A developer that keeps plopping down different-sized industrial parks throughout the Orlando market has secured financing to start construction on its second project in the city of Ocoee.
McCraney Property Company received a $45.1 million loan for the development of Commerce 429, a class A industrial facility that, once complete, will cover 485,813 square feet across eight warehouse buildings.
JLL Capital Markets secured the financing on McCraney’s behalf for the project slated to go on a 40-acre site at 290 Ocoee Apopka Rd. The property, acquired by the company in late 2020 for $4.25 million, has direct frontage on State Road 429 and sits within four hours of every major MSA in Florida.
The Commerce 429 site is located roughly a mile north of McCraney’s other industrial park in Ocoee called Distribution 429. Spanning 650,000 square feet, Distribution 429 is 100 percent leased with Memphis-based FedEx Corp and Chicago-based LKQ Corp among tenants.
McCraney is tapping into the need for more industrial space in this segment of Central Florida.
Northwest Orange County has seen outsized tenant demand relative to inventory, according to JLL, with current vacancy at 3.6% and 32% rent growth since 2020. That’s over twice Orlando MSA’s rent growth of 14% since 2020.
The Greater Orlando market, overall, saw nearly 3.1 million square feet of industrial space absorbed through the third quarter of 2022, with more than 8 million square feet of warehouse space under construction.
“Demand for space remains high,” the most recent JLL industrial market report says. “Pending move-ins for the end of this year, and into early next, paired with new construction, point to sustained interest in the market.”
Representatives with McCraney could not be reached for comment.
For the Commerce 429 project, site plans approved by the city show the eight warehouses ranging in size from 27,786 square feet (three buildings facing Ocoee Apopka Road ) to 131,156 square feet (in the middle of the property).
Two side-by-side warehouses span 49,956 square feet a piece while the other buildings are 76.287 square feet and 95,100 square feet, according to site plans by engineering firm Smiley & Associates, Inc.
The project would be built in three phases. Orlando-based C4 Architecture is leading the design.
McCraney has been active in the Orlando market in recent years.
For its accomplishments in 2019 —when the company built 2.3 million square feet of logistical warehouse space at three Orlando-area industrial parks —it was named Developer of the Year by NAIOP’s Central Florida chapter. That year, its projects represented two-thirds of all new industrial construction in the market.
It also won Industrial Development of the Year for its 2019 work on the Infinity Park project with partner Tavistock Development Company.
Located on John Young Parkway, three miles from the Orange County Convention Center, Infinity Park has entitlements for 4.5 million square feet of office and industrial space.
Thus far, the duo has built out or has approval for 1.8 million square feet.
That includes an industrial and office building currently on site, along with the approval for two more warehouses, two more office buildings, and an additional retail building. Tavistock also has an entitlement on the land for a 120-room hotel, but there are no current plans to build one, according to Tavistock.
McCraney completed and delivered Infinity Park 800 and 900 — fully leased — to FedEx and Frito-Lay in 2021.
FedEx’s occupancy of over 433,000 s.f. marked the largest move-in of the year.
In November, the Orange County Commission granted a land-use change to Tavistock to convert 60,000 square feet of retail entitlements within Infinity Park to 750 multi-family units.
Other projects completed in 2019 by McCraney include phase two of the County Line Logistics Center in Plant City and the first phase of Ocoee’s Distribution 429 project.
The latest McCraney effort adds to the conveyer belt of industrial projects in the pipeline.
In October, Chicago-based First Industrial Realty Trust purchased 243 acres of land near the Orlando International Airport for $60 million with plans to build more than two million square feet of warehouse space.
New York-based Bridge Logistics Properties filed construction plans this week for a new industrial park in Osceola County called Gateway @ 429.
The plans call for a total of nearly 1.4 million square feet of commercial warehouse and retail space developed over three phases. The company paid $44.25 million for the property last April.
Meanwhile, the Mid-Florida Logistics Park in Apopka, which is home to distribution centers for Amazon, Coca-Cola and Goya, is expected to expand.
Tommy Pinel, director of land services with Colliers International, told GrowthSpotter recently that BlueScope Properties will close soon on an adjacent 65.2 acres of land to the south.
“There are four owners out there and everyone agreed to sell,” Pinel said. “BlueScope won it out, they have been under contract since March, and it will be a southern expansion of the park.”
The expansion would allow for 839,000 square feet of new industrial speculative space to be built. The conceptual plan, designed by C4 Architecture, contains five industrial buildings ranging from 110,000 square feet to 256,200 square feet.
Pinel said BlueScope is awaiting final approval for the next phase before they buy the land.
The most expensive Central Florida land deal in 2022 came with industrial development in mind. WPT Capital Advisors bought the 248-acre Apopka 429 logistics park in March for $92.5 million.
Lakeland-based Blue Steel Development is constructing Apopka 429 with 2.5 million square feet of spec warehouse space across three industrial buildings.