An investment affiliate of Bill Kennedy, founder of Nephron Pharmaceuticals, sold the property. Kennedy paid $4 million for the land in 2010. About a year later, his family trust built a distribution center for Nephron on an adjacent 5.3 acres, but that facility shut its doors in 2016 to consolidate operations in South Carolina.
In 2018, GrowthSpotter reported Kennedy sought entitlements with the City of Orlando to allow a large four-building industrial park with warehouses ranging from 57,600 square feet to 137,000 square feet, totaling 410,600 square feet of gross floor area.
Earlier this year, Blue Steel Development and civil engineer Kimley-Horn teamed up to submit a revised master plan that increases the total warehouse area from 404,800 square feet to about 450,000 square feet. Revised plans also account for three warehouse buildings instead of four.
Features will include 36-foot clear ceiling heights, rear loading areas, ESFR sprinklers and trailer parking.
JLL’s Matt Sullivan, Wilson McDowell and Bobby Isola are handling leasing efforts.
Blue Steel Development principal Austin Jones told GrowthSpotter the firm intends to break ground on the first phase of the project in October. According to marketing material, the company is expected to complete the first phase by the second quarter of 2021.
Records show Blue Steel Development scored a $5.2 million mortgage from Valley National Bank to finance the land deal.
The property lies withing the 33rd Street Industrial submarket, which according to a second quarter industrial report by Avison Young, has over 4.3 million square feet of rentable industrial space.
According to the report, the 33rd Street submarket area had the seventh lowest overall vacancy rate for industrial (6.08%) among 12 local submarkets tracked by Avison Young.
The second quarter report shows the area has no new construction going on at this time, and an average lease rate of $7.03 per square foot.