Tampa-based InVictus Development, which earned Orlando's approval earlier this year for its "Parramore Oaks" redevelopment plan in downtown, has purchase agreements ready for the city's 6.34 acres, and will seek a construction loan of nearly $14 million in the coming semester, the company's president told GrowthSpotter.
Orlando's City Council will give a second reading on Dec. 12 to a rezoning ordinance for the property, and be asked to approve a new development agreement and land sale contracts for two phases of the project.
The land is located on the northwest, southwest and southeast corners of Parramore Avenue and Conley Street, west of Downtown Orlando and just a few blocks south of Orlando City Soccer Club's new stadium.
The bulk of the 6.34 acres was part of a Request for Proposals (RFP) issued by the city in November 2015. It now includes two adjacent lots that the city listed separately for sale this year, for which InVictus was the only bidder.
The developer will pay more than $319,000 for the Phase 1 property (roughly 4.3 acres), and about $155,000 for the Phase 2 property (2.04 acres) in staggered transactions over the next two years.
InVictus' application to the Florida Housing Finance Corporation for approximately $21.3 million in Low Income Housing Tax Credits (LIHTC) will be submitted on Dec. 30, with a decision on if the project is selected expected by March, or sooner.
InVictus would then initiate a credit underwriting process that takes three to four months, putting the developer in position to close on the land purchase in mid-Summer 2017. Construction would begin immediately after, said Paula Rhodes, InVictus president.
The 9 percent LIHTC is open only to the state's six large counties that aren't Miami-Dade, which includes Orange. Those counties are expected to receive one project approval each.
InVictus will also be seeking a construction loan from a commercial bank next year, estimated at $13.8 million, Rhodes said.
Bank of America has agreed to write a terms letter for the developer to include in its Dec. 30 submission to Florida Housing, giving BofA an inroad to the future financing opportunity. But they're not locked in as the lender, Rhodes said, and InVictus will shop for the best terms.
Per the new development agreement and contracts, the 211-unit affordable housing project would have up to 120 residential units in Phase 1, with 19 townhomes and 101 apartments spread across three-story and four-story buildings, along with parking, laundry and community space.
Phase 2 would have 91 units, made up of 14 townhomes and a four-story, 77-unit apartment building. All the buildings will be concrete block or tilt wall construction.
InVictus previously estimated a budget of $23.7 million to develop Phase 1. The city's Community Redevelopment Agency (CRA) will provide a development grant for Phase 1 of up to $648,000.
InVictus will have to begin Phase 1 construction within six months of closing on its construction financing, and finish Phase 1 within 18 months of the groundbreaking, roughly December 2018.
It must follow similar completion dates after closing on the Phase 2 property, with construction projected to finish by late 2019.
InVictus must include a public art component in the project that's approved by the city.