Altamonte Springs-based LeCesse Development Corp. will differentiate its second multifamily project at Jubilee Park, choosing Humphreys & Partners' "Big House" design for the first time in Orlando, and has yet to source financing for what is likely a long-term hold property, a lead executive with the company told GrowthSpotter.
Located east of Lee Vista in southeast Orlando, LeCesse is planning 312 apartments on 28.1 acres in a joint venture with Famlee Investment Company, which developed LeeVista Center.
The property lies on the south side of Hazeltine National Drive, west of S. Goldenrod Road and north of McCoy Road.
The project will neighbor LeCesse and Famlee's first joint venture phase completed in 2015, the 330-unit GrandeVille at Jubilee Park apartments. The companies have a total 1,064 apartment units planned through three phases within the Jubilee Park Planned Development.
"Phase 1 just had a super lease-up last year when it opened, and there's still lots of demand. It's right in the heart of LeeVista Center, the first new (apartment) product delivered there in maybe 10 years," said Shawn Barrow, vice president with Famlee, which is contributing the land in its JV with LeCesse.
The companies filed a Master Plan with the City of Orlando for Phase 2, which goes before Orlando's Municipal Planning Board on Aug. 16.
With LeCesse managing the project's development, financing and construction, they'll differentiate the product from traditional three-story apartments in Phase 1.
Going with Humphreys & Partners Architects' Big House design, the two-story homes feature direct access garages, enclosed private stairs for upper units, and a flexibility of six to 14 units per building.
"It's a trademark design they've build around the country," said John Flynn, director of acquisitions with LeCesse. "We've built it in other markets in Florida and Minnesota, but not here before. It doesn't look like your traditional apartment buildings, it looks like large single-family homes."
LeCesse is still tweaking its design plans for the project, and could adjust the 312 unit count up or down slightly, Flynn said. After Master Plan approval by the city, the developer would start platting and pursue building permits. January 2017 is a target to break ground.
LeCesse is considering one general contractor, but has yet to finalize the choice, Flynn said. Projected all-in investment cost per unit is $150,000, forecasting a total investment near $50 million for the project, he added.
Capitalization for the project has not been finalized yet. LeCesse has typically been a "merchant builder," developing, building and quickly selling properties.
A traditional construction loan with 36-48 months to repay would be favored for that investment approach. Wells Fargo was the lender on GrandeVille at Jubilee Park, making them a lending candidate this time around, Flynn said.
But LeCesse may be favoring a long-term hold strategy for Phase 2, opening up lending opportunities with banks and life insurance companies for favorable terms over a longer mortgage period, Flynn added.