Avalon Park Group is preparing to build out another section of its Avalon Park Town Center, filing plans on Monday with Orange County to build a four-story, 38,500-square-foot office and retail building.
Located on the northeast corner of Avalon Park East Boulevard and Avalon Lake Drive, the 1.35-acre parcel lies in the southeast quadrant of the Town Center.
The developer's affiliate Avalon Business Centre LLC paid $1.5 million for the property in mid-May, buying from another APG affiliate, which retains ownership of an adjacent 1.34 acres.
"We've had good success with the office spaces we've had out here in the town center, and saw a need for small and mid-sized businesses here for executive office space," assistant vice president JJ Sofarelli told GrowthSpotter. "We currently manage (more than) 120,000 square feet of office space in Downtown Avalon Park, and it has consistently maintained an occupancy level above 95 percent."
Southeast Orlando where Avalon Park is located is among the strongest submarkets in the region for office space demand, with a total vacancy rate of 6.2 percent at the end of the second quarter, third lowest among Metro Orlando submarkets, according to Cite Partners' quarterly office market report.
APG is completing construction documents now just as its DP is beginning staff review, Sofarelli said. The developer hopes to break ground on the project in early First Quarter 2018, pending the pace of county permitting.
The 38,500 gross square feet for the building could be subdivided for tenants in multiple ways. Of the 8,630 square feet of rentable area for retail on the ground floor RE/MAX has signed a pre-lease agreement for a majority, Sofarelli said. About 3,150 square feet remain available.
The top three floors would all be dedicated to office space with about 8,500 square feet of rentable area per floor.
Looking further into 2018, APG is working on plans for another multifamily building in the town center, where apartment occupancy stands at 95 percent, Sofarelli said. Estimated for around 100 units, the building would likely not be mixed use and is still in conceptual stage.