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Jacksonville Aviation Authority Approves 30-Year Ground Lease with VanTrust Real Estate

Jacksonville Aviation Authority Approves 30-Year Ground Lease with VanTrust Real Estate
The Jacksonville Aviation Authority (JAA) board has unanimously approved a 30-year ground lease agreement with VanTrust Real Estate, marking a significant step toward a major industrial development near Jacksonville International Airport. The decision, reached in a 7-0 vote on August 7, grants the Kansas City-based VanTrust, operating through VTRE LLC, access to approximately 75 acres of JAA-owned land situated roughly two miles south of the airport and just north of an Amazon distribution center.
Details of the Development and Lease Agreement
VanTrust intends to construct Class A industrial space on the site, initially planning a 727,500-square-foot facility with the potential to expand by an additional 264,500 square feet. Class A industrial properties typically exceed 300,000 square feet and feature clear heights above 26 feet, designed to accommodate efficient storage and logistics operations. Construction is anticipated to commence within the next two years.
The project, previously identified as “Project Viginiti” in environmental permit filings, signifies a long-term commitment for both parties. Under the lease terms, VanTrust will fully finance the development and holds the option to extend the lease for two additional ten-year periods. The base rent is set to begin at $902,563 in the first year, with scheduled increases of 15 percent every five years. The JAA will deliver the site in its current condition, aside from a required environmental assessment mandated by the Federal Aviation Administration.
Strategic and Market Implications
While the lease is viewed as a strategic initiative to attract large-scale industrial investment to the Jacksonville area, it also presents certain challenges. The 30-year term represents a considerable financial obligation, necessitating alignment with JAA’s long-term growth objectives. Market analysts caution that such agreements may invite scrutiny from investors and stakeholders concerned about the financial and strategic implications for the authority. Furthermore, the approval could encourage competitors to pursue similar lease arrangements or to enhance their operational efficiencies to maintain competitive positioning.
The agreement is also expected to influence the broader real estate market in Jacksonville. Industry experts suggest that the introduction of substantial new industrial space may affect local property values and intensify competition for commercial sites, as developers and tenants adjust to evolving market dynamics.
VanTrust’s Regional and National Presence
VanTrust Real Estate manages a national portfolio exceeding 61 million square feet across various sectors, including office, industrial, multifamily, military, mixed-use, science and technology, and hospitality. In Jacksonville, the company has previously developed the Town Center One and Town Center Two office buildings near St. Johns Town Center, which were sold for $107.1 million in 2020. VanTrust also developed Imeson Park and Imeson Park South in North Jacksonville, locations that house Amazon and Sam’s Club distribution centers.
As the new industrial project advances, both JAA and VanTrust will be closely observed for how they manage the complexities of this long-term partnership and its broader impact on Jacksonville’s commercial real estate landscape.

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