Tennessee-based multifamily developer and builder TDK Construction Company paid $5.64 million on Tuesday to enter the Florida market, buying nearly 17 acres in northeast Orange County with entitlements for a 332-unit Class A apartment complex.
The company is now sourcing a construction loan for the estimated $60 million project, aims to break ground by June, and is seeking more Orlando land for its development pipeline, president Kent Ayer told GrowthSpotter.
Located at 4460 N. Goldenrod Road, the property totals 16.62 acres across two parcels, the majority of which has served as the Vaughn Industrial Park since 1963.
TDK was introduced to the site by Saint Petersburg-based multifamily developer, builder and manager Weller Residential, a prospective buyer that led the property through rezoning in 2014 to R-3 residential. Weller worked with outgoing owners Deborah Vaughn and her siblings, who were looking to sell after inheriting the land.
The site was entitled in June 2015 for up to 332 multifamly units, and had its conservation area impact permits approved in May of this year by Orange County.
Weller backed off the acquisition path, and sold its purchase rights within the past few months to an LLC affiliate of TDK.
TDK has more than 1,600 apartments under construction in the Southeast and Southwest United States, but this will be its first in Florida, a market the company has been eager to get a foothold in, Ayer said.
"We're actively looking for more sites in (Central Florida) for next year, all the demographics and population statistics are very favorable for multifamily," he said. "We try to do projects of at least 200 units in markets with pent up demand based on current occupancies, and that have favorable population and job growth outlooks. This Winter Park site checked all those boxes."
The buyer took out a loan of $4.233 million from Kentucky-based Republic Bank & Trust Company to finance the land purchase.
TDK has its equity lined up and is now researching construction loan options, Ayer said. Construction on the site could begin anywhere from April to June, depending on when plans are approved.
The property will have a large clubhouse, pool, recreation areas and elevators in the three-story buildings.
A property management group for the future apartment complex has yet to be chosen, Ayer said.
Tenants of the Vaughn Industrial Park, which include iron- and wood-working businesses that supply the construction sector, have relocated within the past week or have been asked to within the next 60 days.