Dallas-based Hillwood tells the city in its Q4 report that prospects want retail and warehouse projects at AllianceFlorida
During the last quarter of 2021, Hillwood was working on at least four distribution projects, including two of at least 1 million square feet, and received five inquiries about selling acreage of 5 to 50 acres at AllianceFlorida at Cecil Commerce Center.
The prospects are part of Hillwood’s fourth-quarter activity report to the city.
The report covered Oct. 1-Dec. 31, 2021. The city released it May 31.
As the master developer of the city-owned West Jacksonville business park, Dallas-based Hillwood is required to make quarterly reports to the Jacksonville Office of Economic Development.
In this fourth-quarter report, Hillwood said it continued discussions, which started in the second quarter of 2021, with a prospect interested in about 250,000 square feet of distribution space. The prospect said it wanted to buy about 25 acres to develop the facility.
Hillwood said it received and responded to preliminary inquiries from brokers representing prospects and clients interested in large amounts of distribution space. They seek:
• 1.5 million to 2 million square feet (and is considering multiple East Coast markets).
• 1 million square feet.
• 450,000 square feet.
Hillwood also received and responded to preliminary inquiries from brokers and a developer representing clients interested in buying:
• 30-50 acres for a distribution facility.
• About 28 acres comprising all of Parcel R, at southeast Normandy Boulevard and POW-MIA Memorial Parkway, for a retail and mixed-use facility.
• 10-20 acres for distribution operations; Hillwood responded to a letter of intent.
• 5-10 acres for a retail facility; Hillwood was negotiating a letter of intent by year-end.
Hillwood did not identify the prospects or brokers.
Distribution space is one of the area’s hottest commodities, according to industrial market reports from real estate firms. Many companies are leasing warehouse space for e-commerce storage and delivery.
Also, Hillwood reported that the city issued a temporary certificate of occupancy Sept. 30 for the Amazon.com build-to-suit facility on Parcel F.
Hillwood said it expected to receive the full certificate of occupancy in early 2022.
Hillwood said in a previous report that it executed a long-term lease in January 2021 for the Seattle-based e-commerce retailer, which is building a 278,237-square-foot center.
Hillwood is the owner of the development at 13450 Waterworks St. on Parcel F at southwest POW-MIA Memorial Parkway and Waterworks Street.
Amazon.com says sortation centers are “midmile” delivery centers in which the company sorts customer orders by ZIP codes before handing off to delivery partners for final delivery.
Amazon already operates a 1 million-square-foot fulfillment center in AllianceFlorida.
Hillwood Executive Vice President Dan Tatsch said May 31 that he believed Hillwood received the permanent certificate of occupancy at the end of February.
Hillwood won a competitive bid in 2009 to become the master developer of the 4,474-acre Cecil Commerce Center, which is a portion of the former Naval Air Station Cecil Field owned by the city.
Its fourth-quarter report has a deadline of 150 days while the first, second and third are due within 90 days.
That means the first-quarter report is due by the end of June.
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