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

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

Dallas-Based Victory Real Estate Group Enters Orlando Market with Land East of Winter Park

Dallas-based developer Victory Real Estate Group paid more than $2.27 million on July 21 to enter the Orlando market, buying land east of Winter Pines Golf Course for what will likely be a multi-tenant commercial building.

Located in the 2200 block of N. Semoran Boulevard at the southeast corner with Hanging Moss Road, the property lies just east of Winter Park city limits and across the street from Lakeview Office Park.

The 3.4-acre undeveloped parcel was sold by National Bank of Commerce, which controlled the asset after acquiring the former Riverside Bank of Central Florida, which previously bought the land in 2006 for $1.85 million.

Victory Real Estate Group is a high-volume developer of mixed-use and built-to-suit commercial mostly in the Dallas-Fort Worth area, but in the past year has started pursuing other types of development and entering the South Florida market.

“This is one of a few new properties we’ve purchased for retail and built-to-suit opportunities,” president and CEO Tony Ramji told GrowthSpotter. “We bought this on spec and have multiple users interested, we’re just thinking now about the best uses and are very much in preliminary stage on the property.”

One development route could be to sell or lease a restaurant pad to a national chain, and build a small multi-tenant retail building. The company has a handful of LOIs for the property and is evaluating the right fit, Ramji said.

Bowman Consulting has been hired as civil engineer, and the developer has yet to hire an architect.

“We hope to have our first deal signed in the next couple of weeks and then proceed from there,” he said.

“I’m pleasantly surprised with how robust the Orlando market is. We’re doing projects in Phoenix, Denver, the Carolinas and other big cities, and when I came to Orlando I find it has recovered well from the recession, premiums are priced into the market,” Ramji continued. “I think you have to have a lot of experience to come in and do spec development. I think there’s a perception by people in the southwest that Florida still had all these opportunities, but I find you can’t come in (here), make a mistake and expect to make money.”

The buyer took out a $2.42 million loan from Stonegate Bank to help finance the land and future development.

Thank you: GrowthSpotter

Winter Springs Land Going to the Dogs!

PetSuites plans Florida market entry via Winter Springs, land under contract

PetSuites of America, a high-end boarding and grooming service for dogs and cats, plans to make its Florida debut on the southeast corner of State Roads 434 and 417 in Winter Springs.

The company has submitted a final site plan for the new spa and kennel to Winter Springs planning staff, and has already earned city approval for its engineering plan, said Community Development Director Brian Fields.

“We’re probably looking at a September or October meeting of the City Commission” for final site plan approval, he said.

ThePetSuites building would cover 14,244 square feet, according to the site plan, with 28 parking spaces.

The 3.5-acre site is owned by Boynton Beach lawyer Gerald Korman, who told GrowthSpotter he had the property up for sale and PetSuites approached his listing agent Paul Partyka of NAI Realvest.

Korman declined to say how much PetSuites or one of its franchisees has agreed to pay for the property. Officials with PetSuites could not be reached for comment.

Partyka said the pet care company liked the property’s access to two busy state highways. The entrance to the pet spa will be from S.R. 434, known in Winter Springs as Sanford-Oviedo Road.

“The location is a great location at the intersection of the (Central Florida) Greenway and 434 in Winter Springs,” said Partyka, who was formerly a two-term mayor of the Seminole County city. “The Winter Springs-Oviedo area is one of the premier growth areas in Central Florida with high incomes.”

PetSuites is represented by Jeffrey Henwood of Sperry Van Ness/Florida Commercial Real Estate Advisors. Henwood said he is representing the company as it looks for locations throughout Florida.

“We’re doing a number of them,” Henwood said, “but this will be the first one.”

PetSuites advertises itself as “leader of the pack” in the pet boarding industry, providing “world-class” boarding, daycare and grooming for more than 15 years. Features include climate-controlled living areas, and indoor and outdoor play times tailored to the dog or cat’s personality.

The company was founded in 1999 by Joe and Tracy Mason and is based in Erlanger, Kentucky. As of March 2015, PetSuites of America LLC operates as a subsidiary of National Veterinary Associates Inc.

Thank you: GrowthSpotter

San Pedro Center Previously Owned by Catholic Diocese of Orlando to Become Lake Howell Reserve

Here is an updated on the San Pedro Center that was previously owned by the Catholic Diocese of Orlando.  Meritage Homes has been named as the developer for the Lake Howell Reserve which will include 695 lots on a 269.48-acre site.  A preliminary site plan has been approved for 450 SF homes and 250 town homes.  Future plans include 125 assisted living facilities and 50,000 sf of commercial space.  Site development is expected to occur later this year.

A long-discussed project in the works for Winter Park now is progressing through the Seminole County’s Board of Commissioners.

Named as the Lake Howell Reserve and San Pedro Center project, it would consist of developing mixed-use projects on 200 acres of the 468-acre property previously owned by the Catholic Diocese of Orlando for many years.

Lake Howell Reserve consists of Villages 1, 2A and 2B, while San Pedro consists of the spiritual center and cemetery. Villages 1 and 2A will be slated for single-family homes. Village 2B will have assisted living, recreation facilities, fields, parks, trails and community centers, banks, charter schools and restaurants.The remaining undeveloped 268 acres will be for environmental conservation and preservation.

San Pedro Center

 

Thank you: Orlando Business Journal

Amazon Warehouse – How big is a 2.3 million square foot warehouse?

How big is a 2.3 million square foot warehouse?  Well, that is what Amazon Warehouse is building just south of the Orlando International Airport.  It will be a five story fulfillment center big enough to house two Altamonte Malls. Click the link for more information.

Thank you:  Orlando Sentinel

Central Florida Commercial Real Estate Update

The commercial market is experiencing a shortage of inventory for many types of properties just like the residential sector is.  This lack of inventory is being fueled by population growth and here are some numbers.

Florida’s population grew by 367,525 people in 2016 to 20,612,439 million.  This is the second largest gain in sheer numbers after Texas.

The Orlando Economic Development Commission noted that Orlando’s population growth for the past six years amounts to an increase of 138 people per day or 966 per week.

Here are some planned residential developments in Winter Springs

Yes, another apartment development is under construction in Winter Springs. Pollack Shores, which is located behind the McDonald’s, is under construction with a 338 unit apartment complex. Engineering

The Plante Property will be called Tuskawilla Crossing.  This subdivision is located on 120 acres in the southeast quadrant State Road 434 and Tuskawilla Road.  Ground breaking is expected in the next 60 days with a total of 379 single-family homes and 45,000 SF of commercial space.

New retail, office and hotel developments planned in Oviedo

An approved planned development called Dwell in Oviedo will be located on 23 acres north of Oviedo Mall Blvd. It will include 296 apartments, a 100 room hotel and 100,000 sf of Class A office space.  The apartments will be built first.  No timeline for the office or hotel has been indicated.

The building that housed the emergency room at Oviedo Medical Center is being converted to 40,000 SF of Class A medical office building.

The old Bo jangles site on Mitchel Hammock is being re-developed with a new Outback Steakhouse.  The old Outback location is going to house a Delmonico’s Steakhouse

Oviedo Point is a mix of retail and medical office use that is under construction east of the new Wawa.  New tenants will include Orange Theory Fitness, Moe’s, Mission BBQ, and 1000 Degree Pizza.  30,000 SF of Medical Office space will be located behind the restaurants.

Two other retail projects just getting underway are Flagler Center and Stone Hill Plaza. The Flagler center will be located on the north side of Mitchell Hammock across from Oviedo Point.  It is planned to be developed with 10,000 of retail space.  Stone Hill will be located on the North West corner of Alafaya Woods and Mitchell Hammock.  It is planned for 16,000 SF of Retial.  4 of 7 spaces have been pre-leased.

And finally Chuck and I have an opportunity to be the leasing agent for the owner of a planned 100,000 sf of class medical office buildings.  The property is located on the west side of Oviedo Blvd. just north of the Oviedo in the Park.

Remember, if you see any new construction going on and want to know what is happening there, please do not hesitate to call us.  We probably already know, but if we don’t, we will find out.

Samsung Signs Lease for Large Distribution HQ

Global consumer electronics giant Samsung is relocating its existing Jacksonville operations to take advantage of the logistical benefits of being located in the middle of the state of Florida in the Orlando region’s Lake County.

Samsung recently signed a lease to take over one of the largest industrial buildings in Orlando for its new southeast distribution headquarters. With 706,000 square feet of available and ready warehouse space, the property is located near the intersection of Florida’s Turnpike and U.S. Highway 27.

Orlando’s industrial real estate market is becoming more attractive to companies looking for strategic locations that bring them closer to their end customers. Lake County offers a multitude of commerce and industrial parks with prime access to key infrastructure like Interstate 4, Interstate 75 and Florida’s Turnpike. Add in the low costs for property and the benefits of locating in Lake County become obvious.

The Samsung building was previously occupied by Circuit City.

Thank you:  Orlando EDC

National Association of Realtors Commercial Real Estate Outlook 2016 Q4

RE/MAX Commercial Practitioners have access to market research and many are proud members of the National Association of Realtors with additional access to invaluable NAR research reports.

NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. It covers the economic conditions underpinning current commercial real estate markets and presents trends in market fundamentals, investments and financing.

CLICK HERE to read the complete report