Carwash

The city and the St. Johns River Water Management District are reviewing plans for the Gate Express Carwash at the Shops of Philips at Emerson Street and Philips Highway.

The 4,375-square-foot car wash is planned on 2.18 acres at 3100 Emerson St. at the corner next to Wendy’s. Prosser Inc. is the civil engineer.

Gate Petroleum Co. is developing the chain of car washes.

[email protected]

@MathisKb

(904) 356-2466

 

 

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