An investment group led by Daryl M. Carter and John Reich paid $1.9 million on Thursday for 28 acres in the Osceola Industrial Park, near the intersection of U.S. 192 and Narcoossee Road.
As CEO of Maury L. Carter & Associates, Carter led an investment group that bought 236 acres last year on Coon Lake, east of St. Cloud. Reich is president of Reich Properties, and has multiple investments in St. Cloud and along the Narcoossee Corridor.
It's the first time the two have partnered on a deal, both told GrowthSpotter on Friday.
"It was a bold purchase," Reich said. "It was the balance of their inventory, and the reason we did it was because there's so much residential development right now in that St. Cloud area and all along Narcoossee Road."
Carter said his firm actually had the listing for the seller, Dr. Phillips Inc., but it expired. The original asking price was $2.25 million -- or $1.75 million for just the 14-acre commercial parcel on E192.
"We actually lost the listing," he said. "It ran out, and we ended up buying the property. There was an opportunity for a bulk purchase at a reasonably fair price. We viewed it as a good investment. Our hope is that we can, over a long term, create some value for our investors."
Reich said both he and Carter will actively market the property. He said the commercial lot, which has more than 1,000 linear feet of frontage along U.S. 192, could attract neighborhood retailers, restaurants and possibly a big box store.
"The commercial component is interesting because we think there's a critical mass of population that's getting ready to need more restaurants and services," he said.
Not far from the property, Harmony breaks ground this month on Phase 1 of Harmony West, which ultimately will add about 1,500 more homes to the master planned community. And Twin Lakes, an active adult community approved for more than 900 homes, is under construction on Hickory Tree Road, just south of U.S. 192.
"You look at the position of that property -- Narcoossee Road is largely filling in," Carter said. "Then you have all the master planned development coming online. All of a sudden, this property is sort of like a hole in a doughnut. It's a Bull's-eye -- it's in the middle of everything."
He added that FDOT's $54 million widening project along U.S. 192, which is nearing completion, made the site even more attractive because of the improved aesthetics and access to the property.
The balance of the lots are zoned for industrial use. Reich said they could support light manufacturing or medium intensity uses. "I see it as businesses that will primarily support the construction industry at the moment," he said.
The property carries a deed restriction that prohibits the following uses: adult uses (including adult movie theater), abortion clinics, bail bond agencies, day labor employment, payday loan providers, flea markets, pawn shops or drug rehabilitation clinics.