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Condo Craze
Sarasota-Manatee's Top 10 Projects from 2005
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.
Sarasota-Manatee
Construction insiders in the Sarasota area were universal in their response that the market has not slowed in any intensity and likely won't throughout the rest of the year. But many of those same people said that it is only feeding the growing problems for construction.
"The last year was almost too good of a year," says David Sessions, president of Willis A. Smith Construction Inc. "There is more of a demand on the construction industry than there is available materials and labor. This is leading to a series of challenges that these companies have never had to deal with. It is becoming more and more difficult to complete a project on time. We are having to tell clients that what might have taken 6 months before is taking 7-8 months today."
At the same time, available land in the local market continues to decline, driving construction developers to look south, north and east. Lakewood Ranch-based Halfacre Construction Co. is opening its first office in Charlotte County.
"We are focusing in on new markets," says Jack Cox, president of Halfacre. "Lots of people are looking in DeSoto, Charlotte and southern Hillsborough."
Along with repositioning geographically, Cox has also capped Halfacre's growth rate, saying he can't grow successfully without additional people. The rub is finding those qualified employees.
Richard Karp, owner of Sarasota's Advanced Masonry Systems, the region's largest masonry contractor, says that his company is doing great, citing condos and new schools, for starters. Florida's projected massive growth will be an asset if the employee base can meet the demand.
"This areas is going to need new homes, schools, new shopping, new jails and of course infrastructure," Karp says. "It goes against my nature to turn away business, but for eight out of ten invitations to bid we have to respectfully decline. There is just more demand for construction than there is qualified talent to do the construction."
Jim Easton, executive director of business development for W.G. Mills Inc., says the condominium high-rise construction in the two-county region is still in high demand.
"There is starting to be some concerns in the market," Easton says, "but we are seeing it staying strong through the next 12 to 24 months."
Easton predicts that the next big growth construction market statewide is in healthcare work.
"Medical construction was really hot in the 1980s, to the point where it became overbuilt," Easton says. "There wasn't a lot of new construction through much of the '90s and finally, with the baby-boomers starting to retire, that work is starting to pick up."
Top 10
1. Bel-Mare at Riviera Dunes
Site: 140 Riviera Dunes Way, Palmetto;
Estimated construction value: $80 million (first two towers)
$120 million (total project);
Start date: March 2005 (tower1) December 2005 (tower 2);
Estimated completion: November (tower 1) and April 2007(tower 2); General contractor: Wolverine Constructors, Detroit, Mich.;
Owner: Riviera Dunes Development Partners (Corvus International)
Details: Bel-Mare at Riviera Dunes is planned as three 15-story high-rise condominiums with 62 units in each building. The entire first building and all but five units in the second building have been sold. The property is being sold by Lifestyle Properties. Tim Morris, principal of Corvus International, says the units are being listed for more than $1 million.
Amenities in the development include a nine-acre lake, a 10-acre botanical garden, a community center with a fitness center, three swimming pools, tennis courts and a golf short-game practice area. The gated development is also next to a boardwalk and potential retail Corvus International plans to start later this year.
2. Alinari at Rosemary Place
Site: 800 N. Tamiami Trail, Sarasota
Estimated construction value: $59.6 million
Start date: Feb. 2005
Estimated completion: First quarter 2007
General contractor: Kraft Construction Co., Naples
Owner: America's Capital Partners, Miami
Details: Alinari at Rosemary Place is a 17-story, 205-unit high-rise condominium on 11-acres next to The Renaissance. The units, which run from 1,070 to 3,218 square feet, are priced from $649,000 to slightly more than $1.6 million. America's Capital Partner has hired Fort Lauderdale-based Coscan Homes as the fee-based developer to handle construction responsibilities.
The condominium tower will offer poolside cabanas, guest suites, rooftop gardens, fitness center, electronic building access, a media/screening room, a card/billiard room and tearoom, a business center and climate-controlled storage.
3. Broadway Promenade
Site: 1032 N. Tamiami Trail, Sarasota
Estimated construction value: $50 million
Start date: March 2005
Estimated completion: End 2006 early 2007
General contractor: Current Builders, Pompano Beach
Owner: Broadway Promenade Holdings LLC (RMC Property Group Inc. and RAM Real Estate)
Details: Broadway Promenade is a multi-building, mixed-use project in downtown Sarasota, across U.S. 41 from the Van Wezel Performing Arts Center. The development features a 28,000-square-foot Publix Super Market, 25,000 square feet of retail and commercial space, a new Broadway Bar and 186 condominiums. All of the condominiums have been sold.
4. Positano on the Gulf
Site: 4949 Gulf of Mexico Drive
Estimated construction value: $50 million
Start date: January 2005
Estimated completion: August 2006
General contractor: Wolverine Constructors, Detroit, Mich.
Owner: Positano LLC (Corvus International, Devlin Group and BSG Communities)
Details: Positano on the Gulf is a five-building, 29-unit condominium project being developed on 10 acres with views of the Gulf of Mexico. The development is a total of four stories: three floors of residential space over one level of parking.
Michael Saunders & Co is selling the condos. The gated project will feature a beach club with a pool and fitness area. The nine unsold units are priced from $2.5 to $4 million.
5. Westfield Sarasota Square mall
Site: 8201 S. Tamiami Trail, Sarasota
Estimated construction value: $50 million
Start date: October 2005
Estimated completion: Fall 2006 (First phase)
General contractor: VCC (Vratsinas Construction Co.), Little Rock, Ark.
Owner: Sarasota Shoppingtown LLC (Westfield Group)
Details: Australian-based Westfield Group has started construction on a $50 million construction project designed to reinvigorate the Westfield Sarasota Square mall. Among the changes planned for the mall is construction of a new 50,000-square-foot AMC 12 Theatre, two new sit-down restaurants, an expanded and relocated food court and 20 new specialty shops. The project also includes a full interior renovation that will create a family lounge area and a Venetian carousel. Westfield also plans to improve the mall's entrances and repaint the exterior. Construction is currently focused on renovating the Sears wing of the mall.
External construction is being done while the mall is open, and the interior work is being done at night. The development project has been broken into two phases, but the entire development is scheduled for completion by summer, 2007.
6. 1350 Main
Site: 1350 Main St., Sarasota
Estimated construction value: $40 million
Start date: Feb. 2005
Estimated completion: Late 2006
General contractor: Kraft Construction Co., Naples
Owner: Sarasota Main Street LLC (LB Jax Development LLC, Jacksonville and Southcoast Partners Inc., Boca Raton)
Details: This project, 1350 Main, is a 134-unit 17-story condominium development in the center of downtown Sarasota near the intersection of Main Street and Palm Avenue. The development features a club/media room, gym, pool, grill area and a guest suite. The bottom level of 1350 Main is designated as retail space.
7. Laguna At Riviera Dunes
Buildings III and IV
Site: 606-615 Riviera Dunes Way, Palmetto
Estimated construction value: $37 million (two buildings/$18-19 million per building) about $95 million (total project)
Start date: August 2005 (building 3) and October 2005 (building 4)
Estimated completion: August (building 3) and October (building 4)
General contractor: Opus South Constructors
Owner: Laguna Riviera Ventures LLC (Opus South Development LLC, Tampa)
Details: Laguna at Riviera Dunes is a five-building 210-unit mid-rise condominium development in the Palmetto community of Riviera Dunes. Each building is seven residential levels, over one-level of parking, and houses 42 units, including four penthouses. Four units in building three and 28 units in building four remain available. Units in the development range from 1,702 to 4,239 square feet and are priced from the high-$400,000s to $1.5 million. The development will feature a private clubhouse with a fitness facility and a pool.
8. Summer Cove on Siesta
Site: 6101 Midnight Pass Road, Siesta Key
Estimated construction value: $30 million
Start date: October 2005
Estimated completion: Spring 2007
General contractor: Snavely Building Co. Southeast, Chagrin Falls, Ohio
Owner: Snavely Siesta Associates LLC (Owners: Snavely Development Co.)
Details: The Summer Cove is a new 45-unit condominium development on Siesta Key surrounding the former Summerhouse restaurant. Snavely Development Co. is constructing a 10-story and a 6-story condominium and an additional parking garage structure. The Summerhouse structure is being converted into a community clubhouse, which will include a fitness facility, kitchen, meeting room and game room. According to Bryan Nichols, vice president of residential development for Snavely Development, the company currently has 31 contracts. Units, which range from 2,100 to 3,700 square feet, are priced from $1 million to more than $3 million. Michael Saunders & Co is the broker.
9. The Lake Vista Residences
Site: 7718 Lake Vista Court, Lakewood Ranch
Estimated construction value: $21 million (permit value)
Start date: August 2005
Estimated completion: January 2007
General contractor: W.G. Mills Inc.
Owner: Lake Vista Residences LLC
Details: The Lake Vista Residences is a six-building condominium complex being built in Lakewood Ranch. So far, presales have led to 123 of the 132 total units being sold. The remaining nine units, brokered by Re/Max Properties, are being listed for between $530,000 to $650,000. The development will also feature a clubhouse with workout facilities and meeting space, a pool, kitchen area and media room.
10. Meridian at the Oaks Preserve
(Towers 5 & 6)
Site: North Point Road, Osprey FL 34229
Estimated construction value: $18 million (permit value)
Start date: December 2005
Estimated completion: February 2007
General contractor: BCBE Boran Craig Barber & Engle
Owner: Oaks Meridian LTD
Details: Meridian at the Oaks Preserve is planned as a total of six high-rise condominiums. Towers 1 and 2 are 10-story buildings with 29 units; towers 3 and 4 are 10-story buildings with 31 units; and towers 5 and 6 are 8-story buildings with 19 units each. All buildings are sold out. The residential condominiums were listed by Michael Saunders & Co. Amenities in the development include a private pool with cabana and a fitness center. Additionally, with their club membership, residents will be able to use the Oaks Country Club's 36-hole golf course, clubhouse and pro shop, as well as the tennis and swim clubs.
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