Lakefront land in Dr. Phillips sells for $45M+ to three housing developers

Bob Moser
GrowthSpotter

Three national developers closed last week for more than $45 million combined on 85 upland acres in Dr. Phillips, where 760-plus housing units are planned on what one builder calls the best residential infill site in Greater Orlando. 

Based southwest of the intersection of Sand Lake and Turkey Lake roads, the property features extensive frontage on both Big Sand Lake and Little Sand Lake.

An affiliate of Arizona-based CDCG Asset Management paid a combined $24.5 million over two deeds for 50.58 acres (35.39 acres impervious) that make up Lot A. 

CDCG is an affiliate of New York-based Blackstone which focuses on land banking. This property is being held for Meritage Homes, which filed plans in February for what is now 77 single-family detached homes and 106 townhomes. 

Meritage will begin a monthly take-down schedule for the lots with CDCG in Third Quarter 2018. The property was a truly unique infill piece for Greater Orlando, senior land development manager Andon Calhoun told GrowthSpotter

"I'd challenge anyone to find a better infill piece on that scale in the Dr. Phillips submarket," he said. "On the lakefront with shopping and Restaurant Row so close, it was all about location." 

Meritage plans to build its rear-entry townhome product, and 40-foot detached homes on 50-foot lots. 

The majority of the lots will feature lakefront views, and the development will include a park area, swimming pool with cabanas, tot lot, lake observation deck and canoe launch area. 

Greystar Development, through an LLC affiliate formed by investment partner The Carlyle Group, paid $6.84 million for the 5.71-acre Lot C on the property's northeast corner closest to Turkey Lake Road, 4.07 acres of which will be impervious. 

Plans filed in February show Greystar is planning a 185-unit age-restricted multifamily project dubbed "Overture Sand Lake." The developer's Overture brand, limited to residents age 55 and up, has 24 locations across nine states nationwide, including two in Florida (Miami and Sarasota). 

The site offers a "great infill location in a highly desirable submarket," with "great access to food, grocery, and other service-oriented retail," Greystar's senior director of development Lewis Stoneburne said in February. "We expect groundbreaking in Q4 2017 or Q1 2018."

And Houston-based multifamily developer The Hanover Company paid a combined $14 million over two deeds for a 17.74-acre site, of which 8.77 acres should be impervious, for a planned 394 apartments across eight four-story buildings on Lot B within the property. 

Dubbed "Hanover at Dr. Phillips," the developer's original plans from March forecast a wide range of outdoor amenities on the property, including a swimming pool with sundeck, cabanas, trellis with barbecue grill, a firepit, giant checker board, bocce court, a multi-purpose event lawn, fenced dog park, dog wash building and putting green. 

This project will be Hanover's re-entry to the Orlando market after more than 20 years. Hanover built and owned some assets in Greater Orlando in the 1980s and 1990s that it later sold, meaning this would mark the developer's return to the market since the mid-1990s. 

The deeds were signed Oct. 10, and recorded Tuesday morning in Orange County. No separate mortgages were recorded by the various buyer entities. 

All three developers have worked their Development Plans, mass grading and stormwater management permits through approvals in recent months. Infrastructure work should begin shortly on a new wishbone-shaped access road into the property, which all three buyers would share the cost to develop.

GrowthSpotter first reported in February 2016 that CBRE Orlando's Land Services team began marketing the property.

Adjacent to Orlando's tourism corridor, the vast property boasts 1,800 feet of frontage on the two lakes. Windermere and Dr. Phillips make up one of the highest income demographic submarkets in the state, lending this property to high-end residential development. 

Known as the "Grenada Property," this is a remnant of more than 700 acres bought on or near Sand Lake Road in the late 1970s by Israeli architect and real estate developer Moshe Mayer, known for luxury hotels he built in Africa. Most of it is still zoned under the expansive Granada PD (the name is misspelled on zoning documents). 

When he passed away in 1993, Mayer's local properties were divided between two investment parties from Israel, the Marcent Group and Grenada Group. 

Shutts & Bowen LLP attorney Dan O'Keefe has led the property through months of county roadway agreements earlier this year on behalf of the seller. 

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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