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Osceola County Developments

Butters Construction and Reyes Holdings plant stakes in Poinciana Industrial Park

Beer distributer Reyes Beer has broken ground on a new warehouse, while South Florida developer Butters Construction has filed plans for three spec warehouses in the Poinciana Industrial Park.

South Florida commercial developer Malcolm Butters has been planning an entry into the lucrative Orlando industrial market for more than a decade. Now he’s closer to making that goal a reality.

Butters Construction has filed development plans with Osceola County to build 550,000 square feet of logistics warehouse space in the Poinciana Industrial Park. Butters acquired the 42-acre site in December 2021 for $5.5 million.

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The plan calls for three warehouse buildings of varying sizes. Building 100 would be the largest at 305,160 square feet, followed by Building 200 at 181,503 square feet. Building 300 would be the smallest, at 62,350 square feet. Enterprise Drive would be extended north from Mercantile Lane to Industrial Lane.

The two largest warehouses would be built west of the new Enterprise Drive extension. The third warehouse would be ease of the road.

Butters has completed several Class A industrial parks in South Florida with a tenant list that includes Amazon, FedEx and Red Bull. The company broke ground this week with joint-venture partner Woodmont Industrial on a new 250,000-square-foot logistics warehouse in Jupiter, Florida.

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“We’re excited to continue supplying much needed inventory in a submarket starving for new Class A Industrial product,” Adam Vaisman, Director of Acquisitions of Butters, said in a prepared statement. “As we continue to refine our strategies, it has become clear that strategic partnerships such as Woodmont, allow us to collaborate and continue to thrive in an ever changing submarket and environment”.

CEO Malcolm Butters led an investment group that bought 271 acres on Osceola County’s Ham Brown Road in 2006 with plans to build an industrial park there once the market matured. But they waited too long, and the area evolved into a suburban enclave, leading county officials to designate it a community center.

The ownership group rezoned the site into a mixed-use project called Ham Brown Reserve, which is approved for nearly 1,100 homes. Luxury homebuilder Toll Brothers was under contract in 2022 for the first 254 homesites but is no longer involved in the project.

Just north of the proposed 300 building, Ryan Companies is building a 200,000-square-foot warehouse with cold storage on 20 acres. The property is owned by a subsidiary of Reyes Holdings, the nation’s largest beer distributor and parent company of Orlando-based Florida Distributing Company. An early conceptual plan showed a designated refrigerated section noted as a keg room. The project, dubbed Lone Oak, will be valued at close to $40 million, according to the building permit, and will have room for a future 50,000-square-foot expansion.

The build-to-suit warehouse is about 200,000 square feet with space for a future 50,000-square-foot expansion, according to this preliminary concept.

The location on Poinciana Boulevard is a half-mile south of the Orange Blossom Trail intersection and SunRail. It’s in the heart of a booming industrial submarket anchored by McLane Southeast. Hanover Capital Partners completed the first 120,000 square feet of Class A warehouse space at Trinity Industrial Park in 2021 and just filed construction plans for two more buildings totaling 77,401 square feet. Next to that on Industrial Lane, InLight Real Estate Partners has filed building permits for two dock-high, rear-loaded warehouses of 147,000 square feet and 133,000 square feet.

Osceola County has traditionally been a small player within the region’s logistics sector with an inventory of about 6.3 million square feet of industrial space. These four projects combined would add another 1.1 million square feet in just the Poinciana submarket.

They come on the heels of the Orlando region’s highest annual absorption in five years in 2022, according to CBRE’s Q4 market report. The market saw average vacancy rates fall to record lows of 2.9%, down 250 basis points year over year.

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 Facebook, Twitter and LinkedIn.


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