The partners have assembled roughly 55 acres of land at 1220 Ocoee Apopka Rd. with plans to build a logistics park capable of fitting 758,900 square feet of new warehouse space. Conceptual plans for the proposed Northstar Logistics Center show five industrial buildings ranging between 79,724 square feet to about 400,000 square feet.
Todd Watson, a manager at Cadence Partners, told GrowthSpotter the first phase will consist of two warehouse facilities on the northern end of the property.
“We’re going to go spec on all of them,” Watson said. “After the first two are built we have some flexibility.”
For example, if a large user came in, then the developer could revise plans and instead build a single 500,000-square-foot facility as part of the second phase, Watson said. But that’s less likely to happen, he admits.
Watson said he has seen stronger demand for warehouses smaller than 100,000 square feet with rear dock configurations.
“We’ve seen a lot of interest, and some of that is based on the location. You’re right up on an interchange and you got exposure, that’s part of it, but there’s also not a lot of new rear-loaded warehouses being built for smaller users,” he said.
“If you’re a 50,000-square-foot user, you can’t really go into a 400,000-square-foot building like those larger distribution centers being built throughout Apopka.”
According to a first-quarter report by Colliers, the average lease size in metro Orlando’s industrial market was between 20,000 square feet to 80,000 square feet.
The first phase for Northstar Logistics Center comprises an 86,924-square-foot warehouse and a 79,724-square-foot warehouse. Conceptual future phases are made up of two sister warehouses spanning about 97,680 square feet each, and a larger 400,000-square-foot facility.
Florida Engineering Group is the civil engineer and C4 Architecture LLC is the architect.
Using the investment vehicle CLPF Cadence Northstar LLC, the joint venture partnership assembled about 55 acres of land between S.R. 451 and Ocoee Apopka Road for $5.6 million in March. The sellers included a trust led by property investor and developer Daryl Carter, the estate of Joseph L. Sandroni and John H. Talton Enterprises Inc.
Cadence Partners and Clarion Partners are also building a 189,000-square-foot speculative industrial park about two miles south of its planned Northstar Logistics Center project. Plans call for two warehouses off the Daniel Webster Western Beltway (S.R. 429) in Apopka.
Without revealing any names, Watson said he’s negotiating spaces for two users at that location.
The partners join other large industrial developers seizing opportunities to build on Apopka’s trove of centrally-located land in Florida. The property in northwest Orange County features access to major roadways like S.R. 429, which will extend along metro Orlando’s western edge once completed in 2023.
The company applied for Planned Development zoning approval in Apopka that would allow for 1.5 million square feet of industrial space, more than 200,000 square feet of commercial uses, up to 278 multifamily units, up to 643 single-family or townhome dwelling units, and up to 75,000 square feet of office space.
According to the Colliers report, net absorption in metro Orlando remained positive as occupiers moved into more than 4.5 million square feet of industrial space over the last year.
During the first quarter of 2021, tenants moved into over 980,000 square feet of warehouse and distribution space, pushing vacancy to 5.1%, a decline of 150 basis points since last year.
Northwest Orange County has about 27 million square feet of inventory. The submarket had by far the largest amount of new completions during the first quarter with 402,582 square feet opening. The total vacancy rate is 5.6%.