Charlotte-based Madison Capital Group is embarking on plans that will add a new wave of apartments within the large mixed-use WaterStar development in the Four Corners area of Orange County.
The multifamily company entered the planning process to add 192 apartments next to its already approved 320-unit rental community soon-to-be under construction behind the future retail portion of WaterStar Orlando.
“We are very excited to start construction on Phase I by year’s end, and transition to a Phase II construction start by the fall of 2022,’ Madison Capital’s Florida Managing Director,” Todd Bleakley told GrowthSpotter.
“Both projects will be able to function as independently operated communities, but their design will allow the option for them to function as a single community.”
Last year, the land where the first set of apartments are set to rise sold for $8 million. Berkadia’s Michael Weinberg, Brett Moss and Matt Wilcox arranged the sale on behalf of the owner, Equinox Development.
The seller prepped the 10-acre site for multifamily development before trading it off to Madison Capital. It was previously under contract with Winter Park-based multifamily developer Epoch Residential, but the deal blew over.
In July, Madison Capital sourced a $40 million construction loan to commence the development of the new apartment community, called Madison WaterStar. Records show the lender was IberiaBank Corporation.
Madison WaterStar will be a garden-style multifamily community made up of seven, four-story apartment buildings and a large two-story clubhouse. Residents will have a choice between studio, one-, two- and three-bedroom apartments. Amenities include a fitness facility, swimming pool, and clubroom.
A conceptual site plan shows the amenity area will be decorated with a grilling area, cabanas, a covered pavilion, movable outdoor games, outdoor seating and a movie lawn.
Recently submitted plans show the second phase of apartments will rise on 6.55 acres directly southeast of the first phase. A majority of the units will consist of one-bedroom apartments while the remaining 48 will feature two-bedroom units.
Bleakley said features include a dog-friendly recreational area with a dog washing station. Other features mentioned in the conceptual site plan include carriage homes, a grilling zone, a covered pavilion and a 5,000-square-foot clubhouse.
WaterStar Orlando is located on the north side of U.S. 192, near the Western entry to Disney. The WaterStar Planned Development can feature up to 695 multifamily units, 250 hotel rooms and 167,322 square feet of commercial/retail space.
Original plans called for far more retail space, but in the midst of the pandemic the company gave up on nearly 100,000 square feet of retail to build more apartments. Equinox Development successfully shrunk about 250,000 square feet of allowable commercial uses to 167,322 square feet. The conversion made room for an increase of multifamily entitlements from 320 units to 695 units.
Equinox Development spent years assembling a little more than 30 acres of land directly across from the $750 million Margaritaville Resort Orlando. Now that entitlements are secured, activity is picking up.
Just last week, GrowthSpotter reported that Lazy Dog Restaurant & Bar, Portillo’s Hot Dogs, and Outback Steakhouse were planning to open locations at WaterStar Orlando.
Across from development, hotelier and developer George Chen is planning to redevelop the Formosa Gardens shopping plaza on W192 into a $60 million new mixed-use community. Plans include a food hall and event space with a craft brewery with six floors of condominiums above and an attached parking garage.
Madison Capital invests in real estate and private equity opportunities, with a primary focus on the self-storage and multifamily sector. In Florida, the company is actively pursuing acquisition and development opportunities in St. Johns, Pasco, Hillsborough, and Lee counties.
In August, it bought 14 acres in the Tampa submarket with plans to develop a 317-unit apartment complex called Madison at Ruskin. The acquisition marked the company’s fifth apartment project in the state. Madison Capital is working on several other Florida projects in Tampa, Jacksonville and Bonita Springs.
Madison WaterStar is its first apartment project in the Orlando metro. Outside of Florida, the company is pursuing similar projects throughout The Carolinas, Georgia, and Tennessee.
“Madison Capital Group is very bullish on Florida,” Bleakley said.