Orlando developer ready to reboot stalled townhouse community in Kissimmee

Orlando developer Hank Sabeti is moving forward with the second phase of his Fiesta Key Resort after it sat idle for more than a decade.

The project on Kissimmee's Poinciana Boulevard was originally approved for 371 vacation resort townhomes and an amenity center, but the project stalled after the first 220 units were completed in 2005. 

"The market is better now," Sabeti told GrowthSpotter on Monday. 

The second phase is designed for 151 townhomes, and Sabeti said some of the infrastructure is already in place, including a large stormwater pond in the center of the project. 

Sabeti is seeking a variance from the City Commission on Tuesday that would allow him to resume construction on the project as it was initially approved. The city's Development Review Committee has already signed off on the variance, which allows for a slightly narrower road width than required by current code.

If commissioners allow the variance, the new site development plan can be reviewed and approved at the staff level, Sabeti said. His plan is to complete the horizontal development, including the utility and road construction, and then sell it to a builder.

Sabeti said he's currently in negotiations with a prospective buyer. Osceola Engineering, Inc. is the civil engineer.

The community is at the intersection of Poinciana Boulevard and Declaration Drive, about 1.3 miles north of the new Poinciana SunRail Station that begins service in July. 

Sabeti's brother, Max Sabeti, is the listing broker for the 250 acres immediately south of the Fiesta Key Resort. It's approved for 450 homes, 600 multifamily units and 26 acres of commercial use, and has been on the market for $25 million since late 2015.

Development activity has been picking up along that corridor in recent years. Bellavista Building Group has started construction on a 51-unit townhouse resort called Terra Esmeralda at 333 S. Poinciana Blvd., and AV Homes breaks ground this year on Solstice, an 82-acre mixed-use development just north of the SunRail station. 

Across Poinciana Boulevard, GAOK has filed preliminary plans for a 150-acre luxury condo hotel resort called Breeze de Mar

Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261, or tweet me at @LKinslerOGrowth. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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