Hillwood has reached an agreement to develop a 400,000 square foot build-to-suit distribution center in Jacksonville, Fla. for Laney & Duke Terminal Warehouse Co. Inc., one of the premier logistics companies in Florida. As part of the deal, Hillwood also purchased a 360,998 square foot building, located at 2855 Faye Rd. in Jacksonville, from Laney & Duke, which will now lease that facility.

"The timing of this deal is key and very opportunistic, as there is increased awareness of Jacksonville due to the recent MOL commitment at Jaxport," said Brian T. Duke, president of Laney & Duke. "The new build-to-suit will have ample space that will allow Laney & Duke to capitalize on the increased activity and market to potential customers, while meeting the additional space needs of our existing customers."

The site for the build-to-suit is in Norfolk Southern Railroad’s Westlake Industrial Park off of Pritchard Road on Jacksonville's Westside. The site features outstanding access to the Interstate 295 loop; to I-95, the major north-south connector on the East Coast; and to Interstate 10, the major east-west route through the southern United States. With the convergence of interstate highways, major railroads and Jaxport, Jacksonville has become a key distribution point for Florida, the fourth most populous state in the country.

Last year Tokyo-based Mitsui O.S.K. Lines Ltd. (MOL) signed a 30-year lease agreement with the Jacksonville Port Authority to establish, for the first time, cargo container service between the port and Asia. MOL will become the port authority's largest tenant in size, revenue and containers handled with its first East Coast terminal, a $200 million, 158-acre facility that is scheduled to open in late 2007 or early 2008.

“The Jacksonville market is one of the top distribution nodes in the country," said Gary Frederick, vice president of Hillwood Investment Properties. "Hillwood is excited to be able to work with Laney & Duke, a long-established industry leader in the market, and looks forward to exploring future development opportunities in Jacksonville."

The new facility in Jacksonville, Fla., is part of approximately 9.6 million square feet of commercial space currently under construction at Hillwood projects across the country, primarily at AllianceTexas in Fort Worth, AllianceCalifornia in San Bernardino, Victory in Dallas, and DeSoto Trade Center in Southaven, Mississippi.

Hillwood, a Perot company, is ranked as one of the top commercial real estate developers in the country and the top residential developer in Dallas-Fort Worth.