BY COMMERCIAL BROKERS FOR COMMERCIAL BROKERS

$63 Million Kroger Warehouse To Make A Big Impact On This Little Central Florida City

Thursday, March 21, 2019 11:46 AM | Anonymous

A year-in-the-making deal nearing the finish line is set to bring Central Florida a top Midwestern grocery chain’s futuristic e-commerce center.

The city of Groveland on March 18 approved an incentive package totaling $1.4 million for a development agreement with Cincinnati-based Kroger Co. (NYSE: KR) and UK-based online-only grocer Ocado Solutions. A final agreement is pending.

The two grocers together plan to build a 375,000-square-foot fulfillment center in the Lake County city that would supply online customers only, not grocery stores.

The land acquisition, construction and robotic equipment for the e-commerce center will cost $125 million, Kroger said in a news release. The project would create 506 jobs with an average wage of $52,000 annually. It’s also projected to add $63 million in annual economic impact to the region.

The Groveland Customer Fulfillment Centers warehouse will be built at U.S. 27 and American Way near Florida’s Turnpike, Kroger announced after the March 18 meeting. Construction is expected to start later this year, and the center will start operations in 2021. A general contractor and architect haven’t yet been named, and Kroger spokeswoman Kristal Howard said she had no updates.

It’s unknown how many acres the fulfillment center will occupy and whether the grocers are under contract to buy or lease the land, which is owned by Atlanta-based TPA Group LLC.

Groveland is along the Florida’s Turnpike corridor and provides easy access to State Road 429, as well as Orlando International Airport, making it an ideal site for a statewide fulfillment center.

 

Source:  OBJ


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