Developers have closed construction loans totaling $119 million for two new market-rate apartment communities on Kissimmee’s Lake Tohopekaliga and just north of Orlando International Airport, while an affordable housing complex also landed nearly $30 million.
Coming on the heels of a recent $70 million construction loan for new apartments in Horizon West, the deals further signal a recovery in Orlando’s multifamily market after construction starts dropped to a five-year low in 2025.
JBL Development, owner and developer of the Gateway Orlando commercial center on Semoran Boulevard, broke ground last week on a massive new apartment community after landing $62.5 million in HUD financing from Highland Commercial Mortgage.
“It’s phase one of a master-planned community that will eventually bring close to a thousand apartments to Central Orlando, and we’re very excited about it,” Managing Partner Michael Rem told GrowthSpotter.
JBL previously partnered with ContraVest to build the Addison Gateway apartments, which opened in 2022. This time, the company is taking the development lead on the new project across the street on Shadowridge Drive. Capstone Building Corp. is the general contractor and broke ground last week on the first phase of the 958-home community.
“There are four total residential buildings with two freestanding clubhouse buildings in the master plan,” Rem said. “So this first phase is the first residential building, 270 apartments. It’s a five-story project. And it’s wrapped around a structured parking garage as well.”
Rem said JBL will utilize cold-formed metal framing rather than wood. “Construction quality is really important for us, which is why we went with that upgrade.”
Phase 1 of The Gateway will also have the first of two planned amenity centers for the community, with a 13,000-square-foot clubhouse, a heated, salt-water pool with cabanas, a fitness center, co-working space, pickleball courts, a dog park, pet spa and nature trails. Baker Barrios served as project planner, architect and landscape architect for the project.
“So we built it as a retreat. It’s landscaped. It’s amenity-rich, and we priced the experience to be within reach,” Rem said. “It is a market-rate community, but the whole idea behind it is delivering genuine luxury at a more attainable price.”
The other two multifamily projects are located in the City of Kissimmee. Hedrick Brothers Development secured $56.5 million in construction financing from Principal Life Insurance for The Hedrick at Lake Toho, a new 366-unit Class A multifamily community planned along Toho Grande Boulevard just south of downtown Kissimmee.
With financing in place, the project received a notice to commence on June 22 and is now moving into site development and vertical construction. Hedrick Brothers is vertically integrated and acts as its own GC.
Cormia Design Group designed the community, which features one-, two- and three-bedroom apartments along with amenities including a resort-style pool, coworking spaces, pickleball courts, a yoga lawn, dog park, EV charging, private garages and access to Lake Tohopekaliga and the surrounding trail systems. Initial leasing is anticipated by the end of 2027, with completion expected by the end of 2028.
The site plan from Kimley Horn reserves about 9 acres fronting John Young Parkway for future development. Hedrick Brothers broke ground a year ago on the 363-unit Hedrick at Baldwin East in Orlando, which is set to have its topping-out ceremony in 2 weeks. The company is also co-developer of Edon Park, a 22-acre mixed-use destination on the site of the former K-mart store in Kissimmee.
Also in Kissimmee, NRP Group secured financing for Alora Lofts (fka Amberwood Lofts), its first affordable housing community in the Orlando Market. The 88-unit community will rise at 1300 Windsor Dr. and will be restricted to residents earning between 30% and 70% of the area median income.
FK Architecture designed the 4-story, all-concrete building that will serve as a prototype for NRP Affordable’s future projects. VP of Development Bill Zunamon said they opted for concrete construction to maximize the property’s value and hurricane resilience.
“One of the main differences is that these are long-term holds for us,” Zunamon said, adding that NRP Affordable has two more all-concrete projects in underwriting on Florida’s Gulf Coast.
The development plan calls for 16 one-bedroom units, 52 two-bedroom units, and 20 three-bedroom units. The community will have a pool and tot lot. There’s also an integrated clubhouse with a media room and a fitness center. It will utilize surface parking.
The capital stack consists of loans, tax-free bonds and 4% Low-Income Housing Tax Credits. Truist Bank is the equity lender and purchased the tax credits. Truist also provided a $20 million construction loan based on the tax-free bonds from Florida Housing Finance Corp. A Community Development Block Grant for counties impacted by Hurricane Ian provided $9.5 million in gap financing.
“We broke ground on Wednesday of last week, right after the closing,” Zunamon said. “The estimate for when construction will be complete is December of next year.”
Have a tip about Central Florida development? Contact me at lkinsler@GrowthSpotter.com or (407) 420-6261. Follow GrowthSpotter on Facebook and LinkedIn.
