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Sarasota veterinarian Dr. Wendy Ellis has conquered fears of big expenses in a recession plenty of times.
Just a few years ago, for instance, Ellis spent $110,000 on a digital imaging machine for her practice, Sarasota Veterinary Emergency Hospital.
The machine gives her an edge over competitors because most animal hospitals in the area don't have one. It also simplifies diagnosis and treatment procedures.
“The images you get are awesome,” says Ellis. “It's a huge difference between the old films.”
Ellis recently committed to an even bigger expense. This time, she bought a building for the hospital. For the purchase and the build-out costs, it's at least a $1.4 million investment. “It wasn't something we sought out,” says Ellis. “It just kind of fell into our laps.”
Modesty aside, Ellis' purchase is a small step in what could be a long-term project on the Gulf Coast: creative reuse of commercial real estate properties that might otherwise fall into decay, given the high ratios of defaults and foreclosures.
There are several other notable reuse projects on the Gulf Coast that are either in the planning or execution stages. In the Sarasota-Bradenton market, those include a Sonic fast-food restaurant in east Manatee County that will be transformed into a JPMorgan Chase Bank branch; a 9,500-square-foot office building in Sarasota that will be turned into a Buddhist temple; and a Lone Star Steakhouse restaurant bought by discount grocery store chain Aldi USA for a supermarket location. (See related stories on the following pages for other examples.)
Ellis, admittedly, isn't a real estate mogul, and she has no aspirations to change careers. A graduate of the University of Georgia College of Veterinary Medicine, Ellis has been a veterinarian for nine years.
Ellis bought the Sarasota Veterinary Emergency Hospital in November 2006. The practice is in a small strip mall off of U.S. 41 in an area of Sarasota that's surrounded by car dealerships and furniture stores. It's about halfway between the two biggest malls in Sarasota.
But the location, which is leased, was a sore point for Ellis. Signage was poor and many people passed by it before they realized it. Given that many clients are harried due to pet emergencies, that made the location even worse.
Still, Ellis says buying a building didn't seem like something she could afford. She also had spent a considerable amount of money on the current space, from new cabinets to installing TVs in exam rooms.
Ellis moved ahead nonetheless. Several factors were key. One, the building, a 16,249-square-foot retail center, was under foreclosure, which took down the price considerably. The building is across the street from the current location.
Second, Ellis obtained an SBA loan through Venice-based Florida Shores Bank at less than 6% interest, which was a nice nudge. Ellis paid $975,000 for the building and expects to pay at least $400,000 on a renovation project.
Finally, a chance for Ellis to improve the visibility for clients and potential future clients was too good to pass up. The new building faces U.S. 41, instead of being just off of it. “What you see on the outside,” says Ellis, “sometimes sets the tone for what's inside.”
The building was built in 1978. It previously housed a PatioAmerica store and Murphy Bed Sarasota.
A yarn store has since replaced Murphy Bed Sarasota and the veterinary hospital will take over the two-story PatioAmerica space. Innovative Design Solutions will continue to occupy space in the center.
The Sarasota Veterinary Emergency Hospital will grow from 3,000 square feet to 8,000 square feet when the build-out project is completed. Ellis hired Lakewood Ranch-based Tom Wessel Construction Corp. for the project, which includes inside and outside work. The roof will also be replaced.
The building purchase gives Ellis one final opportunity. Now she can provide even more specialty procedures, including optomology, dermatology and veterinary dentistry. “We didn't expect to move,” says Ellis, “but now we can add a lot of services.”
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