An aging apartment complex near the University of Central Florida — one of the nation's largest universities by enrollment — soon will be redeveloped into new housing to cater to the school's growth.
Entities with Tampa-based 908 Group Holdings LLC and Indianapolis-based Scannell Properties bought 3.8 acres for $15.6 million at 12175 Science Drive, according to a Cushman & Wakefield news release. A transaction does not appear to have been recorded with Orange County as of mid-morning Sept. 20.
Davaswarnauth and Kamlawatee Shiwlochan were listed as previous owners, according to the Orange County Property Appraiser. The property currently features a 26-unit apartment complex called Pine Ridge Terrace Apartments, which was built in 1982 and last traded hands for $1.3 million in 2004.
A demolition permit was sought on Sept. 10 for the property, Orange County records showed. In addition, permits have been sought for a seven-story parking garage and a five-story wood frame apartment building.
Up to 764 student housing beds can be built on the property. A representative with the developers wasn't available for comment.
Cushman & Wakefield’s Travis Prince, Mike Donaldson and Nick Meoli represented the seller in the transaction, but were not available for comment. It wasn't known which brokers represented the buyer. “This site offered a premier location close to campus in a market with leading occupancy, rental rates and high demand,” Prince said in a prepared statement.
The development team for the new project includes Raleigh, North Carolina-based civil engineer Kimley-Horn & Associates Inc. as engineer; Altamonte Springs-based Shannon Surveying Inc. as surveyor; and Orlando-based Lowndes law firm attorney and partner Rebecca Wilson as legal counsel.
It may cost $95.5 million to develop and build the project, based on industry standards.
With recent sports success, UCF has been raising its national stature and has attracted the interest of apartment developers, previously said apartment expert Luke Wickham, senior managing director in the Orlando office of Institutional Property Advisors. Many of Wickham's clients are unaware of the university's size when touring properties in the area. UCF's fall 2020 enrollment is 71,948 people, according to the school's website.
"It keeps growing, and there's tons of demand," he said.
The east Orlando submarket features 19,687 apartments and a 3.6% average vacancy rate, according to CoStar Group. That's lower than the average Orlando-area average vacancy rate of 5.3%, showing demand for apartments. The submarket's average rent is $1,541 per month, which is near the Orlando-area average of $1,578 per month.
Sign up here for our free morning and afternoon daily newsletters. And be sure to follow us on LinkedIn, Facebook, Twitter and Instagram.
2020 C. Fla. total housing starts
| Rank | Prior Rank | Homebuilder |
|---|---|---|
1 | 1 | PulteGroup Inc. |
2 | 2 | Mattamy Homes |
3 | 3 | Park Square Enterprises LLC |