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Industrial Real Estate Developments

Industrial activity picks up in Kissimmee

Investors looking for industrial space are turning to secondary markets like Kissimmee to fill demand, evidenced by two major transactions in the last week.

The Geneva Group, in partnership with The Genet Group, paid $11.5 million for a 7.3-acre small-bay industrial park on Smith Street in Kissimmee, near the AdventHealth Kissimmee campus. Built in 1999 and renovated in 2006, the property includes three multi-tenant industrial buildings comprising 105,380 square feet, with 72 drive-in loading doors and one dock-high loading door. The seller was Kissimmee Flexxspace, LTD.

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“We see the secondary Florida markets like Kissimmee being the beneficiary of an increasing affordability issue in the major markets. We will continue to scale in these markets,” said Jarred Elmar, the buyer from The Geneva Group. They’re calling it Gen Smith.

Marcus & Millichap’s Douglas K. Mandel and Braden Dwyer had the exclusive listing to market the property, which is 100% occupied. The two also brought the buyers.

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“This sale demonstrates the continued strength in the industrial market in the greater Orlando market as well as throughout Florida,” Mandel said.

Meanwhile, InLight Real Estate Partners just secured a $24.4 million construction loan from Pinnacle Bank to build a new logistics center on Industrial Lane, just east of Poinciana Boulevard.

The company, which has offices in Atlanta and Ponte Vedra Beach, just closed on the 18-acre site for $6.4 million. InLight had engaged VHB to assist with site planning and permitting for the project, which will consist of two dock-high, rear-loaded warehouses of 147,000 square feet and 133,000 square feet. The site would have roughly 90 bays, parking for over 300 cars and 45 trucks or trailers.

Joseph Kolb, VHB principal, said they have submitted plans to the South Florida Water Management District and Osceola County and are responding to comments.

The site is in a well-established industrial corridor south of U.S. 17-92/Orange Blossom Trail. It abuts Hanover Capital Partner’s Trinity Industrial Park. Hanover completed the first 120,000 square feet of Class A warehouse space earlier this year and is wrapping construction on another 70,000 square feet.

Also next door is the Poinciana Industrial Park, which was purchased in 2021 by developer Robert Zlatkiss, who sold 20 acres in February to an affiliate of Ryan Companies for $5.2 million. The developer received a notice of commencement in July to start work on a new 200,000-square-foot warehouse with cold storage. The project, dubbed Lone Oak, will be valued at close to $40 million, according to the submitted building permit, and will have room for a future 50,000-square-foot expansion.

Nearby, Frito Lay announced plans to build a $180 million fulfillment center at 1496 S. Poinciana Blvd. slated to open in 2024, but the company has not filed any development plans with the county.

Osceola County is also considering a staff-initiated Comprehensive Plan Amendment to change the future land use of 173 acres of mostly undeveloped land along Old Tampa Highway west of Intercession City from Commercial and Low-Density Residential to Industrial.

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Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @byLauraKinsler. Follow GrowthSpotter on FacebookTwitter and LinkedIn.


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