Reich Properties is banking on a growing demand for flex-industrial space in St. Cloud, making its second major land acquisition in the city.
John Reich told GrowthSpotter he is under contract and projected to close within 60 days on an unfinished 16-acre business park on Old Hickory Tree Road, a block south of U.S. 192.
"To me, this is as good as it gets as far as finding improved property," he said.
The park is currently owned by Fred Hawkins Sr., who bought it from the original developer, Bracy Builders.
A new PUD and master plan prepared by Jordan Consulting has already cleared the city's Development Review Committee and goes to the Planning Commission on Tuesday.
"It is a previously approved and partially constructed business park," Reich said on Friday. "All the infrastructure and utilities are already there. The beauty of it is all we have to do is pave and build the buildings."
Reich is planning to break ground this summer on 127,500 square feet of new flex industrial space, starting with a 22,500-square-foot building this year. He expects to invest roughly $2 million in Phase 1, not including the cost of the land.
The park already has seven pad-ready sites and a stormwater system. The buildings will be pre-engineered metal with split-faced block exterior.
The first building could be divided into multiple bays, the smallest being 1,500 square feet. Reich will build out the interior offices according to tenant needs. The warehouse space is not dock high, but each bay would have two overhead roll-up doors.
The renamed Reich Business Park is just west of the Osceola Industrial Park. Earlier this year Reich partnered with Daryl Carter, CEO of Maury L. Carter & Associates, to buy the remaining undeveloped lots in that industrial park. They paid $1.9 million for the 28-acre site, half of which is zoned commercial and fronts on U.S. 192.
Reich said St. Cloud has a shortage for industrial space to serve the growing community.
"I did an inventory of industrial space in St. Cloud, and the whole city only has 700,000 square feet," he said. "That's spread out in 60 buildings. They say the industrial vacancy rate in Orlando is 5 percent -- it's half that in St. Cloud."