Luxury Orlando Apartment Community Changes Owners, Name

By Georgiana Mihaila, Associate Editor

Leading national apartment investment and management company Bell Partners Inc. recently acquired the award-winning Landmarking at Universal Apartments in Orlando, Fla. for an undisclosed amount. The transaction, which closed on May 15, also brought a new name for the 310-unit luxury community, with the new owners renaming it Bell at Universal.

The acquisition brings Bell Partners’ multifamily investment mark up to $150 million.

Joe Cannon, vice president of Bell Partners, said: “Bell at Universal is an upscale community which is uniquely positioned within the Orlando market, and we are pleased to acquire this highly desirable property. As a key acquisition in one of our select target markets, Bell at Universal is an excellent strategic addition to our central Florida portfolio.”

Bell at Universal, winner of the 2012 Aurora Award for Architectural Excellence, is a 310-unit garden-style community offering one- and two-bedroom homes with available den options. Its location places it just steps away from Universal Studios Orlando and 15 minutes from downtown, making it accessible from South Kirkman Rd., Florida’s Turnpike and I-4.

The community’s luxury amenities include a resort-like swimming pool, clubhouse, cabana with a fireplace, fitness center, theatre room, and internet café. The community is located in close proximity to retail destinations, entertainment venues and employment centers.

Marcus & Millichap’s latest Orlando market report reveals that multifamily transaction velocity remained practically unchanged over the past 12 months, but the number of deals was one of the highest recorded since before the recession.

During the past year, the number of properties selling for more than $10 million has modestly increased, while deals from $1 to $10 million have declined. Buyers are motivated to purchase metro Orlando properties as the job market keeps strengthening and property operations seem to be improving.

Chart courtesy of Marcus & Millichap

Image via Bell Apartment Living

Metropolitan Resort Orlando Soon to Become World’s Largest Econo Lodge

By Georgiana Mihaila, Associate Editor

California Hotels has big plans in store for the 297-room Metropolitan Resort. Through its subsidiary, 8444 Investments LLC, the company plans to convert the property to The World’s Largest Econo Lodge.

Work is set to start on the 8444 Austrian Court Way property in June, the developers planning to keep the hotel open for the entire duration of the renovation and improvement process.

With a prime location on the world renowned International Drive in Orlando, Florida, The World’s Largest Econo Lodge will consist of 297 rooms with king or double bed accommodations, and feature a full delicatessen, free Wi-Fi, coffee makers, refrigerators and iron and ironing boards inside all rooms. The Econo Lodge will also be connected to the YMCA Aquatic Center, equipped with three indoor pools, a large cardio fitness center, and four indoor racquetball courts. All guests of the hotel will receive complimentary access to the Aquatic Center.

“We’re proud to announce our affiliation with Choice Hotels and being able to bring something grand to the table as we initiate what I hope to be a long and prosperous relationship together,” says Remo Polselli , CEO of California Hotels Corporation. “The real winner here are the customers and the city of Orlando, this couldn’t happen to better people and a better place in Orlando, International Drive.”

All property improvements will be completed by October 2013. Apparently, this is merely the first in a series of Choice Hotel franchises California Hotels has planned for 2013, but no further details have been released.

The Metropolitan Resort is not the only Orlando-area hotel heading for renovation; the 123-room Hilton Garden Inn Orlando North/Lake Mary will soon undergo a $2 million renovation, as new owner GF Management plans to improve the recently acquired property. The company bought the property last week, and the acquisition is this year’s first for GF Management. Like the Metropolitan Resort, the Hilton Garden InnOrlando North/Lake Mary will also stay open for the entire duration of the renovation.

Image via HotelClub

New Vista at Lost Lake Units to Add to Growing Local Multifamily Inventory

 By Georgiana Mihaila, Associate Editor

McCann Realty Partners, the company that bought the Vista at Lost Lake apartments in Clermont last year for $28 million, is now moving forward with the project by starting construction on a second phase.

Phase II will add 192 units to the existing 276 that were built by Citrus Tower Development LLC in 2007. Located on State Road 50 and U.S. Highway 27, Vista at Lost Lake  boasts one-, two- and three-bedroom units, equipped with nine foot ceilings, full size washers and dryers, oversized pantries, private solariums and balconies, and spacious closets.

Existing amenities include complete concierge services; a fitness center featuring state-of-the-art equipment; sauna; resort-style swimming pool; car care center; and a private residents’ club room complete with billiard tables, elegantly designed seating areas and lounge.

The new three-story complex will be adjacent to the existing one, and is scheduled for completion at year end, with leasing activity to start in September 2013. The combined 468 apartment homes will be managed by Pegasus Residential, LLC. While development costs were not disclosed, the construction loan was funded by Wells Fargo Bank NA, and the project was financed through a joint venture with an equity partner, the Orlando Business Journal reports.

Prospects for the Orlando multifamily sector continue to brighten as the local economy picks up. Construction activity in the first quarter brought four new projects to the market, adding approximately 1,300 units to local inventory—all market-rate rentals, spread across four submarkets. According to a Marcus & Millichap report, more than 2,000 units were completed in the past four quarters, a substantial jump from the 1,400 rentals placed in service in the previous 12 months.

The second phase of the Vista at Lost Lake apartments will add to the approximately 2,700 apartments planned for the metro area—the highest annual output in the past four years—and the 2,500 rentals currently under construction and slated for delivery this year and next.

Chart courtesy of Marcus & Millichap

Image via The Vista at Lost Lake – Clermont Facebook page

Florida Hospital Breaks Ground on Emergency Department, Plans Further Expansion

By Georgiana Mihaila, Associate Editor

Florida Hospital East Orlando recently celebrated its upcoming expansion, that will double the size of its current emergency department, during a special groundbreaking ceremony. Both hospital and community leaders attended the event and planted 260 flowers—a number that stands for the average number of patients seen on a daily basis in the emergency department.

In 2012, the Florida Hospital East Orlando emergency department treated more than 83,000 patients. As a result of the high demand for emergency care, the hospital has decided to double the size of its emergency department from 36 to 65 beds. The expansion will also include several child-friendly rooms with nature themes and LED lighting along with kid-friendly waiting areas to provide a more calming environment for children. Construction for the emergency department is expected to be completed in summer 2014. When the expansion is complete, Florida Hospital East Orlando will be able to treat 100,000 patients a year.

Florida Hospital East Orlando will also be building out the fifth floor of its main patient tower. This expansion—set for completion in July 2013—will add up to 40 private patient beds. In order to expand surgical services offered by the hospital; the addition of 40 new beds will bring the total number to 265.

“As the East Orlando community has grown over the years, Florida Hospital East Orlando has made enhancements to grow and expand in order to provide the best care possible in a convenient setting,” said Mike Thompson, administrator of Florida Hospital East Orlando. “Our goal is to provide patients with more efficient service and access to high quality medical care in their own backyard.”

It is estimated that the overall expansion process will generate about 75 new construction jobs, as well as new clinical jobs within the hospital.

Images via Florida Hospital

$30M Oviedo Multifamily Community Now Underway

By Georgiana Mihaila, Associate Editor

Oviedo, Fla. will soon add 275 residential units to the local inventory, as Jacksonville-based LandSouth Construction begins construction on the $30 million Park Place Apartments and Oviedo on the Park.

The project—developed by PAC Land Development of Winter Park, Fla.—consists of four buildings with 275 residences and a multi-purpose clubhouse. Park Place Apartments and Oviedo on the Park will rise at State Road 434 (Alafaya Trail) and Mitchell Hammock Road, placing the community within proximity to a budding entertainment, retail, restaurant and employment hub.

Park Place Apartments will feature 14 floor plans of one-, two- and three-bedroom residences with one or two baths. The units will range in size from 797 to 1,396 square feet of living space, some of them including covered patios and balconies. Interior elements will include frameless European style shaker cabinets, simulated wood grain vinyl plank flooring, tiled baths, crown molding and kitchen islands.

“We are pleased to have the opportunity to build another high-quality multifamily community in partnership with PAC Land Development. These beautiful garden apartment homes in the heart of Oviedo will be adjacent to parks, shopping, restaurants and retail to attract residents who enjoy an amenity-rich lifestyle and convenient location,” said James Pyle, president and CEO of LandSouth Construction.

The development, scheduled for completion in the summer of 2014, will have the signature of Architect Charlan-Brock & Associates.

Image via Charlan-Brock & Associates

Valencia, UCF Officials Dedicate New Building at Osceola Campus

By Georgiana Mihaila, Associate Editor

Valencia College officials, along with officials from the University of Central Florida, dedicated the newest building on Valencia’s Osceola Campus on April 11, marking the expansion of the Valencia-UCF partnership in Osceola County.

The new 150,000-square-foot Building 4 is the largest building on any Valencia campus; the four-story building was designed to house 18 classrooms, the campus library, a bookstore, 10 science labs, math and computer labs, as well as the campus cafeteria and a coffee bar. Space has also been set aside for 18 offices for UCF faculty members and administrative staff.

Designed by architectural firm Hunton-Brady and built by contractor Clancy & Theys, Building 4’s construction costs were approximately $35 million, with UCF contributing $7.5 million.

UCF, which operates a regional campus at Valencia’s Osceola Campus, already offers a handful of degrees at the Kissimmee campus, ranging from business to political science. With this expanded presence on the Osceola campus, UCF plans to add a diverse array of bachelor’s degrees to the Osceola campus by fall 2013, including degrees in biomedical science, criminal justice, psychology, public administration and health services administration.

Building 4 was intentionally designed to set itself apart from any other classroom building on the campus. The outdoor and indoor spaces were designed to provide meeting and study space for students, courtyards provide shade and places for students to relax, and the library features a huge reading room with windows that overlook the campus. Architect Maurizio Maso, who designed the building, said the vision for Building 4 came from a meeting with Shugart.  “He said the architecture should be soaring, inspiring and grounded—and that if Osceola Campus is a village, Building 4 should be the cathedral.”

The building, which opened for classes in January, has quickly become the center of student life for the 12,000 students who take classes at the Kissimmee campus.

Image via Valencia College

Developers Kick-Start $38M Transit-Oriented Apartment Community in Orlando

By Georgiana Mihaila, Associate Editor

A new community is set to rise in downtown Orlando, as developers Wood Partners and The Ustler Group have joined forces and started working together on a 248-unit urban apartment community called The Ivy – Residences at Health Village.

Set on 3.4 acres acquired by the developers in Florida Hospital’s Health Village in November 2012, the $38 million apartment community will stand amid the hospital’s 172-acre Health Village—a mixed-use, transit-oriented, master planned urban development. Centered around health and wellness, Health Village features a variety of uses including medical, research, medical office, commercial, hotel and multifamily.

The Ivy—Residences at Health Village will consist of two mid-rise buildings and an integrated parking garage, and it will offer 248 one-, two- and three-bedroom units averaging 941 square feet, with a total living area of 233,368 square feet. The first units at The Ivy are scheduled for completion in late 2013 or early 2014 with full project completion and availability of all units set for mid-2014.

Baker Barrios serves as design architect, with Charlan Brock & Associates as the architect-of-record and Wood Florida Builders as the general contractor. GAI Consultants has been chosen as the civil engineer for the project, while Libra Design Group will be the landscape architect. Wood Partners and Ustler have a marketing relationship with Florida Hospital to provide their employees with the first opportunity to lease apartments at The Ivy.

The Ivy could be the first true transit-oriented development project to start vertical construction in Orlando since the formal announcement of SunRail. A SunRail station is part of Health Village and will be operational as of 2014. The Ivy will be just one SunRail stop away from the premier dining and shopping offerings of Winter Park’s Park Avenue, and two stops from the main downtown Orlando stop at Church Street Station in the Central Business District, which is in proximity to the newly completed Amway Center and the under-construction Dr. Phillips Center for the Performing Arts.

Image courtesy of Wood Partners

Winter Park’s University Plaza Shopping Center Gets $10.5M Financing

By Georgiana Mihaila, Associate Editor

Holliday Fenoglio Fowler, working exclusively on behalf of borrower North American Development Group, has recently arranged $10.5 million in financing for the grocery-anchored University Plaza shopping center in Winter Park.

HFF director Chris Drew, senior managing directors Paul Stasaitis and Danny Finkle, and senior real estate analyst Jose Carrazana led the HFF team representing North American Development Group; they have successfully secured the 15-year, fixed-rate loan through Prudential Mortgage Capital Company.

“NADG is a sophisticated borrower that is taking advantage of historically low interest rates to lock in highly accretive long-term, fixed-rate financing for a core asset in their portfolio,” said Drew. “We continue to see incredible demand from top-tier life insurance companies for fixed-rate loans on grocery-anchored retail throughout the state.”

Located at 4000 North Goldenrod Road at the intersection of University Boulevard in Winter Park, the 77,918-square-foot University Plaza shopping center is currently 95 percent leased, with Publix as the anchor tenant. Set approximately 10 miles northeast of downtown Orlando, the building was redeveloped in 2011.

Marcus & Millichap estimates that the Orlando retail market will most likely strengthen in 2013, given the upcoming employment gains, population growth and increased tourism. Retailers are already responding to market improvements, several having already made public their expansion plans. The gas station/convenience store segment is especially active with RaceTrac, 7-Eleven and Wawa all adding multiple sites this year. Other retailers with new stores under way include Dollar General, Family Dollar and Walmart.

Image via Loopnet

Chart Courtesy of Marcus & Millichap

Wood Partners Delivers First Units of Luxury $32.7M Alta at Lake Eve

By Georgiana Mihaila, Associate Editor

Wood Partners is making headlines for the second time this month; after having recently broken ground on its 200-unit Rialto apartment complex in southwest Orlando, the company is now announcing the official opening of its newest multifamily community, the $32.7-million Alta at Lake Eve.

Currently, 60 apartment homes are ready for move-in, and the remaining units are available for pre-lease, with the official completion date set for April 2013.

The 264-unit luxury apartment community consists of four four-story mid-rise buildings and a couple of two-story carriage home buildings. Featuring the latest in resort-style amenities, from a private movie theater and state-of-the-art fitness center to high-efficiency washer-dryer units in every residence, Alta at Lake Eve residents will also benefit from a luxurious two-story clubroom that also includes a conference room, executive business center, coffee lounge, reading room, billiards room and game room.

The controlled-access development boasts one of the area’s best locations, at 12515 Lake Square Circle, two miles from Walt Disney World and about five miles from Universal Studio, Sea World and the Orange County Convention Center. Residents are just steps from the I-Ride trolley that facilitates access to the Orlando Premier Outlet Mall, as well as hundreds of restaurants and night spots.

“Location is a major selling point, but this development is unique and has a WOW factor from the moment you walk in the door,” said Joe Garibay, Southeast Regional Property Manager for Wood Residential Services. “Alta at Lake Eve is a very modern mid-rise with wood-plank flooring, espresso cabinets, elevators and high-end outdoor features.”

The 264 units include executive suites; 656-square-foot one-bedroom models; 1,132- to 1,200-square-foot two-bedroom, two-bath models; and 1,476-square-foot three-bedroom, two-bath models. Patios, balconies, sun rooms and garages are also available.

The 9.69-acre community is Wood Partners’ 11th project in Orlando. Since 1998, the company has developed 27 projects with a total valuation of $1.1 billion in Florida. Wood Florida Builders, LLC—Wood Partners’ Florida construction branch—served as builder for the project, while Charlan Brock & Associates was the architect.

Image Courtesy of Wood Partners

HFF Secures $50M Refinancing for Three Central Florida Office Properties

By Georgiana Mihaila, Associate Editor

Holliday Fenoglio Fowler, working on behalf of the borrower—a joint venture between The Praedium Group and Tower Realty Partners, Inc.—has secured $50 million in refinancing for three Central Florida office properties.

The three properties, totaling more than 780,000 square feet of office space, include Quorum Center and Oakridge Office Park in Orlando and 850 Trafalgar in Maitland.

The loans were secured in two separate transactions; the 10-year, fixed-rate loans for Quorum Center and 850 Trafalgar were placed with UBS Real Estate Finance Group, while a 10-year, fixed-rate loan for Oakridge Office Park was placed with Morgan Stanley. According to HFF, all three non-recourse, securitized loans were priced in the mid four percent range.

The HFF team representing the borrower was led by Michael Weinberg, a director in HFF’s Orlando office, along with directors Elliott Throne and Chris Drew and senior real estate analyst Jorge Portela from HFF’s Miami office.

According to CBRE, the Orlando office market ended a five quarter run of positive absorption with negative absorption of more than 225,000 square feet in the fourth quarter of 2012. The local market is still trying to regain its footprint following the deterioration of market fundamentals in mid-2008. Improving market fundamentals in strong submarkets have been mostly negated due to weakness in other submarkets. Landlords have been tightening up on free rent and other concessions and rents have made no substantial improvements overall. As the vacancy rate for Class A product continues to inch downward, developers’ confidence will improve and formerly stalled projects may be revived. However, inconsistency throughout the Orlando area makes it difficult to predict where the market is headed.

Chart courtesy of CBRE

Image: Quorum Center via Tower Realty Partners