Prospect Real Estate Group is ramping up its multifamily portfolio with new projects across Florida, including a new 225-unit community near College Park and another in Palm Bay.
The New Smyrna Beach company went under contract Monday for 6 acres adjacent to Northgate Shopping Center at the intersection of Lee Road and Edgewater Drive. Managing Partner Navish Chawla told GrowthSpotter the company plans to build a Class A apartment community on the infill site, which lies in a federal opportunity zone. The company will be applying for annexation into the City of Orlando and plans a 4-story suburban product.
It’s Prospect’s second Orlando-based deal with American Landmark Apartments. Prospect’s BCC Construction served as GC for the Deseo Grande Apartments at Dezerland, which will wrap construction this year. Prospect Chairman Rich Zahn said they anticipate breaking ground on the second phase, another 365 units, in June.
“We’re actually one of the few fully vertically integrated multifamily contractors and developers in the entire United States,” Zahn said. “We also right now have approximately 5,700 units in our pipeline, of which we should complete by year-end, approximately $1.1 billion worth of projects, which is massive growth for our group.”
The company has 26 active projects now across its construction and development divisions, including its newest Advantis-branded apartment complex set to rise in Palm Bay. Zahn filed construction plans in January for Advantis on the Harbour, located on U.S. 1/Dixie Highway across from the Indian River. The plan calls for a market-rate, gated community with 3-story walk-up garden apartments. The development matrix includes 69 one-bedroom units, 90 two-bedroom units and 12 three-bedroom units.
Chawla said they strategically lined the perimeter of the site with 74 detached parking garages, which help serve as a sound buffer along the adjacent railroad tracks. Even though the project is just 171 units, it will have a full array of amenities, including a saltwater pool and clubhouse with a co-working area, fitness center and leasing office. “We look at the Space Coast as a real growth market, given the type of jobs that are being created there with NASA, SpaceX, Raytheon. So you have high-profile engineers that want good apartments,” he said.
Typical Advantis-branded apartment homes feature high-end designer touches like LED lights, European-style flat panel cabinets with brushed gold fixtures and white quartz counters. The appliance package is GE, and the flooring is a luxury vinyl plank with a wood-like finish. Homes come equipped with a smart technology package, such as keyless entry and digital peephole viewer on the front door.
The property is immediately south of the recently completed Ascent of Palm Bay apartments, which enjoys steady and high occupancy. Zahn said the partners feel so strongly about the market demand for new housing in Palm Bay they’re under contract for another multi-family site just a few blocks away, where they plan to co-develop 300 units with American Landmark Apartments. Construction on the second complex is scheduled to start in the third quarter.
Zahn said he’s not worried about market absorption even though the projects are just blocks apart. “There’s that much demand,” he said. “And we are breaking them apart by six months.”