Executive Summary

Colliers has been engaged by Midwest Industrial Funds to arrange joint venture equity for the development of Westlake Site 3. The Project will consist of  two rear-load facilities and will total 529,780 SF when finished.  Best-in-class design features will be incorporated throughout the project, including concrete tilt-wall construction, two curb cuts, off-dock trailer storage and ample auto parking. 

Joint Venture Request

Sponsor is seeking a 95/5 limited partner (“LP Investor”). The total equity commitment from the LP Investor will be $26.01M on a $27.38M total equity requirement.

• 7.14% non-trended YOC supported by multiple lease comps provides capital the opportunity to capitalize the project at over 150 bps above stabilized cap rates.
• At sub 2.3% vacancy, Jacksonville rents have grown at double digit rent growth for the trailing three calendar years with no slow down in sight. 
• Diversity within the site plan, due to varied building depths, allows for an asset management strategy targeting tenants from 60,000 SF up to 529,780 SF. 
• The Project’s location within Westlake Industrial Park is closer to I-295 providing quicker turns and lesser transportation costs than other new developments in Westlake.
• Currently Jacksonville has over 12MSF of tenant demand in the Market (“Tenants in the Market”) with significantly less supply than that in the pipeline.  
• With only 4.5MSF available today or planned to break ground in the near term (of which 1MSF has leases out for signature), demand is outpacing available supply at a factor of 3:1.  Moreover,  61% of the supply pipeline is deeper than 260’ deep resulting in lesser competition for a multi-tenant asset management strategy.

• Excellent access to I-95, I-295, I-10 and US-1. The Project also has 3 Railroads, 4 deep-water marine terminals and an international airport all within a 30 minute drive. 
• Located in the heart of the Southeast U.S., JAXPORT is Florida’s No. 1 container port by volume and one of the nation’s top vehicle-handling ports.
• Jacksonville offers a 47-foot deep-water shipping channel, two-way ship traffic with no berth or terminal congestion, and same-day access to 98 million U.S. consumers.
• With Foreign Trade Zone No. 64, several major intermodal services, outstanding highway, and rail connections, Jacksonville offers a combination simply unmatched in the Southeastern United States.
• Jacksonville offers one of the most business-friendly environments in the country. Saving users and their employees money with no state or local personal income tax and no inventory tax.

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