Commercial Real Estate Briefs

By Business Observer Staff
| 6:00 p.m. April 11, 2008
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Manatee-Sarasota

by Sean Roth | Real Estate Editor

SARASOTA-MANATEE

Key Club unveils $500 million project

The Longboat Key Club and Resort unveiled plans for a $500-million investment on its southernmost Islandside property that would include a 222-room luxury hotel, 261 condominiums in two, 10-story buildings, a resort meeting center, wellness center and spa and a Rees Jones-designed golf course.

Key Club and Resort General Manager Michael Welly says the project would place the club on the same level as the prestigious Ocean Reef Club in Key Largo and The Boca Raton Resort & Club.

The plans would completely transform Longboat Club Road once guests and residents drive through the Islandside gatehouse.

The club's new plans were unveiled three years after the town of Longboat Key rejected plans for Ca d'Cuore, a $20 million project that would have constructed 20 luxury residences and villas on the south side of Longboat Club Road across from Lighthouse Point.

In its revised plans, the Key Club and Resort hopes to obtain approvals before year-end from the Town Commission. Construction would begin in early 2009 on an 18-hole golf course designed by Rees Jones; a new golf clubhouse, pro shop, wellness center and Villas on the Pass, 30 new residences on the Islandside waterfront.

"The $6 million golf course will be the most important part of this project to many people," Welly says.

In the summer of 2010, the club hopes to replace the Unit 500 Inn on the Beach Condominium and Reception Building. It would include a new restaurant, lounge, meeting rooms and 12 condominium residences.

The third phase of the project calls for development of 168 golf club condominium residences that would begin construction in 2011. Welly says these residences would be housed in two 10-story buildings in an area near the existing Islandside clubhouse and Spike 'n' Tee restaurant.

And finally, construction of the Inn on the Pass Hotel would begin in early 2012, bringing 222 new hotel rooms and 51 new condominium residences to Islandside. The hotel also is expected to be 10 stories. A new resort administration building and resort meeting center (with 28,000 square feet) would also begin construction at that time.

"The hotel brings tourism to the island and puts people in our restaurants and spas," Welly says. "This project is exciting to me in total because each part supports another part."

Welly says the hotel will be targeted at attracting 70% of its occupancy for meeting groups. The Inn on the Beach currently draws a 70% leisure base. Financing for the hotel project will hinge in part on the sales of the condominiums.

Welly says the combination of aging facilities, which were built in the 1980s, and increased competition from other resort properties spurred the club and resort's new vision.

"It's a very well-designed plan that can raise the clientele on Longboat and raise island property values," says Jay Tallman, president and owner of Sarasota-based U.S. Assets Group. Tallman has been retained as a consultant. His firm is known for developing such local projects as the Orchid Beach condominium on Lido Key, Beau Ciel condominium in downtown Sarasota and the Founders Club in east Sarasota.

The proposed facilities in the plans fall within the authority of the town to approve as part of the club and resort's original planned unit development (PUD). No referendum is necessary, but permission is needed from the commission to alter the use of the property.

The club will have to show why increasing residential and commercial use of the property, while reducing open space, will be in the public's interest.

- by Kurt Schultheis, contributor

Starr joins Siesta Plaza,

plans redevelopment

BUYER: Beach Club at Siesta Development LLC (principals: Elliot Foo, Robert Rynard and Larry Starr), Longboat Key

SELLER: Siesta Plaza Investors LLC

PROPERTY: 1120 Sun 'N Sea Drive and 6732 Sarasea Circle, Siesta Key

PRICE: $6.77 million

PREVIOUS PRICE: $7.02 million, November 2005

LAW FIRM ON DEED: Rosenberg Marasco PL, Lakewood Ranch

PLANS, DESCRIPTION: Siesta Plaza Motel & Apartments owners Elliot Foo of Rochester, N.Y., and Robert Rynard of Indianapolis sold the property to a company they share with local hospitality entrepreneur Larry Starr for $6.77 million.

The new partnership, which is being spearheaded locally by Starr, calls for a total overhaul of the '70s era Siesta Key motel. Starr plans to gut the 25,000-square foot, five building motel complex and create a 29-unit motel of mainly two-bedroom, two bathrooms units.

"When we're done the engineers will be able sign off on these buildings as brand new," Starr says. "We are looking at all of the components from the roof to the swimming pool, drive way and plumbing system. We should start in the next couple weeks. We have all our plans and engineering done now we are just waiting for the final permit from the county."

The motel will also feature two swimming pools, a hot tub, family area with bochy ball and barbeque grills and shuffle board courts. Sarasota Construction will be the general contractor for the renovation, and CSM Design is the architect.

Following the construction work, the motel units will be sold off as fractional. ResortQuest International will manage the property and will rent out unused time at the request of a fractional owner. The new ownership will also partner with the timeshare exchange firm Interval International, which lets fractional owners trade their units for time at other vacation properties.

"It was really when the Hyatt announced their project on Siesta Key that I got most interested [in this type of a project,]" Starr says. "The Hyatt offers a nice fractional product for the affluent buyer. We're working to bring a very high-end product that everyone can afford to participate in."

The one-month fractional are being marketed from $50,000 to $100,000.

The new ownership of the Siesta Plaza Motel mortgaged the property to Orion Bank for $12.6 million.

Etc...

•with pic

DeAngelis Diamond Construction Inc. has started construction on the 144-room Hyatt Place Hotel at 950 University Parkway in Sarasota. The project is scheduled to cost $9.5 million, and completion is scheduled for early 2009.

• Coldwell Banker Residential Real Estate Florida has reached an affiliation with longtime auction house Daniel DeCaro Real Estate Auctions.

• Baltimore-based Aerotek Inc. leased 2,500 square feet at 5255 Office Park Blvd., Bradenton in Gap Creek Office Park from Gates Creek Developers LLP. The new location on State Road 70 will serve as a branch office for a commercial staffing operation. Bob Brillon of Thomason/Brillon Interests represented the landlord, and Christopher Leonard of Colliers Arnold Clearwater represented the tenant.

• Snavely Siesta Associates LLC, the owner of the Summer Cove on Siesta, plans to develop five bayside boat slips that will give Summer Cove residents boat access to Sarasota Bay and the Gulf. Construction will begin in April, with a scheduled completion in July.

Summer Cove features 45 three- and four-bedroom residences, ranging from 2,100 to 3,800 square feet. The historic Summerhouse building serves as the clubhouse to the community. Residences are priced from the low $1 millions.

• Chemical manufacturer and distributor JCI Jones Chemicals Inc. leased 9,738 square feet for its corporate headquarters in the Sarasota City Center, a property owned and managed by the Osprey family of companies.

• Hawkins Construction Inc. awarded Fort Myers-based Eagle Concrete Systems a contract to complete the structural concrete and masonry systems for the Synovus Bank and Tire Choice at 5853 Derek Ave. in Sarasota. Eagle Concrete Systems began the concrete work on the new facilities in February. Eagle will provide concrete pads, footing, slab, CMU walls and tie beams for both the 3,800-square-foot Tire Choice and the 3,670-square-foot Synovus Bank.

• with rendering

Construction continues on Willis A. Smith Construction's new corporate headquarters at 5001 Lakewood Ranch Blvd., Lakewood Ranch. Officials with Willis Smith attribute the need for the new building to added construction work and the company's rapidly growing staff. Lawson Group Inc. designed the planned green facility.

The building is scheduled for completion in September or October. The facility features two, 3,000-gallon underground cistern that will be used to store rain water to flush its toilets. There will also be non-CFC and energy-efficient HVAC system and insulated windows installed throughout the building. Insulating concrete forms are also being used because of their additional energy saving properties.

• The Out-of-Door Academy has announced plans for a multi-million dollar, 25,000-square-foot Performing and Visual Arts Center with black-box theater and other improvements to the academy's existing facilities. The improvements will also include additional classroom space, an expansion of the Petrik Thunderdome and a renovation of its campus on Siesta Key. The Out-of-Door Academy operates on two campuses, with the Siesta Key campus serving children pre-kindergarten through sixth grade, and the Lakewood Ranch Campus serving children seventh through 12th grades.

• Willis A. Smith Construction, Inc. has been awarded the expansion and renovation of Faith Lutheran Church, at 7750 Beneva Road, Sarasota. Phase one of the construction features a 26,000-square-foot two-story multi-purpose building with a new hall, classrooms, a gymnasium, and a kitchen. Older classrooms will be demolished to make way for the new hall. Phase two calls for Willis A. Smith to renovate and expand the existing fellowship center. The final phase will expand the existing sanctuary. The three-part renovation will more than double the building's current square footage from 13,000 square feet to 28,000 square feet.

• Just Steel Inc. of Sarasota and Bennett Contracting Inc. of Bradenton have retained Diversified Construction Safety Inc. to provide safety services for their commercial construction projects. DCS Inc. is a Sarasota-based construction safety-consulting firm.

LEE-COLLIER

Kent Technologies Lighting and Signaling closes on storage site

BUYER: Kent MCE LLC (Richard Kent, Larry Lippert and Frank Mambuca), Naples

SELLER: Mid-Continent Electric Inc.

PROPERTY: 1055 Power St., Naples

PRICE: $1 million

PREVIOUS PRICE: $170,000, September 1996

TITLE FIRM ON DEED: Midwest Title Guarantee Co. of Florida LLC, Naples

PLANS, DESCRIPTION: Kent Technologies Lighting and Signaling in Naples purchased an acre of land zoned for heavy industrial uses on Power Street next to the company's existing building for $1 million.

"We have been working through buying that property from Mid-Continent Electric since 2006," says Joshua Lippert, CFO for Kent Technologies. "There were a bunch of stipulations that needed to happen for the sale, such as dealing with the cleanup of the site. A lot of it was just paper work and due diligence. We have actually occupied and operated on the site since 2006. But 18 months later all of those things have happened so we were finally able to close on the title for the property."

The Power Street property serves as outdoor storage, equipment repair and staging space for the main building, which is located at 4586 Progress Ave. Kent Technologies, which assembles and installs traffic signals and streetlights, is in the process of fencing off the acre site.

Lee County buys

Fiddlestick property

BUYER: Lee County

SELLER: AM Development LLP

PROPERTY: 13801 Fiddlestick Blvd., Fort Myers

PRICE: $3.44 million

PREVIOUS PRICE: $1.75 million, September 2005

LAW FIRM ON DEED: Duncan & Tardif PA, Fort Myers

PLANS, DESCRIPTION: Lee County government purchased a 10- acre vacant commercial parcel on Fiddlestick Boulevard near State Road 865 and Indian Pony Drive for $3.44 million.

The site has been designated either for the future expansion of Three Oaks Parkway from Alico Road to Daniels Parkway or as a retention pond, according to Roberts Clemens, Lee County's land acquisition manager.

Northeastern investment group

buys land for Pollo Tropical

BUYER: Kelvin Florida LLC (Terry Moss), Bellevue, Wash.

SELLER: Guy Fracasso and David Stevens as tenants in common

PROPERTY: 3777 Tamiami Trail E., Naples

PRICE: $1.35 million

PREVIOUS PRICE: $850,000, December 2006

LAW FIRM ON DEED: Goodlette Coleman Johnson Yovanovich & Koester PA, Naples

PLANS, DESCRIPTION: An investment group led by Terry Moss, president of the Bellevue, Wash.-based real estate brokerage Commercial Realty Group, purchased an acre outparcel fronting U.S. 41 for $1.35 million. The property has already been transferred to Miami-based Pollo Operations in a land lease for Pollo Operations to develop a Pollo Tropical restaurant.

"For us it's just a passive investment," Moss says. "They're expected to open in the next 90 days. It's a 20-year absolute net lease, so they only thing we're responsible for is collecting the rent and paying the mortgage." The new Pollo Tropical 3,285-square-foot restaurant building will have an interior dinning room with 76 seats and another 20 seats on an exterior patio.

Commercial Realty Group focuses almost exclusively on commercial retail transactions in the Pacific Northwest.

Last month, the Latin/Caribbean-style restaurant chain Pollo Tropical opened its first restaurant in Plant City at 238 W. Alexander St. That restaurant marked the chains' fourth location in the Tampa Bay area. The chain operates in Florida, New Jersey, Puerto Rico and Ecuador.

Santa Ana investors

buy Colonial Bank building

BUYER: ColonialEstero LLC, Santa Ana, Calif.

SELLER: CB-FL Vault Estero LLC

PROPERTY: 8660 Corkscrew Road, Estero

PRICE: $2.23 million

PREVIOUS PRICE: $1.99 million, December 2007

LAW FIRM ON DEED: Hunton & Williams LLP, Dallas

PLANS, DESCRIPTION: An investment group headed by Santa Ana, Calif., businessman Tracy Pulliam purchased a 5,700-square-foot Colonial Bank branch in Estero for $2.23 million.

"This is just an investment for us," Pulliam says. "Colonial Bank has agreed to stay there for a good long time - 15 years at least."

Etc...

• Nordstrom Inc. has leased 16,000 square feet of space at 12600 Westlinks Drive in Fort Myers from Westgate Associates of SW Florida LLC. Doris Taylor of CB Richard Ellis, Fort Myers-Naples represented the tenant, and McGarvey Development Co. represented the landlord.

• U.S. Installation Group Inc. leased 4,800 square feet of space in the Eastlinks Business Park, Building II 12621 Corporate Lakes Drive in Fort Myers from Westlinks East Associates LLC. Bob Johnston, Jerry Messonnier, Derek Bornhorst and Mary Pepin, all of CB Richard Ellis, Fort Myers-Naples represented the tenant, and Matt Price with McGarvey Development represented the landlord.

• Colonial Bank opened its newest office in Naples at 3580 Pine Ridge Road. The new office is Colonial Bank's fifth location in Collier County. The 3,617-square-foot office features four drive-thru service lanes and an ATM lane. Owen-Ames-Kimball Co. was the general contactor for the new banking office. Colonial Bank is a division of the Montgomery, Ala.-based Colonial BancGroup Inc.

• Taylor-Pansing Inc. has started construction on Faith Presbyterian Church Phase I at 4544 Coronado Parkway, Cape Coral. The first phase of the development calls for a 17,520-square-foot Christian life center and a new maintenance facility. The project is scheduled for completion in January.

• Taylor-Pansing Inc. completed construction on the Del Prado Land Group Medical Building Project. The seven-unit, 13,800-square-foot development at 126 Del Prado Blvd. N. in Cape Coral was built for five doctors. The facility includes a CAT scan imaging unit and an additional unit for lease.

• Radno Investment Holdings LLC purchased a 1.5-acre parcel at 3610 Shaw Blvd., Naples from Naples Properties for $675,879. William V. Gonnering of Investment Properties Corp. negotiated the transaction.

• Napco Construction, a division of Napco Cos., has broken ground on a new Tuffy Automotive Center in the Mission Hills Shopping Center in Naples at the intersection of Collier Boulevard and Vanderbilt Beach Road. Site work is underway for the 5,090-square-foot store and completion is scheduled for June. Napco Construction provides general contracting, construction management and design-build services.

• Fort Myers-based J.L. Wallace Inc. has been awarded a contract to build a 4,279-square-foot SunTrust Bank at Gulf Coast Town Center at 17100 Ben Hill Griffin Parkway in Fort Myers. Construction is scheduled to begin in early March, and the project is slated for completion in July. Robert Reid Wedding Architects & Planners Inc. provided architectural design services.

• Stevens Construction Inc. has completed renovation of the Land Solutions office building at 4571 Colonial Blvd, Fort Myers. Renovation of the 14,960-square-foot building included a redesign of the existing interior space into three tenant spaces. Burt Hill/Pollock Kreig Architects Inc. designed the project.

• City-Tel Communications leased 2,400 square feet of office space at 7995 Mercantile St., Fort Myers from Eugene and Elinore Greuling with John Kremski, Todd Holman, and Honorà Jacobus of Gates D'Alessandro & Woodyard negotiated the transaction.

• Dr. Tracye Zlobl leased 2,378 square feet of office space at 201 8th St. S. from Baker Center North Joint Venture. Patrick Fraley of Investment Properties Corp. negotiated the transaction.

• Florida Department of Children and Families Division leased 3,360 square feet of office space in the Lakewood Plaza at 4215 Tamiami Trail E.

TAMPA BAY

Heritage Golf Group buys TPC Tampa Bay

BUYER: Heritage Golf Tampa Bay LLC (principals: James Husband, Andrew Crosson and Gary Dee), San Diego

SELLER: Tournament Players Club At Cheval

PROPERTY: 5300 W. Lutz Fern Road, Tampa

PRICE: $5.52 million

PREVIOUS PRICE: $1.75 million, April 1994

LAW FIRM ON DEED: Rogers Towers PA, Jacksonville

PLANS, DESCRIPTION: San Diego-based Heritage Golf Group purchased TPC Tampa Bay from the PGA Tour for $5.52 million.

TPC Tampa Bay is the fifth TPC property to join the Heritage Collection of clubs as part of a strategic alliance between the PGA Tour and Heritage Golf Group. TPC Tampa Bay will be owned and managed by HGG, but will continue to operate under the TPC brand through a license agreement.

Bobby Weed designed the 18-hole TPC Tampa Bay course along with Chi Chi Rodriguez as player consultant. TPC Tampa Bay also features the restaurant The Grill Room, a golf shop and target, putting and chipping greens.

"Our strategic alliance with Heritage Golf Group is a logical extension of our efforts to provide PGA Tour experiences for our members and guests," David Pillsbury, president of PGA Tour Golf Course Properties, said in a press release announcing the deal. "By harnessing the natural synergies between our companies, we can deliver a better, more valuable golf experience for our collective members and guests. This alliance represents a significant step towards making this unprecedented strategy a reality. We are confident the transition of TPC Tampa Bay to Heritage Golf Group will be seamless for members and guests."

Heritage Golf Group, led by Bob Husband, owns 17 golf courses, according to its Web site, including The Legacy Club at Alaqua Lakes in Orlando, TPC Eagle Trace in Ft. Lauderdale, TPC Prestancia in Sarasota and Weston Hills Country Club in Ft. Lauderdale.

Heritage Golf Group's purchase entity Heritage Golf Tampa Bay LLC mortgaged the course to Textron Financial for $6.39 million.

Lindell Properties kicks

off Wilderness Commons

BUYER: Wilderness Commons Commercial Center Inc. (Carl Lindell Jr. and Ron and Jack Weisser), Tampa

SELLER: Land O' Lakes Commercial Center

PROPERTY: 7016 Land O'Lakes Blvd., unit 101, Land O'Lakes and additional land known as phase I, tract 1, Wilderness Lake Preserve

PRICE: $4 million

LAW FIRM ON DEED: Lindell & Farson PA, Jacksonville

PLANS, DESCRIPTION: The Tampa-based development firm Lindell Properties transferred two planned retail developments in its residential community Wilderness Lake Preserve to another company it owns as part of its gear-up to development of the two Wilderness Commons projects.

The development company has already started construction on the first retail piece Wilderness Commons South, a 25,000-square-foot retail strip center with a covered breezeway and a bank site. At the same time, the developer is still in the design process on Wilderness Commons North, which will feature 25,000 square feet of retail/medical office space and a separate 15,000-square-foot day-care outparcel.

Tenants in Wilderness Commons South will include Beef O'Brady's, Smoothies King and Papa Jones. The center is scheduled to open in mid-summer.

Construction on the northern retail/office center is planned for summer or early fall, and completion would likely occur sometime in the first quarter.

"This is all going to be themed retail designed to fit in with the rest of the community," says Jack Weisser, a principal with Lindell Properties. "With a theme like Wilderness it will feature [visible] beams, logs, stone and wood. This is not going to be the typical highway frontage retail development."

Separately, Lindell Properties recently announced plans to develop the mixed-use project Independence Park with hotel, retail, office and residential space adjacent to Tampa International Airport.

Chuck's Natural Food owner buys Brandon center

BUYER: Health Minded Ventures LLC (principal: Chuck Homuth), Brandon

SELLER: Pierce & Hilda Christie Family

PROPERTY: 118 N. King Ave., Brandon

PRICE: $1.5 million

PREVIOUS PRICE: $1.73 million, October 1997

LAW FIRM ON DEED: Neil S. Schecht PA, Tampa

PLANS, DESCRIPTION: Chuck Homuth, owner of Chuck's Natural Food Marketplace, purchased the 12,000-square-foot retail strip center that houses his 7,000-square-foot Brandon store for $1.5 million.

"We're planning to add an extra 3,000 square feet [to the store]," Homuth says. "We've been in the center for the past 10 years. Awhile back I told the old owner that I would like the first shot to buy the center when he decided to sell. It wasn't until the last year or so that he decided to sell. Most of the center has been vacant since last June."

The new ownership plans to market the remaining 2,000 square feet for lease for $15 a square foot plus a portion of the property taxes.

Homuth owns a second 6,400-square-foot Chuck's Natural Food Marketplace at 11301 N. 56th St. in Temple Terrace.

Health Minded Ventures LLC, the purchase entity headed by Homuth, mortgaged the retail center to Valrico State Bank for $1.2 million.

Etc...

• Bill Eshenbaugh and Ryan Sampson of Eshenbaugh Land Co. have been appointed to handle the sales of commercial sites at The Marketplace at Apollo Beach. The project consists of five parcels of one to four acres and is approved for up to 40,000 square feet of business-professional space and 84,000 square feet of general commercial space and is located on U.S. 41 south of Apollo Beach Boulevard. Eshenbaugh is president of Eshenbaugh Land Co. in Tampa.

• Crescent Resources LLC, a commercial developer joint venture of Duke Energy and Morgan Stanley Real Estate Fund, plans to start construction on 300 apartment units this summer in Crosstown Center, a 260-acre mixed-use development the company is developing near the Lee Roy Selmon Expressway, U.S. 301 and Falkenburg Road in Brandon. Monthly rents will range from $905, and the first apartment units will open in January. Apartments will range in size from 782 to 1,563 square feet.

• Creative Contractors has completed construction of the new Treasure Island Tennis and Yacht Club in Pinellas County. The design-built project was developed in conjunction with FleischmanGarcia Architects of Tampa. The new $7.1-million club is 30,000 square feet and features a fitness center, banquet facilities, spa, massage area and a dining area.

• Closed for 28 months because of hurricane damage from Jeanne, the former Holiday Inn Treasure Island has re-opened as the expanded Residence Inn by Marriott St. Petersburg /Treasure Island Beach. The multi-million dollar renovation included the entire property from its guestrooms and suites to its public space and pool areas.