The way Craig Ustler sees it, if you were to look at a map of Orlando and identify its best untapped locations, the industrial corridor in SoDo would reveal itself as primed for redevelopment.

Specifically, it could be the next place to see the kind of infill redevelopment the city already has experienced in areas such as Creative Village and the Packing District.

"You drop the pin on the map, and it's a really good location," Ustler told Orlando Business Journal. "It's right next to a hospital [Orlando Health's Orlando Regional Medical Center], and there's an ability to add thousands and thousands of housing units. There's a SunRail station, an [Interstate 4] exit and a lot of retail that already exists on Orange Avenue."

Ustler's bullishness on the area isn't just talk, either. As OBJ previously reported, his Ustler Development Inc. is involved in the mixed-use project that would bring 856 apartments and 10,000 square feet of retail space to a 5.6-acre industrial site at the northeast corner of West Kaley Street and South Division Avenue. The project is being co-developed with Orlando-based CentreCorp Inc. and Orlando-based Atrium Management Co.

(Ustler will be honored at CFCAR's upcoming 2023 Hallmark Awards Event as the Recipient of the Wilbur Strickland Lifetime Achievement Award.)

The development team isn't unique in reassessing the potential of the industrial corridor along South Division Avenue, either, said Misty Heath, the executive director for the SoDo Main Street District. Not only that, but the involvement of Ustler — who also is the master developer for the $1.5 billion Creative Village mixed-use project and has been nicknamed "Mr. Downtown" for his success in areas around Orlando's urban core — lends credibility to the speculation about the area's potential.

"I do perceive that people are looking at the area with a different lens," Heath said. "Some out-of-town developers are looking to more intentionally develop that space. Over the next 10 years or so, we're going to see a greater shift — I wouldn't be surprised, long term, if we see that area have a more walkable, neighborhood feel."

Heath told OBJ there are industrial property owners within the corridor who actively are considering whether or not now is time to get top dollar for their land, sell to a developer and relocate. Others, she added, are mainstays and are not likely going anywhere.

As for the West Kaley project, it would rise on land currently home to Nassal Co., a scenic fabricator for themed environments. Ustler, who recently has talked about the challenging environment for lending for projects in the urban core, told OBJ the land contract between his development group and the property owner has been extended through the third quarter of this year and includes additional built-in extensions. He added that even once the transaction closes with Nassal Co., the plan is for the firm to lease back the property for a time. Ustler said the project likely will have a couple of years of predevelopment work before really ramping up in 2026 or 2027.

That timing is intentional, he added, as the development group is trying to nail down the schedule for what he deemed a "pioneering" project in an emerging district and does not want to be "too early."

That said, the redevelopment of an industrial corridor is an exciting prospect, he added, noting the successful redevelopment of large out-of-state industrial areas such as the west side of Atlanta and Brooklyn in New York City.

"There are industrial areas all over the country that are being sort of recycled. We're not scared of that part of it at all."

Far from it, he noted the potential for architectural design in the would-be district to lean into the area's industrial roots. Additionally, both Ustler and Heath noted the South Division Avenue corridor's relative lack of existing residential inventory helps create another plus for developers — that being a dearth of neighbors to push back against new projects.

Meanwhile, demand for multifamily housing in Orlando's urban core will continue to make projects like the West Kaley plans more attractive to developers.

Given the updated timeline Ustler laid out for the West Kaley project, it also may find itself ramping up during a time when Orlando could, once again, be experiencing challenges related to apartment supply and demand.

Source: OBJ

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