Archon's newly-completed $22 million, 472-unit multifamily project, the Greens at Eaglewood Apartments, is 53% rented almost days after being completed by Essex. The older side of the complex, the Greens, has 92% of its 424 units occupied. The complex is at John Young Parkway and Oakridge Road in south Orlando.
"Central Florida has slowed down only slightly in new construction," Essex CEO Edward A. Storey tells GlobeSt.com. "The market is strong and steady for 2001."
As an example, Essex plans to break ground on two first-quarter apartment projects totaling 622 units at an estimated construction cost of $34 million, or about $54,662 per unit. On the construction board for the second and third quarters are two additional multifamily jobs totaling 650 units and valued at $35 million or about $53,846 per unit. Essex also has time share construction assignments on the work sheet as well.
"Construction costs appear to have stabilized and lumber prices are 15% to 20% lower than 18 months ago," Storey says. That alone is a major factor in determining if a new project will go forward or stay on the back burner for awhile, local construction estimators tell GlobeSt.com.
Archon's Greens at Eaglewood was built for $46,610 per unit. The project is cost-effective with a monthly rent schedule asking $620 for a one-bedroom, 700-sf unit; $799 for two-bedrooms of 1,100 sf; and $980 for a three-bedroom, 1,206-sf unit.
The 10-year-old side of the total 896-unit complex, the Greens, gets $620 for a one-bedroom, 700-sf apartment; and $720 for a two-bedroom, 980-sf unit. Essex previously completed a $2-million renovation at the Greens.
Essex, a 10-year-old firm, is coming off a solid 2000, which saw six major multifamily projects totaling 2,050 units completed in Orlando and Tampa at an aggregate cost of $107.6 million or about $18 million per project ($52,487 per unit). "Our main concentration was on completing the large volume that we had started in 1999," Storey says.
Archon is a diversified international real estate service and advisory company with activities ranging from project development of raw land to rehabilitation of urban properties.
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