Shipping company pays $42M for IKEA distribution warehouse in Lakeland

A pair of major Polk County industrial projects traded in the last few weeks, including Phase 1 of the Key Logistics Center, which landed a distribution center for Swedish home furnishings giant IKEA in August.

Ohio-based Hyperion Properties, an affiliate of shipping company DHL, paid $42.46 million for the 520,000-square-foot facility, which was built on spec by JV partners Pacific Coast Capital Partners and Blue Steel Development. At full buildout, the logistics park will encompass 1.4 million square feet of class-A warehouse space. 

The IKEA Customer Distribution Center located off Allen K. Breed Highway is 28 miles from downtown Tampa but also services the Orlando market and much of Florida. Construction on the warehouse started earlier this year, and the facility is expected to open in December 2018.

The fulfillment center will focus on delivering items to customers who order products online. The site will be operated by DHL Supply Chain, a division of Deutsche Post DHL Group.

Transwestern Senior Managing Director Walter Byrd represented DHL Supply Chain on its purchase. 

Ryan Vaught, Executive Managing Director, and Robyn Hurrell, MCR, Director, formerly of JLL, represented the seller. Vaught and Hurrell, now with Colliers International Tampa Bay, are continuing to represent the developer in transacting on the other two buildings – a 491,000-square-foot warehouse expected to be complete in February, and a 349,000-square-foot warehouse expected to be complete in May. 

As that project nears completion, Houston-based Ridge Development has closed on the site for a 1.35 million-square-foot distribution center on Lakeland Hills Boulevard.

Ridge bought the property from Hancock Whitney Bank on Nov. 14 for $3.75 million. 

A subsidiary of Transwestern Development, Ridge won approval last December from the Lakeland City Council to convert the defunct BridgeWater golf course into BridgeWater Business Park. The site is adjacent to First Park at BridgeWater, the first major Class A business park to be built on S.R. 33 in Lakeland. 

The 180-acre site will accommodate two high-cube warehouse buildings, the largest of which would be 1 million square feet. It would be constructed in two phases and would include 583 employee parking spaces and 333 trailer spaces. 

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