Encore Capital Management, the South Florida-based master developer of Reunion and Margaritaville, is looking to expand its long-term rental inventory starting with a 288-unit apartment complex on Sinclair Road at the Western Beltway (S.R. 429) interchange.
An Encore affiliate paid $3.2 million this week for the land at the southeast quadrant of the interchange. CEO Art Falcone told GrowthSpotter the project will be developed by Falcone Group, a division of the Boca Raton-based real estate company.
The property was rezoned in 2018 from Agricultural/Conservation to Tourist Commercial, which allows multifamily uses at up to 40-units per acre. Falcone said the company will break ground in the next two weeks. Delivery of the first units is scheduled for July 2020.
The complex, dubbed “Sentosa Sinclair," would be a follow-up to the recently completed Haven at Reunion community just west of the interchange and a complement to the vacation home enclave at Reunion West and the future Orlando Health campus at Reunion Village. It will help satisfy the demand for workforce housing in the Reunion/ChampionsGate submarket that’s dominated by resort properties.
“It’s very well-located in the job sector of Disney,” Falcone said. “We’re creating quite a few jobs with what we’ve been doing. We have the grand opening this week of our H2O water park (at Margaritaville.) That’s going to create thousands of jobs."
The community is designed as a market-rate product with attainable rents. The buildings will be three stories with open breezeways.
“We’re also partners with DeBartolo on The Haven,” Falcone said. “It’s about 50-percent leased right now. We’re doing this one through Falcone Group. I would say the rents are going to be moderate -- equivalent to that property. What we consider high-end would be $2 per square foot. This will be more like $1.30 to $1.40 per square foot."
Amenities will include a pool with tanning shelf and poolside cabanas, a clubhouse with fitness center and a dog park and pet washing center. Tenants will have the ability to buy a day-pass for Encore Club water park -- a perk that was first introduced at The Haven. Falcone said he’s also in discussions with Kingwood International Resorts, which bought Reunion Resort in 2018, about securing golf privileges for the residents.
The ChampionsGate/Reunion submarket has seen explosive growth in new multifamily development, but Falcone said the demand for long-term rental housing there is so high he’s considering converting the new townhouse section in Reunion’s exclusive Bear’s Den community from fee-simple ownership to rental. “We haven’t made the final decision yet,” he said. “It could go either way. We’ve been getting a lot of requests for long-term rental at Reunion."
The seller was Winter Park-based Avanti Property Group, which had acquired the 126 acres spanning all four quadrants of the interchange in 2015 for $8 million. Avanti sold the 19-acre parcel at the northeast quadrant in 2018 to Celebration-based illuminate church for $3.1 million.
The property is just a half mile west of the Old Lake Wilson Road property that is under contract to EastGroup Properties for a proposed 1.5 million-square-foot business distribution park. Falcone said that development will be another big jobs producer, and as long as the developer makes necessary road improvements to handle the additional truck traffic, he doesn’t have a problem with it.