UPDATED: AUGUST 21, 2017 1:21 PM — Miami-based The Related Group paid $10 million on Wednesday for 20 acres along Maitland's Lake Hope, where it could break ground next week on its first multifamily project in Greater Orlando, which will later be supported by 130,000 square feet of surrounding retail, potential office space and a hotel.
Located at 601 Trelago Way, the 20.1-acre parcel will eventually have direct access off W. Maitland Boulevard after future land acquisitions. The sale deed was recorded Friday morning in Orange County.
"As a Class A-plus apartment developer we like to seek those sites with a great story, urban infill, high barrier to entry, somewhere we can plant our flag to make an impact," vice president of development Jeffrey Robbins told GrowthSpotter. "We have a site here that offers tremendous access to all points of the Orlando MSA, lake frontage, in the city of Maitland and easy access to I-4."
Planned Development zoning for the overall 96-acre site -- known as Maitland Concourse North -- was approved in 2016 by the city. Related Group representatives filed Thursday with Maitland's building department for site work construction permits, which remain under review by city staff.
Robbins expects to have that permit by next week and start the horizontal infrastructure work with Jon M Hall Company. The first phase of development will incorporate grading and infrastructure for the entire property, a joint-use retention pond in concert with the Florida Department of Transportation, and the 350-unit multifamily complex, which will consist of garden-style apartments and two-story townhomes.
The site work should run through end of December, with vertical construction expected to start in November on the apartments by general contractor Walker & Company.
The apartments should be complete in 18 to 20 months, Robbins said. Related's affiliate TRG will manage the property.
Related sourced a $46.1 million loan from PNC Bank to help finance the acquisition and future development.
The seller was an affiliate of Winter Park-based Battaglia Group, which retained ownership of more than 45 surrounding acres along lakefront and W. Maitland Boulevard that will be sold in stages to Related Group and Pelloni Development, which will develop about 16 acres of boulevard frontage as retail separately, but in concert with Related.
Related Group is functioning as master developer for Battaglia on the entire site, which has about 60 developable acres. The compensation for that role was factored in as a discount on Related's purchase price for the first tranche of land.
Pelloni's 130,000-square-foot retail component is expected to include a mix of shops, dining and a specialty grocer. That developer has yet to file site plans with the city, staff said Friday.
Now that Battaglia has closed its first land sale with Related Group, it will take steps to finalize a land sale with Pelloni in the next six months as that developer pursues city approval of its retail site plans. Pelloni has yet to open bidding for general contractors.
Battaglia Group is retaining ownership for the time being on parcels of 7.68 acres (office), 2.9 acres (hotel) and 5.77 acres (undetermined) for future sale or lease.
Looking forward, Related Group is actively seeking more land acquisition opportunities in Greater Orlando for multifamily. With nothing under contract at the moment, Robbins said sites of less than 10 acres to 20 acres will draw interest, if they mesh with the developer's criteria of urban infill, high barrier to entry and "tell a great story."