Rida Development’s $200M Transit-Oriented Project Gets Preliminary Approval

By Georgiana Mihaila, Associate Editor

RIDA Development’s master plan for a $200 million, multi-phased mixed-use development won the approval of Orlando’s Municipal Planning Board on Tuesday, and must now go before the City Council.

The ambitious project was first announced in 2011, when Mayor Buddy Dyer included RIDA’s idea in his State of Downtown speech.

The mixed-use Central Station project will spread over a 5.6-acre parcel adjacent to the Lynx Central Station and across Orange Avenue from the Orange County Courthouse. The location facilitates a direct connection to SunRail, the 61-mile commuter train system scheduled to launch in 2014, making the Central Station the first example of transit-oriented development tied to the SunRail. According to a plan previously released by the developer, a spine running through the center of the complex would link Orange Avenue with downtown’s main SunRail platform at the Lynx center.

The 5.6-acre tract, considered to be the largest undeveloped parcel downtown, was purchased by RIDA Development for $15.1 million in 2008 from Palm Beach Land Trust—that also had plans for a $250 million mixed-use project tied into the commuter-rail system. Previous to Palm Beach Land Trust, the property was owned by Ron Pizzuti, who proposed Orlando City Center—a tower topped by a large open cube—but the project was shut down by the Federal Aviation Administration as its height would have endangered the Orlando Executive Airport air traffic.

The development consists of three phases, with the first estimated at approximately $100 million. The first phase of the development will add a126-room hotel, a 275-unit apartment building with a 411-space parking garage, and a 97-space parking lot accompanied by ground-floor shops and restaurants.

According to the Orlando Sentinel, if the master plan gets the final approval from the City Council, construction could start this year on the residential component—where Crescent Resources will serve as RIDA Development’s multifamily partner.

Image: Orlando, Lake Eola aerial

Orlando Fashion Square Mall Trades for $35M; Duke Realty Closes Five Notable Leases

By Georgiana Mihaila, Associate Editor

Pennsylvania Real Estate Investment Trust is pursuing its previously announced strategy of improving the quality of its portfolio by selling non-core assets. One of the first non-core assets to trade is Orlando Fashion Square Mall, recently sold in a $35 million cash transaction.

“The sale of Orlando Fashion Square and the previously announced sale of Phillipsburg Mall are further evidence of our commitment to the plan we’ve laid out to elevate the quality of our portfolio and improve our operating metrics. We are pleased with the terms of this transaction and look forward to continuing to achieve our strategic objectives,” said Joseph F. Coradino, CEO of PREIT.

The 1.1 million-square-foot Orlando Fashion Square Mall is anchored by Dillard’s, jcpenney, Macy’s and Sears. According to PREI, sales at the property were $233 per square foot and non-anchor occupancy was 80.7 percent as of December 31, 2012, both of which were below PREIT’s portfolio averages. The property was part of the collateral pool securing the company’s 2010 Credit Facility. The recent sale resulted in a gain of approximately $0.6 million to be recognized in the first quarter of 2013.

In other commercial real estate news, Duke Realty’s Central Florida office closed five leases totaling 435,728 square feet at industrial properties in the Orlando area. The leases included a long-term renewal of 275,000 square feet with Ford Motor Company at Park 27 Distribution Center in Davenport, Fla., southwest of Orlando; new leases of 37,683 square feet with Alstyle Apparel and 19,300 square feet with FM Convention Contractors Inc. at Parksouth Distribution Center; and renewals of 78,295 square feet with Benjamin Moore and 25,450 square feet with Universal Studios.

Duke Realty’s Tim Perry, vice president of leasing in Central Florida, represented the company in the five transactions.

Image: Orlando Fashion Square Mall via Google Maps

Wood Partners Kick-Starts 200-Unit Community in Southwest Orlando

By Georgiana Mihaila, Associate Editor

National multifamily developer Wood Partners will soon be adding 200 units on Spring Lake, at the entrance of Doctor Phillips, one of Orlando’s most desirable residential districts.

The apartment complex, dubbed The Rialto, will rise on a 5.95-acre site set at the northwest corner of Sand Lake Road and Turkey Lake Road in southwest Orlando. Plans include a five-story apartment building and 17,000 square feet of retail space, to be owned by The Wilder Companies—a Boston-based firm that specializes in retail real estate development, management and leasing.

The Rialto will consist of 200 units with one-, two and three-bedrooms, averaging 1,056 square feet. High-quality interiors will include ceramic flooring in kitchens, entries and baths; ceramic tub surrounds; nine-foot ceilings; stainless steel appliances; 42-inch cabinets with granite tops; and sleek, modern lighting. A total of 399 parking spaces will be available in an integrated parking garage, in addition to 59 spaces for retail and five spaces for the leasing office.

The site, with 350 feet of frontage on Sand Lake Road and 750 feet of frontage on Spring Lake, is in the middle of the premier dining and shopping offerings in Doctor Phillips, with major employment hubs such as Walt Disney World, Sea World, Universal Studies, and the Orange County Convention Center within a short distance.

“The site is well served by major transportation routes, major employers, area schools, retail stores and other support services,” said David Thompson, director for Wood Partners in Florida. “The proximity to excellent retail, prestigious Doctor Phillips address, outstanding lake views and superior school district distinguish the project from competitive offerings.”

Real Estate Capital Partners is Wood Partners’ equity partner in the project, with Synovus Bank as lender.

With a completion date set for July 2014, the project is expected to generate more than $20 million in local income, about $1.9 million in local taxes and government revenue, and more than 244 jobs over its 19-month construction period.

Image courtesy of Wood Partners

Highwoods Sells Two Assets for $14.6M; Kite Realty Buys Publix-Anchored Center

By Georgiana Mihaila, Associate Editor

Raleigh-based Highwoods Properties, Inc. has sold two non-core assets in Orlando for $14.6 million in cash. The two office properties—Metrowest Commerce Center and Cambridge in Orlando—encompass 134,000 square feet.

The two properties are reportedly 100 percent leased to a single entity and are expected to generate $1.3 million of cash net operating income in 2013. Highwoods will continue to serve as property manager of these assets in exchange for customary fees.

President and Chief Executive Officer of Highwoods Properties, Ed Fritsch, said, “The sale of these non-core assets, the majority of which is a single-story asset, is in sync with our ongoing work to continuously improve our portfolio. These assets were not strategic to our Orlando holdings, which consist primarily of Class A CBD properties.”

A 69,000-square-foot Publix Supermarket-anchored shopping center also recently traded in Orlando for a purchase price—exclusive of closing costs—of $11.6 million. Kite Realty Group Trust, a full-service, vertically integrated real estate investment trust, acquired the property.

The center is currently 99 percent leased and is located within close proximity to Waterford Lakes Village, another Kite Realty Group-owned property. The retail center draws from the solid trade area surrounding the University of Central Florida as well as the Eastwood, Stoneybrook, and Waterford Lakes master plan communities.

“This property is a well-positioned grocery-anchored center with strong credit. We will continue to selectively acquire well-located assets throughout the Midwest, Southeast, and Texas markets,” said John A. Kite, the Company’s chairman and CEO.

Image courtesy of Highwoods.com

718-Room Radisson Resort Orlando Trades, Prepares for Immediate Renovation

By Georgiana Mihaila, Associate Editor

Radisson Resort Orlando – Celebration is now a member of the Interstate family, as a joint venture between Interstate Hotels & Resorts and Waramaug Hospitality LLC has recently acquired the 718-room hotel for an undisclosed amount.

While the new owners did not want to disclose the price for which the hotel traded, they have expressed their intent of conducting renovation work on the property, effective immediately. The $9 million renovation will consist of upgrades and enhancements to all 718 guest rooms, public areas, meeting space and mechanical systems.

Radisson Resort Orlando – Celebration is located 1.5 miles from Walt Disney World, directly off I-4 at Exit 64A and just 17 miles from the Orlando International Airport, on a 20-acre property. The resort also features 6,800 square feet of meeting and event space, five on-site dining venues, several types of pools, a gaming center, a sand volleyball court and two lighted tennis courts.

“As one of the top tourist destinations in Florida, Orlando was a natural choice for the hotel’s location and the Radisson Resort Orlando is minutes away from the city’s top attractions,” said Paul Nussbaum, Waramaug Hospitality’s chief executive officer. “With the prime setting and the approaching renovations, this hotel will thrive under Interstate’s operating expertise.”

Interstate Hotels & Resorts, Inc.—a subsidiary of a 50/50 joint venture between subsidiaries of Thayer Lodging and Jin Jiang—is at its fifth acquisition with Waramaug Hospitality. The joint venture has been advised in the transaction by Hospitality Funding LLC, a Palm Beach-headquartered boutique investment advisory firm.

The Radisson Resort was not the only Orlando-area hotel to trade hands recently. Summit Hotel Properties, Inc. has closed on the acquisition of both Hyatt Place-Universal and Hyatt Place-Convention Center as part of a $36.1 million deal that included a third property, located in Chicago. The new owner has entered into an agreement with Select Hotels Group, L.L.C., an affiliate of Hyatt, to operate each hotel.

Image via Google Places

Loews & Universal Break Ground on 1,800-Room Cabana Bay Beach Resort

By Georgiana Mihaila, Associate Editor

Loews Hotels & Resorts and joint venture partner Universal Parks & Resorts have broken ground on one of the largest hotels currently under construction in the U.S—the 1800-unit Universal’s Cabana Bay Beach Resort.

The hotel will be built on a 37-acre site within Universal Orlando Resort and adjacent to Universal’s Islands of Adventure—just off Hollywood Way and Turkey Lake Road. Pricing information, opening timeframes and room on-sale dates have not been released, but according to the official announcement, the Loews Hotels & Resorts-operated hotel is scheduled to open in 2014.

The new hotel will be themed differently than anything else currently available at Universal Orlando, by evoking the driving vacations many Americans grew up enjoying with their families. The developers plan on giving it a hip, vintage look, accented with bold design, dramatic, clean lines, bright, period colors and touches of neon.

Universal’s Cabana Bay Beach Resort will offer two distinct experiences within the development’s multiple buildings: 900 family suites, capable of sleeping six, that include kitchen areas; and 900 standard guest rooms offering both moderate- and value-priced accommodations.

When the developers first announced the project, in July 2012, they stated that the new hotel will allow families to choose between value pricing or the higher level of benefits and service that come with staying at other on-site Universal Orlando hotels such as Loews Portofino Bay Hotel, the Hard Rock Hotel and Loews Royal Pacific Resort. It will provide early park admission, proximity to Universal’s Islands of Adventure and Universal Studios and resort-wide charging privileges, but it will not offer complimentary Universal Express Unlimited Access.

Universal’s Cabana Bay Beach Resort is the fourth hotel in partnership with Universal Parks & Resorts.

“Universal’s Cabana Bay Beach Resort project is a key component in our development plans,” said Paul Whetsell, president and CEO of Loews Hotels & Resorts.  “Our partnership with Universal is integral to our growth as we strategically expand Loews Hotels.”

Loews Hotels & Resorts’ new Orlando hotel development groundbreaking news followed the announcement of the company’s most recent hotel acquisition, the 356-room Madison Hotel in the heart of Washington, D.C.

Image Courtesy of Universal Orlando Resort

Orlando University Center’s $33M Sale was 2012’s Second Largest Office Deal

By Georgiana Mihaila, Associate Editor

Crocker Partners’ $33 million acquisition of the Orlando University Center office park in late December proved itself to be the second-largest office investment sale in Orlando for 2012.

The acquired portfolio includes five suburban office buildings—totaling 386,512 square feet on 27.12 acres—at 3452, 3504 and 3505 Lake Lynda Blvd., and 11301 and 11315 Corporate Blvd., just west of the University of Central Florida in Orlando. The office park was approximately 70 percent occupied by 56 local, regional and national tenants at the time of purchase. Current tenants include Woolpert Inc., Zenith Insurance, the Social Security Administration and Dignitas.

“This is a well-located office portfolio that offered the buyer the ability to add value in the future, as well as capitalize on the in-place cash flow today,” said Felberg. “Fortunately, there is a lot of competition for attractive institutional properties.”

Fred Beasley, SIOR, and Bret Felberg, CCIM, of Colliers International Central Florida and John Crotty, CCIM, of Colliers International South Florida represented the seller, JPMCC 2005-CIBC13 ORLANDVILLE OFFICES, LLC, for which LNR is the special servicer. The buyer, Crocker Partners, a real estate investment firm headquartered in Boca Raton, Fla., represented itself.

The Colliers team worked in conjunction with the Auction.com platform and with Chuck Wolter of Archetype Mortgage Capital, which provided the financing for the transaction on behalf of the buyer, to complete the successful sale of the property.

Image: 3504 Lake Lynda Blvd via LoopNet

UCF Starts Renting Units at the $55M NorthView Student Housing Project

By Georgiana Mihaila, Associate Editor

With opening set for Fall 2013, UCF Housing and Residence Life is now taking applications to rent units in the $55 million NorthView student housing project. Currently under development just across McCulloch Rd. from the UCF campus and Bright House Networks Stadium, the apartments are being developed by Alan Ginsburg and designed by Orlando-based Cuhaci & Peterson Architects LLC and Finfrock.

“UCF Housing has been chosen as the manager because we provide a seamless connection to university resources, such as academic advising and campus events, as well as systems like myUCF, which allows students to easily apply and pay for housing with scholarships, grants, and loans,” said Jimmy Moore, assistant director for UCF Housing and Residence Life.

The 600-bed NorthView project offers several floor plans, including two-bedroom, two-bath; four-bedroom, four-bath; and four-bed, four-bath lofts, which will have living rooms on both levels. The apartments will be fully furnished with modern appliances and furniture with upscale finishes. Electricity, high-speed wireless internet, cable TV, water and parking will be included in the rental rate with no caps on energy usage.

NorthView amenities include a 43,800-square-foot community recreation center, a 618-space dedicated parking garage, a rooftop sky deck, fitness center, game room, resort style pool, and flat-screen televisions in each apartment.

NorthView will be built among two faith centers for community gatherings and student resources. One is currently dedicated to Hillel, the Jewish student organization. The affiliation of the other facility has not yet been decided.

According to an official UCF announcement, students who apply by the Feb. 1 priority deadline will be invited to attend an exclusive room sign-up event where they will be able to select the unit in which they will live. Rents start at $3,686 for a single bedroom in a four-bedroom / four-bathroom unit.

Image courtesy of UCF’s Official Website

GDC-Developed M-F Project to Deliver Eco-Friendly, Luxury Units to Downtown Orlando

By Georgiana Mihaila, Associate Editor

The 2.6-acre site at North Orange Avenue and Marks Street will no longer stay vacant, as developer GDC Properties has recently broken ground on a $35.9 million, eco-friendly multifamily development.

The six-story, 246-unit luxury rental development has been named NORA; the project also features 10,000 square feet of neighborhood retail including a restaurant, gym and coffee shop.

NORA is anticipated to be a LEED certified project. Eco-friendly property features include a rooftop photovoltaic system that will contribute towards its LEED certification requirements. The unit mix is comprised of one- and two-bedroom apartments that range in size from 691 to over 1,400 square feet. Amenities include a courtyard with a large pool and barbecue grilling areas. There will also be an adjacent 400-space parking garage with access to each of the building’s six floors, as well as bicycle storage.

“Demand for rental apartments in Downtown Orlando is surging as young professionals look to reduce their commutes and live in a walkable, 24-hour urban environment,” says Adam Ginsburg, co-chairman of GDC Properties. “We look forward to providing hip and environmentally conscious homes to prospective renters.”

The project, set for completion in spring 2014, is designed by Baker Barrios Architects, while PCL Construction Services Inc. is the project’s general contractor. NORA is expected to begin leasing in late 2013.

New York-based developer GDC Properties bought the long-time vacant site at North Orange Avenue and Marks Street in 2005 for $2.7 million. On July 11, 2011, the NORA project master plan received approval from the Orlando City Council. This is not the sole GDC Properties-developed project underway within city limits, as the company is also working on the ALOFT Orlando Downtown—an adaptive reuse and redevelopment of the former OUC Administration Building to a proposed Starwood Aloft hotel.

Retail Phase of 14.5-Acre Mixed-Use Development Underway, Multifamily and Office to Follow

By Georgiana Mihaila, Associate Editor

DeBartolo Development, LLC and Forge Capital Partners, LLC have recently broken ground on The Fresh Market at Mills Park—the first phase of a 14.5-acre mixed-use development that will rise at the intersection of Mills Avenue and Virginia Drive in Orlando.

The approximately 24,000 square-foot specialty neighborhood grocer Fresh Market will anchor The Market at Mills Park, the retail portion of the project, set for completion in 2013. The ceremonial groundbreaking, held on November 12, was attended by Orlando Mayor Buddy Dyer, Commissioners Robert F. Stuart (District 3), Patty Sheehan (District 4) and Samuel B. Ings (District 6).

“The groundbreaking of the urban infill development, Mills Park, is exciting because it is evidence that Orlando is moving out of the recession and into prosperity,” said Mayor Buddy Dyer. “I am thrilled to see retailers such as The Fresh Market believing in Orlando.”

The retail project features a park element consisting of small freestanding retail buildings offering treats like ice cream and adult and kid-friendly beverages as well as a bike repair shop surrounded by subtle landscape and water features for those traveling on the Orlando Urban Train.

Following the retail component, Mills Park will add multifamily residences as well as office space. The urban mixed-use development will be located minutes away from Florida Hospital’s main campus which serves 1.5 million patients annually and employs 1,000 physicians and up to 5,000 associated staff members. Centrally located midway between Downtown Orlando and Winter Park, the mixed-use development will be within walking distance of major cultural centers including The Orlando Museum of Art, The Orlando Science Center, Orlando Shakespeare Theater, The Mennello Museum of Folk Art and the Orlando Repertory Theater.

Developers DeBartolo and Forge Capital Partners have acquired the 14.5-acre site of the city-approved development in April 2011 through their joint venture investment fund, Community Reinvestment Partners II, LP. The two companies have retained Pelloni Development Corporation—the original developer of the project—to develop the medical and professional office component.

Image via http://www.millsparkorlando.com/