June 4, 2017, #Orlando,#Florida — 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.
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 #Orlando 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.
Lake Nona’s owner has a project in the works that will bring a new residential option to the growing southeast Orlando community.
#Tavistock Development Co. LLC is planning a new 216-unit active adult community called The Gatherings at Lake Nona. The community would be built on 9.7 acres about one mile east of the VA Medical Center in Lake Nona off Laureate Boulevard.
The community also will include a pool, a 4,400-square-foot clubhouse, shuffleboard, standalone garages and a 218-space surface parking lot. Tavistock Development filed for an environmental resource permit on Aug. 1, and has submitted specific parcel master plan documents to the city of Orlando.
Beazer #Homes USA appears to be the builder of the project, according to documents. Donald W. McIntosh Associates Inc. is the project engineer/surveyor; Aecom Inc. is handling ecological sciences work; Broad and Cassel is the legal counsel; and GAI Consultants is handling landscape, irrigation and hardscape.
This project is poised to create new construction and vendor opportunities for local firms, and will bring a new residential market to Lake Nona that already boasts more than 11,000 residents in its single-family homes and multifamily complexes.
Developer Tavistock Development Co. LLC on March 9 is expected to go before the city of Orlando’s Southeast town design review committee with a specific parcel master plan for what’s being called Phase 2A — a significant piece of the $780 million, 3.8 million-square-foot open-air lifestyle and entertainment center planned for Lake Nona.
#Tavistock has submitted plans that include:
- 1.2 million square feet of mixed-use development, including a brewery, bowling alley and medical fitness facility
- About 200 hotel rooms
- 3,200 parking spaces, including surface spaces and garage spaces
The Lake Nona Town Center’s $70 million first phase included two office buildings — one completed and one now in the works— plus restaurants, a dual-branded Marriott hotel and structured parking, as previously reported by Orlando Business Journal.
The request to expand the second office building to six stories also is on the March 9 review committee agenda, as OBJ previously reported .
Meanwhile, the Lake Nona Town Center is a long-awaited project meant to serve local residents, students and workers in the 11,000-acre southeast Orlando community, but likely also will attract some tourists, as previously reported by OBJ.
#Orlando 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 #Lake Nona 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 #business 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.’
Lake Nona planning a three-story, high-end driving range and restaurant complex in the southeast Orlando neighborhood.
Floor diagrams show about 90 golfing bays as well.
The 15-acre project is dubbed “Drive Shack” in documents. The facility would have about 450 parking spaces.
Drive Shack is the same name of a golf-range brand being developed by equipment maker TaylorMade and real estate firm Newcastle Investments Corp. TaylorMade owner Adidas said in May it intends to sell TaylorMade as well as clubmaker Adams and apparel maker Ashworth, amid falling sales that saw competitor Nike announce in August it will stop making golf clubs.
A spokeswoman for Tavistock said she could not comment on the project, and Newcastle did not return a request for comment.
Tavistock also said that Drive Shack would have some interactive golf elements with its driving range, but did not give specifics.
At Drive Shack, the three-story building would have outdoor golfing bays that overlook the range. The first floor calls for a kitchen and lounge as well as a pro shop retail area.
The second floor plans call for a restaurant, lobby and event space as well as an additional retail area. The third floor is mostly golfing bays and a rooftop terrace.
Drive Shack would be one of two high-end golf driving ranges heading to Orlando, along with the Topgolf project in Orlando tourist district.
Topgolf is another three-story driving range project, which uses interactive game elements along with the traditional driving range format. That project is now under construction at Convention Way and Universal Boulevard and is expected to finished sometime in 2017.
Sports bars in Orlando that have interactive golfing simulators, in which customers can hit balls into a screen displaying golf courses, include Caddyshanks and Dewey’s. Those simulators also have training elements.
Steps are being taken to build a new office building in Lake Nona’s growing Town Center.
Building No. 2. include four-story, 100,000-square-foot
Tavistock Development Co. LLC’s entity, Lake Nona Land Co. LLC, on Aug. 22 applied for an environmental resource permit that could allow site work to begin on a 11.3-acre project dubbed “Lake Nona South Town Center Phase 1, Office Building No. 2.” Plans include a four-story, 100,000-square-foot Class A office building.
The planned facility will be similar in size to the Town Center’s first Class A office building that houses Tavistock’s headquarters, Regus, Nemours Children’s Hospital administrative offices and Nurse on Call near Medical City. An existing parking garage will stand between the new office building and the current one.
The project will create new construction, vendor, leasing and job opportunities for local firms. However, it’s just a small portion of what’s in the works at the Lake Nona Town Center that’s slated to become a 3.8 million-square-foot lifestyle and entertainment center with restaurants, shops, hotels and more. A new restaurant called Chroma Modern Bar + Kitchen will open there next month. See here for more on the Lake Nona Town Center plans.
The Lake Nona and Orlando International Airport area in second-quarter 2016 had more than 1 million square feet of office space with a 14.2 percent vacancy rate and a $27.49 average asking rent rate per square foot, according to a Cushman & Wakefield report.
Looks like more development is on its way to #Lake Nona to further grow a neighborhood and new sports district.
The city of Orlando on July 11 approved development plans in the southeast Orlando community for new #homes, offices, showrooms, private athletic fields, mixed-use buildings, fitness centers and more. Lake Nona’s developer, #Tavistock Development Co. LLC, now can move forward with its plans that’ll create new construction opportunities, further develop a high-end neighborhood and develop land near the future U.S. Tennis Association’s 63-acre, $100 million campus that’s opening by year-end.
Here’s what’s coming:
- #Laureate Park Phase 7: Tavistock plans to expand its Laureate Park neighborhood by 54.8 acres that are between Tavistock Lakes Boulevard and Nemours Parkway. The property has 207 lots and will be used for more single-family homes and townhomes.
- Laureate Park Neighborhood Center Phase 1: Tavistock will develop a 6,300-square-foot, mixed-use building; a 2,300-square-foot, multi-purpose building; a 3,000-square-foot fitness center; two swimming pools and neighborhood green space on 10.77 acres north of Tavistock Lakes Boulevard and east of Sachs Avenue. Later phases of the Laureate Park Neighborhood Center call for 141 housing units, including townhomes, condos, single-family waterfront homes and boutique apartments.
- Sports Village at Lake Nona: Tavistock will develop 31.1 acres west of Performance Drive and south of the USTA facility where it plans to build up its 300-acre Sports & Performance District. An 18,877-square-foot office building, two 50,000-square-foot buildings with office and showroom space, six athletic fields with a 23,750-square-foot building for ancillary uses, and 700 parking spaces are planned for the property.
Tavistock announced last April it planned to develop a 50,000-square-foot office building in its sports hub. #Orlando City Soccer also announced earlier this year it’s opening a new 23-acre training facility next to the USTA campus in 2017. It appears the new development plans line up with these prior announcements, but it is not confirmed if they are related.
Meanwhile, Tavistock also recently filed plans in preparation for a new hotel or resort in Lake Nona. Tavistock seeks to combine three parcels between Lake Nona Boulevard and the Lake Nona waterway into a single designation to streamline development plans for a future hotel or resort, sources previously told Orlando Business Journal. It’s not clear if these plans are related to the sports district, but Tavistock leaders previously said a #luxury resort and spa is needed near the sports district to accommodate traveling athletes and their families.