Jacksonville Sees Major Real Estate Shift with $36.4 Million Acquisition
In a significant move for the local real estate market, Cannon Commercial Inc., a private investment and management company based in Los Angeles, has acquired the former headquarters and distribution center of Winn-Dixie Stores Inc. for $36.4 million. The deal was finalized on December 11, with the property, located at 5050 Edgewood Court in West Jacksonville, being bought through a subsidiary, JKFL Industrial LLC.
Background of the Property
The property was sold by ZSF/WD Jacksonville LLC, which is managed by Zurich Alternative Asset Management LLC based in New York. Interestingly, this particular site has undergone several changes since it was first sold in 1999 for $40.79 million by Sunbelt-Dix Inc. to its current owners. It has a complicated history, once passing hands from Winn-Dixie and First Union National Bank to Southeast Dix Properties Inc. and later to Sunbelt Dix.
Property Details
The site measures an impressive 891,262 square feet, spanning across 57.7 acres. It consists of seven buildings that were constructed between 1952 and 1999, initially serving as the backbone for Winn-Dixie Stores Inc. operations. Included in this expansive property are parking lots and various plots of undeveloped land. The prime location is situated at the intersection of Edgewood Avenue and Beaver Street, just north of Interstate 10.
Impact of Recent Transactions
Winn-Dixie has not operated out of the Edgewood Court location for several years. After a merger that led to the formation of Southeastern Grocers, the company shifted its headquarters to Baymeadows in 2016. Currently, the distribution operations have moved to a leased facility located in far West Jacksonville. This shift demonstrates the evolving landscape of grocery retailing in the area.
Most recently, Aldi made headlines by purchasing Southeastern Grocers, with the transaction expected to close in March 2024. Aldi has indicated that it plans to retain the Baymeadows operations, which further confirms the changing dynamics within Jacksonville’s grocery retail market.
Historical Significance of Winn-Dixie
The history of Winn-Dixie in Jacksonville dates back to 1944 when it started as Winn & Lovett Grocery Co. Initially, it operated along West Beaver Street but made its significant move to the Edgewood property by 1954, rebranding to Winn-Dixie Stores Inc. shortly after in 1955. The company has played a vital role in the local community and has been a staple in the grocery sector for decades.
Cannon Commercial’s Vision
Cannon Commercial’s strategy, as indicated on their website, involves a diversified real estate portfolio that includes office, retail, multifamily, and industrial properties. They seek to revitalize distressed assets while also managing core-stabilized assets effectively. The management of Cannon, however, did not provide immediate comments on this latest acquisition.
Conclusion
The acquisition of the Winn-Dixie headquarters marks an important chapter in Jacksonville’s real estate and retail landscape. As several large players navigate the market dynamics, the community will be watching closely to see how these developments unfold in the years to come.
