Foundry Commercial is readying plans for the next three warehouses in its new Princeton Oaks Industrial Park with an eye on July for groundbreaking, after hitting a leasing threshold this month on the first two buildings.
The developer, which partnered on the project in PGIM Real Estate, anticipates certificates of completion being released this month by the city of Orlando for Phase 1A of Princeton Oaks. That includes 229,200 square feet across two warehouses, where 48 percent of the space is now under contract for lease.
That threshold has triggered Foundry to start design on construction plans for Phase 1B, which is another three warehouses totaling 280,800 square feet.
Those plans should be ready for building permit application in April, Foundry's principal of development and investment Moses Salcido told GrowthSpotter. Anticipated approval by July would put Foundry on pace to break ground that month if it has surpassed 55 percent occupancy of Phase 1A, which it should do.
Market demand has been better than the developer anticipated for Class A industrial in what has become a fairly constrained Northwest Orlando submarket, he said.
"The second part is that in that submarket there had been rumors Dr. Phillips (Charities) would commence redevelopment of property they own at the four corners of U.S. 441 and Princeton Street, which has since been announced as The Packing District," Salcido added. "To accommodate that growth they'll be reducing industrial supply at that quadrant," which could benefit demand at Princeton Oaks.
Located at 3401 W.D. Judge Dr. west of N. John Young Parkway, Foundry earned city and state zoning and development plan approvals in early 2017 to develop an estimated 120 acres into 1.03 million square feet of light industrial office/warehouse space, through two phases.
The first 60 acres for Phase 1 were acquired in early April 2017, with plans for 510,000 square feet of speculative warehouse across five rear-load buildings, with 25- to 30-foot clear heights.
The second subphase of that could be delivered by Foundry in First Quarter 2019 if construction starts in July, with an estimated project cost of $18.25 million for the three buildings, Salcido said.
New construction by the state to widen John Young Parkway will add new lanes to the thoroughfare that should benefit industrial tenants at Princeton Oaks, he added.
Final bidding with Edwards for Phase 1B should wrap up in the first week of April, said Salcido, with a contract agreement anticipated by mid-April.
Foundry faced a lawsuit through the latter half of last year from two non-profit environmental groups that were trying to stop development of Princeton Oaks Industrial Park. The local residents behind that suit dropped it in January.
"We've delivered the entire project in accordance with all rules, regulations and laws," said Salcido, "and complied with all the rights we ... were given under permits from all the federal, state and local agencies involved."