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HOAR SELECTED AS CONTRACTOR FOR NEXT PHASE OF LAKE NONA TOWN CENTER

, Fla.; August 7, 2017 – Tavistock Development Company, a diversified real estate firm owned by Group, announced today that Hoar Construction has been selected as the Pre Construction Program Manager and Master General Contractor for the next phase of development of the  Town Center which will include a thoughtful collection of more than one million square feet of retail, restaurant, , office, and hospitality uses.

Developed by Tavistock Development Company, with Steiner + Associates serving as the exclusive retail planning, leasing and development services partner, Hoar Construction plans to break ground on the next phase of construction in the Fall with anticipated completion in 2020. Hoar Construction brings the experience of having previously completed several projects with Steiner + Associates.

“Our team is eager to be a part of this transformative project and to help bring the retail and entertainment portion of the Lake Nona development to life,” said Michael Parks, Florida Division vice president of Hoar Construction. “We have a long history working with partners like Tavistock and Steiner + Associates to create world-class developments, and we are excited to be part of this team.”

Lake Nona Town Center is a 100-acre, 3.8 million square foot mixed-use experiential magnet and regional destination nestled within the large-scale Lake Nona master-planned community. Lake Nona Town Center fronts SR-417, Orlando’s eastern beltway, and is located adjacent to Orlando International Airport and its new multi-model transportation hub and international terminal.

Site plan for next phase of the Lake Nona Town Center

Lake Nona Town Center has already successfully opened and leased 85,000 square feet of class-A office, a dual branded Courtyard by Marriott and Residence Inn by Marriott hotel, 16,000 square feet of retail and restaurant space and a multi-level parking structure that doubles as public art adorned with colorful dichroic glass, lighting and a ‘Code Wall’ and is attached to a six-story digital art monument called ‘The Beacon.’

Local favorites Bosphorous Turkish Cuisine and Chorma Modern Bar + Kitchen – named Best New Restaurant 2017 by Orlando Magazine have thrived in the space – adding to the unique culture and atmosphere.

Tavistock and Steiner are currently in negotiations with several theatres and are close to finalizing plans for a brewery, comedy club and live performance venue, bowling concept and several additional restaurants and retailers. At full build out, Lake Nona Town Center will include more than 80 specialty retailers, anchors, junior anchors, and restaurants.

One of the most successful master-planned communities in the nation with more than 10 million square feet of current and planned residential and commercial development, Lake Nona’s corporate pipeline includes major regional projects including KPMG’s $400-million training and innovation center and the newly announced Amazon high-tech fulfillment center, both of which continue to position Lake Nona as one of the fastest-growing communities in America and a significant job creator for both the region and the state.

New York Real Estate

Tavistock preps plans for 2 new Lake Nona apartment projects

Tavistock Development Co. LLC has plans in the works to bring two new multifamily projects — including one it’s calling “micro apartments” — to southeast ’s booming Lake Nona community.

Early planning is underway for a second multifamily development in the Lake Nona Town Center, temporarily being called The Distillery, which would be 11 stories high and include a mix of uses within it, according to documents.

The most unique part about the project is the residential units themselves, which is something Tavistock plans to experiment with by making them about 10-15 percent smaller than what’s now available in Orlando, Vice President of Development Operations Ralph Ireland told Orlando Business Journal.

The plan is to test out six “truly micro” units, at about 375 square feet each, Ireland said. If that’s successful, Tavistock may try to do some in its next apartment project.

“Because we’re always trying to innovate, we want to do things in Lake Nona that haven’t been done elsewhere in Central Florida,” Ireland told OBJ. “Of course, we can’t just roll out 150 micro units because we don’t know how it’s going to work. But we’re trying to get something more efficient. And they will be well amenitized within the units and in the common areas.”

Tavistock already has secured a foundation permit for this project, and is seeking city staff approval on a final plat. is expected to start in May or June next year.

Kimley-Horn & Associates Inc. in Orlando is the civil engineer, the project architects are Silver Springs, Md.-based Torti Gallas & Partners Inc. and Columbus, Ohio-based M+A Architects, and the landscape architect is Dix.Hite + Partners LLC.

What to Consider in a Remodel

The kitchen should reflect your lifestyle. It should accommodate your cooking needs, provide the type of space you need for dining and offer plenty of storage. Its décor should complement your home’s architecture and set the tone for gatherings that happen there. A lot of factors play into kitchen design, but the first step before choosing appliances or visiting a cabinet showroom is to set some goals for your space.
Start by reflecting on why you’re remodeling and what you really need to get out of it. A kitchen remodel is not an easy task, so why are you doing it? Download and complete the Day in the Life of Your Kitchen Questionnaire and Kitchen Goals Worksheet. Your answers to these questions will help you create a remodeling checklist and budget.
When Deborah Pierce, principal, Pierce Lamb Architects, West Newton, Mass, works with clients, she works through an organic process that involves addressing each of these key variables:
  • Size of the space
  • Orientation of sunlight
  • Connection of kitchen to adjacent rooms
  • Homeowner’s lifestyle
  • Budget
  • Condition of the building

Kitchen Remodeling Considerations

As you start planning your remodel, consider these factors:
Size (Square Footage). “Every inch of space is important, especially in a small kitchen,” Pierce emphasizes. The size of your kitchen will dictate the layout: Is there room for an island? Does space allow for a prep sink? Where can you squeeze in extra storage?
Will you knock out a wall or extend the kitchen by adding on to your home? How much space can you conceivably add to your kitchen layout? These are questions to consider with a kitchen designer or architect, who can help you devise a solid plan.
Existing Layout. Don’t feel married to your kitchen’s existing footprint. “Windows and doors are seldom in the place you want them,” Pierce says. “They might be on the wrong wall, or in the wrong place entirely.” If you must maintain the windows/doors of your kitchen, you may be locked in to your layout—but there are always ways to modify. For instance, you can add a peninsula to an L-shaped kitchen and create a horseshoe layout that offers more counter space and efficiency. Learn about different kitchen layouts.
As you consider kitchen layout, take time to think about what you like about your current kitchen:
  • How do you move in the space?
  • Does the workflow accommodate your cooking routine?
  • Can you easily move from the range to the sink?
  • How effective is your kitchen when more than one person is cooking?
These are just some of the questions you should be asking yourself as you begin to plan your kitchen remodel. To see a complete list of questions you’ll need to consider, download the Day in the Life of Your Kitchen Questionnaire.
Infrastructure. Depending on the age of your kitchen, you might confront electrical or plumbing concerns as you remodel. Work with an architect-engineer team to ensure that the “guts” of your kitchen can accommodate the technology (appliances, lighting, etc.) you will install.
“In an older house, you may find yourself with sagging floors that need to be addressed or crooked walls that need to be straightened out,” Pierce says, pointing to a couple of budget busters that many homeowners do not plan for. “Keep an open mind at the start of the process,” she continues. “Understand your needs, but recognize the variables that a designer or builder might need to deal with during the process.”
Lifestyle. How will you use the kitchen? What type of cook are you? How do you entertain? Answer the questions in the Day in the Life of Your Kitchen Questionnaire as you prioritize features for your new kitchen. Peterson likes to keep the conversation general when first identifying kitchen likes/dislikes, “identifying problems rather than solutions, and wishes rather than details,” she says. “This is because the design will evolve as all variables are considered, and locking on to a specific feature at the start may solve one problem but preclude a better design that solves five other problems.”
For example, choosing professional appliances that take up 80 percent of the space may not allow enough room for cabinetry storage or area to expand a window to let more light into the kitchen.
Budget. For a more detailed discussion, visit our Budgeting Your Project section. As Roberta Bauer-Kravette, LEED AP, AKBD and director of Nieuw Amsterdam Kitchens in New York, N.Y., says, “The fastest way to go over your budget is to change your mind on materials and finishes.”
Decide where to save and where to splurge. Set a realistic budget, figuring between 6 and 10 percent of your home value for a complete kitchen remodel. Brad Burgin, Burgin Construction Inc. in North Tustin, Calif., says his clients that spend about 10 percent of their overall home value realize a return on their investment at resale. View and download our budget worksheet to help you decide where to spend your budget.

GROWN RESTAURANT IS NOW OPEN IN LAKE NONA

Grown is now open for business. Grown Restaurant is own by former NBA Star Ray Allen and his Wife Shannon. Grown is located inside the Lake Nona Walmart in the Lake Nona Landing Shopping Center.

Open for Breakfast, Lunch, and Dinner. They’re currently in a Soft Opening phase with a Limited menu.
Grand Opening will be later this Summer.

Grown gives a facelift to fast food. Making it easier to eat healthy in Lake Nona.

Grown has real food, cooked slow, for fast people. When it comes to eating, busy people have been conditioned to accept compromise. At grown, food can finally be convenient, nutritious and affordable all at the same time, under one garden-topped roof, full of freshly grown ingredients.

Grown will be located in the new Lake Nona Walmart in Lake Nona Landings.

UCF STUDENTS’ SCULPTURE TO BE INSTALLED IN LAKE NONA

June 4, 2017, , — A team of University of Central Florida students who designed a solar-powered art sculpture celebrated this week after the Orlando Utilities Commission and Tavistock Development selected its project to be built in the innovative, Laureate Park master-designed Lake Nona community later this year.

https://youtu.be/XH27K7HmCds

Four teams of senior-level undergraduate students in mechanical engineering, electrical and computer engineering, and computer science worked with art students to create four aesthetic solar-powered sculpture designs, the result of a year’s worth of work refining the concepts that began with hundreds of sketches, thumbnails and ideas.

The winning sculpture “Sundial” was praised for its combination of artistry and sound engineering.

“This beautiful combination of functioning solar and thought-provoking art prompts our customers to learn more about the innovative programs we offer. By bringing future engineers and artists together, UCF has done a tremendous job of giving us an opportunity to showcase the next generation of top talent,” said Linda Ferrone, OUC vice president of Strategy, Sustainability & Emerging Technology.

OUC sponsored the projects and competition to create a sculpture that would give the public an opportunity to learn about solar power and its importance as a renewable energy source. They wanted to give residents an engaging, beautiful, interactive community centerpiece sculpture that would contribute to a local power grid.

The winning team wanted to embody the spirit of Lake Nona – traditional and community-oriented, and at the same time modern and new. With built-in sensor plates, the circular sculpture features interactive LED lights and musical sounds. The sculpture also serves as a clock by casting shadows created by the gnomon (the triangular shape that rises from the circular base) and also with LED lights. Measuring 14 feet tall and 22 feet in diameter at full-size, the sculpture will generate the energy it requires with solar panels. It will be installed at OUC’s expense in ’s Village Center.

“It’s surreal to think that we won, after all the challenges we faced every day,” said Dominique Russell, a senior in mechanical engineering who graduates today. “We’d work so hard to refine a feature, but then the next day we’d have to change it. We had to remain flexible.”

Marie-Jo Gordo, a junior in studio art, noted the unique challenges that arise when artists work with engineers. “As artists, we often want to create things that are not physically achievable. We had many great ideas but the engineers kept bringing us back to reality.”

The Sundial teammates are: Gordo, junior, studio art; Daniel Schutt, sophomore, graphic design; Russell, graduating senior, mechanical engineering; Peter Warren, graduating senior, mechanical engineering; Graham Morgan, graduating senior, mechanical engineering; Kevin Weng, graduating senior, mechanical engineering; Julio Rodriguez, senior, mechanical engineering; Jade Sziros, sophomore, computer engineering; and Camille Van Atta, junior, studio art.

Four teams vied for the honor. The students presented their designs to OUC executives in March as part of their UCF coursework. Team members also delivered carefully prepared and rehearsed product pitches and presented small-scale prototype sculptures. Working from OUC’s ongoing feedback, the students refined their designs and showcased their polished prototypes during the College of Engineering and Computer Science’s senior design showcase on April 21. Two finalists were selected to move onto a final round of competition, which placed the finalists before OUC representatives and the design review committee Wednesday night.

“Tavistock Development is proud to partner on this project at the intersection of higher education and public arts,” said Jim Zboril, president of the Tavistock Development Company. “These sculptures are a reflection of what Lake Nona is about – innovation, sustainability, technology and education.”

The projects represent a culmination of work between the College of Engineering and Computer Science, and the School of Visual Arts & Design. Classes were held in SVAD’s AdLab. They also served as the engineering and computer science students’ final senior project, a requirement for graduation.

The teams incorporated sound engineering principles into their designs, such as the ability to withstand hurricane-force winds and optimize sun exposure to generate energy to power the sculptures’ electrical features and contribute to the grid. The sculptures use materials and convey art concepts – such as reflections and shadows – that recognize that it will be on display year-round outdoors in the bright sun.

UCF faculty who oversaw the projects include the engineering faculty Robert Hoekstra; Mark Steiner, Lei Wei; and Mark Heinrich; and the SVAD’s Robert Reedy.

Exclusive: Construction tees up for $25M Lake Nona golf attraction

It’s official: ’s & Performance District is adding a new golf and entertainment element to the mix.

Franklin, Tenn.-based The Parkes Cos. last week was issued a permit valued at $10 million to begin work on Drive Shack, the new complex at 7675 Lake Nona Blvd., according to city of documents.

The project includes a three-story, 57,000-square-foot driving range entertainment facility that includes a restaurant, lounge, bar, hitting bays and meeting spaces, according to Orange County permitting documents. It will be built on a 15-acre site on the northwest quadrant of State Road 417 and Lake Nona Boulevard, as previously reported by Orlando Business Journal. It will be similar to Topgolf, which plans to open an Orlando site on International Drive this fall.

A project manager at The Parkes Cos. wasn’t available for comment and it appears Drive Shack Orlando’s Facebook page hasn’t been updated since September, as of the morning of May 22.

However, New York-based Drive Shack Inc. (NYSE: DS) is a new global golf entertainment company as announced last November by New York-based real estate investment trust Newcastle Investment Corp., which is managed by an affiliate of real estate firm Fortress Investment Group LLC (NYSE: FIG).

The Lake Nona site is the parent company’s first Drive Shack location and another one is in the works, Drive Shack CEO and President Sarah Watterson said during the company’s May 5 first-quarter earnings call. Here’s more on what Watterson had to say about the project during that call:

“On the entertainment golf business, we continue to be very excited and make strides in developing our global network of Drive Shack venues. In Orlando, we’re in the midst of constructing our first venue, with the goal being open in first-quarter 2018. We’re also very excited to announce that our second Drive Shack venue will be developed in Richmond, Va. … Our venues feature multiple stories of hitting suites, whether friends, family, coworkers or complete strangers are able to compete in various technologically-enhanced golf games while using TaylorMade clubs. Consumers who are seeking a good time, but maybe not looking to participate in the game, are able to enjoy food and beverage options from one of our many entertainment, restaurant or lounge areas.”

Each Drive Shack site is expected to cost $15 million-$25 million to build, and would generate about $3 million-$6 million of earnings before interest, taxes, depreciation and amortization, a December 2016 investor presentation showed.

Kansas City, Mo.-based Populous is the project architect; Walter P. Moore is the structural engineer; ME Engineers is handling mechanical, electrical and plumbing; and Howe Engineers is the code engineer.

Meanwhile, Drive Shack in Lake Nona is the next piece of the 300-acre Sports & Performance District, which boasts the now operating $100 million U.S. Tennis Association National Campus; the soon-to-debut $1.4 million USTA Florida headquarters and U.S. Professional Tennis Association complex; and the $20 million Orlando City Soccer Club training facility.

Elsewhere in Lake Nona, global audit giant KPMG LLP is hosting a May 22 groundbreaking on its new $430 million Lake Nona training center and Lake Nona developer Tavistock Development Co. LLC expects big things for the next $300 million phase of its Lake Nona Town Center.

The Latest in Home Design Trends

  • Whether you’re a prospective seller or a longtime homeowner, revamping your space may be on your to-do list. Before you begin, preview these design trends and learn how to make them your own.

    Quick Decorating Touches

    • Add the latest color. From deep emerald to the lime hue of Greenery (the

    Pantone Color of the Year), verdant shades are instant hits. To incorporate the trend, sprinkle in a few eye-catching accessories or splurge on a plush, room-filling rug.

  • Bring in bronze and brass. These of-the-moment metallics look luxurious, but they have economical price tags and complement a variety of colors and styles. Spruce up your kitchen cabinets with brass handles or use bronze light fixtures to warm up a room.
  • Toy with texture. Whether you’re drawn to fabric wallpaper, a decorative wall hanging or a collection of well-placed throw pillows, texture is an easy way to make a space more inviting. And don’t shy away from mixed materials like leather and wool.

Trendy Upgrades

  • Enrich your entryway. You have only one chance to make a first impression. For a small investment, you can transform your home’s entrance with an artisan-crafted credenza or an oversized mirror that amplifies the natural light.
  • Update your countertops. Laminate options fashioned from recycled granite or glass are easy on the wallet and the environment. Want to go all out? Lighter shades in quartz, marble and wood are popular upgrades in today’s kitchens.
  • Establish a shedquarters. Whether you work from home, want a relaxing retreat or host houseguests regularly, a separate on-site structure aptly dubbed a “shedquarters” may be a worthy addition.

From a quick, low-budget change to a well-planned build-out, homeowners have several options when it comes to implementing the latest home design trends.

Luxury Market

 

DUAL MASTER BEDROOMS A RECENT LUXURY TREND

KEVIN COSTNER LISTS $60M CALIFORNIA HOME

You’ve heard of his-and-hers towels, but what about his-and-hers bedrooms? With more couples retreating to separate beds, dual master bedrooms have become a rising trend in high-end home design.
When you imagine celebrity home listings, you usually think of sprawling, multistory estates — the epitome of design. But Kevin Costner’s beachfront home in California is all about the land.
READ MORE
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Knowledge is confidence when buying and selling real estate!
ALLYN AND PAM MAYCUMBER
KELLER WILLIAMS // Luxury Sales
EMAIL allyn@maycumber.com
PHONE (407) 467-3862 // MOBILE (407)251-1314
ADDRESS 9161 Narcoossee Road STE 107 , FL 32827

Hemisphere Restaurant Now Open at Hyatt Regency Orlando International Airport

A new defining dining experience offers unparalleled views and seasonal chef’s recommended culinary flights

, Fla.–(BUSINESS WIRE)–Following a successful $3 million re-design and soft opening, the newly re-imagined Hemisphere restaurant is open daily for breakfast and dinner, serving up neo-contemporary world cuisine alongside unmatched views from the ninth floor of Hyatt Regency Orlando International Airport. The recently re-designed 3,000 square-foot restaurant seats 164 guests and playfully combines the adventure of flight with international flavors.

“Hemisphere was created for travelers and locals in search of an unforgettable dining experience offering fascinating runway views, thoughtful service, and an elevated level of cuisine and cocktails,” said Bruce McDonald, general manager, Hyatt Regency Orlando International Airport. “We have embraced our unique location, with unrivaled, panoramic views of one of the most active international airports as the focal point of Hemisphere. Guests satisfy their inner curiosity with air and space travel among an upscale dining atmosphere.”

Hemisphere guests are transported into a world of travel-rich sights, sounds and tastes. The restaurant’s new design features floor-to-ceiling glass walls facing airport runways, inviting guests to gaze at planes etching through the starlit sky and rockets launching into space, McDonald continued.

Food & Beverage

Led by Executive Chef Jeffery Powell, Hemisphere’s culinary team has designed a menu that infuses robust international flavors and seasonal local ingredients. Dinner highlights include Chef Powell’s signature pork belly with slow pickled blueberries, candied jalapeños and savory sunchoke purée.

Additionally, guests will enjoy a seasonal Chef’s Recommended Flight, a menu of signature dishes that will change with every new season. Avocado toast, kalbi short rib sliders, grilled fennel and apple and pork tamales are available now as part of the featured Chef’s Recommended Flight on the restaurant’s new dinner menu.

“We designed the Hemisphere menu with dishes that are designed for sharing among friends and brought out to the table on a flow throughout the meal,” said Executive Chef Powell. “This way, diners can experience more dishes, rather than sticking to an individual starter and main course.”

The Hemisphere beverage menu complements the world kitchen concept with a carefully curated collection of wines and cocktails from each hemisphere, like the Very Long Layover featuring Lillet rosé, mineral water, lemon juice, grapefruit bitters, and lavender simple syrup. Wine cuvees are filled with 16 wine varietals from different regions around the globe. Wine Flights rotate daily and guests may simply select a direction to travel: Up North and Down South.

Restaurant guests enjoy an easy and grand sense of arrival to Hemisphere with direct access into the Orlando International Airport and the Hyatt Regency hotel valet, followed by a brief elevator ride to the ninth floor and entry into Hemisphere. Complimentary valet parking is available for all Hemisphere guests.

Hemisphere offers flexible seating to accommodate groups, as well as, small parties and single diners in its signature setting. Custom wine cuvees and lounge-style seating highlight the center of the restaurant and large custom aviation-inspired murals adorn the walls. The Upper Deck presents a unique setting for private dining and receptions with an eagle-eye view.

Paper Planes: A Local Art Installation

Following a local artist search, Damon Dewitt was hand-selected to craft the signature entryway art installation at the re-designed Hemisphere restaurant. Dewitt’s work, Paper Planes, is physically and metaphorically light and reflective evoking a nostalgic flight experience and embracing the sense of wonder and travel from the early years of commercial aviation. The art installation is showcased in the new entry of Hemisphere and follows the curvature of the signature spiral staircase to the Upper Deck. The handcrafted “paper” airplanes float on 15 rows of vertical, stainless steel wiring for a sleek yet simple display.

Hemisphere is open daily for breakfast from 5:30 a.m. until 11:00 a.m. (12:00 p.m. on weekends) and for dinner Monday – Saturday from 5:30 p.m. until 10:00 p.m. For more information and reservations, visit www.HemisphereRestaurant.com or call (407) 825-1234. Stay social on Instagram: @HemisphereRestaurant and Facebook: /Hemisphere Restaurant COM

 

About Hemisphere

With an active, upbeat environment, Hemisphere restaurant engages guests’ senses with seasonal menus featuring hand-crafted dishes that infuse local ingredients with modern world flavors. The restaurant is open for breakfast daily and dinner Monday – Saturday, with private event space available daily. It is located on the ninth floor of the Hyatt Regency Orlando International Airport with convenient access to downtown Orlando, the Interstate 4 business and tourism corridor, as well as the neighboring community. For more information, visit www.HemisphereRestaurant.com.

Sanford Burnham’s shortfall

dry cleaners, day cares, and real estate offices are among businesses that would have benefited from a $4.8 million economic boost if Sanford Burnham had met job goals, according to a new analysis.

Lured to Orlando a decade ago with more than $350 million in incentives, the California-based medical-research institute fell short of its goal to create 303 relatively high-paying jobs. The institute’s shortfall of 64 relatively high-paying jobs takes a multi-million-dollar toll on the local economy annually, according to regional economic analysis by economist Sean Snaith, of the University of Central Florida.

Much of that is money that would have flowed through businesses in the burgeoning area.

“The impact here is on the household sector,” said Snaith, who sees incentives as worthwhile in some cases. “The employees who weren’t hired don’t spend on consumer goods, retail, restaurants, day care, doctors, transportation and mortgages.”

The state has demanded $77 million — half of its $150 million contribution to the incentives package — back from Sanford Burnham. But institute officials have said they owe nothing because their agreement only required attempting to create 303 jobs.

Orlando businesses aren’t alone in missing out on new customers, orders and commerce lost when incentivized companies fail to deliver on promised jobs. Eight research companies won $444 million in state innovation incentives from 2006-2008 — three times more than incentives awarded to 440 companies with Florida operations. The eight heavyweights of incentives are in Palm Beach, St. Lucie, Miami-Dade, Pinellas and Hillsborough counties. Only one met or exceeded job goals, according to data from the state Department of Economic Opportunity.

“They all fail and it’s at a cost to the taxpayers,” said new House Speaker Richard Corcoran, who has vowed his chamber will fund no incentives. “It’s the taxpayers’ money and it could easily be going to something that would have a terrific effect on our state, such as world-class education.”

State officials say Gov. Rick Scott has reformed the incentive process by requiring companies to meet job goals and other measures before they get any payments.

Even without Sanford Burnham hitting full stride, Lake Nona is among Orlando’s fastest-selling developments. Where cow pastures had been just a decade ago, Lake Nona now claims a VA Hospital, the University of Central Florida Medical Center, the University of Florida Research Center and Nemours Children’s Hospital. Most had been discussed for various Central Florida locations before Sanford Burnham located in Lake Nona.

In the corner offices of a stone-trimmed shopping center near the entrance to Lake Nona, Keller Williams broker Allyn Maycumber speaks with a walk-in customer about Lake Nona’s vibrance and strong schools. But the broker is so busy he cuts the conversation short to leave for a client meeting.

Maycumber said the unfilled jobs at Sanford Burnham are still important because Lake Nona home prices, combined with Orlando taxes, community development fees and homeowner association fees put purchases out of reach for many buyers. Higher-paying jobs from Sanford Burnham would have brought in more buyers who could afford to purchase there, she added.

“I think it’s important to have that anchor [Sanford Burnham] because the houses are so expensive,” said Maycumber. “Prices are steadily going up to where it’s almost out-priced the first-time buyers. You have young people who have been priced out of the market here.”

In June, Sanford Burnham reported that salaries for its Orlando operations averaged about $64,000. Even though that surpassed Metro Orlando’s most recent median of salary of $51,077, the institute’s average paycheck is still not enough to afford a typical house in the Lake Nona postal zone, mortgage calculators show. Average October sale prices there averaged $375,000, far exceeding the Orange County average of $264,000 for that month, according to the Orlando Regional Realtor Association.

Housing would have been one of the biggest local beneficiaries if Sanford Burnham had succeeded with its jobs mission, said Owen Beitsch, senior director of economic and real estate advisory services for Community Solutions Group. But many types of also would have benefited, he said.

“When money has been misallocated, it leads to benefits not realized,” said Beitsch, who also teaches economics at UCF. The “opportunity cost” of jobs not realized “begs the question of how closely we make these evaluations initially, he said.

Situated on a Lake Nona street named for Nobel Laureate Frederick Sanger, Sanford Burnham is credited with forming the Translational Research Institute with Florida Hospital. It also helped cultivate a spin-off company, micro-gRx, which develops a “lab on a chip” for scientists to study live human cells in space.

In response to the state’s demands, the institute’s attorney wrote last week that Sanford Burnham had worked “very, very hard over the years” to live up to its agreement with Florida. And even though the institute worked for months to transfer its Orlando operations to the University of Florida, the letter stated it does not intend to cease operations in Florida in the coming months.

Snaith used modeling used by other universities and government agencies, with Sanford Burnham salaries and job numbers. He said incentives sometimes get compared to the parable of a farmer scattering seed and only some of it germinating while the rest goes to waste.

“I don’t think this is a seed that got trampled,” he said. “I just don’t think it bore as much harvest as expected.’

 

Trump’s Presidency Impact the Commercial Real Estate Industry?

The commercial real estate industry has long been a major force in local and national politics, but that relationship has reached a new height on Tuesday, when a commercial real estate developer with little track record in public service won the election to be the 45th President of the United States. Aside from the choice of his economic advisors, that created him? Here are some predictions.

Kissimmee development

Kissimmee development

A Risk of Recession Has Just Gone Up

This may not be a phenomenon exclusive to Donald Trump, but data collected over the past 70-plus years shows that whenever a new president enters the Oval Office, a recession tends to follow within the first year of his administration, according to Victor Calanog, chief economist and senior vice president of research with New York City-based research firm Reis Inc. This is often due to the eagerness to implement fiscal policy changes in a hurried fashion, using “rather blunt instruments.” Given that the U.S. economic growth is currently far from robust and that Trump ran on promises of a number of economic changes—renegotiated trade deals, lower taxes and the like—the new administration will have to be extremely careful to avoid inadvertently bringing on a recession. “If the economic environment is fragile, which it is today, it may not take much to push our economy into a downturn,” Calanog said during a third quarter briefing on the state of the market. “President Trump has his work cut out from him.”

The Chances of a Fed Rate Hike in December Have Gone DownNona parking garage 2

While a strong jobs market and generally positive economic indicators made it likely that the Federal Reserve would raise its key interest rate in December, the election’s unexpected results may postpone the decision to hike rates, notes John Kevill, principal and managing director of U.S. capital markets with real estate services firm Avison Young. While previously the chance of a December increase was estimated at 85 percent, “consensus by traders already… is down to 25 percent,” Kevill writes. The interest rate will “probably move upward only one out of the next three meetings as opposed to all three…”

Short-Term Volatility in the CMBS Markets

As was made clear earlier this year, the CMBS markets don’t respond well to any perception of uncertainty in the general economy. At this point, it’s anyone’s guess what Trump’s economic policies may look like, says Greg MacKinnon, director of research with the Pension Real Estate Association (PREA). And that means more volatility is likely to be expected. “It’s really going to take a while to see how things will actually unfold,” MacKinnon notes. “In the short term, of course, that leads to uncertainty in the capital markets and I would not be surprised to see periods of volatility over the next couple of months as people come to grips with the election results. In the short term, capital market volatility could lead to a drop off in CMBS issuance from what it otherwise would have been through the end of the year.”

A Likely Pullback on New Construction

If the capital markets do experience a shock to the system, the difficulty of obtaining construction financing coupled with a muddy economic outlook may push some developers to abandon plans for new projects, MacKinnon adds.

A New Foreign Money Rush

While some investors may take a wait-and-see approach to betting their money on U.S. commercial real estate assets in the short term given the uncertainty surrounding U.S. economic policy under the new President Elect, “capital formation globally continues to grow and increase allocations to real estate,” according to Byron Carlock, real estate practice leader with consulting firm PwC, who is currently in London for an investment conference. Overall, “we will continue to be viewed as a safe haven and a popular investment destination,” he says. In fact, some foreign investors may expedite deals stateside in the coming months to protect against the possibility of potential barriers to foreign investment in the future, given all the anti-globalization talk during Trump’s campaign, noted MacKinnon. The long-term impact on global capital flows into U.S. real estate won’t be apparent until next year, however, according to Raymond G. Torto, lecturer with the Harvard Graduate School of Design and retired chief economist with real estate services firm CBRE. Post-Brexit “everybody is cautions, moving slowly and not in a knee-jerk manner,” he writes. “Most 2016 strategies are being implemented now. The election will affect 2017 strategies.”

Cap Rates Might Start Rising

If Trump does start to enact some of the anti-trade policies that he has talked about during the campaign, that would likely lead to higher inflation and, by extension, to higher cap rates on commercial properties, notes MacKinnon. The higher inflation will “likely lead to a steepening of the yield curve as long-term rates incorporate higher inflation expectations. Further, expectations of higher budget deficits going forward will tend to increase real long-term U.S. bond yields. Combined, you would then see a further steepening of the yield curve, which could drive cap rates higher—without a concomitant increase in economic activity this could be a major negative for property values,” he says.

Primary Markets Might Come Back in Favor before Cap Rates Might Start Rising

Over the past year or two, real estate investors, including those from overseas, have shown a bigger appetite for risk by entering secondary and tertiary markets. Depending on whether the new administration will soften its stance on trade policies, immigration and other global issues once in office, there might be a pullback from those markets back to first tier, coastal cities like New York, according to Sam Chandan, Larry and Klara Silverstein chair in real estate and associate dean of the Shack Institute of Real Estate at New York University. If the anti-globalization stance doesn’t soften, it will result in much greater risk aversion on the part of investors and a subsequent desire to stay in markets perceived as safe and highly liquid, he notes.

Uncertainty Will be Certain

Ultimately, the immediate impact of Trump’s presidency on the market is uncertainty—about his policy decisions, about his impact on the economy and about how he might influence the Federal Reserve, industry sources say. There is not enough information currently available to drive changes in investment strategy, according to Torto. “The Trump victory was unexpected and will lead to two immediate reactions among financial securities. One, portfolios will be adjusted to meet reality today—Trump’s win,” he writes. “And two, the Trump presidency has a high level of uncertainty as policies under Trump are an unknown. These factors do not impact commercial real estate, but do impact economic growth therefore commercial real estate indirectly. At the moment, we do not know if the impact will be big or small. And whether it will be… worth watching.”

According to Chandan, “I think the markets understand that during the lead-up to the election the rhetoric and the policy proposals tend to be more extreme, but the Presidents Elect historically have historically moderated their position once they are not having to mobilize their base. Part of the challenge for us is the finer points of [Trump’s] policies are not entirely clear. Overall, I think investors will be looking for a shift in language to see if some of the policy proposals that were viewed as more extreme are softened in a way that would be supportive of trade and continued capital flows.”