More details revealed on $400 million Ocoee project

Anjali Fluker

May 19, 2015, 3:03pm EDT  Updated May 19, 2015, 3:12pm EDT

Orlando Business Journal

David Townsend may have some lofty goals to build a $400 million project in the west Orange County community of Ocoee — but his biggest challenge already has been solved, thanks to an innovative foreign investment program.

Townsend, president of Orlando-based Park Development Corp., expects to begin work on infrastructure for the $150 million first phase of City Center West Orange, a mixed-use development planned for West Colonial Drive and Bluford Road that he’s had in the works since 2012.

The first phase is slated to include a 122-room Hilton Garden Inn, 150,000 square feet of retail and restaurants, 500 residential condos and 100,000 square feet of office space along with a parking garage. Two future phases are set to be completed in the next seven years.

Here’s what else Townsend has on tap for the project:

• Condos: Though Central Florida is more focused on building apartments these days because financing is readily available, Townsend said his project will include one-, two- and three-bedroom residential condos currently being marketed to overseas investors. Condo unit prices will range from $178,000-$260,000, well below the price of a single-family home in the immediate area. Stirling Sotheby’s International Realty has seven agents dedicated to the project, Townsend said. Visit the City Center West Orange website for details.
• Retail: Though letters of intent or leases haven’t yet been signed for the shops and restaurant spaces, Townsend said the list of potential users includes a large department store anchor, a niche grocery chain looking to get into the Central Florida market, five “really good” restaurants that would take up lakefront spaces, six or seven retail boutiques and even smaller-space but big-name tenants like Starbucks and Subway. Madison Marquettte is handling retail marketing and leasing.
• Construction: Clearing already is taking place at the 60-acre site and Park Development’s in-house contractor will be the construction manager. Subcontractors are being sought for utilities work and vertical construction bid packages likely will go out by Oct. 1. Those interested in submitting bids are asked to email Jean Amm at jean@parkdevelopment.net.

Though most developers still find it hard to secure construction loans for office, condo and even retail projects without having a good number of pre-leases in hand, Townsend said his project can move forward without those deals, thanks to equity from investors in the EB-5 program.

The program provides visas to international investors who invest at least $500,000 in a commercial enterprise in the U.S. and create at least 10 full-time jobs. Townsend said he’s been able to secure 10 equity investors through the EB-5 program and has 22 more in the pipeline.

“We anticipate the first phase will do about $40 million in EB-5 funding and then we have private equity for the balance,” Townsend told Orlando Business Journal. “I think most of our challenges are over with because the hard part is the financing aspect. Because we have so much equity in the project with EB-5, that eliminated a lot of our challenges.”

City Center West Orange is projected to generate 4,320 jobs in all.

Be sure to come back to OrlandoBusinessJournal.com for updates.

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