Orlando Report: Construction Moves Downtown

Residential projects are popping up around downtown Orlando as area develops momentum

By Debra Wood

For years a stepchild to Central Florida's hospitality corridor, downtown Orlando has sprung forward with an aggressive redevelopment plan expected to entice baby boomers and young singles to return to city life.

"There's a definite boom and buzz in downtown Orlando," said Frank Billingsley III, executive director of Orlando's Downtown Development Board/Community Redevelopment Agency.

"We're seeing a lot of activity in the central part of the downtown area, a lot of residential development," said Ian Brown, business development engineer with Turner Construction Co.'s Orlando office. "I think (multi-residential) is a trend that's going to continue, but it depends a lot on how successful the first few are. It is a limited market, but there is a lot of investor interest from outside of the state."

Turner is currently building the $60 million Sanctuary condo downtown and is getting ready to start soon on The Vue at Lake Eola.

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City financial incentive packages have triggered much of the residential growth. About 2,000 units are under construction or in the permitting phase.

"The city has a very carefully thought-out plan to encourage residential in the core of our downtown," Billingsley said. "Residential brings cultural mass and vitality to a city and gets us one step closer to returning restaurants and retail to downtown."

A new federal courthouse, a law school and an office building also are under way in the central business district. Just slightly to the north and south, the community's two hospital systems are adding major structures to their campuses.

"The construction economy is coming back in Central Florida, but it is coming back in certain sectors," said Mark Wylie, president and CEO of the Central Florida Chapter of Associated Builders and Contractors in Winter Park. "Large hospitality/hotel projects are not on the horizon yet."

"Current Orlando construction projects span a wide variety of building types and functions - governmental, educational, mixed-use and multi-family," commented Ken Petterson, manager of preconstruction services for Hensel Phelps Construction Co., Orlando. "There is no single market driving the opportunities we see here locally.

"The direction of the Orlando market is still quite uncertain, and very much in the state of transition," Petterson added. "Long term I believe the hospitality market will rebound and stabilize the local economy."

Wylie said that, overall, contractors remain upbeat but concerned about how rising concrete and steel prices will affect the market. Increases in building costs forced the $130 million 55 West on the Esplanade, a downtown mixed-use retail and residential project, to increase the price of its condominium units, even for people who had made a deposit.

Bustling Downtown

Turner Construction Co. began building The Sanctuary, a $60 million, 18-story, 173-unit condominium tower earlier this year. As soon as The Sanctuary opens, developer Steve Kodsi, president of Historic Creations of Orlando, plans to start construction on the Star Tower Condominiums, a $30 million, 18-story structure.

Churchill Properties began preselling 323 condominiums at The Vue at Lake Eola in July. The 35-story tower will include 6,000 sq. ft. of retail space.

Jack Jennings & Sons of Orlando was expected to begin construction in September on The Jackson, an eight-story, 52-unit condominium project designed by Farmer Baker Barrios of Orlando. Developer Real Estate Inverlad of Orlando anticipates completion in one year.

"The housing trend is booming and can be attributed to several things," Billingsley said. "More and more people are fed up with commutes and traffic. The baby-boomer generation is starting to age and downsize. So we see retail bouncing back downtown, not to the glory days of major department stores, but certainly to the level of unique shops and basic city services."

Two major residential projects that received city incentives include retail space. The Plaza on Orange Avenue, a $140 million mixed-use project, received $22.5 million from the city. The 2.9-acre site covers two city blocks and will also include offices and a movie cinema. Brasfield & Gorrie of Orlando expected to break ground in mid-September.

Rich Roland, director of marketing for The Plaza developer Kuhn Management of Orlando, said more than half of the office condominiums have been sold and 250 people are on a waiting list for the 300 planned residential condominiums.

Skanska USA Building of Orlando performed preconstruction work on 55 West. The construction contract is pending, with an anticipated start by year-end. Developer Euro American Advisors of Tampa received $12.5 million in city incentives.

Multifamily residential isn't the only thing filling downtown. The Collage Companies of Lake Mary, general contractor for the $20 million Lynx Central Station project, was nearing completion on this six-story, 90,000-sq.-ft. office building for the Central Florida Regional Transportation Authority, operator of Orlando's Lynx public transportation system. Situated on two city blocks downtown, this striking facility features a single-story passenger terminal with bus drop-off area and a dramatic, two-acre curvilinear space-frame structure.

Commercial and governmental projects also are in the works. Hardin Construction Co., Orlando, broke ground in June on CNL Center II, a $55 million, 12-story office tower, adjacent to City Hall. CNL has leased 65 percent of the space in this second of three planned towers. Construction should wrap up next year.

Construction on an $82.7 million U.S. Federal Courthouse began in April. Hensel Phelps Construction Co. of Orlando is building the six-story, 326,000-sq.-ft. facility.

A courtyard will connect the courthouse with the new $22 million Florida A&M University College of Law. Turner Construction Co. of Orlando, in a joint venture with PSA Constructors of Orlando, is providing construction management services for the law school campus, which includes a four-story law library and a three-story office and classroom building.

On the health-care front, the Robins and Morton Group of Birmingham, Ala., is building Orlando Regional Healthcare's $75 million, 273-bed, 11-story Hospital for Women & Babies. It will connect with the current Arnold Palmer Hospital for Children & Women, located across the street. Jonathan Bailey and Associates of Dallas designed the circular tower. Completion is expected in late 2005 or early 2006.

Florida Hospital plans to build a 15-story, 300-bed tower adjacent to its main Orlando campus. HuntonBrady Architects of Orlando is designing the structure, which is part of a $400 million local expansion plan.

The Surrounding Community

In the tourist corridor, Welbro Building Corp. of Maitland is wrapping up construction on the Omni Orlando Resort at ChampionsGate. Disney's Saratoga Springs Resort & Spa interval-ownership property has entered phase two. But long-anticipated starts on major hotels near the convention center remain on hold.

Hensel Phelps broke ground in May on JetBlue Airways' flight-training center and hangar facility at Orlando International Airport. The design-build project includes an 80,000-sq.-ft. training center that will be used for the initial and continuous training of all pilots and inflight crews, as well as 70,000 sq. ft. of hangar space and 29,000 sq. ft. of office and shop space.

When the project finishes in 2005, JetBlue will use the building for aircraft and in-flight television system installation and maintenance.

Veranda Park, in the MetroWest community, is one of the largest projects outside the city core. Skanska serves as program manager for the office, residential and retail urban village scheduled for completion in 2006. Developer Veranda Partners LLC of Orlando also awarded Skanska the $9 million construction-management contract for office buildings seven and eight.

Altamonte Town Center recently broke ground north of the city in Seminole County. The 1.5-million-sq.-ft., $200 million development will include retail, residential, office and hotel properties.

Farther north in Sanford, Suncor Properties is building a $17 million, mixed-use residential and retail development overlooking Lake Monroe called Gateway at Riverwalk. The project will connect with the city's Riverwalk recreation project.

Useful Sources:

Altamonte Town Center
http://www.altamonte.org/development/projects/town_center.asp

Downtown Development Board
http://www.downtownorlando.com/

55 West
www.fiftyfivewest.com

The Plaza on Orange
http://www.plazaorlando.com/