Holliday Fenoglio Fowler, L.P. (HFF) announces more than $100 million in financing for the development of a mixed-use student housing high-rise project in Downtown Orlando at the UCF/Valencia Campus at Creative Village.
The HFF team worked on behalf of the co-developers, DEVEN – Development Ventures Group, Inc. (formerly known as KUD International LLC) and Ustler Development, Inc., to arrange the capital stack, which consisted of a $68.1 million construction loan from PCCP, LLC, $29.9 million in joint venture equity from Halstatt Real Estate Partners and $5.3 million in sponsor equity contributed by the co-developers. The land was acquired in a separate transaction, which closed on October 25, 2017.
The 15-story project will consist of approximately 600 student housing beds, 11,000 square feet of ground-floor commercial space, 600 parking spaces and 102,500 square feet of space leased long-term to the University of Central Florida (UCF) and Valencia College (Valencia) for education and education support services. Valencia’s education space will include its hospitality and culinary arts programs. Completion of the project is scheduled for August 2019 and will coincide with the opening of the UCF/Valencia Downtown Campus at Creative Village, which will initially serve 8,000 students, faculty and staff. The project is located at the northwest corner of Livingston Street and Terry Avenue, with future phases to include roughly 600 to 900 additional beds on the adjacent land parcel to the west.
The HFF team included senior managing director Michael Weinberg, managing director Brian Kelly and director Mike Higgins.
“We are extremely excited to be working with DEVEN, Halstatt and PCCP on this project, which will be a cornerstone of the UCF/Valencia Downtown Campus at Creative Village,” said Craig Ustler, President of Ustler Development, Inc. “The Student Housing Project will anchor the key intersection of Livingston Street and Terry Avenue, and represents the emerging trend of urban, mixed-use, integrated campus buildings.”
“PCCP is pleased to be financing leading developers DEVEN and Ustler Development on this landmark project,” said PCCP, LLC managing director John Randall. “We believe Creative Village has the possibility of transforming how people view Downtown Orlando, especially as a center for world-class education.”
HFF has arranged financing for several deals from July 2012 to the end of June 2017 representing approximately two million square feet in the Downtown Orlando market for a variety of properties, including the GAI Building, Grand Bohemian Hotel Orlando, Paramount on Lake Eola and NORA Apartments.
About DEVEN – Development Ventures Group, Inc.
DEVEN – Development Ventures Group, Inc. (formerly known as KUD International LLC) provides broad-based project development services to its clients and partners, coordinating the financing, planning, design and construction of large-scale real estate projects. DEVEN focuses on project types that pose unique challenges due to their size, complexity and specialized uses.
DEVEN is a wholly owned subsidiary of the Kajima Corporation, one of the oldest and largest construction-related services companies in the world, with offices in over 20 countries and annual volume exceeding $14 billion. Kajima has been in the United States for over 50 years, with its real estate, construction, architecture and engineering subsidiaries having specialties in virtually all segments of built real estate.kudllc.com
About Ustler Development, Inc.
Ustler Development, Inc. focuses on Downtown Orlando and has completed projects, including residential condos, multifamily, office, retail and hospitality. Craig Ustler, MAI, CCIM is the Owner and President of Ustler Development, Inc. Ustler also leads the master development team for Creative Village. Ustler is an experienced and seasoned owner, investor, developer and broker of various property types. For the past several years, Ustler has focused on urban infill projects as advocated by the “new urbanism” planning movement. In particular, recent projects have been concentrated in Downtown Orlando neighborhoods, including the Central Business District, North Quarter, Thornton Park, Creative Village and Florida Hospital Health Village. Ustler has developed numerous projects collectively valued at over $200 million.www.ustler.net
About Creative Village
Creative Village is a public/private partnership between the City of Orlando and the Master Developer, Creative Village Development, LLC (CVD), which is a joint venture between Banc of America Community Development Corporation (BACDC) and a local team led by Ustler Development, Inc. Creative Village builds on the success of Orlando's digital media industry by transforming the former site of the Amway Arena in Downtown Orlando into a 68-acre mixed-use, transit-oriented, urban infill neighborhood that will be home to UCF Downtown; high-tech, digital media and creative companies; and a diverse mix of students, employees and residents. Creative Village fosters a “live, work, learn and play” lifestyle in the heart of Downtown Orlando while bringing exciting opportunities to the Parramore area. When complete, this high-quality, sustainable neighborhood development will represent a diverse and dynamic mix of uses, including up to 1.2 million square feet of office/creative space, 750,000 square feet of higher education space, 1,500 residential units, 1,500 student housing beds, 150,000 square feet of retail/commercial space and 225 hotel rooms. At build-out, Creative Village encompasses over $1 billion in new development. www.creativevillageorlando.com
About Halstatt Real Estate Partners
Halstatt Real Estate Partners, a real estate investment company, has purchased over $400 million in Florida-based assets since 2011. Founded by the Sproul family, based in Naples, Florida, and a proud part of the Barron Gift Collier legacy in Southwest Florida, Halstatt Real Estate Partners invests in commercial and residential real estate projects throughout the State of Florida. Halstatt partners with local and regional developers to maximize the value of real assets while serving as a good environmental steward for its holdings. www.halstatt.com
About PCCP, LLC
PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has over $6.5 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. Since its inception in 1998, PCCP has successfully raised, invested and managed over $12 billion of institutional capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP atwww.pccpllc.com.
About HFF
HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visithfflp.com or follow HFF on Twitter @HFF.
