Unicorp lines up $40 million in financing in Celebration, FL
Centennial Bank is providing a $40 million loan for Unicorp National Developments Inc.’s 127,277-square-foot, $100 million-plus Celebration Pointe mixed-use development.
The project, which is in Celebration near Interstate 4 and World Drive, kicked off construction in August and is expected to wrap up in roughly 12 months as a single phase, Unicorp National Developments President Chuck Whittall told Orlando Business Journal.
The location has helped in drawing a mix of tenants and bringing momentum to leasing. “It’s hard to beat having that address, with World Drive, Celebration Avenue and Interstate 4 right there,” Whittall said.
Currently the project has roughly 15% to 20% of its space remaining for lease, with the largest tenants by space including a roughly 50,000-square-foot Publix supermarket and a roughly 10,000-square-foot Walgreens store. Tarpon Springs-based Hawkins Construction Inc. is the general contractor.
The mix of tenants and Unicorp’s past history of working with the bank helped seal the deal, Robby Barrows, a commercial loan officer with Centennial Bank’s Winter Park office, who was involved in the deal, told OBJ. The move comes as the bank has seen a mix of ongoing retail development and paused projects.
“There are some approved projects out there that are paused,” Barrows said. “I think any issues with the supply chain [for materials] will impact when projects come back online.”
An entity tied to Unicorp purchased a 5.09-acre parcel at the site for $4.37 million and another roughly 16.45-acre parcel for $13.63 million on October 24, 2019, according to the Osceola County Property Appraiser. Both were purchased from an entity tied to Burbank, California-based The Walt Disney Co. (NYSE: DIS).
Meanwhile, CoStar Group (Nasdaq: CSGP) found that retail vacancies in Celebration are at 2.3%, compared to 4.3% for Orlando as a whole. “Low vacancies in Celebration have been aided by a three-year lull in spec retail development,” Erin Amon-Surlis, a senior market analyst with CoStar, told OBJ.
Rents in Celebration average over $30 per square foot, which is 30% higher than the average across Orlando, per CoStar. Annual rent growth in Celebration is around 4%, in line with metro Orlando’s growth.