Developer plans to repay city loan early

» February 12,2005 - Orlando

Developer Cameron Kuhn says Premiere Trade Plaza, his redevelopment of a long-blighted block in downtown Orlando, is selling so fast he'll repay a city loan on the project years earlier than projected.

He also disclosed for the first time this week that a hotel may be included in his next big project in the city center, he redevelopment of a block just north of his plaza projec

Kuhn started work late last year on the plaza, in the block bounded by Orange Avenue on the west, Church Street on the south, Magnolia Avenue on the east and ~ %Setre et on the north. The development includes two condominium-office towers with 383,000 square feet of space; 105,000 square feet of detail space, including a 1Zscreen movie theater;and a 10-unit residential condominium tower.

Nearly 85 percent of the office space is already sold or under contract,Kuhn said.

That, he added, will enable him to pay back the city the $14 million he received to build the 1,600-space parking garage that's included in the project. He had 10 years from the project's completion in 2006 to repay the loan, which will total about $15 million with interest. He said it could now be paid off eight years early.

The city's other cash incentives included:

$3.5 million for tackling the deteriorating block's redevelopment, a sum Kuhn doesn't have to repay; $3.5 million - or $350,000 a year for 10 years - to be paid to the moviecomplex operator, AmStar Entertainment Inc. of Birmingham, Ala. The theater must remain in operation
for AmStar to continue collecting the subsidy. Unicorp National Development Inc. of Orlando is handling the retail
portion of the project. Wood Partners of Atlanta will do the residential tower.

Unicorp has put up a non-refundable, $4 million deposit, Kuhn said. Wood Partners has posted a $3.5 million deposit, also non-refundable.

Woqd Partners is getting ready to open a downtown sales office and already has a list of more than 2,000 people who have expressed an interest in the condominium units, Kuhn
said. The retail developer has submitted proposed tenants for most of the store space, he said, adding, "I have final approval on tenants."

Tom Cook, long-time consultant to Kuhn and president of Tom Cook Commercial Inc., said more than 70 percent of the office space has been sold to businesses, not investors who
would put the space into the downtown rental pool.

Cook said the block's redevelopment will bring many new workers into the heart of downtown Orlando.

Premierefx LLC alone is to transfer more than 300 employees from its current offices in Altamonte Springs, the broker said. The development is named after the company because it
bought 50,000 square feet of offices in one of the towers.

Meanwhile, Kuhn said he is moving quickly on plans to redevelop a second downtown block, this one bounded by Orange Avenue on the east, Washington Street on the south,
Jefferson Street on the north and a city parking lot on the west.

That project will be done in four phases, he said, and a hotel could be part,of the final phase.

"The hotel could go on top of the parking garage, along with the office tower," Kuhn said.

Dave Theophilus, an Orlandobased hotel consultant, said such a hotel's success would depend on the quality of downtown's existing inventory once Kuhn is ready to build.

Theophilus was involved in evaluating prospects for the Westin Grand Bohemian Hotel before it was built in downtown Orlando. It opened in April 200 1.

"The perception [at the time] was there was no need for additional rooms, but there was demand for a high-end hotel," he said. "That hotel has done very well."

Kuhn's proposed development at Orange and Washington would include a 10-story, 2,300-space parking garage; 155,000 square feet of retail; and 400,000 square feet of offices.

Work will start immediately on converting the former J.C. Penny Building at Jefferson and Orange and incorporating it into the larger development, Kuhn said.

The second and third phases -the parking garage and development of the other retail, including most of the
frontage along Orange Avenue - would start in 2006. The office tower and hotel could start in 2007, he said.

Kuhn said a Miami developer has land under option west of the second project for a residential condominium tower. If that comes to pass, he would like the two projects to be linked with a skybridge over the CSX railroad tracks that divide the properties.

About Kuhn Companies

Customer service is truly important to us and we strive daily to make sure each building and every space is perfect for our tenants and their guests. Kuhn Management has been adding to the development of Orlando for the last twelve years by purchasing old, rundown properties and turning them into unique buildings with distinct personalities.

Our goal is to create spaces that allow our tenants to be successful by creating an atmosphere that allows them to focus on their businesses without worrying about the buildings.