An affiliate of Foundry Commercial paid $5.55 million on Friday for the first 60-acre phase of its planned Princeton Oaks industrial park, and aims to break ground next week for the first few buildings, a principal with the company told GrowthSpotter.
Located in the 3700 block of W.D. Judge Dr. west of N. John Young Parkway, Foundry first submitted plans for city review in June 2015 to develop an estimated 120 acres into 1.03 million square feet of light industrial office/warehouse space, through two phases.
It earned Future Land Use Map, zoning and development plan approvals from the city and state in recent months. Phase 1 now calls for 510,000 square feet of speculative warehouse across five rear-load buildings, with 25- to 30-foot clear heights.
"This project has been in development for a couple of years mainly because of the entitlement and permitting side, but market interest has been high," said Moses Salcido, principal of development and investment at Foundry. "We haven't signed any (tenant) deals yet, but do intend to deliver two buildings in Phase 1A totaling 230,000 square feet."
Foundry Commercial will handle the property's leasing, management and construction management. Edwards Construction is the general contractor, VHB is civil engineer and C4 Architecture the architect.
"We like the location because it is central within the city, and you can essentially circumnavigate the city without getting on I-4. That it's an urban location is a shift you're seeing in logistics today, a focus on last-mile distribution," he continued. "You have access to rooftops here, and Millennials will drive how products are delivered in (Orlando's) growing population."
Consistent population growth for Greater Orlando and Florida as a whole support the spec industrial investment, he added. Much of the warehouse inventory in that Northwest Orlando submarket is also dated to a point of being obselete for many tenants, Salcido argued.
The developer sourced a loan of more than $23.6 million from JPMorgan Chase Bank that will mature in April 2023.
The sellers were Nancy A. Rossman and H. Scott Gold, co-agents for property owners behind a joint venture agreement dating to 1962. Foundry Commercial has an agreement to buy the remaining 60-plus acres for Phase II, the terms for which Salcido declined to confirm.