When he heard Gov. Ron DeSantis had vetoed $10 million in funding for NeoCity, David Calcanis thought it might be the death blow for a multifamily deal he’d been working on for over three years.
Calcanis, managing director of land for Colliers International in Orlando, represented the owners of a 10-acre parcel called Kissimmee Pointe on Oak Street just west of NeoCity. The proximity to Osceola County’s 500-acre technology district and recent improvements to Oak Street made the property appealing, but it had one major flaw. It was just outside of the NeoCity Opportunity Zone, meaning the buyer wouldn’t be eligible for the tax advantages in the OZ program.
Still, he had a contracted buyer in Landmark Companies, an Aventura-based multifamily developer that had recently completed 326-unit Dolce at Royal Palm in the Four Corners tourism market. Landmark has a submitted site plan for a community called “Landmark in Kissimmee” with 247 units.
After a few delays, Landmark closed on the property last week for $2.5 million and flipped it the same day to investment partners for $4.5 million. Both were cash transactions. Legacy Development Holdings, which traces to Interforum Holdings, was assigned a 44.4% interest, while New York-based DBI Realty aquired a 55.6% interest.
“Their business model is the partner model, so they were able to bring in some new financing partners,” Calcanis said.
The development plan calls for three buildings, all 4-story elevator served. The 7,500-square-foot clubhouse will be incorporated into the first residential building and will feature 20-foot windows overlooking the pool. Ground floor units will have a unique feature: private fenced yards.
Calcanis said even though the pandemic has stalled development activity in NeoCity, it’s still seen as a major driver for commercial and employment growth, which makes Kissimmee a strong multifamily submarket. An important factor that helped close the Landmark deal was the ongoing discussions between the city and Schoolfield Properties to build a connector street through the Mill Creek Mall into NeoCity.
The road would extend from Ethos Park Drive, which skirts the northern shore of the NeoCity lake, through rear of the shopping center and stop at Oak Street, directly across from the Kissimmee Pointe cross access easement.
“That road is everything,” Calcanis said.
Within the E192 submarket, three Class-A apartment communities are currently under construction. DeBartolo Development began leasing The Jamison in Upshot Capital Advisors’ Amber Pointe project in July and will wrap construction on that project in December. Acadmy Park Apartments at the Florida’s Turnpike interchange with E192 also recently opened its first residential buildings.
LandSouth Construction expects to deliver the 292-unit Neo Square apartments at 1450 E Vine St. in spring 2021.
Park Square, meanwhile, owns the 16.4-acre site across Vine Street/E192 and plans to build a mixed-use project called The Neo. The project would add up to 384 apartments with a mix of 4- and 5-story buildings and plans to introduce a concierge concept to the community. Two retail or restaurant buildings are planned along the E192 frontage.