A South Florida real estate firm that has focused primarily on value-add multifamily residential assets is expanding into the lucrative speculative warehouse asset class with a new industrial site in Osceola County.
Coastline Management Group, based in Hollywood, Florida, paid $9.5 million this week for 45-acres next door to Harmony High School on U.S. 192 in Osceola County. The land, which straddles both sides of Arthur J. Gallagher Boulevard, was part of the original Harmony Development of Regional Impact and has always been designated as a future commercial and light industrial site in the community’s master plan.
The seller was Harmony Retail, an entity led by real estate broker Steve Fusilier, who bought the Harmony golf course, town center and undeveloped retail land from Sun Terra Communities in 2018.
LV Lending, a Miami-based private lender focused on residential and commercial investment properties, provided $4.75 million in financing for the land acquisition. Financing was arranged by Camilo Niño, Ricardo Uribe, and Alen Hernandez of LV Lending.
Coastline Management Group, led by Eyal Mehaber, plans to develop a 237,500-square-foot warehouse and 20,000 square feet of commercial space on the site. Officials with the company declined an interview request.
Osceola County has lagged behind its neighboring counties in industrial development despite a vacancy rate of less than 1%, according to JLL’s First Quarter Industrial Insight report. The county currently has 124,800 square feet of new warehouse space under construction and more in the pipeline in Kissimmee and just off S.R. 429.
The 11,000-acre Harmony DRI was entitled for 1 million square feet of industrial space. The DRI was rescinded in 2016. A year later, Sun Terra sold the eastern portion of the project, over 4,000 acres, to Deseret Ranches for its cattle operations. With that transaction, Sun Terra gave up entitlements for 3,500 homes slated for Harmony East.
Forestar Group, land developer for D.R. Horton, has purchased the bulk of Harmony West, which is approved for 1,900 lots, in multiple transactions for a combined $25 million. The developer is also under contract for 47.5-acre townhouse site on U.S. 192.
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