Ryan Companies helps deliver first U.S. high-tech fulfillment center

Ryan Companies US Inc., a national developer, builder, designer and property manager offering full-service commercial real estate solutions, recently announced the grand opening of Kroger Ocado Customer Fulfillment Center (CFC) in Groveland, Fla.

The 419,317-SF state-of-the-art, automated warehouse will introduce Kroger’s innovative shopping experience to central Florida, a new market for the nation’s largest grocery retailer, while also extending its reach and capabilities in online ordering and home delivery. 

Located in Groveland, just 30 miles from Orlando, the high-tech facility is the first of its kind in the United States.

In partnership with United Kingdom-based online retailer Ocado Solutions, autonomous mini-fridge-sized robotics will work seamlessly with team members to gather, pack and load online orders made by new Kroger customers. Kroger Ocado will provide home delivery of fresh grocery items without requiring patrons to sign up for a third-party subscription service. 

Ryan served as the lead architect, engineer, developer, and construction team for the project.

“The nation’s most prominent e-commerce, retail and manufacturing companies trust Ryan’s end-to-end industrial real estate services for the facility solutions that drive their success,” said JP Bacariza, vice president, market leader – Tampa at Ryan Companies.

“The new Groveland site will be a gamechanger for Kroger in Central Florida, allowing the community to enjoy America’s largest grocery retailer for the first time. Our team served as the touchpoint on each phase of the project from site selection to construction, and we are proud to celebrate this milestone with our long-term partners, Kroger and Ocado.”

Ryan developed a relationship with Kroger after being selected to design and build the first Ocado automated warehouse outside Cincinnati, Ohio. Ryan’s knowledge of designing and constructing complex facilities with automation and robotics played a part in deciding to work on additional Kroger Ocado fulfillment centers, including a separate facility in suburban Atlanta that will open later this year. 

Ryan has completed 40 automated warehouse projects (33+ million square feet) in 20 states for leading brands such as Kroger, Target, SuperValu and Nestle Purina.

“Implementing our “One Ryan” approach of improving the connection between design and construction was instrumental in tackling every challenge we faced and enabled us to deliver this project within our target 13-month timeframe,” said Bob West, director of Industrial Business Development for Ryan Companies. “E-commerce is fueling a surge in demand for automated warehouse facilities that are equipped to meet the fast-changing needs of grocers and F&B providers, and the comprehensive menu of service offerings provided under Ryan’s umbrella will allow us to innovate and drive change in this critical sector for years to come.”

The relationship with Kroger and Ocado ties into Ryan’s broader strategic partnership strategy and delivering projects as more than a contractor, but as experts in each phase of the process, from planning and designing to construction.

The Groveland project is unique to the region because Kroger does not currently have brick-and-mortar stores in Florida. The community anticipates the customer fulfillment facility will attract many new high-paying jobs. Features of the four-floor Kroger Ocado site include the distribution center, functional office space, double story break room and a mezzanine floor.

The Kroger Ocado Customer Fulfillment Center broke ground in July 2019 and will begin delivering groceries in Central Florida this summer.

Largest online wellness shopping club in North America to invest $35.5 million in KC

To better serve its customers and speed up delivery of its world-class health and wellness products, Melaleuca plans to open a 508,000-SF distribution center and warehouse at 11401 N. Congress Avenue in KC’s Northland.

As a manufacturer and online retailer of over 450 exclusive health and wellness products, Melaleuca will invest at least $35.5 million into the facility and create more than 200 jobs within its first year of operation. Melaleuca expects the facility to be ready in early 2022 after completing an extensive retrofit of the plant formerly owned by Harley Davidson.

Since it was founded in September 1985, Melaleuca has grown into one of America’s largest online retailers, offering wellness products in the categories of nutrition, personal care, home cleaning and cosmetics. Much like Amazon, Melaleuca customers order online, and products are shipped directly to the customer’s home.

“Our products are being enthusiastically embraced throughout the world. Although Melaleuca has experienced periods of explosive growth over the years, consumers are flocking to Melaleuca now more than ever because they are concerned about their family’s overall health. They are searching for effective, safe, natural health and wellness products, which is Melaleuca’s specialty. When it comes to their health, people don’t want to take shortcuts, and they are relying on Melaleuca’s superior product line to enjoy healthier, more vibrant lives,” said Melaleuca CEO, Frank VanderSloot.

Melaleuca anticipates this new distribution center will not only speed up online delivery for customers throughout the Midwest, but also enable faster e-commerce shipping across the country.

In combination with its state-of-the-art distribution centers in Idaho Falls and Tennessee, Melaleuca is creating a logistics network so its products can reach the majority of its U.S.-based customers within two days of ordering.

“Melaleuca’s expansion into Kansas City, Missouri is significant for our community, and the new jobs created will help more Kansas Citians prosper through these challenging economic times,” said T’Risa McCord, interim president CEO of the Economic Development Corporation of Kansas City, Missouri.

“In the last 12 months, companies including Melaleuca, Inc. have selected the KC region to create more than $1 billion in capital investment and over 3,700 jobs,” said Tim Cowden, president and CEO of the Kansas City Area Development Council.

In early 2021, Melaleuca plans to hire plant administration and other leadership as the facility is being renovated. Candidates will be able to apply at MelaleucaJobs.com.

“The KC SmartPort team continues to position Kansas City’s advantages as a logistics hub including our region’s location, available workforce, community benefits and vertical readiness,” Cowden said.

Pharmaceutical and e-commerce companies continue to thrive in SubTropolis

Less than a year after locating in SubTropolis, pharmaceutical company Nostrum Laboratories and online retailer FarmFoods have expanded their respective footprints a combined 52,000 SF within the world’s largest underground business complex.

Nostrum Laboratories more than tripled the size of its distribution facility while FarmFoods increased its footprint six-fold.

“We can deliver Class-A industrial space to our tenants in as little as 120 days, allowing companies like Nostrum and FarmFoods the ability to capitalize on the growth of their business,” said Mike Bell, senior vice president of commercial development at Hunt Midwest.

As an Energy Star-rated facility providing 24/7, year-round security, company leaders at New Jersey-based Nostrum Laboratories recognized the value proposition SubTropolis offered in meeting their climate-controlled requirements for product safety and quality control.

“The consistent control room temperature ranges in the underground allow us to efficiently meet these  requirements. Onsite security staff provide an additional level of security and peace of mind to our team,” said Teneshia Powell, senior production manager at Nostrum Laboratories. 

A soaring increase in online grocery shopping triggered the need for FarmFoods, an online retailer of fresh, farm-to-table food, to quickly expand its packaging and distribution facility to keep up with consumer demand.

“As a nationwide distributor, timely delivery of our products to consumers is critical. Locating in SubTropolis has allowed us to reach 90% of the United States within two days and in these uncertain times, quick, reliable food delivery is more important than ever,” said Janna Land, co-founder and chief operations officer at California-based FarmFoods.

Earlier this year, Hunt Midwest completed construction of 400,000 SF of speculative Class-A industrial and warehouse-logistics space, bringing the amount of leasable space in SubTropolis to more than 6.5 million SF.

With more than 7.5 million SF available for development and its adjacency to robust highway infrastructure, SubTropolis continues to offer an ideal option for growing e-commerce companies.