BUYER: Alico West Fund LLC (principal: OJ Buigas), Fort Myers
SELLER: Alico-Agri Ltd.
PROPERTY: 11840 Alico Road and a portion of College Club Drive, Fort Myers
PRICE: $7 million
PREVIOUS PRICE: $16.07 million, April 2003 (multiple parcels)
LAW FIRM ON DEED: Henderson Franklin Starnes & Holt PA, Fort Myers
PLANS, DESCRIPTION: Fort Myers-based private equity fund Private Equity Group LLC agreed to buy 5,187 acres of vacant land in Lee County from Alico-Agri Ltd., a subsidiary of Alico Inc. for $10 million.
The price equated to $1,928 per acre.
The firm has already purchased its first portion of the property for $7 million and the remainder will close Oct. 3.
The acquisition is one of the largest land purchases in the county.
Bounded on the west by Florida Gulf Coast University and Miromar Outlets, the property extends north to Alico Road and the Southwest Florida International Airport.
Alico says it was interested in selling the property because of the complexities and length of time required to entitle the property.
“The decision to sell the property was difficult given its proximity to Florida Gulf Coast University and Alico's historical role in the establishment of the university and partnering with FGCU on many projects,” JD Alexander, Alico's president and CEO, says in a press release. “However, we believe that OJ Buigas and his team at PEG will also be a great partner with FGCU. Alico will derive significant tax benefits from the sale, and the cash flow will provide us the opportunity to potentially reduce our net debt position to approximately $20 million by our fiscal year end.”
Founded in 1986, Private Equity Group has developing more than 14,000 acres in Florida. The company has completed more than $2 billion in real estate sales. It also has built more than 8,000 residential homes and 16 shopping centers with more than 1 million square feet of leasing space.
Alico owns and manages 130,300 acres in Collier, Glades, Hendry, Lee and Polk counties.