National business park developer EastGroup Properties paid $20.2 million this week for 122 acres near Disney for what could be the largest industrial distribution park in its Orlando portfolio.
The property is located on Old Lake Wilson Road, about a half mile from the Sinclair Road interchange at S.R. 429. The company rezoned the site to Employment Center to allow for development of up to 1.5 million square-feet of Class A, shallow bay business distribution space.
“This site falls perfectly within our supply-constrained submarket criteria that is located in a major US Sunbelt market,” EastGroup Florida Manager Chris Segrest said.
EastGroup is calling the project New Horizon West, and Segrest said the company expects to invest up to $150 million on the business park. The site plan calls for 11 buildings ranging in size from about 90,000 to 360,000 square feet.
“We will start construction of two 100,000 SF buildings in July, and they will be complete in the fourth quarter this year,” Segrest said.
EastGroup currently has 4 million square feet of industrial space in the Orlando market, representing about one third of its Florida portfolio.
“Orlando continues to be one of EastGroup’s highest performing markets nationwide,” Segrest said. “E-Commerce and the changing retail model are new demand drivers we see continuing and accelerating. Omnichannel retailing, whereby retailers rely on fewer stores in major markets and rely more heavily on our business distribution warehouses to house their inventory and ship directly to the consumer from our warehouse.”
CBRE’s Robert McEwan represented the seller, GP Limited Partnership, which also owns hundreds of acres around the Gaylord Palms Resort and Convention Center.
Segrest complimented county officials in Osceola, which has lagged behind much of the region for new flex industrial construction. The Orlando market as a whole delivered over 2.7 million square feet of new industrial product in 2019. Only a fraction of that – about 75,500 square feet – was in Osceola County, according to JLL’s year-end report.
The business park site is in the county’s booming ChampionsGate/Reunion submarket, where several new developments are in the pipeline. Those include three new apartment complexes slated for the stretch of Sinclair Road between S.R. 429 and Old Lake Wilson Road. Just north of the site, Lennar Homes and DeBartolo Development are planning 220 townhomes and 336 apartments.