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Crescent Acquisitions LLC — an entity related to Crescent Communities LLC — seeks approvals from Seminole County to build a mixed-use project on 14.8 acres on the southwest corner of Wilson Road and International Parkway, according to county documents.
The project, called Novel Parkway, may feature 325 apartment units, up to 42,500 square feet of commercial uses and/or 120,000 square feet of self storage.
Novel Parkway may cost more than $61.8 million to build and create 618 temporary construction jobs, based on industry standards. A Crescent representative wasn't available for comment. Maitland-based Madden, Moorhead & Stokes LLC is the consultant, county documents showed.
The property owners are the trust of Jeno F. Paulucci and the successor trust of Paul V. Mellini, according to Seminole County documents.
New apartment development is a major opportunity for Seminole County, which has experienced years of job and population growth, Miguel de Arcos, managing partner of Maitland-based Central Parc Group, previously said. De Arcos himself is involved with at least four early-stage multifamily projects in the county, but not with the Novel Parkway project.
The projects also will create more business activity and economic growth, as new residents will demand more shops, restaurants and services in the area. Seminole County sites make up at least 7.7% of the region's apartment complexes under construction, or roughly 612 units, showed the most recent report by Charlotte, North Carolina-based Real Data Inc.
The north submarket, which includes the proposed Novel Parkway project, features a 2.9% vacancy rate and 11,585 units, Real Data Inc. reported. That's lower than the Orlando-area average vacancy rate of 3.5%. In addition, the submarket's average monthly rental rates of $1,227 is lower than the Orlando-area average of $1,335.
In June 2019, Crescent Communities also sought approvals for a 360-unit apartment complex near Olde Florida and Westwood boulevards along Interstate 4, according to Orange County records. And the developer looks to build a 260-unit project, Novel Nona Place, in Lake Nona. In addition, Crescent developed the $75 million, 693,000-square-foot, mixed-use Novel Lucerne project south of Orlando’s central business district.
Source: OBJ
Lake County’s Groveland area continues to see investment from big players in the industrial development market.
Just recently, a company led by media billionaire and developer Edmund Ansin paid $4 million for about 123 acres on the northwest corner of US Highway 27 and O’Brien Road, according to a deed filed in Lake County.
Marvin Puryear with SVN Saunders Ralston Dantzler Real Estate represented the selling entity, a company tied to real estate player and property investor Richard Bosserman.
Dave Lundberg with Lundberg Properties Inc. represented the buyer.
Ansin is active in both the broadcasting and real estate. His company, Sunbeam Television, owns WSVN-TV in Miami and WHDH-TV in Boston.
Meanwhile, real estate business is handled through his Sunbeam Development Corporation, which owns and manages a portfolio of commercial real estate properties primarily located in Indiana and Florida.
Developments include suburban office parks, industrial parks and shopping centers. According to the company’s website, Sunbeam will typically invest in large tracts of land in major growth areas.
In Florida, the company’s largest project is a 2,500 acre commerce park located near the Broward/Miami-Dade county line in Miramar called Miramar Park of Commerce.
Lundberg told GrowthSpotter that Sunbeam is active in Central Florida, and may either invest in this particular property or choose to develop it.
“It can go either way,” Lundberg said. For any development to take place on the land, the owners must first rezone the properties from its current Agricultural classification.
It currently features an Urban Medium Density Future Land Use, which allows residential developments at a maximum density of about seven dwelling units per acre, in addition to civic commercial and office uses.
Limited light industrial uses may only be allowed as a conditional use, unless permitted as an Economic Development Overlay District use, according to marketing material used by SVN Saunders.
Across O’Brien Road, about 40 acres are being planned to house a new residential development, Puryear said.
The Lake County site that recently traded hands features 2,740 square feet of frontage along US Highway 27, and is in close proximity to Florida’s Turnpike and State Road 19.
The property is located within the Lake County/Groveland Joint Planning Area, where other large industrial facilities are being planned.
Nearby, Kroger Co. and U.K.-based e-grocer Ocado are building a 375,000-square-foot customer fulfillment center at 7925 American Way that is estimated to cost $125 million to complete.
The area is also rumored to house a new Amazon distribution center. Seefried Industrial Properties, a regular developer for the e-commerce giant, is proposing to build 202,044-square-foot facility northwest of the Republic Drive and Independence Boulevard intersection within the Ford Commerce Park.
The company is behind building Amazon distribution centers in Lake Nona, as well as facilities in California, North Carolina and Alabama.
Source: GrowthSpotter
Lawrence Yun, NAR Chief Economist, will talk about the economy and the potential effect of Covid-19 on commercial real estate, followed by a QA session.
This meeting will be streamed to our virtual online platform. Registration is complimentary but required (Click on the "Watch Live" link below to register).
Friday, May 8, 2020
01:00 PM - 02:00 PM CDT
Watch Live
Click on the following link for other upcoming Sessions and Meetings: https://2020.legislative.realtor/sessions
Amazon has struck another massive lease deal in Central Florida — this time for the region's biggest available industrial space.
The Seattle-based e-commerce giant will occupy the entirety of an existing 1.1 million-square-foot distribution center at 3015 Coast Line Drive, Orlando Business Journal has learned. The warehouse previously was the Winn-Dixie Distribution Center.
Meanwhile, new construction approvals are being sought for the site, according to documents filed with the St. Johns Water Management District. The site plan is called "DFL4 Seaboard Road." The name "DFL" is important as that's a code name used for Amazon projects, according to supply chain consultant MWPVL.com.
The new construction team includes Raleigh, North Carolina-based civil engineer Kimley-Horn & Associates Inc.; Orlando-based architecture firm Baker Barrios Architects Inc.; and Orlando-based Leading Edge Land Services Inc. as the surveyor. CBRE Group's David Murphy and Monica Wonus — along with Kevin Kelly, David Sours and Lucy Durbin — were handling leasing of the space for the building owner.
Greenwich, Connecticut-based real estate investment trust Starwood Property Trust Inc.'s Wd Coast Line Drive Fl Property LLC owns the property, according to Orange County records.
New construction is an important economic driver in Central Florida. It creates jobs and also provides more space for companies involved in e-commerce, logistics, housing and other industries.
Still a Hot Sector
Despite the novel coronavirus' business interruption, most construction continues in Central Florida including industrial real state, said local industry expert Bo Bradford, co-president of Lee & Associates Central Florida, who isn't involved in the deal or project.
Industrial is a hot real estate sector as companies — such as Seattle-based Amazon.com — try to deliver goods to customers faster.
"The big [companies] still are moving forward, taking advantage of what they think will be better pricing as the work dries up," Bradford told OBJ.
The Silver Star industrial submarket, which includes the future Amazon warehouse, had a 9.2% vacancy rate — largely due to the Winn-Dixie vacancy, Lee & Associates Central Florida reported. The Orlando-area's average vacancy is 5.8%. The submarket features 18 million square feet of space.
In addition, the submarket's average asking rate is $8.51 per square foot, which is higher than the Orlando-area average of $7.46 per square foot.
More than a dozen prominent downtown executives aim to create a special district west of Interstate 4 to boost the area and attract new businesses to the Parramore neighborhood.
The executives — mostly developers, major property owners and pro sports leaders — seek to create a "neighborhood improvement district" across 130 acres that would help shape the future of the Parramore area, according to documents obtained by Orlando Business Journal. The district's official boundaries haven't been finalized, but city of Orlando spokeswoman Samantha Holsten confirmed city staff is reviewing a request to form the improvement district.
Per documents, the district's goals are to: develop a more attractive neighborhood; form a community advisory board; improve communication between businesses; support new development projects; and create community-based revenue opportunities to support programs and initiatives.
The documents also break down the leadership behind the neighborhood improvement district. Those involved in the group include:
SED DevCo LLC — which is partnering with the Orlando Magic to build the $500 million Sports and Edutainment (Education + Entertainment) project in this area — is leading the charge on creating this district. "It is not the intention of SED DevCo to create a [neighborhood improvement district] that would place a greater financial burden on any residents of the community," said the documents.
Currently, a five-member exploratory committee is being sought to form the neighborhood improvement district. Orlando's city council will need to approve the committee's formation — the date for that vote has not been scheduled
"This is another step in the project which represents a $500 million investment by the Magic and its partners that will create jobs and provide dining, hotel and entertainment options and continue the revitalization of downtown Orlando," Orlando Magic spokesman Joel Glass said via email.
The latest Orlando neighborhood improvement district — the Downtown South Neighborhood Improvement District — was created in 2010 to oversee the redevelopment of 720 acres.
The formation of a neighborhood improvement district reflects the complicated nature of reimagining an existing area versus simply developing on vacant land, said Gregg Logan, managing director of Bethesda, Maryland-based real estate advisor RCLCO, who isn't involved in the neighborhood improvement district. This type of district also incentivizes both the public and private sectors to work together to help improve an area.
"Everyone has an interest," Logan said.
On Tuesday, April 21st, from 10-11 a.m. CDT, join Erin Stackley, Senior Representative, Commercial Legislative Policy for the National Association of REALTORS®, for a COVID-19 legislative update for commercial real estate. This presentation will include details on the recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act and its new SBA 7(a) Paycheck Protection Program. Tune in tomorrow from 10:00-11:00 a.m. CDT for a livestream on CCIM Institute's YouTube channel.
CLICK HERE TO WATCH THE LIVESTREAM
Danny Rice already is thinking ahead on what Central Florida's commercial real estate world looks like after COVID-19.
And the managing director of Colliers International Central Florida forecasts changes in the office, restaurant and industrial asset classes. In general, property owners likely will think about reconfiguring spaces to make people feel more comfortable, he said.
"Every business is being impacted. We all will make changes on how we operate."
For example, Colliers employees have been working from home as COVID-19 alters the working environments for virtually all companies in the region and beyond. And that's been an adjustment for the real estate firm's brokers and employees — normally accustomed to numerous social outings, from coffee meetings to dining out for business.
Here, Rice talks with Orlando Business Journal about his company and what he sees as three big changes on deck for the commercial real estate world:
What's it like for Colliers to work from home? Brokers usually are out and about, so it's been an adjustment on that side. But they're all very driven and motivated, and they like to solve problems with clients. We're learning technology very quickly like how Zoom conferencing works. You have to do it in fun ways, too, like virtual happy hours and coffees. People are getting more comfortable with these technologies. We're learning that socialization of colleagues is important through things like virtual happy hours. Four weeks ago, that didn't even exist.
What's the future of office real estate? First, we're all working from home. For many businesses, they will find success in their working-from-home strategy and they can reduce their office footprint. Others, it's a real challenge and it's not efficient. Everything is industry driven. If you're a tech company, you're used to a flex environment. But it's a big change for an attorney who's not paperless. Here's an asterisk: We're only a few weeks into it. Where we land isn't perfectly clear. There also could be changes to office layouts. Is sitting in close proximity to a co-worker desired? Are we going to build offices where people don't face each other? There likely will be more of a shift to contactless entering of buildings. Our clients are asking about it. Office space will be one of the more fascinating asset classes to pay attention to.
What about restaurants? Every restaurant has been forced to not allow in-person dining. Everything is take-out and to-go. You're going to see a lot of change in structure and how eateries interact with clients. They have to get creative. Some restaurants have paired to-go orders with Netflix watch parties. They want to engage with clients at home since they can't do it in their dining areas. There's been a pause in restaurant real estate deals, but people will want to get out there and eat, because everyone's been cooped up.
Finally, how does industrial real estate change? It will stay very active, especially for companies needing storage. And it will continue to grow as we change how we interact with retail through e-commerce. Perhaps, our supply chain will change entirely as the the global economy shifts in how we get our goods.
With Congress and the White House agreeing on a $2.2 trillion stimulus package to help the economy through the coronavirus crisis, Florida’s senators are focused on the $377 billion included in it for small businesses.
U.S. Sen. Marco Rubio, R-Fla., the chairman of the U.S. Senate Small Business and Entrepreneurship Committee, offered an update over the weekend on the Small Business Administration’s (SBA) Paycheck Protection Program, which started on Friday.
Rubio pointed to numbers released by SBA Administrator Jovita Carranza which showed more than 17,500 loans, which totaled more than $5.4 billion, were approved by end of business on Friday.
“Just last week, Congress passed and President Trump signed the Paycheck Program into law,” Rubio said on Saturday. “Yesterday, just days after becoming law, small businesses across the country received billions of dollars in Paycheck Protection Program loans. Nearly all of the lending completed yesterday came from existing 7(a) small business lenders like community banks. As I argued when I first proposed to use the SBA’s guarantee programs to get assistance to small businesses quickly, these community banks were ready to go on day one. Their actions yesterday saved hundreds of thousands of jobs.
“The speed with which the administration stood up this program is an incredible feat, but it's also important for a little patience and a little honesty,” Rubio continued. “When you launch something this unprecedented and far-reaching just seven days after it becomes law there will inevitably be problems. The good news is that every problem we saw yesterday can be fixed. I am on the phone constantly with Treasury, the SBA, and bankers across the country and all across Florida to make sure it gets better each day we move forward.”
Still, Rubio showcased some findings from his office and U.S. Treasury Department about concerns and remedies in the program so far. Those concerns with remedies can be found after the article.
Rubio also teamed up with U.S. Rep. Nydia Velazquez, D-NY, the chairwoman of the U.S. House Small Business Committee, and U.S. Rep. Steve Chabot, R-Ohio, the top Republican on the committee, in sending a letter to Carranza to clarify congressional intent on the loans.
“The law intended to allow farms and agricultural businesses, which do not have access to typical disaster assistance resources offered by the U.S. Department of Agriculture during physical disasters, to be eligible for EIDL during this current pandemic crisis,” Rubio’s office noted.
“We write to clarify congressional intent of Section 1110 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act (Public Law 116-136), which expands eligibility for access to the U.S. Small Business Administration’s Economic Injury Disaster Loan (EIDL) program. Given the circumstances of this worldwide pandemic and absence of other typical disaster resources, Congress intended for farms and agricultural businesses suffering economic injury due to COVID-19 to be eligible for EIDL during the covered period,” Rubio, Velazquez and Chabot wrote.
“The unprecedented nature of the novel coronavirus pandemic calls for flexibility to assist businesses across multiple sectors of our economy. In addition to small business concerns, private nonprofits organizations, and small agricultural cooperatives, Section 1110 of the CARES Act expands eligibility for EIDL to include businesses (including tribal businesses), cooperatives, and ESOPs with not more than 500 employees, or any individual operating a sole proprietor or and independent contractor during the covered period (January 31, 2020 to December 31, 2020),” they added.
“Agricultural enterprises have historically been excluded from EIDL to prevent duplication and overlap with the U.S. Department of Agriculture’s (USDA) disaster assistance programs. These businesses are, however, eligible for assistance under other SBA programs, including 7(a). Given the nature of this pandemic without a physical disaster footprint, USDA disaster assistance was not triggered and thus not available. As such, the law prescribes for agricultural entities encompassed under the expanded eligibility portion of the act to be able to apply for assistance under EIDL temporarily during the covered period,” they continued.
“In line with this congressional intent, we ask that the SBA offer clear guidance for farms and agricultural businesses to access the EIDL in response to COVID-19. This would include updating the COVID-19 EIDL application eligible entity verification on the agency’s website to prevent confusion and allow all intended entities access to EIDL,” they wrote in conclusion. “Thank you for your prompt attention and action in response to this matter.”
On Sunday, U.S. Sen. Rick Scott, R-Fla., reached out to U.S. Treasury Sec. Steven Mnuchin and Carranza urging them to quickly address problems with the Paycheck Protection Program and offer guidance.
“Thank you for your ongoing efforts to rapidly implement new U.S. Small Business Administration (SBA) Coronavirus relief programs to help small businesses who are hurting around our country,” Scott wrote. “Congress recently passed, and the president signed into law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes new assistance for small businesses. Last week, I fielded numerous concerns from Florida’s small business owners regarding the rollout of one of these new efforts, the Paycheck Protection Program, which began on April 3, 2020.
“I am receiving reports of small businesses who are simply unable to begin applying for Paycheck Protection Program loans from their financial institutions. Some financial institutions appear to be requiring unrelated products to apply for a loan, and other small business owners reported getting conflicting information as to when and how they could start their applications. I have also spoken with lenders, who expressed significant concerns with the lack of guidance, including the documentation necessary to substantiate each loan,” Scott continued.
“I am writing to ask for clarity and understanding on how the Treasury and SBA will be handling these outstanding issues,” Scott added. “When will all the necessary forms and guidance be issued and made public for the Paycheck Protection Program so that all eligible small businesses and lenders can effectively and efficiently apply for and process these loans? Lenders report that they are still lacking guidance and forms to get these companies the loans they need.
“I have heard from Floridians, who are customers at both large and small banks, and are being told that they cannot access Paycheck Protection Program loans because they don’t have existing business with the bank. Please confirm that there currently is not and will not be any requirements that small business applicants must have existing business, loans, or accounts with a lending institution in order to apply for a Paycheck Protection Program loan with that institution," Scott wrote.
“There are no requirements written into current law, and small businesses need assurances that the SBA or Treasury will not create new hurdles. Please confirm that religious non-profits and churches are eligible to apply for Paycheck Protection Program loans. The CARES Act is clear in its intent that churches and religious non-profits be included in this program. Regarding the E-TRAN system, what plans are currently in place to ensure this system can handle and adapt to the new requirements and influx of applicants so that loans can be processed and approved efficiently and effectively?” Scott asked. “Regarding the ‘affiliate rule,’ when will the Treasury and SBA issue guidance on how this will be applied under the Paycheck Protection Program?
“Many non-profits and other types of small businesses have been put in a unique situation disallowing them from applying, and they need guidance now so they can access the Paycheck Protection Program (e.g., food bank non-profits with several chapters around the state can be affiliated together to total more than 500 employees),” Scott wrote. “On April 10, 2020, both independent contractors and self-employed individuals will be able to apply for the Paycheck Protection Program. Will Treasury and the SBA have the necessary guidance available to allow for a smooth rollout this week?
“The answers to these questions are critical to the success of the Paycheck Protection Program and to the survival of many small businesses across our country. Thank you for your efforts to help those that are struggling, and I look forward to your reply. The timeliness of your response is critical - our businesses are hurting and need relief now,” Scott concluded.
Day One Concerns with Remedies:
Large Bank Existing Customer Policy: On Friday, there were reports of large banks declining applications unless the business owner had previously taken out a loan or a credit card from the lender. Business owners that have had 20-year relationships had their loan applications denied. Some larger banks are only accepting PPP applications from individuals with prior relationships at the bank. Good News: Banks are already starting to change their policy on this and will start accepting new customers. More large banks will be up and running early next week. FinTechs, including PayPal and other online lenders, are ready to process PPP loans and can help with the demand for businesses that do not have existing bank relationships. The nonbank lender application will be out soon. Holding Loans: Bank and nonbank lenders are concerned about the interim final rule requiring lenders to hold loans for seven weeks before they can be purchased by the government. Community banks and FinTech lenders need a liquidity or purchase market to continue to make loans to small businesses, especially considering the demand that occurred today and is expected to continue. Solution: Chairman Rubio called for the new Federal Reserve lending facility to ensure community banks and FinTechs have the liquidity they need to continue to make PPP Loans. Affiliation Rules for Businesses and Nonprofits: Lenders are requesting clear guidance on the application of SBA affiliation rules to businesses, including the now eligible 501(c)(3) nonprofit entities, which have not previously been eligible for 7(a) loans. Good News: SBA and Treasury released an interim final rule and guidance on several affiliation issues, and Chairman Rubio will continue to engage with the agencies on further guidance.
Large Bank Existing Customer Policy: On Friday, there were reports of large banks declining applications unless the business owner had previously taken out a loan or a credit card from the lender. Business owners that have had 20-year relationships had their loan applications denied. Some larger banks are only accepting PPP applications from individuals with prior relationships at the bank.
Good News: Banks are already starting to change their policy on this and will start accepting new customers. More large banks will be up and running early next week. FinTechs, including PayPal and other online lenders, are ready to process PPP loans and can help with the demand for businesses that do not have existing bank relationships. The nonbank lender application will be out soon.
Holding Loans: Bank and nonbank lenders are concerned about the interim final rule requiring lenders to hold loans for seven weeks before they can be purchased by the government. Community banks and FinTech lenders need a liquidity or purchase market to continue to make loans to small businesses, especially considering the demand that occurred today and is expected to continue.
Solution: Chairman Rubio called for the new Federal Reserve lending facility to ensure community banks and FinTechs have the liquidity they need to continue to make PPP Loans.
Affiliation Rules for Businesses and Nonprofits: Lenders are requesting clear guidance on the application of SBA affiliation rules to businesses, including the now eligible 501(c)(3) nonprofit entities, which have not previously been eligible for 7(a) loans.
Good News: SBA and Treasury released an interim final rule and guidance on several affiliation issues, and Chairman Rubio will continue to engage with the agencies on further guidance.
Additional Outstanding Issues:
Independent Contractor Eligibility: The interim final rule has contradicting guidance determining whether business owners should include independent contractors’ 1099s in their payroll cost calculation. Chairman Rubio’s staff has communicated this contradictory information to the SBA. Technology Issues: Some lenders have reported the SBA’s internal system for loan application processing, called E-Tran, has been slow. This is to be expected with the volume of loan applications to be processed. The SBA has contracted with a third-party provider to ensure the E-Tran system issues are worked out and addressed as they come up. Additionally, some community banks have reported issues with accessing the online portal, by which SBA will provide access to non-SBA lenders. The SBA is working through the issues to get everyone online. Money: Based on demand, it is clear that Congress will need to appropriate additional money for this program. Based on initial calculations, and as more lenders begin to participate in PPP, funding for the program could run out before the end of the covered period, which is June 30, 2020. Chairman Rubio has committed to working with his colleagues to provide additional funding for PPP.
Independent Contractor Eligibility: The interim final rule has contradicting guidance determining whether business owners should include independent contractors’ 1099s in their payroll cost calculation. Chairman Rubio’s staff has communicated this contradictory information to the SBA.
Technology Issues: Some lenders have reported the SBA’s internal system for loan application processing, called E-Tran, has been slow. This is to be expected with the volume of loan applications to be processed. The SBA has contracted with a third-party provider to ensure the E-Tran system issues are worked out and addressed as they come up. Additionally, some community banks have reported issues with accessing the online portal, by which SBA will provide access to non-SBA lenders. The SBA is working through the issues to get everyone online.
Money: Based on demand, it is clear that Congress will need to appropriate additional money for this program. Based on initial calculations, and as more lenders begin to participate in PPP, funding for the program could run out before the end of the covered period, which is June 30, 2020. Chairman Rubio has committed to working with his colleagues to provide additional funding for PPP.
The U.S. Treasury Department has released the application for the Small Business Administration's 7(a) Paycheck Protection Program loans. It has also released a summary guide of the program for borrowers.
Small businesses and sole proprietors can apply beginning this Friday, April 3; independent contractors and the self-employed can apply beginning next Friday, April 10. Applications go directly to SBA lenders, which you can find through the SBA site.
About PPP Loans
The Paycheck Protection Program was created by the CARES Act to provide small businesses (500 employees or fewer), sole proprietors, and the self-employed/independent contracts who are impacted by COVID-19 with loans of 2.5x their average monthly payroll expenses (up to $10 million) to cover payroll, mortgage interest, rent, and utilities for an 8-week period during the crisis. Employers who maintain payroll levels of at least 75% of their average and the same number of employees are eligible for loan forgiveness. You can learn more about the loan program in the National Association of REALTORS' CARES Act FAQ and CARES Act Summary.
There are still some questions as to if a small business should include independent contractors in its employee numbers and payroll costs; according to NAR, independent contractors can apply for their own 7(a) PPP loans. NAR is seeking clarity on that question from the Treasury and the SBA.
NAR anticipates posting a SBA-program specific FAQ focusing on the 7(a) PPP loans and the Economic Injury Disaster loans. (Businesses can apply for both, but the funds cannot be used for the same purposes, and the $10,000 advance grant is not forgiven if you also receive a forgivable PPP loan.)
Resources
Property sales climbed in Central Florida's biggest county while the region's largest city saw its number of building permit applications remained flat last week, when compared with the prior week, during a time of coronavirus shutdowns.
That's the latest as Orlando Business Journal continues to monitor weekly sales and building-permit fluctuations in Orange County and the city of Orlando to get a better understanding of how coronavirus may be affecting the region's real estate development. The numbers are highly variable — even without a global pandemic — and it may be difficult to tell if the numbers are related to the current market uncertainty or other factors.
Still, the virus outbreak has wreaked havoc on Central Florida's once-booming economy as businesses shutter, resulting in thousands of job losses.
Apartment deals remained strong in Orange County last week, as two sizable properties were sold.
On March 23, Indigo West at 6101 Raleigh St. near MetroWest in west Orlando sold for $90.5 million, or roughly $198,464 per unit, county records showed. And Princeton at College Park at 646 W. Smith St. in Orlando on March 26 sold for $56.7 million, or roughly $275,127 per unit.
The deals show investors remain confident, at least for now, that Orlando's apartment properties have long-term appeal. That said, Class A rents have started to slide in Central Florida in recent weeks. But it's not known how much of an impact the coronavirus has had on the apartment rental market.
"It’s too early to tell at this point," said local apartment expert Ryan Moody, senior managing director at Newmark Knight Frank, who was involved in the Indigo West deal.
The number of building permit applications filed to the city of Orlando remained flat last week. But overall the number of building permit applications have cooled off when compared with five weeks ago.
It remains to be seen if coronavirus will shut down the construction industry in Central Florida, as cities across the U.S. place restrictions on building during the pandemic. So far, construction has been spared in Central Florida, where stay-at-home orders have deemed the industry "essential."
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