Ponte Vedra Seashore-based developer InLight Actual Property Companions deeded its 39.3-acre Commonwealth Logistics Middle property underneath improvement to Denver funding firm Ares Administration Corp.
By way of AIREIT Commonwealth Logistics Middle LLC, Ares Administration LLC paid $8.9 million for the land June 30, based on the deed recorded July 1 with the Duval County Clerk of Courts.
InLight Actual Property Companions owned the property by means of Commonwealth Avenue Jacksonville Propco LLC.
“That is extra of an funding enterprise with Ares than a sale,” stated InLight Managing Companion David Burch in an e-mail July 2.
“Deeding the property to the brand new LLC is a part of the construction we agreed to with Ares. We’ll proceed because the developer and deal with leasing with Cushman and Ares by means of development completion,” he stated.
Cushman & Wakefield Managing Administrators Tyler Newman and Jacob Horsley are representing Commonwealth Logistics Middle, which is scheduled for supply for tenant build-out within the second quarter of 2023.
The property is 7489 Commonwealth Blvd. and 1700 Imeson Street in West Jacksonville.
“The market circumstances actually boil down to at least one factor: uncertainty about future rates of interest, Burch stated.
“That’s triggered the funding market to tighten considerably, with many institutional traders saying that they’ll largely take the summer season off and re-evaluate after Labor Day.”
Burch stated the web impact is that capitalization charges for gross sales have widened about 50 foundation factors, or 0.5%, “for good core product like this property.”
The site plan for Commonwealth Logistics Center.
The capitalization rate indicates the rate of return that is expected to be generated on a real estate investment property.
“The development market, however, remains very competitive because tenant demand remains robust. It may be 10% off the peak of 4 months ago, but it’s still 50%+ above pre-Covid levels.”
As a result “we are continuing to pursue good land and redevelopment sites.”
InLight bought the Commonwealth and Imeson property April 5 from N.G. Wade Investment Co. for $3.95 million.
It has been developing the property as Inlight Industrial at Commonwealth.
The city issued permits June 30 for Dana B. Kenyon Co. to build the foundations for two warehouses at a combined cost of $3.4 million.
The city issued a permit for site clearing and site work May 17 at a construction cost of $4.88 million.
The city is reviewing permits for construction for Commonwealth Logistics Center totaling 502,250 square feet of space at a cost of $30.2 million, permits show.
The buildings comprise:
• The 230,060-square-foot Building 1 at 7489 Commonwealth Ave. at a foundation cost of $1.54 million and a building cost of $12.28 million.
• The 272,190-square-foot Building 2 at 1700 Imeson Road at a foundation cost of $1.87 million and construction cost of $14.53 million.
Both are designed as multitenant structures.
Building 1 is a single-load warehouse and Building 2 is a cross-dock center.
Single-load, meaning there are dock doors on one side, is traditional warehousing.
As of March 31, Ares Management Corp.’s global platform had about $325 billion of assets under management, with about 2,100 employees operating in North America, Europe, Asia Pacific and the Middle East.
Ares was founded to pursue investment activities in leveraged loans, high-yield bonds, private debt, private equity and other types of investments.
After becoming an independent firm in 2002, it raised its first dedicated private equity and private debt funds.
In 2004, it created a specialty finance company, Ares Capital Corp., for corporate lending activities.
It launched its Real Estate Group in 2010 and became a publicly traded partnership in 2014.
In 2018, Ares completed its conversion to a corporation under Delaware law and was renamed Ares Management Corp.
In early 2021, Ares announced the launch of Ares Acquisition Corp., a special purpose acquisition company.
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