Loctek cites distribution focus and state law in relocation from Jacksonville

A Loctek Ergonomic Technology Corp. executive says the company sold its newly built unoccupied North Jacksonville warehouse and moved from leased space near the airport to a Savannah, Georgia, warehouse it is renting and began construction on a new center there.

She gave two reasons: location and state law.

First, the new sites are near the Port of Savannah, which is now the focus of Loctek's business.

Second, a 2023 Florida law restricts foreign ownership of property, which Loctek said created business insecurity.

Loctek makes work furniture focused on wellness and productivity. It makes sit-stand height-adjustable workstations; monitor mounts; desk bikes; mobile carts with TV, DVD and camera shelves; space management mounts; ergonomic office chairs; and health and fitness accessories.

Loctek is based in China. Its primary U.S. address has been listed as Livermore, California, near San Francisco.

Loctek subsidiary Lecangs, which handles e-commerce distribution, also is linked to the Livermore address. Its main office is in Perris, California, south of Los Angeles.

The shift to Savannah

Lori Wu, vice president of investments for the company, said Sept. 20 that Loctek did not occupy the 350,640-square-foot e-commerce warehouse at 2983 Faye Road near NorthPoint Industrial Park in North Jacksonville.

Loctek also left the 102,409-square-foot building it had been leasing at 1350 Tradeport Drive near Jacksonville International Airport.

"We have shifted our focus to the port area in Savannah," Wu said.

Upon opening and expanding in Jacksonville, Wu said in February 2021 that the company occupied the Tradeport structure and would build at the Faye Road site, which is near the JaxPort Blount Island Marine Terminal.

It was expanding "for e-commerce fulfillment purposes to utilize the Jacksonville ocean port," Wu said.

En.loctek.com says Loctek has four factories in China and Vietnam.

Loctek also operates subsidiary Lecangs, its e-commerce, logistics and warehousing company.

US.Lecangs.com shows Lecangs owns 16 warehouses globally, including eight in the U.S., with a total storage area of 4.5 million square feet.

It has warehouses in seven states, comprising two centers in California and one each in Georgia, Illinois, New Jersey, Pennsylvania, Tennessee and Texas.

Lecangs says it has served more than 500 e-commerce businesses including its parent company, Loctek.

Wu said the main reason for the move "is that most of our 3PL business goes through the port of Savannah, and we have leased a 1.2 million square foot warehouse in Savannah."

Third-party logistics, known as 3PL, refers to the outsourcing of e-commerce logistics to a third-party business, such as Lecangs, including inventory management, warehousing and fulfillment.

Lecangs says it has integrated resources from carrier partners FedEx and UPS and multiple retail stores like Walmart, The Home Depot, Wayfair and others and has served more than 700 e-commerce businesses including Loctek's FlexiSpot and LoctekMotion brands.

Near Savannah, Lecangs says it operates at 1100 Logistics Parkway in a Becknell Industrial building in Old Augusta Commerce Center in Rincon.

Wu said the company also began construction this year in Ellabell, west of Savannah, "of our own 1.2 million square foot warehouse."

Florida law

Wu said the company sold the Faye Road building "partly due to the uncertainty of state policies, as there was a recent proposal to prohibit foreign corporations or individuals from investing in real estate in Florida."

"As you know, all of Loctek's investments are for the operational needs and business of the company," Wu said.

"Such policies made us feel insecure, so we ultimately decided to sell the Faye Road property."

The Akerman.com law firm site summarizes that Florida enacted Senate Bill 264 in May 2023 that restricts select persons and entities from "foreign countries of concern" from owning, having a controlling interest in or acquiring "by purchase, grant, devise, or descent an interest in certain Florida real property."

The site says the bill generally prohibits foreign principals of a foreign country of concern from owning, having a controlling interest in, or acquiring real property within 10 miles of any military installation or critical infrastructure in the state.

Akerman said the second group of restrictions are China-specific restrictions, which prohibit China, Chinese Communist Party or other Chinese political party officials or members, Chinese business organizations, and persons domiciled in China but who are not citizens or lawful permanent residents of the U.S., from directly or indirectly owning, having a controlling interest in real property in Florida."

The law has faced court challenges.

Lecangs in the U.S.

Loctek has been a Jacksonville presence for four years.

Authorized member Yi Jiang, Administration Director Vanessa Lee and Wu registered Lecangs FL LLC with the state in July 2020 with a Jacksonville address of 1350 Tradeport Drive.

Its primary addresses were at a Loctek industrial property in Livermore, California, with a mailing address in Riverside, California.

They last filed an annual report for the LLC in Florida in June 2024.

Jiang registered Lecangs LLC with the state in September 2022 but administratively dissolved it a year later. It was created for general warehousing and storage services and e-commerce.

Lecangs LLC was registered with the state of California in July 2020 with its principal address in Perris, California.

The agent was Yue Fung of Tracy, California. Fung also was the agent for Lecangs LLC in Florida.

The California filing stated Lecangs LLC was formed in Delaware.

Delaware corporate records show a Lecangs LLC registration in June 2020.

The Faye Road property

Through 6075 Lance LLC, Lecangs and Loctek sold the vacant 350,640-square-foot Faye Road distribution warehouse on 75.99 acres Sept. 17 for $37.95 million.

The Faye Road warehouse is east of the GE Appliances Warehouse near the JaxPort Blount Island Marine Terminal.

It is between New Berlin Road and Alta Drive about 1 mile from Interstate 295.

Pattillo Industrial Real Estate had developed the first 234,000-square-foot phase of the warehouse for Loctek as an e-commerce fulfillment center.

The city issued a construction permit March 15, 2022, for the 234,000-square-foot project in Pattillo's NorthPoint Industrial Park.

Pattillo posted March 4, 2022:

"Thank you Loctek Ergonomic and Jeff Collins of Commercial Florida Realty, Inc. for selecting Pattillo Industrial for the development of a 234,000 SF build to suit DC in Jacksonville, FL. The new building will be constructed at 2983 Faye Rd. near Jacksonville Port Authority (JAXPORT) and NorthPoint Industrial Park."

Jacksonville-based Commercial Florida Realty Inc. Broker Principal Jeffrey Collins was the build-to-suit, buyer representation broker on behalf of Loctek.

Collins said in February 2021 Loctek moved into the Tradeport building in December 2020 and would lease it until the new structure was built.

In January 2023, 6075 Lance LLC bought the warehouse and property for $15.9 million from Pattillo.

The LLC's general manager is Xiang Li of St. Petersburg. The in.marketscreener.com site shows Li as director and deputy general manager of Loctek Ergonomic Technology Corp.

Loctek then expanded the warehouse to 350,640 square feet after the city issued a permit Oct. 5, 2023, for Loctek to build a 116,640-square-foot expansion.

ARCO Design/Build of Ponte Vedra Beach was the contractor for the warehouse and its expansion.

The city generated a Certificate of Occupancy for the expansion Feb. 1, 2024.

EQT Exeter

EQT Exeter, the real estate division of EQT of Radnor, Pennsylvania, bought the warehouse through Exeter 2983 Faye LLC.

EQT Exeter is one of the largest real estate managers in the world, according to its website.

The building's clear ceiling height is 32 feet with 31,000- to 40,000-pound dock levelers. It has finished office space and is equipped with LED lighting.

An EQT Exeter property brochure says the property has 83 car parking spaces, 74 trailer parking spaces, 50 exterior dock doors and three drive-in doors.

It pegs the construction year as 2022.

It says investment leasing officer Jeffrey Grabowski in Orlando is the property representative.