The Mayor’s Budget Review Committee signed off April 22 on sending legislation to City Council for a $100,000 grant to support the $3.734 million renovation of a Northwest Jacksonville warehouse.
The legislation is expected to be introduced May 14 to Council.
Miami-based Mayfair Investment Partners LLC paid $13.25 million in July 2023 for the vacant 340,000-square-foot Roux Laboratories Inc. warehouse at 2210 Melson Ave.
Through Melson MZL LLC, Mayfair bought the 22-acre property from Roux Laboratories Inc., part of New York City-based Revlon Inc. Roux relocated to a smaller facility.
The warehouse was built in 1963 at West 12th Street and Melson Avenue, east of Edgewood Avenue North.
Palladius Income Fund SPE LLC of Austin, Texas, financed the deal with a $14.8 million mortgage.
The $100,000 Northwest Jacksonville Economic Development Fund Business Infrastructure Grant sent to Council “is a material factor for completing the scope of the improvements,” says the city’s legislative fact sheet.
That fact sheet says the 61-year-old facility needs to be renovated and upgraded to meet current standards.
It says Mayfair Investment Partners wants to subdivide the building to provide smaller rental spaces for two to three tenants rather than a single user.
The fact sheet says the site is within a Level 1 Economically Distressed Area.
Estimated investment
The estimated $3.734 million to bring the building to standards comprises $2.9 million for the roof replacement, $394,000 for asphalt replacement, $357,000 for exterior improvements and $83,000 for lighting improvements, according to a city project summary.
Mayfair Managing Partner Jonathan More said July 10, 2023, that his group would invest “north of 50% of what we bought the building for” into upgrades.
That would be more than $6.6 million for a new roof and asphalt, motion-activated LED lighting and more, he said.
More said the site has ample outdoor storage space.
“There is going to be a substantial investment in the property to make it at the forefront of B-plus properties,” he said, referring to older existing warehouses.
Mayfair prefers to lease to two to three tenants but said in July it would rent to a single user if one was interested.
More said the location is near the interstate system, which makes it accessible to logistics companies.
He said the market is strong for third-party logistics and regional distribution and the building also is workable for light manufacturing.
Miami brokers represented Mayfair in the transaction. Tyler Newman with Cushman & Wakefield in Jacksonville represented Revlon.
Mayfairip.com says that Mayfair, founded in 2013, is a real estate owner-operator that seeks “value-add investments and long-term asset appreciation of all asset classes.”
The site described the 340,000-square-foot industrial property in Jacksonville.
“The off-market opportunity is located on Jacksonville’s West Side industrial submarket just a 6-minute drive from multiple interstates and a short drive to JAXport,” it says.
Mayfair bought it “from a global products brand who owned the property for decades as a distribution center.”
It says the property has “attractive ceiling heights, efficient column spacing and abundant outdoor storage space.”
More said in July the warehouse had not been vacant for long after Revlon moved the functions to another property.
“They didn’t need it anymore and freed up a bunch of cash.”
A thriving market
The website describes Jacksonville's market environment as thriving from "migration growth, supreme intermodal transportation access and a business friendly environment."
"Industrial rents continue to grow and the future outlook remains positive," the site says.
“Mayfair is keen on investing further capital in Jacksonville and the Southeast generally.”
More said the purchase was its “11th or 12th deal in Jacksonville.”
More said Mayfair has industrial projects in mind, including leased, vacant and sale-leaseback opportunities.