Toronto-based First Gulf submitted civil engineering plans to the city April 25 for its proposed two-building, more than 400,000-square-foot industrial park in West Jacksonville.
It would be its first U.S. Industrial park at a previously estimated investment of $50 million.
Jacksonville-based England-Thims & Miller Inc. is the civil engineer for the project by FG Jacksonville I LP of Toronto.
It also filed plans with the St. Johns River Water Management District.
The project is along Pritchard Road on Westlake Parcel 4 in Westlake Industrial Park.
While drawings vary, the April master site plan shows Building 1 at 109,200 square feet and Building 2 at 295,920 square feet, totaling 405,120 square feet. The site is 53.87 acres.
First Gulf paid $5.6 million in July 2023 for the West Jacksonville property where it said it plans to develop its first U.S. industrial park at an anticipated investment of more than $50 million.
Through FG Jacksonville I LP, First Gulf bought the land from Martel Holdings LLC of Elizabethtown, Pennsylvania.
In June 2023, Roman Brailovski, then First Gulf vice president of strategic initiatives and operations and the lead on its U.S. expansion, said the company intended to buy about 53.87 acres and develop two buildings totaling 407,250 square feet on Parcel 4 in Westlake Industrial Park along Pritchard Road. Brailovski has since joined Canadian Apartment Properties Real Estate Investment Trust as executive vice president of operations.
About 34 acres of the parcel can be developed.
First Gulf plans to develop two Class A industrial buildings that can be multi- or single-tenant, based on demand.
It hoped to start construction by the first quarter of 2024 for completion in the third quarter of 2024, although it now is the second quarter.
“We are exporting our industrial development platform, and we’ve chosen Jacksonville to be our first market,” Brailovski said in June.
“We believe in the big-picture dynamics of the Florida market and anticipate that it will continue to underpin the growing demand for industrial real estate,” he said.
Brailovski said in June that Jacksonville stands out along the Southeast U.S. coast “because it has a compelling microeconomic narrative of population and labor market growth, transportation, and the commitment of local authorities to grow the port, as well as the positive reputation of the general business environment.”
It has not named the industrial project but said it will be respectful of the Westlake name.
Brailovski said that based on metrics he has seen, the supply of industrial space coming onto the Northeast Florida market in 2024-25 will struggle to meet demand and the vacancy rate will remain low.
It now is 3.8% to 5.8%, according to market reports, and higher than its recent record lows as developers continue to build industrial and warehouse space in Northeast Florida.
“We are an experienced developer and are proposing best-in-class industrial product at Westlake which will help mitigate any concerns about market headwinds. The influx of supply is a natural response to market demand and strength in the last three to five years,” he said.
Brailovski said he expects logistics and warehousing tenants, given the site’s proximity to Interstate 295, I-95 and I-10, as well as its prominence on Pritchard Road.
He said First Gulf plans to grow its platform in Jacksonville and explore other opportunities in Central Florida and in the Southeast.
First Gulf bought the Westlake Industrial Park land from Martel Holdings LLC, led by Bill Martel, head of Hanover Cold Storage.
Martel Holdings LLC, based in Elizabethtown, Pennsylvania, bought the land in June 2022 from Atlanta-based Norfolk Southern Corp., through Westlake Land Management Inc., for $3.24 million.
DKC Lending FL LLC of St. Petersburg issued a $3.5 million mortgage the same day.
Brailovski said Colliers Executive Vice President Guy Preston worked with First Gulf to understand the market.
He said Preston and Colliers associate Seda Preston will represent First Gulf as its leasing team on the project.
Brailovski said Guy Preston also represented First Gulf in the purchase. Newmark Phoenix Realty Group Senior Vice President and Principal Bryan Bartlett represented Martel Holdings.
To make the deal work, Brailovski said First Gulf assembled a Jacksonville-based team that provided civil engineering, environmental due diligence, legal and design support.
“Together with our local consulting team and head-office support, we were able to complete our due diligence on the site rapidly and thoroughly,” he said.
Martel Holdings rezoned the vacant site to permit outside storage in connection with the proposed development.
First Gulf is the commercial division of the Great Gulf Group, which develops, constructs and manages residential, resort, recreational, commercial and industrial real estate across 20 markets in North America.
