Marcus & Millichap Hired as Consultant on $1B Kelly Park Project in Florida
- Feb 24, 2012
February 24, 2012
By Gail Kalinoski, Contributing Editor
Marcus & Millichap Real Estate Investment Services Inc. will be playing key roles as brokers and consultants on a $1 billion, 9.2 million square-foot development in Apopka, Fla, that is expected to include a regional mall, offices, a college campus, hospital, housing and a merchandise mart.
“The amount of development that would take place in the first five years could easily exceed $1 billion,” Paul Bouldin, senior associate in Marcus & Millichap’s Tampa offices, told Commercial Property Executive.
Bouldin, a 35-year veteran of the central Florida commercial real estate market, said Kelly Park Crossings took a major step forward this week when a $1.66 billion parkway that was crucial to the development was approved by the Orlando-Orange County Expressway Authority. The Wekiva Parkway extension will be the final part of a beltway around the metro Orlando area. The only interchange on the extension for about 14 miles will be the one planned for the Kelly Park Crossings development.
“This road creates a whole new corridor, a whole new economic dynamic for northwest Orange County,” Bouldin said, adding that it’s in an area where Orange, Seminole and Lake counties intersect.
One of Bouldin’s jobs will be to seek a joint venture partner and/or master developer to “take this to a new level and create a quality development,” he said. “My goal is to get two or three of the best of the best in front of the owners and talk about what makes sense to everybody and see if there’s a good fit to move forward.”
Jim Palmer, an attorney and one of the original investors, said the developers are moving ahead with Valencia College, a community college, to locate a campus at Kelly Park Crossings. Another big player at the site could be a group of Chinese businessmen that want to establish a $150 million, 4 million-square foot merchandise mart. Palmer said that proposal is tied to the expansion of the Panama Canal, which should be completed in about two years. The merchandise mart would serve as a distribution center for cargo coming through the canal that would be offloaded in Florida’s ports of Tampa, Miami and Jacksonville.
“Wholesalers from around the world will come in for exhibits and conferences to sell their products, which would be a huge boon to the regional and state economy,” Palmer added.
Bouldin said if the merchandise market is built there, the developers would likely move ahead with plans for a hotel and conference center before completing some other portions of the project, such as the approved 1,300 units of housing. On its web site, Marcus & Millichap has listed land for a 500-room hotel and conference center for $10 million in the complex. Other investment opportunities on the site are Palmer Industrial Landing containing about 241 acres for development of 3.67 million square feet of flex warehouse and distribution buildings for $147 million and Kelly Park Center, nearly 63 acres for development of a 13-building office park for about $54 million. Kelly Park Square at Kelly Park Crossings, the commercial and mixed-use component, is listed on the Marcus & Millichap site as an investment opportunity for about $129 million and would encompass approximately 124 acres.
Construction on the parkway is expected to begin in July and the section closest to the Kelly Park Road complex should be completed by late 2013 or early 2014. Development of portions of Kelly Park Crossings would be timed to coincide with the road opening, Bouldin said. When completed, the development is expected to provide more than 17,000 jobs.