Local developers Blurock Commercial and Intram Investments have chosen LeCesse Development Corp. to build and manage the 300-unit multi-family portion of their $75 million mixed-use redevelopment in South Downtown Orlando. The duo should break ground in early 2017 and have yet to choose a demolition contractor or financing partner, a lead executive with Intram told GrowthSpotter.
Intram and Blurock have invested close to $11 million assembling 18 parcels since 2014, amassing an 11.75-acre city block bordered by S. Orange Avenue to the west, Butler Drive to the south, Center Street to the east and E. Pineloch Street to the north. Most of the land includes small homes, businesses and two mobile home parks.
The co-developers began filing an annexation petition with the City of Orlando last year to bring some of the property in from unincorporated Orange County. Requests for that annexation, Future Land Use map changes, rezoning and Special Plan updates are all still under review by the city.
The partners, who are sharing ownership of the development under master LLC Pineloch Center Street, recently filed a Master Plan application with Orlando to redevelop with 94,000 square feet of retail/office, and a 300-unit multi-family complex with parking garage. With a working name of "Southside Shoppes," the MP should go before Orlando's Municipal Planning Board on July 19.
"Our annexation into the city is nearly done, but not complete. So we've filed our Master Plan, driven by the apartment component that will cover about one third of the property," said Randy Hodge, executive vice president with Intram.
"We now have a JV with LeCesse for development of the multi-family. They'll build the apartments and manage them, we'll be just an equity partner."
Intram and Blurock are continuing pre-lease work for the retail/office portion, which will cover the northern 7.98 acres as Phase 2 development. Hodge declined to name potential tenants, but said a number of restaurants are expected and a large box could fit a grocer, with space available from 1,200 square feet to 40,000 square feet.
The southernmost 3.7 acres bordering Butler Drive will be developed first for the apartments, Hodge said. As the MP works its way through City of Orlando approval in the coming months, LeCesse's next step would be to prepare construction plans, and for a demolition permit to be granted for the site.
Intram expects horizontal site work on the apartments phase to start in early 2017, which will include demolition of current structures.
Projected at $75 million in investment through buildout of both phases, construction financing options have yet to be chosen by the developers, Hodge said.
While the property qualifies for EB-5 financing within a Targeted Employment Area and Intram has pursued foreign investors through the federal program in the past, it doesn't plan to for this project, he added.