Sale price set for mixed-income housing site in Creative Village; $68M loan sourced for 15-story tower

Winter Park-based Atlantic Housing Partners and a partner will pay nearly $3.74 million by January for a 3-acre site in Creative Village, with subcontractors now being pursued for a concurrent groundbreaking, a principal with the company told GrowthSpotter

The multifamily developer's site plan, filed in mid-February and the first to go before the new Creative Village Development Review Committee (CVDRC), calls for a 256-unit mixed-income housing and commercial project.  

Dubbed "Amelia Court at Creative Village," two five-story buildings would cover 2.98 acres at the northeast corner of Amelia Street and Parramore Avenue. 

The development is a joint venture with Bank of America Community Development Corporation (BACDC), which is acting on behalf of master developer Creative Village Development, LLC (CVD).

The buyer entity, Amelia Court at Creative Village Partners, Ltd., will have an amendment to its purchase agreement go before Orlando's City Council on Nov. 13. It reveals a total sale price of  approximately $3.737 million for Parcel P (1.28 acres) and Parcel N (1.7 acres) within the Creative Village campus. 

That price is calculated based on the square footage to be dedicated for apartments and commercial. It could increase if the unit count changes, but Atlantic Housing principal Scott Culp said Wednesday that isn't likely to happen.

The amendment also extends the closing date to Jan. 31, 2018, and provides a credit to the buyer of $75,000 for soil management work. 

Groundbreaking is now targeted for January with an estimated completion of the entire project in Summer 2019, to coincide with the opening of the rest of the downtown campus, Culp added. 

The 256 apartments will consist of 64 one-bedroom units, 20 two-bedrooms and 172 three-bedrooms, very much the inverse of what new market-rate multifamily has offered in Downtown Orlando in recent years. 

"Our focus is really on the families working in or around the university and school system there," Culp said. "It definitely is a different development from the student-focused and market rate multifamily projects also planned for Creative Village." 

Of the 256 units, 103 will have some level of affordability restriction. About 12 units will be reserved for extremely low income, with monthly rents ranging from $350 to $500, then the remaining 91 will be priced as "affordable/attainable" units with rents from $650 to $900. 

The other 153 units will be unrestricted, or "market rate," but those rates will still be lower than the standard market rates found in the downtown submarket, Culp said. 

The two phases of apartments will be built simultaneously, along with approximately 9,600 square feet of ground-floor commercial space. Atlantic Housing is still in talks with UCF about leasing that space, said Culp, but it remains open to market. 

Foster Conant & Associates has been hired in recent months for streetscape architecture, and Atlantic Housing's affiliate WPGC LLC will serve as general contractor. It is in the process of subcontractor bidding for every portion of plans that are complete, Culp said. 

Total project cost is now expected to exceed the original $60 million forecast, said Culp, who cited rising material and labor costs as key variables in the projection.

Atlantic Housing will submit its latest project design examples by Monday to the city for an appearance review with the CVDRC on Dec. 11. 

Site work and foundation plans are under review by city staff, and full vertical construction plans should be submitted in the coming weeks, with approval anticipated for all by end of December, Culp said. 

Madden, Moorhead & Stokes, Inc. is civil engineer on the project, and Slocum Platts is the architect. 

Directly south of Atlantic Housing's mixed-income apartments site, Ustler Development and a JV partner will pay the city close to $5.475 million for the 1.6-acre "Parcel M," to develop market rate apartments with ground-floor retail. That closing is estimated for mid-2018, developer Craig Ustler told GrowthSpotter, though the contract has a deadline of Aug. 31, 2018. 

On Oct. 25, entity Creative Village SHP Owner LLC -- which includes Ustler Development and New York-based Development Ventures Group (formerly KUD International) -- paid $3.35 million for the 1.35-acre "Parcel J." Site work and demolition has started there for a 15-story mixed-use tower to be anchored by student housing, led by Batson Cook Construction as GC. 

And on Tuesday (Nov. 7), that land owner entity closed on more than $100 million in financing for development of the student housing tower, which carries a total project cost estimated near $103 million.

The capital stack consisted of a construction loan worth more than $68.07 million from New York-based commercial real estate investors PCCP, LLC, $29.9 million in JV equity from Halstatt Real Estate Partners, and $5.3 million in sponsor equity contributed by the co-developers. 

The Orlando office of HFF worked on behalf of the developers to arrange the capital stack.

Master developer CVD is now in negotiations with a chosen finalist bidder for the 1.7-acre "Parcel U," which was marketed through July and is intended for up to 250 apartments and ground-floor retail. 

All of those parcels, along with the Atlantic Housing site, make up Phase 1 of Creative Village. Other parcels to be made available for private sale and development likely won't be released for a few years until a critical mass builds on the campus. 

Have a tip about Central Florida development? Contact me at bmoser@growthspotter.com, (407) 420-5685 or @bobmoser333. Follow GrowthSpotter on Facebook, Twitter and LinkedIn.

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