University Shoppes Demolition to Make Way for Student Housing Complex

By Georgiana Mihaila, Associate Editor

The 25-year-old University Shoppes retail center across from University of Central Florida’s main entrance is set for demolition, as American Campus Communities will soon be replacing it with a new student housing complex.

Construction will start this week on the development dubbed The Plaza At University. The project will deliver 1,313 student housing beds, 60,000 square feet of new retail space and a 10-level parking structure to the University area within the Northeast Orange County submarket. The 14.03-acre site will be leveled almost entirely, except for the existing McDonald’s restaurant along Alafaya Trail.

The property sits on the northwest corner of University Boulevard and Alafaya Trail at 12209–12321 University Boulevard, placing the mixed-use redevelopment directly across from the main entrance of the University of Central Florida—the second largest university in the country and home to over 58,000 students—and across from Central Florida Research Park, as well as adjacent to Quadrangle Business Park.

“This premier mixed-use off-campus project will redefine student living for students attending UCF,” said Jake Newman, senior vice president of development for American Campus Communities. “With modern private accommodations in an academically oriented environment, plus superior retail amenities that will serve residents and the broader neighborhood, students will have a residential community unlike anything in the Orlando market.”

Bobby Palta of CBRE is in charge of marketing the retail segment of the project, having already begun negotiations with several national and regional retail concepts. The project is scheduled to be completed in the third quarter of 2014 in time for the fall academic semester at UCF.

Image via CBRE.us

Highpoint Club Apartments Trade in $30 Million Deal

By Georgiana Mihaila, Associate Editor

Tampa-based Robbins Property Associates has now assumed ownership of Highpoint Club Apartments in Orlando, following a $30 million deal. The price amounts to $86,207 per unit.

The sale of the 348-unit apartment community was arranged by Institutional Property Advisors, a firm hired by seller Sentinel Real Estate Corp. to market the property.

“This institutional-quality asset possesses enormous upside potential,” says Jamie B. May, an executive director of IPA. “The new owner can continue to upgrade units in order to realize the property’s full potential, which will provide the opportunity for rent increases as the market improves.”

The 43-building multifamily community is located in the Waterford Lakes neighborhood, within the high-performing University/East Orange County submarket; the location provides residents with a convenient driving distance from major employment centers such as the University of Central Florida, Central Florida Research Park and downtown Orlando. Access to retail is also within reach, given the proximity to Waterford Lakes Town Center.

Highpoint Club Apartments consists of 43 two-story residential buildings with 176 one-bedroom/one-bath units and 172 two-bedroom/two-bath units. Amenities include a well-appointed clubhouse with Wi-Fi and large screen TV, a resort-style swimming pool with spa, a resident business center, an illuminated tennis court and basketball court, 86 individual garages, a car care center, a private dock on the adjacent lake, a 24-hour fitness center and an onsite laundry facility.

The property’s fully equipped kitchens include breakfast bars and full-size washer/dryer connections. All top floor units have vaulted 15-foot ceilings, and the buildings themselves include private ground floor entrances and foyers, sunrooms, extra interior storage and spacious walk-in closets.

Enders Place at Baldwin Park Trades Hands

By Georgiana Mihaila, Associate Editor

A joint venture between affiliates of Manhattan-based Bluerock Enhanced Multifamily Trust, Inc. and Waypoint Residential has recently acquired Enders Place at Baldwin Park for an undisclosed amount.

The joint venture acquired 198 unsold condominium units at the Enders Place multifamily community, units it plans on operating as apartment rentals. At closing, the property was 94 percent occupied by apartment tenants.

“With Enders Place, we were able to execute in a very short timeframe, buying the asset at a significant discount to inherent value,” says Jim Babb, chief investment officer for Bluerock Real Estate. “We were also able to secure favorable, non-recourse long term agency financing which should further enhance performance,” he adds.

Enders Place will be managed by Waypoint Management, a firm associated with Waypoint Residential—an established real estate investment company specializing in apartment properties throughout the mid-Atlantic and Southeast US.

Constructed in 2003, Enders Place spans approximately 232,147 square feet with an average unit size of 1,172 square feet. Units are spread across 29 two- and three-story buildings and feature amenities such as patios/balconies, crown molding, roman tubs, and European style cabinetry, among others.

Enders Place is one of several communities within the larger Baldwin Park development of Orlando. Pedestrian-friendly with 215 acres of park space, nature trails and amenities, Baldwin Park is a popular and award-winning, low- to medium-density planned community and is an example of New Urbanist design. The development, built in the early 2000s, also features high-end housing, top schools, quality shopping, restaurants and fitness facilities, all within three miles of Orlando’s Central Business District.

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

Westin Imagine Follows in Streak of Recent Orlando Hospitality Transactions

By Georgiana Mihaila, Associate Editor

The last few weeks stand as clear proof of the increasing appeal of Central Florida hotels; following the sale of two luxury Bohemian hotels and that of the Lake Eve Resort last week, Westin Imagine Hotel was next in line to trade owners.

The 315-room Westin Imagine Hotel was purchased by ERGS WI Orlando REO LLC for the reported amount of $34.5 million or roughly $109,523 per room. Holliday Fenoglio Fowler marketed the Westin on behalf of the seller, a bank group using the name REDUS Imagine LLC, which foreclosed on the property earlier this year.

The Westin Imagine is located adjacent to the Orange County Convention Center at 9501 Universal Boulevard, close to Orlando’s world-famous theme parks and numerous shopping destinations. Completed in 2008, the hotel features Fiorella’s Cucina Toscana restaurant, more than 7,000 square feet of meeting space, and resort-style pool and fitness amenities. The transaction also included a condominium-hotel component and approximately 24 acres of land surrounding the hotel.

The HFF investment sales team representing the seller was led by senior managing director Daniel Peek, directors Max Comess, Michael Weinberg and Paul Hsu, and senior real estate analyst Cyrus Vazifdar.

“We congratulate both parties on a successful and timely transaction,” commented Peek. “This was a highly complicated asset with many moving parts; however, both sides and their respective counsels remained focused on the deal and achieved a mutually beneficial outcome.” Comess added, “The hotel’s improving performance in a strong, global market, superb physical condition, and attractive investment basis were all attributes that made this opportunity attractive to numerous investors from around the world.”

For legal counsel, the seller was represented by the Orlando office of Lowndes, Drosdick, Doster, Kantor & Reed. The buyer was represented by the Pittsburgh office of Eckert Seamans Cherin & Mellott and the Miami office of Greenberg Traurig.

Image via www.westin.com/Orlando

JV to Invest $24M in Orlando’s Lake Eve Resort

By Georgiana Mihaila, Associate Editor

According to an official announcement, the Arden Group, Inc. entered into a joint venture with Eightfold Real Estate Capital and Hostmark Hospitality Group to acquire the Lake Eve Resort in Orlando.

The joint venture will be investing a total of $24 million, a price tag that includes upgrades to the guest rooms, lobby, exterior lighting and signage; plans also call for an expansion of the pool area with a new children’s water park.

The 364-bedroom Lake Eve Resort is spread over nine acres set in close proximity to all major theme parks, shopping and great restaurant options. Some of the amenities include full kitchens, a heated pool and hot tub, 24-hour dedicated reception service, a fitness center and complimentary scheduled shuttle service to each of the Walt Disney World, SeaWorld and Universal attractions. The resort features one-, two-, and three-bedroom suites and is known as a family getaway destination.

“It is a great time to invest in an Orlando resort,” said Craig A. Spencer, president and CEO of Arden Group. According to Kiplinger, Orlando will be the fastest-growing job market in Florida, with 15 percent job growth over the next five years. “When you take a strong partnership like we have with Eightfold and Hostmark and apply that expertise to a high quality resort such as Lake Eve, which is located in the country’s top tourist destination, it gives us great confidence that this will be a very good investment for our real estate fund. This investment is consistent with our strategy of sourcing and investing in opportunities for value creation.”

The Arden Group acquires, develops and manages full-service hotels and office properties in major U.S. markets where demand is proven but assets remain undervalued. Arden Group acquired its interest through Arden Real Estate Partners I, L.P., a discretionary real estate fund launched in April 2012. This is the Fund’s second hotel acquisition this year. Since its founding in 1989, Arden Group has purchased or developed more than $1.5 billion of real estate.

Inland Snags Two Luxury Bohemian Hotels in Orlando

By Georgiana Mihaila, Associate Editor

Inland American Lodging Group, Inc.—a wholly owned subsidiary of Inland American Real Estate Trust—recently announced purchase agreements with acclaimed hotelier and developer Richard Kessler to acquire two Orlando-area luxury hotels, and one in Savannah, Ga.

This mutually beneficial collaboration includes the purchase of Grand Bohemian Hotel in Orlando, Fla., Bohemian Hotel Savannah Riverfront in Savannah, Ga., and Bohemian Hotel Celebration in Celebration, Fla. All three properties represent a market share of 150 percent or more within their competitive sets and are founding hotels of Marriott’s Autograph Collection, a collection of high quality boutique hotels selected for their rich character and unique details.

Inland American closed on the acquisition of Bohemian Hotel Savannah Riverfront on August 9. This acquisition was partially financed with a new $27.5 million first mortgage loan provided by Bank of America. The closing on Grand Bohemian Hotel Orlando is expected to occur by December 2012. The acquisition of Bohemian Hotel Celebration is expected to be completed in January 2013.

“This transaction gave us the opportunity to add three high-quality, market-leading luxury hotels in excellent condition to Inland American. The acquisition of these assets further exemplifies our strategy of continued improvement of our portfolio while adding hotels that give us superior yields,” said Marcel Verbaas, president and CEO, Inland American Lodging Advisor, Inc.

The AAA Four Diamond Grand Bohemian Hotel Orlando opened in 2001; located in close proximity to downtown’s cultural gems and Orlando’s theme parks, the luxury hotel offers 247 guest rooms featuring pillow-top beds and suites with Jacuzzi baths, as well as a relaxing heated outdoor pool and in-room massage treatments and approximately 10,000 square feet of meeting space. The second Orlando-area hotel is the 115-room Bohemian Hotel Celebration, characterized by a fine design and captivating lakeside views.

Hodges Ward Elliott advised the seller on the transaction. The properties will continue to be managed by Kessler Collection Management under a 10-year management agreement.

For more market data on Orlando, click here.

Lincoln Property Signs Leases for Over 30,000 SF in Metro Orlando

By Georgiana Mihaila, Associate Editor

Within the past week, Lincoln Property Company Southeast has brokered leases totaling more than 31,000 square feet in several metro Orlando complexes.

For the first four leases, Lincoln office vice-president Robert Kellog represented the landlords. Kellog signed Grace Title on a three-year, 2,687-square-foot renewal at Premier Point, a two-building, 95,403-square-foot office complex in Altamonte Springs, Fla. Andrade P.A. also inked a five-year, 1,600-square-foot new lease at the site. Neither tenant was represented by a broker.

SeniorBridge has signed a three-year, 1,998-square-foot new lease at 1801 Lee Road in WinterPark, Fla. Joe Abascal of Cushman & Wakefield represented the tenant. In addition, Orlando Hypnosis Clinic signed a 1,472-square-foot new lease at the building; the transaction was a direct deal.

“It is encouraging to see the increased activity in the suburban Orlando office market,” Kellogg said. “An improving economic climate and the market knowledge and resources we have at Lincoln will enable us to create real value for our landlord clients.”

Jay Dixon, vice president, office, for Lincoln Property Co. Southeast, can also pride himself on two major recent leases, landing tenants for more than 24,000 square feet of office space:

• M2 Systems Corp. has signed a long-term lease for 11,988 square feet in 500 Winderley Place, a three-story, 101,321-square-foot office building in a park-like setting in Maitland, Fla. The building is near Interstate 4, the RDV Sportsplex Athletic Club, and several banks and hotels.
• Osceola County, Fla. has signed a long-term lease for 12,248 square feet at Celebration Place IV, a Class-A, 125,974-square-foot office building in Celebration, Fla. The five-story building is designed for high-tech users and is near Interstate 4, State Road 417 (known as the Central Florida Greeneway) and Highway 192. Dixon represented the landlord, 215 Celebration Place Inc., and was the only broker involved in the transaction.

Image: Premier Point, courtesy of Wilbert News Strategies

Valencia College Puts Historic Chicone Building on the Market

By Georgiana Mihaila, Associate Editor

After purchasing a Metrowest property that will assist Valencia College in centralizing and economizing its key administrative functions, Valencia Foundation is offering its historic Chicone Building for sale or competitive lease.

Lincoln Property Company has been selected to market the property located in the corner of what realtors refer to as “Main and Main”—at Church Street and Orange Avenue. Also known as Valencia Downtown Center, the property offers a prestigious address at 190 South Orange Avenue, outstanding access to downtown nightlife and a bit of timeless charm. The 28,716-square-foot space can potentially be used for residences or offices and also is well-suited for ground-floor retail, as it once housed a pharmacy.

Constructed in 1930, the building is a notable part of Orlando’s downtown history. It is an Orlando Historic Landmark included in the Downtown Historical Preservation District and a regular stop on walking tours. West Orange’s iconic philanthropist Jerry Chicone and his family offered the building to the foundation at a very significant discount, in the form of a generous donation. In 1980, the building became known as the Valencia Downtown Center.

Valencia’s building evokes the influences of ancient Egypt and has an Art Deco flair. The original brass and terrazzo staircase leads from the first floor to the second. Hidden staircases offer emergency exits out of the building, and a basement offers additional storage space.

“We are excited to have landed this assignment and to be marketing a property that is close to the hearts of so many Orlando residents,” said Joe Rossi, senior vice president of investment sales at Lincoln Property. “It is a special building in a hard-to-beat location, and we look forward to talking with potential buyers about it.”

Image Courtesy of Wilbert News Strategies

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JV Brings SkyHouse Apartments Concept to Orlando

By Georgiana Mihaila, Associate Editor

Novare Group and Batson-Cook Development Company, the joint venture behind Atlanta’s SkyHouse Midtown Apartments, has now teamed up with Palmetto Realty Advisors in order to bring the SkyHouse concept to Orlando.

Modeled after the Atlanta project which broke ground in January, SkyHouse Orlando is a 23-story, 320-unit apartment tower that will rise at Livingston St. and Magnolia Ave. With the location set on the downtown LYMMO transit route, SkyHouse Orlando will also be two blocks from the proposed SunRail addition to LYNX Central Station—part of Central Florida’s $1.3 billion commuter rail line.

According to Citybizlist, the development will also feature 9,000 square feet of street level retail shops, while a portion of the acquired land will be donated to the city and built out by the venture as a city “pocket park” fronting Livingston Street. A completion date has been set for the third quarter of 2013.

Construction and permanent financing for the project is being provided by an investor account advised by the U.S. real estate business of UBS Global Asset Management, while NGI Investments, LLC, and Batson-Cook Development Company are providing equity. The Atlanta office of CBRE advised on financing for the project whose costs of development are estimated at $63 million. Smallwood, Reynolds, Stewart, Stewart will serve as architect.

In the Orlando metro area, projects containing 11,300 units are lined up in the planning pipeline, although few start dates have been reported. Nevertheless, in 2012 developers will complete approximately 1,000 units—an increase from 2011, but a level low below the average 2,200 units produced annually in the five years before the recession—points out a recent Marcus & Millichap report.

For more market data on Orlando, click here.

Lender-Owned Mixed-Use Project Trades for $13.2M

By Georgiana Mihaila, Associate Editor

Waterford Park at Waterford Lakes—a Class A mixed-use retail and office building located near the nation’s second-largest university, the University of Central Florida—has traded hands for the reported amount of $13.2 million. A small land parcel across the street from the property and a potential billboard site on Lake Underhill Road were also included in the transaction.

The official announcement was made by Marcus & Millichap Real Estate Investment Services, the firm that arranged the sale. Ray Turchi, a senior associate, and Christopher Travis, an associate, both in Marcus & Millichap’s Orlando office, represented the seller, an East Coast-based financial institution. Simon Jonna, a vice president  of investments, and Ryan Cockerill, an associate specializing in retail property investments, both in the firm’s Detroit office, acted in a representative capacity for the buyer, Baltimore-based Continental Realty Corp.

“This asset offers exceptional value-add potential,” says Simon Jonna. “The new owner has the experience necessary to redefine the property’s highest and best use, and position it for peak performance in a fundamentally sound, growing and sought-after demographic region.”

The 115,473-square-foot Waterford Park at Waterford Lakes was built in two phases. The first was completed in 2006 and the second in 2008. Located at the Northeast corner of Lake Underhill Road and Alafaya Trail at 12301 Lake Underhill Road, the property is close to the East/West Expressway, Florida State Road 408 in Orlando.

The property consists of a 58,251 gross leaseable area of first-floor retail space that is 60 percent occupied by 10 tenants and a 57,222-gross leaseable area of second-floor office space that is currently 18 percent occupied by five tenants. The property is wired for cable television and high-speed Internet. Other features include 12-foot first-floor ceilings, 10-foot second-floor ceilings, tile and marble restroom finishes and tenant-controlled electricity.

Image Courtesy of Loopnet

 For more market data on Orlando, click here.

MAA Completes Acquisition of Upscale 394-Unit Multifamily Community

By Georgiana Mihaila, Associate Editor

Apartment-only real estate investment trust MAA has recently expanded its Central Florida portfolio with the addition of the 394-unit multifamily apartment community Retreat at Lake Nona.

Commenting on the announcement, Al Campbell, EVP and CFO of MAA said, “We are pleased to capture this opportunity to expand our operations and efficiencies in central Florida and expect Retreat at Lake Nona will generate an attractive investment return for shareholders.” No financial details of the purchase have been disclosed.

The Retreat at Lake Nona is an upscale 394-unit multifamily apartment community that provides residents with a wide array of amenities including a resort-style pool, lighted tennis courts, a basketball court, outdoor grills, and fitness and business centers. The apartment homes average 1,069 square feet and offer nine foot ceilings, garden tubs and large walk-in closets.

The community is located only two miles from the emerging Medical City development—a new 600-acre science and technology park that serves as home to Sanford-Burnham Medical Research Institute, the University of Central Florida’s College of Medicine, and the MD Anderson Cancer Research Institute. Medical City will also soon see the opening of The University of Florida Academic & Research Center, Nemours Children’s Hospital and the Orlando Veterans Affairs Medical Center.

In addition to close proximity to Medical City, Retreat at Lake Nona provides residents with easy access to two major commuter routes that connect them to several other regional employment and retail centers including the Central Florida Research Park, downtown Orlando, Orange County Convention Center and the Maitland Center Office Park.

Image courtesy of http://www.retreatatlakenona.com

 For more market data on Orlando, click here.

Inland’s University House Ready for August Opening, Fully Pre-Leased

By Georgiana Mihaila, Associate Editor

With an opening date set for later this month, Inland American Communities Group’s University House student apartment community is now 100 percent leased.

University House, located at 3200 North Alafaya Trail at the University of Central Florida, is a five-story, 416-unit/995-bed apartment community that will provide new off-campus housing options for nearly 1,000 students. Due to its innovative design and premium amenities, the property achieved the milestone of being 100 percent pre-leased in early summer 2012. Beginning this month, the community will open and serve the students of the University of Central Florida and the surrounding areas.

The property features cutting-edge amenities, including fully furnished apartments, a fitness center, a multimedia lounge, a swimming pool with cabanas, sport courts, a putting green, tanning beds and more. Residents also will have admittance to controlled-access garage parking and the university and city shuttle systems.

“With the completion of this project on time and under budget, Inland American showed the ability to execute and develop premium student housing properties desired by students,” said J. Travis Roberts, president of IAC. “Going forward, we plan to expand our investment in this growing asset class by completing other developments, including a project scheduled to be finished next fall at California State University Fullerton, and acquiring additional purpose-built premier properties, located on or just off campus, at leading universities.”

Developer Inland American Communities Group, Inc. is a wholly owned subsidiary of Inland American Real Estate Trust, Inc., a company focused on acquiring and developing a diversified portfolio of commercial real estate located in the United States. The company also invests in joint ventures, development projects, real estate loans and marketable securities.

Image Courtesy of Inland American Communities Group, Inc.

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Jewish Orthopedic Clinic Signs 11,000 SF Lease in Downtown Orlando

 By Georgiana Mihaila, Associate Editor

Jewish Orthopedic Clinic will soon be moving to downtown Orlando, as it has recently signed a long-term lease for 11,000 square foot at The Lake Lurna Professional Center.

The lease was brokered by Lincoln Property Company Southeast with Jay Dixon, vice president, representing the landlord in the transaction and Darren Wagner, vice president at RJ King & Associates, representing the tenant.

The three-story Lake Lurna Professional Center, built in 1985, features 240 feet of Orange Avenue frontage and is located just south of Orlando Regional Medical Center (ORMC). The office building offers a total of 45,000 square feet.

“With its proximity to ORMC and its visible signage on Orange Avenue, this is an excellent site for Jewish Orthopedic Clinic,” Dixon said. “We are confident the company will thrive in this location and prove to be an ideal tenant for our client’s asset.”

According to Marcus & Millichap, tenant upgrades and limited expansion into larger spaces are expected to modestly improve the local Class A office segment, while owners of Class B and C properties will have to compete to strengthen operations during 2012. High-end buildings in the Downtown, East/UCF and Maitland submarket staged a respectable recovery in the past year.

Buoyed by the gradual improvement in property operations, deal flow is gaining momentum. Many recently signed leases run for five to seven years, compared with much shorter terms during the recession. According to the firm’s forecast, asking rents will also  advance 1.1 percent in 2012 to $21.29 per square foot.

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HFF Closes $6M Sale of Winn-Dixie-Anchored Retail Center in Apopka

By Georgiana Mihaila, Associate Editor

According to an official statement made by Holliday Fenoglio Fowler, the 71,490-square-foot Errol Plaza in Apopka, Florida has recently traded for the reported amount of $6.125 million.

The Winn-Dixie-anchored retail center was marketed by HFF on behalf of Kimco Realty Corporation; SUSO 1 ERROL LP, a fund indirectly managed by Slate Properties on behalf of its Slate U.S. Opportunity (No. 1) Realty Trust, purchased the unencumbered property.

Errol Plaza is located on West Orange Blossom Trail near the intersection of Errol Parkway approximately 20 miles northwest of downtown Orlando. The retail center is 96.5 percent occupied and serves a residential population of approximately 39,500 within a three-mile radius. Other tenants of the center include Planet Fitness and Winn-Dixie Liquor Store.

The HFF team representing the seller was led by senior managing directors Brad Peterson and Danny Finkle along with associate director Michael Weinberg.

Slate Properties is a Toronto-based commercial real estate investor and asset manager. Since 2005, the company has acquired, owned and disposed of more than $900 million worth of commercial real estate.

A Marcus & Millichap overview of the Orlando retail market shows that year-over-year retail sales have jumped 6.9 percent. Although some cash-strapped retailers such as Albertsons and Perkins are still closing sites, the improving local economy is attracting well-financed retailers such as Dollar General, O’Reilly Auto Parts, Marco’s Pizza and Pita Pit to open stores in the metro.

Orlando retail investors will comb the market for opportunities this year, although options to purchase assets that meet investment objectives could be limited. While improving operations are attracting buyers to the area, they are finding few of the premium properties they are seeking. Rising prices, however, may motivate additional owners who are able to sell to list.

Image Courtesy of LoopNet

New Owners, New Name for Polos East at Waterford

By Georgiana Mihaila, Associate Editor

Advenir has recently added the Polos East at Waterford apartment community to its portfolio, following a $27.1 million transaction. The Aventura-based company–a provider of multifamily real estate investment and management services—has sealed the sale by changing the name of the 308-unit community to Advenir at Polos East.

Located in the upscale Waterford Lakes submarket of Orlando, Advenir at Polos East features 140 one-bedroom/one-bathroom units, 136 two-bedroom/two-bathroom units and 32 three-bedroom/two-bathroom units with rents averaging from $750 to $1,100 per month. The community is three miles south of the University of Central Florida, around the corner from the well-known Waterford Lakes Town Center, and a short commute to the Orlando International Airport.

“We were attracted to Advenir at Polos East because of the significant value to replacement cost, strong market fundamentals and clear value-add potential,” said Todd Linden, chief acquisition officer of Advenir about the property which was 94 percent leased at the time of purchase.

Advenir represented itself in the transaction, with Kevin Judd, Patrick Dufour and Matt Wilcox of ARA representing the seller, a national-based REIT.

The Advenir at Polos East purchase is part of the company’s strategy of acquiring stabilized income producing multifamily assets in markets that have exhibited—and are projecting—healthy economies, positive employment growth and in-migration. Advenir has acquired more than 2,300 multifamily units in the last year.

All around Orlando, deal flow is rising and conditions are ripe for additional apartment transactions; as lenders are competing for business and broadening the array of properties and locations they are willing to finance across Central Florida, the pool of prospective investors deepens as well. The following months may even bring additional sales as owners who have sufficient equity in their properties continue to weigh transactions amid the high level of investor interest, Marcus & Millichap reports.

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

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Saxon Crossing Trades for $21M; Pollack Shores Buys 396-Unit Community for Nearly $24M

By Georgiana Mihaila, Associate Editor

The recently completed Saxon Crossings—a 119,894-square-foot shopping center in Orange County—was acquired by Inland Real Estate Acquisitions for approximately $20.73 million. The property, currently 100 percent leased with Hobby Lobby as the anchor tenant, is also home to LA Fitness, Papa John’s and Jimmy John’s.

Lou Quilici, senior vice president of Inland Real Estate Acquisitions, facilitated the transaction on behalf of Inland Diversified Real Estate Trust, Inc.

“Saxon Crossing is situated at a primary commercial intersection that includes Target and Home Depot, drawing approximately 57,000 vehicles a day from the nearby towns of Deltona and Orange City,” Quilici said. “The shopping center is also well-positioned to benefit from the Stetson University student population, located nine miles from the property. We believe that this high-traffic location and strong line-up of tenants combine to make Saxon Crossing a strong acquisition.”

Inland Real Estate Acquisitions—the purchasing arm for various entities that are a part of The Inland Real Estate Group of Companies, Inc.—has made the purchase on behalf of Inland Diversified Real Estate Trust, a public, non-listed real estate investment trust that focuses on acquiring and developing a diversified portfolio of commercial real estate.

Another notable Orlando acquisition has been made by Pollack Shores Real Estate Group; the company has closed on the $23.6 million purchase of the 396-unit Heather Glen apartment community, located on University Boulevard—less than two miles away from the University of Central Florida, one of the largest and fastest-growing universities in the nation.

The community, 95 percent occupied at the time of the purchase, will be managed by a subsidiary of Pollack Shores. The company has also announced plans of investing an additional $1.5 million to renovate and upgrade the pool area, clubhouse, fitness center, and landscaping. The renovation work is meant to attract UCF students and grow the profile of the apartment community among students and young professionals.

Image via ForRent.com

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Universal Orlando to Add 1,800-Room Cabana Bay Beach Resort

By Georgiana Mihaila, Associate Editor

Universal Parks & Resorts and Loews Hotels & Resorts plan to accommodate families looking for high-quality, high-value options at Universal Orlando by building a new 1,800-room hotel.

The new hotel, called Cabana Bay Beach Resort, 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.

“Our new hotel will give guests an affordable, incredibly themed on-site hotel experience unlike anything else at our resort,” said Tom Williams, chairman and chief executive officer, Universal Parks & Resorts. “Our new family suites and family-value pricing will give our guests on-site options they’ve never had before.”

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. Site work will begin soon. 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.

According to the developers, 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.

Image Courtesy of Universal Orlando Resort

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Aztec Group Completes Acquisition and Bridge Loan for Woodside Apartments

By Georgiana Mihaila, Associate Editor

Real estate investment and merchant banking firm Aztec Group, Inc. has recently closed on a $6.55 million acquisition and bridge loan for the multifamily property Woodside Apartments in Kissimmee, Florida.

The Woodside Apartments complex, to be renamed The Park at Sorrento, was acquired through a partnership between affiliates of Mayan Properties, an Aztec affiliate, and Blue Rock Partners, a leading property management firm based in Tampa, Fla. that owns more than 4,800 units in 17 communities throughout the Orlando and Tampa Bay markets. Financing was arranged through a regional bank with a new five-year, non-recourse loan.

The 208-unit rental community stretches over 15.4 acres at 900 Woodside Circle and is comprised of 27 individual buildings constructed in 1974. The property’s location provides access to several employment centers including Kissimmee Municipal Airport, and to the shopping centers that sit along the highly transited W. Irlo Bronson Memorial Highway.

Under the new name The Park at Sorrento, the multifamily property—which has 200,000 square feet of leasable square footage—is to undergo a $2.5 million renovation over the next year that will include its common areas and all apartments. Blue Rock Partners will oversee the renovation of the residential community and also manage its day-to-day operations.

“Woodside Apartments will undergo a complete renovation program of the unit interiors, as well as the exteriors and grounds. The extensive improvement program will bring the community completely into the fold of the typical Blue Rock property,” said Jason Shapiro, Aztec Group’s managing director, who represented the borrower in the transaction. “The lender was very impressed with the track record of the sponsorship group, the property’s excellent location, and the investment being made in the re-positioning and re-branding of the property to fully maximize the community’s potential.”

Image Courtesy of Schwartz Media Strategies

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Lincoln Property Company Brokers New Orlando Lease for URS Corp.

By Georgiana Mihaila, Associate Editor

URS Corp.—a fully integrated engineering, construction and technical services organization—has signed a new five-year lease of 16,500 square feet of office/flex space at Discovery Lakes I in Orlando.

Located next to the University of Central Florida at 2501 Discovery Drive, the 75,279-square-foot, Class-B Discovery Lakes is part of the Central Florida Research Park. It features lake views and a parking ratio of six spaces per 1,000 square feet.

Jay Dixon, vice president, office, for Lincoln Property Company Southeast represented the landlord, Grosvenor, in the transaction, and Nick Poole of CNL represented URS Corp. “URS Corp is a great fit for this space at Discovery Lakes I,” Dixon said. “We are excited about the value the company brings to the building.”

Lincoln Property Company Southeast has been very visible in the local real estate market, signing two new long-term leases in the Lucerne Plaza—a 57,860-square-foot office building in downtown Orlando—less than three months ago with Keller Williams Realty and Berman Property. At the beginning of May, Lincoln Property Management was also assigned by GE Capital Real Estate to manage, lease and sell a 388,367-square-foot portfolio of office/flex properties in Orlando that included the six-building Airport Business Center, the seven-building Longwood Business Center, and the 80,605-square-foot North Lake Business Center.

Dallas-based Lincoln Property Company is one of the nation’s largest diversified commercial real estate companies, employing over 4,000 people. Since its inception in 1965, Lincoln has developed over 34 million square feet of commercial office space, over 6 million square feet of specialty retail space and 49 million square feet of industrial space. Also a leader in owned and fee management, Lincoln currently manages over 125 million square feet of commercial property.

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Orlando Community Part of $100M Portfolio Acquired by Harbor Group

By Georgiana Mihaila, Associate Editor

Affiliates of Harbor Group International, LLC have paid $99.7 million for a three-property Florida multifamily portfolio; the portfolio, consisting of a total of 1,218 units, included the Island Club gated community at 1401 South Kirkman Road, Orlando. This transaction is Harbor Group’s third apartment portfolio acquisition in the last 12 months, following the acquisition of a 1,984 unit portfolio in Metro Baltimore and a 2,500 unit portfolio in southeastern Virginia.

“The acquisition of the portfolio reflects HGI’s strategic decision to expand our investment and operational presence in major Florida markets,” said T. Richard Litton, Jr., president of Harbor Group International.  “All three of the assets are located in stable, high traffic submarkets and are well positioned to benefit from improving apartment fundamentals in South Florida and Orlando, particularly upon completion of our capital improvement program,” he added.

The seller—a joint venture between AEW and The Bainbridge Companies—was represented in the sale by CBRE South Florida Multi-Housing Group’s executive vice president Robert Given and Zachary Sackley. CBRE has also secured $75 million in financing for the acquisition.

Harbor Group has also announced that it plans to invest an additional $4.9 million—approximately $4,000 per unit—into various exterior and interior upgrades.

The 471-unit Island Club is a gated community located just minutes away from downtown Orlando and Universal Studios; its one-, two- and three-bedroom units feature expansive kitchens with natural lighting, energy efficient ceiling fans, large walk-in closets, washers and dryers, and vaulted ceiling. Amenities include club-class fitness center with state-of-the-art cardio court, clubhouse with game room and lounge, controlled-access gated entrance, outdoor tennis court and volleyball court, indoor racquetball court, and car care center.