In one of the most anticipated and consequential deals of the year, South Florida-based Accesso paid over $70 million for the site of its future mixed-use entertainment district, Ovation Orlando.
Together with its joint venture partner, Meyers Group, Accesso acquired 76 acres at the northeast corner of Interstate 4 and U.S. 192, the former Orlando Sun property. The deal closed on Dec. 30. Bill Shewalter, Executive Vice President of Development, said Accesso will begin demolishing the old hotel buildings on the property in two weeks.
“This land acquisition is a pivotal milestone in bringing the Ovation project to life, and we look forward to fully realizing our vision for this transformative mixed-use district,” stated Alan Garzon, Managing Partner of Accesso Development.
The district will be divided into five zones, starting with The Celebration, which will feature adult and family-friendly retail, dining and entertainment. (Courtesy of Accesso)
The developers have had the property under contract for over three years and are now ready to move the Ovation project forward with a mix of upscale and new-to-market brands. Accesso will be eligible for up to $6.5 million in reimbursements for the demolition costs as part of an incentive package approved by Osceola County commissioners in March.
“I feel very relieved, but I also want to say that I was always very confident that this team would be able to pull this project together,” Shewalter told GrowthSpotter. “The confidence was due to the location, a mile east of Disney across from Celebration on Interstate 4 at a full interchange in the most dynamic tourist market in the country, and on the theme park corridor, which is arguably the most successful retail quarter of highway in America.”
Hotel pads are currently being offered for sale within Ovation. The district will have three hotels with a combined total of 740 rooms. (Courtesy of Accesso)
Garzon said their goal is to develop the entire district in a single phase, but those plans could change. “We also like the flexibility of being able to do it in multiple phases, but our preference is to do it in one phase,” he said.
Upon completion, Ovation Orlando will offer 670,000 square feet of experiential retail, elevated dining, including musical themed restaurants, lifestyle amenities, culture, entertainment, 740 hotel rooms and condos, and other attractions, creating a year-round magnet for both visitors and residents. Hotel pads are currently being offered for sale within Ovation.
Retail offerings will include upscale brands, new concepts as well as unique corporate flag attractions. Entertainment options will encompass live music, comedy, bowling and other themed attractions, in addition to nationally recognized dining and nightlife establishments. (Courtesy of Accesso)
Ovation Orlando is divided into five adjacent zones:
Zone One – The Celebration will offer inviting and walkable space with adult and family-friendly retail, dining and entertainment featuring green spaces, pop-up vendors, and a relaxed seating environment;
Zone Two – The Water’s Edge will include world-class dining along the shoreline at our three-acre lake;
Zone Three – The Indulgence is designed to be a sophisticated hub and will include a signature hotel;
Zone Four – The Street will offer unique retail, restaurants and entertainment with a design reminiscent of Times Square, and;
Zone Five – The Beat will bring the project to life with its diverse and lively music and late-night themed clubs, music venues and restaurants offered with an edge that will make Ovation Orlando unique to Florida.
“The combination of all of the positive attributes of this location, in this market, with this mix of design and merchandise, has generated terrific leasing momentum with much of the available spaces committed,” said Warren Dauber, Vice President of Leasing.
Once complete, the property will include three hotel, including a 4-star, full-service hotel with 350 rooms. The other two hotels would be select service, three-star hotels with 150 and 175 rooms. Retail offerings will include upscale brands, new concepts as well as unique corporate flag attractions. Entertainment options will encompass live music, comedy, bowling and other themed attractions, in addition to nationally recognized dining and nightlife establishments.
Red Huber/Orlando Sentinel
The former Orlando Sun at W192 and Interstate 4 has been sold for $70 million to become the Ovation Orlando entertainment district. (Orlando Sentinel file photo)
Owned by Fortuna Realty in New York, the one-time Hyatt resort has long been considered one of the biggest eyesores on Kissimmee’s W192 tourism corridor, and it has been a priority for the county to see it developed to its full potential.
Osceola Commissioners approved a 20-year joint marketing program, which would reimburse the developer for up to $10 million of Tourist Development Tax revenue over the course of the agreement. The development agreement also includes more than $15 million in mobility and fire impact fee credits.
“Tourism is a cornerstone of our economy, and Project Ovation builds on that strength while delivering real benefits for our residents, from creating hundreds of jobs to providing significant direct investment in our community,” said Commissioner Brandon Arrington, Chairman of the Osceola Board of County Commissioners. “By attracting destination-style amenities to the heart of Central Florida’s tourism corridor, we’re working to deliver on our Board’s vision to bring new opportunities for world-class leisure, dining, and entertainment activities without having to leave Osceola County.”
The Orlando market is the number one tourist destination in the U.S., welcoming 75 million visitors in 2024 – more than New York City, Las Vegas and every other U.S. tourist destination. The Orlando MSA has been the second-fastest-growing U.S. metro area by population percentage over the past decade and has the largest concentration of hotel plus time share units in the country.
The development agreement also resolved over $1 million in outstanding code enforcement fines, reducing them by 90%.
“The money to clear the lien was transferred yesterday,” Shewalter said. “So that was part of the long process of closing a project of this magnitude …there was an arrangement made (with the county), so there was an adjustment and a resolution.”
County Manager Don Fisher learned about the closing on New Year’s Eve. “We did have some communications that they were getting close to closing, but we did not have a date,” he said. “So it’s good news to hear that this has actually happened. I just drove out there yesterday, and it’s really a complete eyesore at such a prominent location. And to get that cleaned up with a really outstanding development for the site, is really good news for the county and the corridor.”
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