ORLANDO-Hughes Supply Co. has submitted preliminary development plans to the city for an estimated $25-million addition to its existing 150,000-sf distribution park in west Orlando. The locally based wholesale construction-related materials distributor is being purchased by Atlanta-based Home Depot Inc. for $3.47 billion.
In a two-phased project, Hughes plans to add 301,500 sf of distribution space and a 40,000-sf office building to its center off Old Winter Garden Road near State Road 408. The first phase could be completed this year, the company has told the city. Hughes is making the expansion to consolidate several smaller distribution sites throughout the city, sources close to the company tell GlobeSt.com.
Area construction sources tell GlobeSt.com the new distribution space could probably have a hard construction cost of about $45 per sf or an estimated total $14 million. The office construction would come in at about $200 per sf or an estimated total $8 million, if it is done to class A standards or about $125 per sf or an estimated $5 million if it falls in the class B or C designations.
Hughes hasn't disclosed the size of its second phase expansion but area industrial brokers tell GlobeSt.com it could be another 300,000 sf. That would give Hughes a total 751,500 sf of distribution space and make it one of the largest of its kind in metro Orlando, construction sources tell GlobeSt.com. The company's 70-acre site is bounded by Colonial Drive on the north, Mercy Drive on the west, Ferguson Drive on the east and Old Winter Garden Road on the south.
Home Depot announced Jan. 10 the two companies have signed a definitive agreement on the acquisition deal. The deal is expected to close no later than the second quarter of this year, sources in a position to know tell GlobeSt.com.
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