Hillwood Investment Properties continued to pursue “Project X” in the second quarter, a deal described as a potential 600,000-square-foot distribution center at Cecil Commerce Center.
Hillwood, Cecil’s master developer, told the city Wednesday it engaged in two rounds of proposals and counterproposals about the project.
The prospect is interested in a build-to-suit distribution center of 450,000 square feet that would be expandable to 600,000 square feet.
The prospect, identified only by its code name, called for a “best and final” proposal to be submitted in mid-July. Hillwood Senior Vice President Dan Tatsch said Wednesday the proposal was submitted, but said he could not disclose the next step in the process.
Hillwood’s quarterly report to the city covers April 1-June 30. The company’s Senior Vice President Dan Tatsch could not be reached Tuesday afternoon by phone or email to say whether the proposal was submitted.
In the first quarter, January-March, Hillwood also referred to a “Project X,” but described it as a larger center.
Hillwood is the city’s master developer at Cecil Commerce Center, a former naval air station. It is developing the property as AllianceFlorida at Cecil Commerce Center.
One of its largest deals at the center is GE Oil & Gas, which is completing work on a 510,000-square-foot manufacturing plant. Hillwood’s quarterly report said GE began construction of office areas, expanded the electrical distribution within the facility, activated the paint facility and installed its HVAC systems during the quarter.
While weather delayed the site-paving operations, GE is focused on completing the majority of its improvements by year-end, the report said.
Other highlights in the report included that Hillwood:
• Continued discussions with a broker representing a prospect who wants to lease about 600,000 square feet of distribution space, up from the need for 500,000 square feet in the first quarter.
• Engaged in preliminary discussions with the city and JAXUSA Partnership, which is the JAX Chamber’s economic-development division, about an undisclosed prospect seeking 600,000 square feet of space as part of what Hillwood understands is part of a multistate search.
• Engaged in preliminary discussions with JAXUSA Partnership about an undisclosed foreign company potentially interested in establishing a manufacturing/distribution facility in Jacksonville and about an undisclosed prospect interested in a 50,000-square-foot facility.
• Received and responded to an initial inquiry from a prospect about developing a hotel in the AllianceFlorida area.
• Agreed to allow a site on Parcel J, in southern Cecil Commerce Center, to be proposed as part of the city’s direct pursuit of a confidential prospect seeking 65,000 square feet for an aviation-related use. The parcel is near Cecil Airport. Hillwood said the prospect required a relatively short lease term.
Meanwhile, a prospect seeking 300,000 square feet of space informed Hillwood it had selected another location in an existing building. The report did not specify where. Hillwood said it had proposed Parcel D, which is ready for development.
Tatsch said he believed the prospect chose a Jacksonville building, but is not certain. He said Hillwood does not typically receive full information on deals that no longer are considering Cecil Commerce Center.
Hillwood also received and responded to an initial inquiry from a company in the business of recycling waste material into a fuel source. But the prospect decided to pursue a different Jacksonville location it deemed a better fit for its “heavier industrial” requirements.
As master developer, Hillwood has a long-term contract with the city to develop up to 30 million square feet of industrial and retail space at the 4,474-acre Cecil Commerce Center in West Jacksonville.
Hillwood must make quarterly reports to the city. It has a 90-day deadline for the first, second and third quarters and a 150-day deadline for the fourth quarter.
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