Principals with Orlando-based commercial real estate firm Cite Partners closed in recent weeks on more than 45 acres of land on the western edge of Ocoee, with plans now facing final review for roughly 650,000 square feet of light industrial space bordering the 429 Western Beltway.
Located on the northeast corner of E. Crown Point Road and Palm Drive, the site lies just north of the S.R. 429 intersection with E. Plant Street.
Dubbed The Park at 429, the project could support a variety of uses in its light industrial and flex-office space, first reported here in early August.
The developer TSG Development Inc. was formed by Cite principals Matthew E. Sullivan and Wilson McDowell.
Three land purchases were closed between Nov. 22 and Nov. 29 for a combined $3.955 million on 45.63 acres, consisting of sellers the American Society of Womens Health, an affiliate of Dr. Steven D. McCarus (8.15 acres); the Thomas Milton West Trust (23.38 acres); and BKI Crown Point Road Associates, an affiliate of Avalon Park Group (14.1 acres).
The developer earned rezoning approval from Ocoee and annexation into the city in September. A site plan is now under final engineering review with the city, as are permit applications with the St. Johns River Water Management District.
The five-building layout will offer slightly less than the 645,000 square feet it has been entitled for.
"Our goal is to come out of the ground in First Quarter 2017. We're talking to some folks about potential leases, and we plan to secure some tenants in the coming months," Sullivan told GrowthSpotter. "The beauty of the site is we can accommodate just about any size, from as low as 5,000 square feet to as high as 245,000 for a full user."
Sullivan estimates total investment in the project to settle between $45 million and $50 million. His team has some budget estimates from contractors in hand, but has not finalized building plans, or reached the point of putting the project out to bid for a general contractor.
No loans were recorded for the land acquisition. Sullivan and McDowell will contribute equity to fund construction along with silent equity partners. Further financing sources have not been determined, Sullivan said.
"We're excited about the deal and the property's location. The city has been fantastic to work with," he said. "When you look at our quarterly report the market dynamics for that location are fantastic, and we're looking forward to bringing some new tenants to that community."
Greater Orlando's industrial market is nearing pre-recession vacancy rates, with the overall vacancy rate of Orange, Seminole, Lake and Osceola counties dropping to 6.7 percent at the end of Third Quarter 2016, the 13th straight quarter of rate decline, according to a Q3 market report by Cite Partners.
Northwest Orange, where Sullivan and McDowell's The Park at 429 will be based, is tied for the lowest vacancy rate among Greater Orlando submarkets, at 3.9 percent.
Greater Orlando's industrial market had 11 buildings under construction at the end of Q3 totaling more than 1.98 million square feet. More than 1.9 million square feet of that space is expected to come online between now and Q2 2017, of which approximately 850,000 square feet is already leased.