Joining a wave of job-generating warehouse activity happening near the Orlando International Airport, a Chicago-based development company is making its grand entry into the Florida market with a $6 million land acquisition.
Venture One Real Estate, an industrial real estate private equity fund manager and developer, recently closed on nearly 17 acres just south of State Road 528 along Amsterdam Drive, northeast of the airport.
With the transaction, Venture One will take over the construction of a built-to-spec 220,871 square foot, Class-A industrial building that’s expected to open for business by the third quarter of next year.
New York-based Wharton Industrial was originally tabbed to develop the logistics facility after buying the land in June for $3 million. They were linked to the project in March when it won approval from Orange County’s Development Review Committee. After getting the permits and plans approved, they sold the asset for double what they paid for it four months later.
Venture One plans to begin construction on the project called Venture Park Beachline immediately, according to a news release.
The company has a newfound focus on the Sunshine State after opening an office in South Florida in late October.
With its new digs, Venture One will target industrial acquisitions across the state typically ranging from $2 million to $150 million through its fund platform, as well as ground-up development, the release says.
“We are excited about the opportunity to expand our industrial platform into the Florida market. Our unique strategy combines institutional style discretionary capital with the ability to make swift decisions,” said Kyle Grant, who’s leading the Florida office. “Venture Park Beachline is a great deal to break into the Florida market with, and we are excited to grow our pipeline of both existing buildings for our fund platform and land sites for additional development.”
Since its formation 12 years ago, Venture One has acquired more than 200 buildings totaling more than 20 million square feet in Chicago and the Northeast. Over the same period, Venture One has developed over 15 million square feet totaling $1.6 billion in value.
The latest deal near the airport was brokered by Cushman & Wakefield, who represented the seller. Mike Davis, Rick Colon, Rick Brugge, Dominic Montazem with the firm were involved in the deal.
The facility will include state-of-the-art building elements such as 36-foot clear heights, 235 car parking stalls, 53 off-dock trailer parking spaces within a 225-foot truck court, 35 dock positions equipped with 22 levelers, and interior and exterior LED lighting throughout the facility, according to a news release from the brokerage firm.
“Demand for well-located industrial positions in Florida remains high,” Mike Davis, executive vice chairman at Cushman & Wakefield said in a statement. “The strategic location of this property offers ease of access to Orlando International Airport and all of Orlando’s major thoroughfares while also being located only 20 minutes away from I-95 and the rapidly growing Space Coast region of Florida.”
Across the nation, demand for high-quality, well-located logistics facilities has been running ahead of the market’s ability to supply them, as the industrial sector enjoys record-low vacancy rates, according to a recently released report by the Urban Land Institute. Tenant and investor demand for warehouses is deep at all price points and almost every market, the report says.
Across the Greater Orlando market, 3.9 million square feet of industrial space are currently under construction while the area around the Orlando International Airport is particularly hot, according to a recent market report by Cushman & Wakefield.
Thus far in 2022, this submarket has seen the delivery of more than 520,000 square feet of new warehouses, the most of any other area. Here, roughly 1 million are under construction — second only to the Apopka area where projects totaling 1.7 million square feet are underway.
In early October, Chicago-based First Industrial Realty Trust filed plans to the city of Orlando to deliver a logistics park covering more than two million square feet on property along State Road 417 northeast of the airport.
The company purchased the 243 acres in November of 2021 for $60 million — or $246,913 per acre.
Stephen Whitley, principal of Whitley Capital, told GrowthSpotter that one of the warehouse buildings, totaling 143,000 square feet, is under lease by cornhole board manufacturer Victory Tailgate.