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Condo Craze
Lee-Collier Top 10
If Gulf Coast construction companies were seeking a savior in the supposed real estate slowdown, they found one. In a word: Condos.
Condominiums projects, some mixed in with office and retail, are the lifeline of the industry. Form Naples to Tampa, a majority of the top projects have some connection to condos.
Business is so good at some places, work is being turned down as if this was the go-go days of say, 2003. But as in all good times, there are cautionary tales and trends to watch out for. One theme that keeps cropping up in interviews with contractors, builders and developers is a lack of qualified workers. That leads to some companies not taking on jobs or taking longer to finish projects. One of Sarasota's largest masonry contractors said he has to turn down eight out of ten bids because he doesn't have the staff.
The high cost of products and materials is taking a toll on the industry, too.
While attitudes differ in each region, the general consensus is that times are still good. Here's a glimpse into three Gulf Coast regions.
Lee-Collier
In Lee and Collier counties, seven of the top ten construction projects that started in 2005 were condominium developments. What's more, just three firms had a lock on the top 10 projects: BBL Florida, Boran Craig Barber Engel and Kraft Construction.
Building residential high-rise towers takes considerable expertise and only a few Southwest Florida-based firms can handle the complexity of these projects. For example, building a tower in downtown Sarasota or Fort Myers takes special logistics because of traffic and cramped quarters. There's limited space for parking, storage and even the movement of cranes.
In addition, construction companies have to satisfy the developer as well as the individual condo buyers, says Fred Pezeshkan, president and chief executive officer of Naples-based Kraft Construction. That means a company like Kraft has to satisfy about 150 customers every time it builds a tower. "That creates lots of challenges," he says.
The key is to have experienced construction managers who can juggle multiple the multiple issues that arise. It's also critical to plan and communicate effectively, Pezeshkan says.
In addition to the high-rise towers, another notable groundbreaking was the start of the sprawling Ave Maria complex. The 5,000-acre joint venture between Barron Collier Cos. and Domino's Pizza founder Thomas Monaghan will include a Catholic University, 11,000 homes and a town center with shops, condos and offices.
If 2005 was the year of the high-rise condo, what might 2006 bring to the Greater Naples and Fort Myers areas?
More high-rise towers, predicts Pezeshkan. "If you look at Southwest Florida and what we have on our books in the next 12 months, we have not seen anything that indicates it's going to slow," he says. Still, he says the strength of the market will be evident by the end of the busy selling season in April and May.
Meanwhile, Pezeshkan and other builders say government and school construction are likely to be strong this year because of the continued population growth in Southwest Florida. Plus, low office-vacancy rates under 5% in areas such as Fort Myers will spur development of new office buildings.
Top 10
1. St. Tropez
Site: 2745 First St., Fort Myers
Estimated construction value: $99 million
Start date: Sept. 1, 2005
Estimated completion: June 2007
General contractor: Boran Craig Barber Engel Construction
Owner: Homes for America
Details: The St. Tropez is a 150-unit condominium tower rising along the Caloosahatchee River in downtown Fort Myers. It's part of a two-tower project by Yonkers, N.Y.-based Homes for America that includes another 150-unit tower called Riviera. St. Tropez units sold out in the $300,000 to $700,000 price range for condos that ranged in size from 1,200 square feet to 2,000 square feet. Amenities include a social room overlooking the river, guest suites, wine storage facilities, a pool, tennis courts and a fitness room.
2. North Star Yacht Club
Site: 3414 Hancock Bridge Parkway N., North Fort Myers
Estimated construction value: $96 million
Start date: October 2005
Estimated completion: May 2007
General contractor: BBL Florida
Owner: CR Hancock Bridge LLC
Details: North Star Yacht Club is a 170-unit condominium project on 12 acres along the Caloosahatchee River in North Fort Myers. Buyers have signed contracts to buy 110 condos, ranging in price from about $720,000 to $1.9 million. The development also includes 57 boat slips, which residents will be able to lease for 20 years from $40,000 to $60,000 per slip. The developer, an affiliate of Baltimore-based Continental Realty Corp., also plans to build a marina on the site. Amenities include a 15,000-square-foot clubhouse, a business center, a pool with 16 private cabanas equipped with kitchenettes and showers and a fitness center that includes an aerobics room.
3. Jasmine Bay
Site: 4751 West Bay Blvd., Estero
Estimated construction value: $79 million
Start date: July 18, 2005
Estimated completion: August 2007
General contractor: Kraft Construction
Owner: Water's Edge Development LLC and Indian Hill Partners Inc.
Details: Jasmine Bay consists of two 20-story condominium towers, each containing 100 residences at West Bay Club, a development west of U.S. 41 on Williams Road in Estero. About 75% of the condos have been sold, at prices ranging from $691,000 to $1 million. The units range in size from 1,766 to 4,131 square feet. Amenities in each tower include guest suites, fitness rooms, card rooms and clubrooms with a kitchen and a bar. Both towers share a pool and spa.
4. Esperia South at Bonita Bay
Site: 4951 Bonita Bay Blvd., Bonita Springs
Estimated construction value: $65 million
Start date: December 2005
Estimated completion: December 2007
General contractor: Boran Craig Barber Engel
Owner: The Lutgert Cos.
Details: Esperia South is a 27-story condominium tower that is the fifth of eight buildings planned along Estero Bay. About 70% of its 119 residences have been sold, ranging in price from $796,000 to more than $1.9 million. The units range in size from 2,020 to 3,430 square feet of living space. Amenities include a heated lagoon-style pool with a lap lane, a clubroom with a bar and catering kitchen, an 11-seat movie theater and guest suites.
5. Florencia
Site: 23850 Via Italia Circle, Bonita Springs
Estimated construction value: $60 million
Start date: September 2005
Estimated completion: Fourth quarter 2007
General contractor: Kraft Construction
Owner: WCI Communities
Details: Florencia is a 21-story condominium tower overlooking the Gulf of Mexico at The Colony Golf & Bay Club in Estero. Prices for the 117 condos range from $850,000 to more than $1 million and sizes range from 2,430 to 3,268 square feet. Amenities include a fitness room, social room, grand salon and movie theater.
6. Lesina
Site: 1050 Borghese Lane, Naples
Estimated construction value: $54 million
Start date: May 2005
Estimated completion: May 2007
General contractor: Boran Craig Barber Engel
Owner: WCI Communities
Details: Lesina is a 20-story condominium tower under construction at Hammock Bay, which overlooks Ten Thousand Island and McIlvane Bay, south of Naples. The 116 condos range in price from $865,000 to more than $1 million and range from 2,333 to 2,878 square feet. Amenities include a movie theater, fitness center, billiards room, guest suites and a pool.
7. Ave Maria Town
Site: 525 S. 9th St., Immokalee
Estimated construction value: $50 million
Start date: December 2005
Estimated completion: Spring 2007
General contractor: Opus South
Owner: Ave Maria Development LLP
Details: Opus South has started construction on six buildings totaling 300,000 square feet at Ave Maria, the new 5,000-acre town planned by Barron Collier Cos. in eastern Collier County. The buildings will have shops on the ground floor and a total of 70 condominiums in five of the buildings. Condo prices will range from $350,000 to $675,000. The sixth building will have 25,000 square feet of office space above shops. The new town will adjoin Ave Maria University, which has been funded initially with a $250 million gift from Domino's Pizza founder Thomas Monaghan. In addition to a town center, the town has room for 11,000 homes, including 8,000 Pulte Homes the company hopes to build.
8. NCH North Collier Campus
Site: 11190 Health Park Blvd., Naples
Estimated construction value: $35 million
Start date: February 2005
Estimated completion: October 2006
General contractor: Kraft Construction
Owner: NCH Healthcare System
Details: NCH Healthcare System is expanding its North Collier hospital with a six-story building that will add 211 beds. The hospital off of Immokalee Road in Naples is an acute-care facility that serves patients in north Collier and south Lee counties. The hospital provides a range of services, including cardiac rehabilitation, general medicine, obstetrics, pediatrics, surgery and diagnostics.
9. Marina South at Cape Harbour
Site: 5781 Cape Harbour Drive, Cape Coral
Estimated construction value: $28 million
Start date: July 2005
Estimated completion: Spring 2007
General contractor: Kraft construction
Owner: Realmark Development
Details: Realmark started building the second of two condominium towers in Cape Coral in 2005; it sold out of all its units last spring. The two buildings each contain 110 condos over four levels of parking. Prices ranged from $350,000 to $800,000 for condos that ranged from 1,251 to 1,798 square feet of living space. Amenities include a clubhouse with a pool and exercise room along with a promenade that will feature 20 shops and restaurants. The first building will be completed in July and the second building will be finished in spring, 2007.
10. Villas Escalante
Site: 260 Fifth Ave. South, Naples
Estimated construction value: $25 million
Start date: July 2005
Estimated completion: November 2006
General contractor: D. Garrett Construction
Owner: FL-3, a subsidiary of Alpha-Omega Cos.
Details: The Hotel Escalante on Fifth Avenue South in downtown Naples is undergoing a conversion to 16 luxury villas. The villas sold out last year for prices ranging from $2.6 million to $2.8 million. The villas range in size from 3,000 to 3,600 square feet and feature 10-foot ceilings, marble floors and baths, granite kitchen countertops, fireplaces and private pools with gardens for six of the villas.
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