He bases his optimism largely on the proximity of Universal Orlando's theme parks and a growing affluent urban center along the Hiawassee Road corridor, five miles from Downtown.
"We're confident the population and the employment mass will be there to sustain both projects," Townsend tells GlobeSt.com. "With 5,000 daytime employees expected to be working on the corner of MetroWest Boulevard and Hiawassee Boulevard within 18 months; 12,000 new apartments coming on line; and 24,000 new residential units planned, we think our timing will be right for the projects."
The projects will offer a total 265,000 sf of class A office at projected rents of at least $20 per sf, boosting the total office space developed by Park Development at MetroWest to 465,000 sf. A consortium of private investors is funding the projects.
Townsend plans to break ground by April 1 on Esplanade Center of Park Place, a $50 million venture that will offer 165,000 sf of office, 25,000 sf of retail and 25,000 sf of restaurants.
By year end, the developer expects to start construction on MetroWest Place, a $100 million undertaking offering 100,000 sf of office; 250,000 sf of retail and restaurants; 250 condominium units; a 2,000-space parking garage; indoor skating rink and a three-screen movie theater. The Mediterranean-styled projects expect to generate tenants and retail customers from the growing population and businesses along Kirkman and Hiawassee Roads, the main arteries bordering the 20-year-old master-planned community.
Townsend anticipates closing by Feb. 1 with MetroWest on one of the two land deals that will house his projects. The six-acre Esplanade Center will be part of the existing 200,000-sf, five-building Park Place. A 27-acre tract will hold MetroWest Place. The total 33 acres are expected to sell for at least $100,000 per acre, making the deal worth an estimated $3.3 million.
Grubb & Ellis Co. third-quarter statistics show a 20.1% office vacancy in the 2.95 million-sf southwest/tourist corridor. Class A rents average $22.08 per sf; class B, $18.24 per sf. MetroWest, started in 1981, currently has 12,000 permanent residents, 6,800 apartment units and 1,250 single-family homes.
Under development are a 210,000-sf Wal-Mart supercenter; another 200,000 sf of retail; and Park Avenue, a 743-unit apartment community with 15,000 sf of specialty retail.
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