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Transactions signal Blue Steel Development’s continued Central Florida expansion
In December of 2016, Blue Steel Development LLC purchased 71.5 acres of vacant land at Crossroads Commerce Center and hired JLL to oversee the marketing efforts to attract users to purchase build-to-suit buildings. The JLL team secured build-to-suit-for-purchase agreements with NewSouth Window Solutions and Colonial Grocers for new industrial facilities.
The completed transactions are as follows:
NewSouth Window Solutions, Tampa's leading replacement window and door provider, closed on the $14.3 million purchase of a 238,094-square-foot, built-to-suit facility with cross docks. The JLL team of Ryan Vaught, John Dunphy and Robyn Hurrell represented the seller, Blue Steel Development, in the deal.
Colonial Grocers, a wholesale grocery distributor that services over 3,000 convenience stores and gas stations throughout the state of Florida, closed on the $7.5 million purchase of a 112,800-square-foot, built-to-suit facility with front-load access. JLL's Ryan Vaught, John Dunphy and Robyn Hurrell represented the seller, Blue Steel in the transaction, while the JLL team of Gary Godsey and Caleb Lewis represented the buyer, Colonial Grocers.
With the completion of these transactions, Crossroads Commerce Center is now 50% sold and occupied. Due to the strong interest the industrial park has generated, Blue Steel has already built pads for two additional buildings, one totalling 215,434 square feet and another totalling 77,760 square feet with cross-dock and front-load dock configurations, respectively.
Building on the momentum generated from the success of Crossroads Commerce Center, Blue Steel has entered into a joint-venture agreement with Pacific Coast Capital Partners (PCCP) and have acquired a 155-acre re-development site at 5300 Allen K. Breed Highway in Lakeland, Florida for $5 million, with plans to redevelop it as Key Logistics Center. Key Logistics will be comprised of 1.4 million square feet of speculative warehouse and industrial space, starting with a 520,000-square-foot, cross-dock dock facility that could be expanded to more than 1 million square feet under a single roof, plus a second building of 350,000 square feet. First phase development costs are estimated to be $35 million. Blue Steel has selected JLL to handle marketing and leasing for both buildings that began construction the first week of December.
"Blue Steel's decision to expand outside of Tampa is a testament to a robust demand for state-of-the-art industrial space in the region," said JLL's Ryan Vaught. "Currently, there are no industrial spaces above 400,000 square feet available across Central Florida. Given the high demand, lack of available big-box space and significant increase in the velocity of large transactions in this submarket over the past 12 months, the decision to build Key Logistics Center on speculative development is a testament to the strength of Central Florida's industrial market."
JLL's Q3 Industrial Insight report found that Tampa Bay and its surrounding areas continue to be a hotbed of industrial activity thanks to strong market dynamics, a large employment pool, relatively inexpensive land and prime locations with easy access to major interstate highways. With strong job growth in the region and consistent demand for industrial space, JLL predicts that warehouse leasing activity will continue to remain strong into the next year.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the second quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
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