A Boston-based private equity firm paid $10.4 million in mid-March for two industrial buildings in one of Central Florida's fast growing submarkets for new warehouses.
A fund created by Cabot Properties Inc. bought the two buildings that comprise Sanford's North Park Commerce Center on Enterprise Way, totaling 117,600 square feet.
The seller was Atlanta-based McDonald Development Co., a leading industrial development firm in the Southeast with a strong presence in Central Florida.
McDonald bought the 9.28-acre parcel in 2007 for $1.14 million and built the two buildings, which feature 41 dock-high doors, 10 drive-in doors, 24-foot clear heights and rear-load dock access.
The area around Sanford's North Park Commerce Center is becoming a hotbed for new industrial. Several projects are in various stages of development in the immediate area.
GrowthSpotter reported last year that McKee Construction Inc. is building 256,000 square feet of industrial space, of which 90,000 square feet will be built on spec. That project is about half mile from the newly purchased Cabot Properties buildings.
Less than a mile to the east of Cabot's properties, Rand Yard Farms LLC has plans to build 550,000 square feet of industrial space on 65 acres of family-owned property.
"Demand for industrial space is really strong in this market, said Rand Yard Farms' Chris Kelley. "Property in this area is close to both I-4 and State Road 417, which is a positive. I think the conditions are right, otherwise you wouldn't see the investments being made by McKee or ourselves."
Kelley noted that McDonald still owns about 25 acres of adjacent land with an industrial Future Land Use designation. That land includes a 5.36-acre parcel to the west, and a 19.57-acre parcel to the south of the land Cabot Properties just bought.
"I expect that property will be developed in the near future, if not by them, then by someone else," Kelley said.
The North Park Commerce Center buildings' rate is listed at $7.25 per square foot, and were 90 percent leased at time of sale to Carrier Enterprise and Goodman Distribution.
Cabot officials did not respond to requests for comment, but the company lists Orlando among target markets for new industrial investment on its website.