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23 acres of rare non-Disney land near Flamingo Crossings hits market

23 acres of rare non-Disney land near Flamingo Crossings hits market
The blue parcel near the top of the map was acquired last week by JL Properties for its third hotel development at Flamingo Crossings. In blue at lower left are two Orange Lake Resort-owned parcels where 23 acres are being marketed for sale. (Orange County Property Appraiser)

Orange Lake Resorts has begun marketing 23-plus acres for sale directly south of Flamingo Crossings, an opportunity for hotel or commercial developers to establish an early foothold near Walt Disney World's western main gate, and on the area's only remaining land not already developed or owned by Disney.

The land currently spans two contiguous parcels, with wetlands to the west and full frontage to the east along Flamingo Crossings Boulevard. The property's PD zoning allows for 60,000 square feet of commercial, 500 short-term rental units and 400 hotel keys.

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Directly across the street are more than 60 Disney-owned acres reportedly earmarked for future housing of Disney interns. When built out, Disney's Flamingo Crossings is expected to have up to 5,000 hotel rooms and timeshare units.

Orange Lake's only caveat on its 23 acres for sale is that the first 200-key hotel be an IHG flag, based on the company's long-standing relationship with IHG. The land is being marketed by brokers Susan Morris and Nick Jones of Colliers International.

Early development on the property would capitalize on unmet demand in the nascent Flamingo Crossings market, where Disney has sold three parcels of a projected seven to Alaskan hotel developer JL Properties.

More than 32 acres of Disney-owned land is planned for 500,000 square feet of retail and dining in Flamingo Crossings' town center, but has yet to be subdivided or sold.

"Orange Lake Resorts has about 10,000 tourists on site every day," Jones said. "With the potential road expansions planned in this area, it would also benefit future retail here to have direct access to Orange Lake, and vice versa."

Orange Lake also has more than 300 acres of undeveloped land remaining to the south of this newly listed property, which is currently under contract for sale to a residential developer for an age-restricted community, Jones said.

Orange Lake's vice president of acquisitions, John Alvarez, told GrowthSpotter in early May the company was working through land-use changes on its comprehensive plan with Orange County government, prior to sale of the 300 acres.

Orange Lake Resorts' 23-acre listing went public a day after Disney's closing Sept. 23 on the sale of a third parcel from Flamingo Crossings LLC to an affiliate of hotel developer JL Properties.

JL's affiliate bought the 4.97-acre parcel for $4.25 million, which neighbors its two existing hotels now under construction, a SpringHill Suites by Marriott (248 rooms) and TownePlace Suites by Marriott (250 rooms) on pace to open in February.

JL's third hotel at Flamingo Crossings should be a 250-key Hampton Inn & Suites, confirmed Stuart Newmark, operating partner with Huntsville, Ala.-based Yedla Management Company, whose affiliate Revolutionary Road Hospitality Group will manage the hotels for JL Properties.

GrowthSpotter first reported on Sept. 2 that JL was negotiating with Hampton Inn for its third flag at Flamingo Crossings, and that Disney and the hotel developer may be far enough along in talks to have named Hyatt House, Hyatt Place, Residence Inn by Marriott and Hilton Garden Inn as the future brands of hotels 4-7, seen on marketing materials at ICSC's 2015 Florida Conference & Deal Making in Orlando.

Newmark said Friday that JL aims to break ground on the third hotel by mid-2016, and is currently working on conceptual plans, but has yet to hire an architect. He declined to comment on a projected cost for the hotel.

JL's closing on the third parcel purchase from Disney activates another year of Right of First Offer options it has on the remaining four hotel parcels. That agreement should be extended each year with the acquisition of at least one property.

Yedla currently manages four hotels in Greater Orlando: the TownePlace Suites and Springhill Suites at Flamingo Crossings being built by JL, the Aloft Orlando Downtown, and the Westin Lake Mary. Added to that list will soon be the Hampton Inn & Suites at Flamingo Crossings.

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Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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