SunRail attracts $1.8B+ in transit-oriented projects
By Steven Ryzewski
Tampa Bay Business Journal
Published: Mar 28, 2022

People just keep coming to the Sunshine State and metro Orlando, with each newcomer bringing with them that much more incentive and benefit for creating dense development surrounding public transit stations.

Florida was the top state in the nation people moved to in 2021, showed data compiled by online moving resource Move.org; and 2.44 people moved to the Orlando area for every one person moving out, according to a report by moveBuddha.

More people means more cars — and that makes investment in public transportation systems all the more important. It also amplifies the potential of transit-oriented development, apartments, shops, restaurants and other projects built around those transportation systems' stations and stops. In January, for instance, when discussing the possibility of resurrecting a penny sales tax to create a dedicated transportation fund, Orange County Mayor Jerry Demings touted the potential for more transit-oriented development as one of the possible benefits.

Transit-oriented development has been a topic of discussion since before Central Florida's commuter train SunRail began service in 2014, but was slow to take root in some places. In the past two years, however, the stations in Poinciana, Sanford, near the Tupperware Brands Corp. (NYSE: TUP) headquarters in Kissimmee and south Orange County's Meadow Woods each have seen neighboring projects announced. Plus, Volusia County officials have said a mixed-use project near the future DeLand station is in the works.

To date, SunRail has attracted 72 total transit-oriented development projects with a construction value of more than $1.8 billion, including completed, under construction and future projects, according to research done by the Florida Department of Transportation. And with all that new construction activity comes new jobs, subcontractor opportunities and the potential for additional new development.

Developers' view

The role of the local commuter rail service has played varying degrees of importance in the genesis of transit-oriented projects for some developers.

Take, for example, Pedro Marrero, a managing principal with Engel & Völkers Orlando Downtown, whose projects include The Station — a $70 million-$80 million, 324-unit apartment complex across the street from the Poinciana SunRail station. Having the rail station nearby was an impetus for his firm's project, which expects to break ground in September Marrero said.

“SunRail was a driving factor. I definitely think there was a need [for multifamily in the area], regardless of SunRail, but SunRail was really what made it possible.”

However for David McDaniel, principal and founder of Lake Mary-based apartment builder Integra Land Co., proximity to the DeBary SunRail station was more of a perk for his firm to build Integra 289 Exchange, a $55 million

“I looked at it in reverse — the rail stop was a bonus or a benefit, but not the reason that we went to the location."

Regardless of the reason, the project resulted in good business for the firm: Integra 289 Exchange sold in October 2021 for $71.25 million, or roughly $246,540 per unit, to Virginia-based Autumn Lakes Associates LP, a subsidiary of Hercules Living/RST Development.

Meanwhile, Mauricio Bello’s Miami-based Waterstone Capital is working on a proposed 448-unit apartment complex adjacent the Tupperware SunRail station. Bello called being near the station a “competitive advantage” over other multifamily projects in the area, adding that the possibility of SunRail’s future connections to Miami-based intercity passenger train Brightline and Orlando International Airport also are game changers. “That’s huge.”

Driving economic development

SunRail's success thus far in driving transit-oriented development is significant for the cities and counties with stations, as a few of the stops have significant opportunities for even more via infill development around them.

An example is the Sanford station, in the northwest region of the city about 2 miles from the city's downtown. The 192-unitRiverview townhome development already is just north of the station, and Tampa-based DeBartolo Development LLC last August broke ground on The Henry, a 294-unit apartment complex nearby whose project cost is estimated at $55.9 million, based on industry standards. In addition, a roughly 45-acre, mixed-use development — called All Souls Transit Village in plans — is in the works.

The commuter rail's connectivity is a big deal for the city in several ways, including attracting development, said Sanford Economic Development Director Tom Tomerlin.

“It puts us in a pretty prestigious list of cities, that we have this fixed-rail transit — and that's a good story to tell from an economic development standpoint. Once you have one of these station stops … people do look at more dense development, and from a taxable value per acre, it makes good business sense for a city to try to maximize the density and intensity of development at the station stops.”

Mutually beneficial

Before the pandemic upended its ridership trend, SunRail officials pointed to upticks in ridership at stops with completed transit-oriented developments as proof of their potential.

Here's a look at annual ridership at each of these stations between 2018-2019:

Longwood Station (Weston Park at Longwood Station)

2018 55,280

2019 64,553

Maitland Station (The Parker at Maitland Station)

2018 38,338

2019 51,156

Lynx Central Station (Central Station on Orange)

2018 93,516

2019 153,046