More Quick Serve Restaurants Coming to Oviedo

Three new Quick Serve Restaurants & more planned for site on Oviedo’s Mitchell Hammock Road

A development planned for busy Mitchell Hammock Road could offer Oviedo commuters to Orlando new choices for low-cost dining.

Hank Porcher, president of real estate development company T.L. Pittman and Associates Inc., said he has commitments from three quick service restaurants companies for 11 acres he owns just east of W. Broadway Street (S.R. 426). Because of contract agreements, Porcher declined to name the brands.

He said he is also planning two other buildings on the property, but doesn’t know what kind of businesses will locate there.

“I think I’m going to wait and see what kind of interest I get,” said Porcher, who has developed and redeveloped malls and strip centers in Jacksonville, West Palm Beach, Vero Beach and other cities in Florida.

Porcher said he will build the infrastructure for the whole development at one time, then construct the final two buildings. He hopes to get started in three months, pending county and state permit approvals.

Raised in West Palm Beach but now based in Oviedo, Porcher says he wants to hire local contractors once he’s ready to start construction of the quick serve restaurants.

“This is the first thing I’ve built in Seminole County,” he said. “I like Seminole County because it’s a great place to raise a family. I think as long as the neighborhoods remain safe and the schools remain strong, it will be a desirable place to live in Florida.”

Porcher purchased the property for $175,000 in August 2013 via affiliate Chuluota Mortgage and Homes LLC. The property looked promising, he said, because it’s on the main corridor out of Oviedo to employment centers in Orlando.

Also in the location’s favor is the nearby Oviedo Medical Center, a 64-bed acute care facility which opened Jan. 30 at the corner of Red Bug Lake Road and S.R. 426.

“I think (the hospital) has really been kind of a catalyst for what’s going on in that immediate area,” Porcher said. “Plus, Mitchell Hammock Road is one of the ways in and out of UCF (University of Central Florida).”

Chuluota Mortgage and Homes is a reference to the tiny Seminole County community of the same name, settled right around the Civil War. Chuluota was originally laid out by turn-of-the-last-century railroad magnate Henry Flagler, who formed the Chuluota Land Co. to sell land acquired by his Florida East Coast Railroad.

Porcher said Flagler built a railroad spur near what is now his property. In honor of that history, he plans to call his development Flagler Center.

Thank you: GrowthSpotter

Where does it end? More apartments and retail coming to Maitland Concourse North

Related Group pays $10M for first 20 acres of Maitland Concourse North

Miami-based The Related Group paid $10 million on Wednesday for 20 acres along Maitland’s Lake Hope, where it could break ground next week on its first multifamily project in Greater Orlando, Maitland Concourse North, which will later be supported by 130,000 square feet of surrounding retail, potential office space and a hotel.

Located at 601 Trelago Way, the 20.1-acre parcel will eventually have direct access off W. Maitland Boulevard after future land acquisitions. The sale deed was recorded Friday morning in Orange County.

“As a Class A-plus apartment developer we like to seek those sites with a great story, urban infill, high barrier to entry, somewhere we can plant our flag to make an impact,” vice president of development Jeffrey Robbins told GrowthSpotter. “We have a site here that offers tremendous access to all points of the Orlando MSA, lake frontage, in the city of Maitland and easy access to I-4.”

Planned Development zoning for the overall 96-acre site — known as Maitland Concourse North — was approved in 2016 by the city. Related Group representatives filed Thursday with Maitland’s building department for site work construction permits, which remain under review by city staff.

Robbins expects to have that permit by next week and start the horizontal infrastructure work with Jon M Hall Company. The first phase of development will incorporate grading and infrastructure for the entire property, a joint-use retention pond in concert with the Florida Department of Transportation, and the 350-unit multifamily complex, which will consist of garden-style apartments and two-story townhomes.

The site work should run through end of December, with vertical construction expected to start in November on the apartments by general contractor Walker & Company.

The apartments should be complete in 18 to 20 months, Robbins said. Related’s affiliate TRG will manage the property.

Related sourced a $46.1 million loan from PNC Bank to help finance the acquisition and future development of Maitland Concourse North.

The seller was an affiliate of Winter Park-based Battaglia Group, which retained ownership of more than 45 surrounding acres along lakefront and W. Maitland Boulevard that will be sold in stages to Related Group and Pelloni Development, which will develop about 16 acres of boulevard frontage as retail separately, but in concert with Related.

Related Group is functioning as master developer for Battaglia on the entire site, which has about 60 developable acres. The compensation for that role was factored in as a discount on Related’s purchase price for the first tranche of land.

Pelloni’s 130,000-square-foot retail component is expected to include a mix of shops, dining and a specialty grocer. That developer has yet to file site plans with the city, staff said Friday.

Now that Battaglia has closed its first land sale with Related Group, it will take steps to finalize a land sale with Pelloni in the next six months as that developer pursues city approval of its retail site plans.

Battaglia Group is retaining ownership for the time being on parcels of 7.68 acres (office), 2.9 acres (hotel) and 5.77 acres (undetermined) for future sale or lease.

Humphreys & Partners is the multifamily project architect, Kimley-Horn is civil engineer, and ACi Inc. is architect on the retail.

Looking forward, Related Group is actively seeking more land acquisition opportunities in Greater Orlando for multifamily. With nothing under contract at the moment, Robbins said sites of less than 10 acres to 20 acres will draw interest, if they mesh with the developer’s criteria of urban infill, high barrier to entry and “tell a great story.”

Thank you: GrowthSpotter

California-based REIT pays $51.4M for three Class-A Maitland Office Buildings

Affiliates of California-based public REIT Gladstone Commercial Corp. paid $51.4 million on Monday for Highwoods Properties‘ Maitland Preserve  three Class-A Maitland office buildings totaling 306,435 square feet, marking its market entry to Greater Orlando.

Located at 2405, 2599 and 2600 Lucien Way, the portfolio is 72 percent leased to ADP through September 2027. The three Maitland office buildings were fully leased at time of sale, and the deeds were recorded Wednesday in Orange County.

“Orlando is a secondary growth market we’ve been targeting for a year and a half,” Brandon Flickinger, managing director for acquisitions in the southeast, told GrowthSpotter. “We’ll continue to look for similar stabilized acquisition opportunities in Orlando. We think it’s a strong secondary growth market that will continue to benefit from population growth, and corporate relocation.”

The initial capitalization rate for the acquisition was 7.43 percent, with an average capitalization rate of 8.48 percent, he said. The weighted average lease term of the portfolio is 8.7 years, and the next lease rollover is not until 2019.

Prior to this acquisition, Gladstone’s only other Florida assets were three office properties in South Florida.

The portfolio’s three buildings include: Eastwoods, a five-story, 177,117-square-foot office building leased at 80 percent to ADP; Westwoods, a three-story, 79,318-square-foot office building fully leased to ADP; and Southwoods, a single-story, 50,000-square-foot office building fully leased to two tenants. It includes two parking garages.

“We’re a buy-and-hold investor that pays a dividend to our shareholders, and see this as an attractive stabilized asset that will let us deliver for our investors for the foreseeable future,” Flickinger said.

Gladstone Commercial typically invests in single-tenant and anchored multi-tenant net leased office, industrial and medical properties, in what it considers growing submarkets with strong underlying land value.

Its transaction size ranges from $5 million to $50 million on average, with lease terms of at least seven years. It regularly conducts third-party acquisition, sale leaseback, build-to-suit, build-to-suit forward purchase and development financing deals.

Gladstone sourced a $28.78 million loan from Sun Life Assurance Company of Canada, with a fixed interest rate of 3.89 percent. The company has hired associates at JLL Orlando for leasing and property management.

The Maitland Center submarket is arguably the top value-add investment area within Greater Orlando’s office market over the past year.

The submarket closed the second quarter of this year with a total vacancy rate of 9.5 percent across 98 buildings, middle of the pack for 11 area submarkets, but has the highest year-to-date absorption with 232,729 square feet, according to Cite Partners‘ Q2 office market report.

Thank you: GrowthSpotter

Midyear Report: Orlando Commercial Construction Values Nearly Double Through June

Orlando commercial construction companies have been busy with expensive projects in this year’s first half, a new report from Dodge Data & Analytics showed.

Construction companies pulled permits for Central Florida commercial projects — including office, retail, hotels, warehouses, schools, medical facilities and religious institutions — totaling $2.3 billion between January-June this year. That was an 81 percent jump when compared with $1.3 billion in the year-ago period.

Meanwhile, homebuilding values in the region — which includes Orange, Seminole, Osceola and Lake counties — hit $3.3 billion in the first six months of this year, which was a 22 percent leap from the 2016’s first half of $2.7 billion.

In all, metro Orlando commercial construction starts were up 41 percent, from $4 billion in last year’s first half to $5.7 billion this year.

For the month of June, total construction starts were up 23 percent from $688.1 million last year to $844.5 million. Homebuilding accounted for $632.8 million of the June values, an increase of 27 percent from $497.6 million in June 2016. And commercial values last month reached $211.6 million, an 11 percent hike from $190.5 million in June 2016.

New construction is a huge driver of the local Orlando economy. It creates both temporary and permanent jobs to our residents and brings new homes into the market to support a growing population. It also serves existing residents and businesses with new space for shops, offices residential property, and brings several more venues to Orlando’s tourism industry, which drew a record 68 million visitors in 2016.

Typically, the higher the value, the more construction jobs a project generates.

Here’s a closer look at some recent construction Orlando Commercial Construction activity:

Thank you: Orlando Business Journal