Orlando-based Intram Investments paid $400,000 for 160 acres in Davenport on Friday with a half-mile of frontage on Interstate 4.
The property lies just outside the Four Corners Business Park, at the end of Home Run Boulevard and bordering on the Green Swamp. Intram paid cash for the vacant land, which had previously been listed for $1.5 million, according to SVN Senior Advisor Ali Mushtaq, who represented the buyer.
"It was a very fast sale, and the price was reflective of that due to the timing," he told GrowthSpotter. "Part of this contract was that it had to be accelerated to close no later than July 6."
The seller was an affiliate of Los Angeles-based Colony Northstar, which acquired the property in 2013 through a foreclosure action. SVN advisor Ashley Bloom represented the seller, which was eager to divest.
"You've got three major issues with the property," Bloom said. "You've got wetlands, plus you've got floodplain issues, and you've got conservation zoning because it's right next to the Green Swamp."
There has never been a formal wetlands determination study for the land. Bloom said a prospective buyer had a purchase contract last year, but walked away from the deal after inspecting the property and seeing how wet it was.
"We came to the conclusion that only a small portion of it was what we call clean and dry upland, so we reduced the price accordingly," he said.
Intram, which was looking to expand its holdings in the Davenport submarket, was willing to roll the dice. President Rashid Khatib said the firm bought the property as a long-term investment and ultimately hopes to develop it for industrial use.
MDH Partners developed nearly 800,000 square feet of distribution warehouse space on spec at the adjacent business park in 2017, and more than 300,000 square feet of that is still available.
Another 400,000 square feet of spec distribution space is planned just across I-4 by Majestic Realty Co., the same firm that developed Walmart's dual fulfillment centers.
Intram recently broke ground on a 29-acre expansion at Posner City Center, just across U.S. 27 from the industrial park. The developer has approved plans for more than 100,000 square feet of inline retail and multiple outparcels.
The developer has acquired several properties in the Orlando area in the last year for future development, among them was one of the last undeveloped parcels on Sand Lake Road.
The ultimate plans for the Davenport parcel would depend on the outcome of a formal wetland survey. Mushtaq said Intram would wait until the conclusion of the summer rainy season to do the wetland survey, and would seek guidance from Polk County on potential mitigation.